MMM: Okta Q4 FY24 Earnings Results and Trends; Hims & Hers Advertising Trends

Key Takeaways:

• Okta’s 4Q FY24 EPS and revenue smashed street estimates as the company saw strength in both acquiring and retaining large customers. Sensor Tower mobile app MAUs for Okta Verify have historically correlated quite well with the company’s reported total revenue, boasting a correlation coefficient of ~1.00 from 4Q FY20 to 4Q FY24

• Pathmatics by ST data shows that Okta’s advertising strategy was geared primarily towards consumers within the business space as it allocated a higher distribution of 2023 US ad spend to LinkedIn (78%), compared to SaaS peers. ST’s Audience Insights data shows this heavy allocation of US ad spend from Okta on LinkedIn may have helped contribute to a high degree of user overlap between the two platforms, vs peers. Per ST data, 57% of US Okta Verify users opened LinkedIn in 4Q23, vs Asana (54%), Microsoft Teams (48%), monday.com (43%), Workday (39%), and Zoom (39%)

• Pathmatics by ST data shows that Hims & Hers Health increased its advertising geared towards mental health offerings in 2023, as ad spend by keywords surrounding mental health soared 600% YoY

  • The expansion into weight loss has been a rather new endeavor for the company in 2024, though US ad spend has already surged to promote this new service (determined by weight loss keywords), up ~470% MoM in Feb’24

• Through 2024 YTD, health & wellness has become the top spending category on OTT with giant corporations such as Procter & Gamble being the top advertiser on the channel. The investment in OTT started to pick up steam in 2023, as it accounted for 25% of spend across the category (only Facebook received more spend at 30%)

For more information, request the full report from reports@sensortower.com.