Okta Announces Second Quarter Fiscal Year 2025 Financial Results
Okta (NASDAQ: OKTA) reported strong financial results for Q2 FY2025, with total revenue increasing 16% year-over-year to $646 million. Subscription revenue grew 17% to $632 million. The company achieved record profitability, including GAAP profitability for the first time. Key highlights include:
- Current remaining performance obligations (cRPO) grew 13% to $1.995 billion
- Operating cash flow of $86 million and free cash flow of $78 million
- Non-GAAP operating income of $148 million, or 23% of total revenue
- Non-GAAP net income of $131 million, with diluted EPS of $0.72
Okta provided guidance for Q3 FY2025, projecting total revenue of $648-650 million and non-GAAP operating income of $118-120 million. For full-year FY2025, the company expects total revenue of $2.555-2.565 billion and non-GAAP operating income of $535-545 million.
Okta (NASDAQ: OKTA) ha riportato risultati finanziari solidi per il Q2 FY2025, con entrate totali che sono aumentate del 16% rispetto all'anno precedente, raggiungendo i 646 milioni di dollari. I ricavi da abbonamento sono cresciuti del 17% arrivando a 632 milioni di dollari. L'azienda ha raggiunto un'utile record, inclusa la redditività GAAP per la prima volta. I punti salienti includono:
- Gli obblighi di prestazione rimanenti attuali (cRPO) sono aumentati del 13% fino a 1,995 miliardi di dollari
- Flusso di cassa operativo di 86 milioni di dollari e flusso di cassa libero di 78 milioni di dollari
- Reddito operativo non-GAAP di 148 milioni di dollari, ovvero il 23% delle entrate totali
- Reddito netto non-GAAP di 131 milioni di dollari, con EPS diluito di 0,72 dollari
Okta ha fornito indicazioni per il Q3 FY2025, prevedendo un'entrata totale di 648-650 milioni di dollari e un reddito operativo non-GAAP di 118-120 milioni di dollari. Per l'intero anno FY2025, l'azienda prevede entrate totali di 2,555-2,565 miliardi di dollari e un reddito operativo non-GAAP di 535-545 milioni di dollari.
Okta (NASDAQ: OKTA) informó resultados financieros sólidos para el Q2 FY2025, con ingresos totales que aumentaron un 16% en comparación con el año anterior, alcanzando los 646 millones de dólares. Los ingresos por suscripción crecieron un 17%, alcanzando los 632 millones de dólares. La empresa logró una rentabilidad récord, incluyendo rentabilidad GAAP por primera vez. Los aspectos destacados incluyen:
- Las obligaciones de rendimiento restantes actuales (cRPO) crecieron un 13% hasta 1.995 millones de dólares
- Flujo de caja operativo de 86 millones de dólares y flujo de caja libre de 78 millones de dólares
- Ingresos operativos no-GAAP de 148 millones de dólares, o el 23% de los ingresos totales
- Ingreso neto no-GAAP de 131 millones de dólares, con un EPS diluido de 0.72 dólares
Okta proporcionó orientaciones para el Q3 FY2025, proyectando ingresos totales de 648-650 millones de dólares y un ingreso operativo no-GAAP de 118-120 millones de dólares. Para el año completo FY2025, la empresa espera ingresos totales de 2.555-2.565 millones de dólares y un ingreso operativo no-GAAP de 535-545 millones de dólares.
Okta (NASDAQ: OKTA)는 FY2025 2분기에 대한 강력한 재무 결과를 보고했으며, 총 수익이 전년 대비 16% 증가하여 6억4600만 달러에 달했습니다. 구독 수익은 17% 증가하여 6억3200만 달러에 이릅니다. 이 회사는 사상 최고 수익성을 달성했으며, GAAP 기준으로 최초로 수익성을 기록했습니다. 주요 하이라이트는 다음과 같습니다:
- 현재 잔여 성과 의무(cRPO)가 13% 증가하여 19억9500만 달러에 도달
- 운영 현금 흐름 8600만 달러, 자유 현금 흐름 7800만 달러
- 비-GAAP 운영 수익 1억4800만 달러, 즉 총 수익의 23%
- 비-GAAP 순이익 1억3100만 달러, 희석 주당 수익 0.72 달러
Okta는 FY2025 3분기 예상을 제공하며 총 수익을 6억4800만 - 6억5000만 달러, 비-GAAP 운영 수익을 1억1800만 - 1억2000만 달러로 예상합니다. FY2025 전체 연도에 대한 전망으로는 총 수익 25억5500만 - 25억6500만 달러 및 비-GAAP 운영 수익 5억3500만 - 5억4500만 달러를 예상하고 있습니다.
Okta (NASDAQ: OKTA) a rapporté de solides résultats financiers pour le deuxième trimestre de l'exercice 2025, avec des revenus totaux en hausse de 16% par rapport à l'année précédente, atteignant 646 millions de dollars. Les revenus d'abonnement ont augmenté de 17% pour atteindre 632 millions de dollars. L'entreprise a atteint une rentabilité record, y compris une rentabilité GAAP pour la première fois. Les points forts incluent :
- Les obligations de performance restantes actuelles (cRPO) ont augmenté de 13% pour atteindre 1,995 milliard de dollars
- Flux de trésorerie d'exploitation de 86 millions de dollars et flux de trésorerie libre de 78 millions de dollars
- Revenu d'exploitation non-GAAP de 148 millions de dollars, soit 23% des revenus totaux
- Revenu net non-GAAP de 131 millions de dollars, avec un BPA dilué de 0,72 dollar
Okta a fourni des prévisions pour le troisième trimestre de l'exercice 2025, projetant des revenus totaux de 648 à 650 millions de dollars et un revenu d'exploitation non-GAAP de 118 à 120 millions de dollars. Pour l'exercice 2025 dans son ensemble, l'entreprise prévoit des revenus totaux de 2,555 à 2,565 milliards de dollars et un revenu d'exploitation non-GAAP de 535 à 545 millions de dollars.
Okta (NASDAQ: OKTA) hat für das 2. Quartal FY2025 starke finanzielle Ergebnisse gemeldet, mit einem Anstieg des Gesamtumsatzes um 16% im Vergleich zum Vorjahr auf 646 Millionen US-Dollar. Der Abonnementumsatz wuchs um 17% auf 632 Millionen US-Dollar. Das Unternehmen erzielte eine Rekordprofitabilität, einschließlich GAAP-Rentabilität zum ersten Mal. Die wichtigsten Highlights sind:
- Die aktuellen verbleibenden Leistungsansprüche (cRPO) stiegen um 13% auf 1,995 Milliarden US-Dollar
- Operativer Cashflow von 86 Millionen US-Dollar und freier Cashflow von 78 Millionen US-Dollar
- Non-GAAP-Betriebsgewinn von 148 Millionen US-Dollar, also 23% des Gesamtumsatzes
- Non-GAAP-Nettoeinkommen von 131 Millionen US-Dollar, mit einem verwässerten EPS von 0,72 US-Dollar
Okta gab eine Prognose für das 3. Quartal FY2025 ab und erwartet einen Gesamtumsatz von 648-650 Millionen US-Dollar und einen Non-GAAP-Betriebsgewinn von 118-120 Millionen US-Dollar. Für das Gesamtjahr FY2025 erwartet das Unternehmen einen Gesamtumsatz von 2,555-2,565 Milliarden US-Dollar und einen Non-GAAP-Betriebsgewinn von 535-545 Millionen US-Dollar.
- Total revenue increased 16% year-over-year to $646 million
- Subscription revenue grew 17% year-over-year to $632 million
- Achieved GAAP profitability for the first time
- Non-GAAP operating income reached $148 million, or 23% of total revenue
- Operating cash flow improved to $86 million, representing 13% of total revenue
- Free cash flow increased to $78 million, or 12% of total revenue
- Raised full-year fiscal 2025 guidance for total revenue and non-GAAP operating income
- Current remaining performance obligations (cRPO) growth slowed to 13% year-over-year
- Q3 FY2025 guidance projects a slower revenue growth rate of 11% year-over-year
- Company acknowledges a challenging macro environment and potential impacts from the October 2023 security incident
Insights
Okta's Q2 FY2025 results showcase a robust financial performance with significant improvements in profitability. The company achieved GAAP profitability for the first time, marking a important milestone. Revenue growth of
The substantial improvement in operating margins is particularly noteworthy. Non-GAAP operating income surged to
However, the projected slowdown in revenue growth for Q3 FY2025 to
Okta's focus on identity security is timely and strategic in the current cybersecurity landscape. The company's emphasis on "relentless innovation" and expansion of product offerings in both Workforce Identity Cloud and Customer Identity Cloud positions it well to address evolving security needs.
The statement "identity is security" underscores the critical role of identity management in modern cybersecurity strategies. Okta's ability to deliver innovative products while achieving record profitability demonstrates a balanced approach to growth and financial stability.
However, the mention of the October 2023 security incident in the financial outlook suggests ongoing concerns. This highlights the importance of continuous improvement in security measures and the potential impact of security breaches on financial performance and customer trust in the identity management sector.
Okta's Q2 results reflect a maturing identity management market. The company's ability to maintain double-digit growth while significantly improving profitability suggests a shift towards a more sustainable business model. The
However, the projected slowdown in revenue and cRPO growth for Q3 raises questions about market saturation and competitive pressures. Okta's focus on innovation and expanding product offerings will be important in maintaining its market position and driving future growth.
The company's improved profitability and strong cash flow position it well to weather potential economic headwinds. The conservative outlook for FY2025, with a focus on maintaining high operating margins and free cash flow, suggests a strategic shift towards balancing growth with profitability in an evolving market landscape.
-
Q2 revenue grew
16% year-over-year; subscription revenue grew17% year-over-year -
Current remaining performance obligations (cRPO) grew
13% year-over-year to$1.99 5 billion - Record profitability including GAAP profitability for the first time
-
Operating cash flow of
$86 million $78 million
“Okta is setting the standard for identity security by focusing on relentless innovation and expanding our product offerings within the Workforce Identity Cloud and Customer Identity Cloud,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta. “We’re delivering all of this product innovation while achieving record profitability and maintaining strong cash flow. In today's dynamic cybersecurity landscape, identity is security, and Okta is dedicated to providing our customers with modern solutions to meet their evolving needs.”
Second Quarter Fiscal 2025 Financial Highlights:
-
Revenue: Total revenue was
$646 million 16% year-over-year. Subscription revenue was$632 million 17% year-over-year. -
RPO: RPO, or subscription backlog, was
$3.50 5 billion16% year-over-year. cRPO, which represents subscription backlog expected to be recognized over the next 12 months, was$1.99 5 billion13% compared to the second quarter of fiscal 2024. -
GAAP Operating Loss: GAAP operating loss was
$19 million $162 million -
Non-GAAP Operating Income: Non-GAAP operating income was
$148 million 23% of total revenue, compared to a non-GAAP operating income of$59 million 11% of total revenue, in the second quarter of fiscal 2024. -
GAAP Net Income (Loss): GAAP net income was
$29 million $111 million $0.18 $0.15 $0.68 -
Non-GAAP Net Income: Non-GAAP net income was
$131 million $56 million $0.72 $0.31 -
Cash Flow: Net cash provided by operations was
$86 million 13% of total revenue, compared to net cash provided by operations of$53 million 10% of total revenue, in the second quarter of fiscal 2024. Free cash flow was$78 million 12% of total revenue, compared to$49 million 9% of total revenue, in the second quarter of fiscal 2024. -
Cash, cash equivalents, and short-term investments were
$2.35 8 billion
The section titled "Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures, and reconciliations between GAAP and non-GAAP information are contained in the tables below.
Financial Outlook:
All periods factor in a challenging macro environment, and continue to incorporate some conservatism as the Company monitors potential impacts related to the October 2023 security incident.
For the third quarter of fiscal 2025, the Company expects:
-
Total revenue of
$648 million $650 million 11% year-over-year; -
Current RPO of
$1.98 5 billion$1.99 0 billion9% year-over-year; -
Non-GAAP operating income of
$118 million $120 million 18% ; -
Non-GAAP diluted net income per share of
$0.57 $0.58 26% ; and -
Non-GAAP free cash flow margin of approximately
20% .
For the full year fiscal 2025, the Company now expects:
-
Total revenue of
$2.55 5 billion$2.56 5 billion13% year-over-year; -
Non-GAAP operating income of
$535 million $545 million 21% ; -
Non-GAAP diluted net income per share of
$2.58 $2.63 26% ; and -
Non-GAAP free cash flow margin of approximately
23% .
These statements are forward-looking and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Okta has not reconciled its forward-looking non-GAAP financial measures to their most directly comparable GAAP measures because certain items are out of Okta’s control or cannot be reasonably predicted. Accordingly, reconciliations for forward-looking non-GAAP financial measures are not available without unreasonable effort.
Webcast Information:
Okta will host a live video webcast at 2:00 p.m. Pacific Time on August 28, 2024 to discuss the results and outlook. The prepared remarks and the news release with the financial results will be accessible from the Company’s website at investor.okta.com prior to the webcast. The live video webcast will be accessible from the Okta investor relations website at investor.okta.com. A replay will be available on the Okta investor relations website following the completion of the event.
Supplemental Financial and Other Information:
Supplemental financial and other information can be accessed through the Company’s investor relations website at investor.okta.com. Okta uses its investor.okta.com website and okta.com/blog websites (including the Security Blog, Okta Developer Blog and Auth0 Developer Blog) as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations and okta.com/blog websites in addition to following our press releases, SEC filings and public conference calls and webcasts.
Non-GAAP Financial Measures:
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net margin, non-GAAP diluted net income per share, non-GAAP tax rate, free cash flow and free cash flow margin. Certain of these non-GAAP financial measures exclude stock-based compensation, non-cash charitable contributions, amortization of acquired intangibles, acquisition and integration-related expenses, restructuring costs related to severance and termination benefits and lease impairments in connection with the closing of certain leased facilities, certain non-ordinary course legal settlements and related expenses, amortization of debt issuance costs and gain on early extinguishment of debt. Acquisition and integration-related expenses include transaction costs and other non-recurring incremental costs incurred through the one-year anniversary of the transaction close.
Stock-based compensation is non-cash in nature and is generally fixed at the time the stock-based instrument is granted and amortized over a period of several years. Although stock-based compensation is an important aspect of the compensation of our employees and executives, the expense for the fair value of the stock-based instruments we use may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards. We believe excluding stock-based compensation provides meaningful supplemental information regarding the long-term performance of our core business and facilitates comparison of our results to those of peer companies.
We also exclude non-cash charitable contributions, amortization of acquired intangibles, acquisition and integration-related expenses, restructuring costs related to severance and termination benefits and lease impairments in connection with the closing of certain leased facilities, certain non-ordinary course legal settlements and related expenses, amortization of debt issuance costs and gain on early extinguishment of debt from the applicable non-GAAP financial measures because these adjustments are considered by management to be outside of our core operating results.
In addition to these exclusions, we subtract an assumed provision for income taxes to calculate non-GAAP net income. We use a fixed long-term projected tax rate of
We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities, less cash used for purchases of property and equipment, net of sales proceeds, and capitalized software. Free cash flow margin is calculated as free cash flow divided by total revenue. We use free cash flow as a measure of financial progress in our business, as it balances operating results, cash management, and capital efficiency. We believe information regarding free cash flow provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments, to fund ongoing operations, and to fund other capital expenditures. Free cash flow can be volatile and is sensitive to many factors, including changes in working capital and timing of capital expenditures. Working capital at any specific point in time is subject to many variables, including seasonality, the discretionary timing of expense payments, discounts offered by vendors, vendor payment terms, and fluctuations in foreign exchange rates.
We periodically reassess the components of our non-GAAP adjustments for changes in how we evaluate our performance and changes in how we make financial and operational decisions, and consider the use of these measures by our competitors and peers to ensure the adjustments remain relevant and meaningful.
Okta believes that non-GAAP financial information, when taken collectively with GAAP financial measures, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.
The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by the Company's management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.
Okta encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.
Forward-Looking Statements: This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, business strategy and plans, market trends and market size, opportunities and positioning. These forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. For example, global economic conditions have in the past and could in the future reduce demand for our products; we and our third-party service providers have in the past and could in the future experience cybersecurity incidents; we may be unable to manage or sustain the level of growth that our business has experienced in prior periods; our financial resources may not be sufficient to maintain or improve our competitive position; we may be unable to attract new customers, or retain or sell additional products to existing customers; customer growth has slowed in recent periods and could continue to decelerate in the future; we could experience interruptions or performance problems associated with our technology, including a service outage; we and our third-party service providers have failed, or were perceived as having failed, to fully comply with various privacy and security provisions to which we are subject, and similar incidents could occur in the future; we may not achieve expected synergies and efficiencies of operations from recent acquisitions or business combinations, and we may not be able to successfully integrate the companies we acquire; and we may not be able to pay off our convertible senior notes when due. Further information on potential factors that could affect our financial results is included in our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission. The forward-looking statements included in this press release represent our views only as of the date of this press release and we assume no obligation and do not intend to update these forward-looking statements.
About Okta
Okta is The World’s Identity Company™. We secure Identity, so everyone is free to safely use any technology. Our customer and workforce solutions empower businesses and developers to use the power of Identity to drive security, efficiencies, and success — all while protecting their users, employees, and partners. Learn why the world’s leading brands trust Okta for authentication, authorization, and more at okta.com.
OKTA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in millions, shares in thousands, except per share data) (unaudited) |
||||||||||||||||
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue: |
|
|
|
|
|
|
|
|||||||||
Subscription |
$ |
632 |
|
|
$ |
542 |
|
|
$ |
1,235 |
|
|
$ |
1,045 |
|
|
Professional services and other |
|
14 |
|
|
|
14 |
|
|
|
28 |
|
|
|
29 |
|
|
Total revenue |
|
646 |
|
|
|
556 |
|
|
|
1,263 |
|
|
|
1,074 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|||||||||
Subscription(1) |
|
137 |
|
|
|
128 |
|
|
|
267 |
|
|
|
250 |
|
|
Professional services and other(1) |
|
18 |
|
|
|
21 |
|
|
|
36 |
|
|
|
41 |
|
|
Total cost of revenue |
|
155 |
|
|
|
149 |
|
|
|
303 |
|
|
|
291 |
|
|
Gross profit |
|
491 |
|
|
|
407 |
|
|
|
960 |
|
|
|
783 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Research and development(1) |
|
164 |
|
|
|
172 |
|
|
|
327 |
|
|
|
335 |
|
|
Sales and marketing(1) |
|
238 |
|
|
|
261 |
|
|
|
474 |
|
|
|
517 |
|
|
General and administrative(1) |
|
108 |
|
|
|
119 |
|
|
|
225 |
|
|
|
229 |
|
|
Restructuring and other charges |
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
24 |
|
|
Total operating expenses |
|
510 |
|
|
|
569 |
|
|
|
1,026 |
|
|
|
1,105 |
|
|
Operating loss |
|
(19 |
) |
|
|
(162 |
) |
|
|
(66 |
) |
|
|
(322 |
) |
|
Interest expense |
|
(1 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
Interest income and other, net |
|
29 |
|
|
|
18 |
|
|
|
56 |
|
|
|
35 |
|
|
Gain on early extinguishment of debt |
|
3 |
|
|
|
42 |
|
|
|
3 |
|
|
|
73 |
|
|
Interest and other, net |
|
31 |
|
|
|
58 |
|
|
|
56 |
|
|
|
103 |
|
|
Income (loss) before provision for (benefit from) income taxes |
|
12 |
|
|
|
(104 |
) |
|
|
(10 |
) |
|
|
(219 |
) |
|
Provision for (benefit from) income taxes |
|
(17 |
) |
|
|
7 |
|
|
|
1 |
|
|
|
11 |
|
|
Net income (loss) |
$ |
29 |
|
|
$ |
(111 |
) |
|
$ |
(11 |
) |
|
$ |
(230 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share, basic |
$ |
0.18 |
|
|
$ |
(0.68 |
) |
|
$ |
(0.06 |
) |
|
$ |
(1.42 |
) |
|
Net income (loss) per share, diluted |
$ |
0.15 |
|
|
$ |
(0.68 |
) |
|
$ |
(0.06 |
) |
|
$ |
(1.42 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares used to compute net income (loss) per share, basic |
|
168,612 |
|
|
|
162,755 |
|
|
|
168,045 |
|
|
|
162,051 |
|
|
Weighted-average shares used to compute net income (loss) per share, diluted |
|
174,443 |
|
|
|
162,755 |
|
|
|
168,045 |
|
|
|
162,051 |
|
|
(1) Amounts include stock-based compensation expense as follows:
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Cost of subscription revenue |
$ |
22 |
|
$ |
21 |
|
$ |
41 |
|
$ |
37 |
|
Cost of professional services and other |
|
3 |
|
|
4 |
|
|
6 |
|
|
8 |
|
Research and development |
|
56 |
|
|
74 |
|
|
119 |
|
|
142 |
|
Sales and marketing |
|
36 |
|
|
41 |
|
|
66 |
|
|
79 |
|
General and administrative |
|
31 |
|
|
45 |
|
|
67 |
|
|
85 |
|
Total stock-based compensation expense |
$ |
148 |
|
$ |
185 |
|
$ |
299 |
|
$ |
351 |
|
OKTA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions) (unaudited) |
||||||||
|
July 31, |
|
January 31, |
|||||
|
|
2024 |
|
|
|
2024 |
|
|
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
515 |
|
|
$ |
334 |
|
|
Short-term investments |
|
1,843 |
|
|
|
1,868 |
|
|
Accounts receivable, net of allowances |
|
377 |
|
|
|
559 |
|
|
Deferred commissions |
|
122 |
|
|
|
113 |
|
|
Prepaid expenses and other current assets |
|
181 |
|
|
|
106 |
|
|
Total current assets |
|
3,038 |
|
|
|
2,980 |
|
|
Property and equipment, net |
|
47 |
|
|
|
48 |
|
|
Operating lease right-of-use assets |
|
82 |
|
|
|
83 |
|
|
Deferred commissions, noncurrent |
|
230 |
|
|
|
242 |
|
|
Intangible assets, net |
|
168 |
|
|
|
182 |
|
|
Goodwill |
|
5,448 |
|
|
|
5,406 |
|
|
Other assets |
|
54 |
|
|
|
48 |
|
|
Total assets |
$ |
9,067 |
|
|
$ |
8,989 |
|
|
Liabilities and stockholders' equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
11 |
|
|
$ |
12 |
|
|
Accrued expenses and other current liabilities |
|
142 |
|
|
|
115 |
|
|
Accrued compensation |
|
113 |
|
|
|
167 |
|
|
Deferred revenue |
|
1,394 |
|
|
|
1,488 |
|
|
Total current liabilities |
|
1,660 |
|
|
|
1,782 |
|
|
Convertible senior notes, net, noncurrent |
|
1,113 |
|
|
|
1,154 |
|
|
Operating lease liabilities, noncurrent |
|
107 |
|
|
|
112 |
|
|
Deferred revenue, noncurrent |
|
21 |
|
|
|
23 |
|
|
Other liabilities, noncurrent |
|
33 |
|
|
|
30 |
|
|
Total liabilities |
|
2,934 |
|
|
|
3,101 |
|
|
|
|
|
|
|||||
Stockholders’ equity: |
|
|
|
|||||
Preferred stock |
|
— |
|
|
|
— |
|
|
Class A common stock |
|
— |
|
|
|
— |
|
|
Class B common stock |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
8,981 |
|
|
|
8,724 |
|
|
Accumulated other comprehensive loss |
|
(7 |
) |
|
|
(6 |
) |
|
Accumulated deficit |
|
(2,841 |
) |
|
|
(2,830 |
) |
|
Total stockholders’ equity |
|
6,133 |
|
|
|
5,888 |
|
|
Total liabilities and stockholders' equity |
$ |
9,067 |
|
|
$ |
8,989 |
|
|
OKTA, INC. SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in millions) (unaudited) |
||||||||
|
Six Months Ended July 31, |
|||||||
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
$ |
(11 |
) |
|
$ |
(230 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|||||
Stock-based compensation |
|
299 |
|
|
|
351 |
|
|
Depreciation, amortization and accretion |
|
42 |
|
|
|
43 |
|
|
Amortization of deferred commissions |
|
62 |
|
|
|
49 |
|
|
Deferred income taxes |
|
(4 |
) |
|
|
3 |
|
|
Lease impairment charges |
|
— |
|
|
|
25 |
|
|
Gain on early extinguishment of debt |
|
(3 |
) |
|
|
(73 |
) |
|
Other, net |
|
7 |
|
|
|
6 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
181 |
|
|
|
92 |
|
|
Deferred commissions |
|
(59 |
) |
|
|
(65 |
) |
|
Prepaid expenses and other assets |
|
(82 |
) |
|
|
(14 |
) |
|
Operating lease right-of-use assets |
|
10 |
|
|
|
12 |
|
|
Accounts payable |
|
(1 |
) |
|
|
1 |
|
|
Accrued compensation |
|
(55 |
) |
|
|
24 |
|
|
Accrued expenses and other liabilities |
|
33 |
|
|
|
(4 |
) |
|
Operating lease liabilities |
|
(18 |
) |
|
|
(20 |
) |
|
Deferred revenue |
|
(96 |
) |
|
|
(18 |
) |
|
Net cash provided by operating activities |
|
305 |
|
|
|
182 |
|
|
Cash flows from investing activities: |
|
|
|
|||||
Capitalized software |
|
(7 |
) |
|
|
(7 |
) |
|
Purchases of property and equipment |
|
(6 |
) |
|
|
(2 |
) |
|
Purchases of securities available-for-sale and other |
|
(779 |
) |
|
|
(577 |
) |
|
Proceeds from maturities and redemption of securities available-for-sale |
|
808 |
|
|
|
1,101 |
|
|
Proceeds from sales of securities available-for-sale and other |
|
2 |
|
|
|
61 |
|
|
Payments for business acquisitions, net of cash acquired |
|
(56 |
) |
|
|
(22 |
) |
|
Net cash provided by (used in) investing activities |
|
(38 |
) |
|
|
554 |
|
|
Cash flows from financing activities: |
|
|
|
|||||
Payments for repurchases of convertible senior notes |
|
(40 |
) |
|
|
(671 |
) |
|
Taxes paid related to net share settlement of equity awards |
|
(80 |
) |
|
|
— |
|
|
Payments for warrants related to convertible senior notes |
|
— |
|
|
|
(4 |
) |
|
Proceeds from stock option exercises |
|
9 |
|
|
|
8 |
|
|
Proceeds from shares issued in connection with employee stock purchase plan |
|
24 |
|
|
|
26 |
|
|
Net cash used in financing activities |
|
(87 |
) |
|
|
(641 |
) |
|
Effects of changes in foreign currency exchange rates on cash, cash equivalents and restricted cash |
|
— |
|
|
|
2 |
|
|
Net increase in cash, cash equivalents and restricted cash |
|
180 |
|
|
|
97 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
342 |
|
|
|
271 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
522 |
|
|
$ |
368 |
|
|
OKTA, INC.
Reconciliation of GAAP to Non-GAAP Data
(dollars in millions, shares in thousands, except per share data)
(unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, adjusted for stock-based compensation expense included in cost of revenue, amortization of acquired intangibles and acquisition and integration-related expenses.
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Gross profit |
$ |
491 |
|
|
$ |
407 |
|
|
$ |
960 |
|
|
$ |
783 |
|
|
Add: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense included in cost of revenue |
|
25 |
|
|
|
25 |
|
|
|
47 |
|
|
|
45 |
|
|
Amortization of acquired intangibles |
|
12 |
|
|
|
12 |
|
|
|
24 |
|
|
|
24 |
|
|
Non-GAAP gross profit |
$ |
528 |
|
|
$ |
444 |
|
|
$ |
1,031 |
|
|
$ |
852 |
|
|
Gross margin |
|
76 |
% |
|
|
73 |
% |
|
|
76 |
% |
|
|
73 |
% |
|
Non-GAAP gross margin |
|
82 |
% |
|
|
80 |
% |
|
|
82 |
% |
|
|
79 |
% |
|
Non-GAAP Operating Income and Non-GAAP Operating Margin
We define non-GAAP operating income and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, adjusted for stock-based compensation expense, non-cash charitable contributions, amortization of acquired intangibles, acquisition and integration-related expenses, restructuring costs related to severance and termination benefits and lease impairments in connection with the closing of certain leased facilities and certain non-ordinary course legal settlements and related expenses.
In fiscal 2025, we updated our definition of non-GAAP operating income and non-GAAP operating margin to include certain non-ordinary course legal settlements and related expenses.
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating loss |
$ |
(19 |
) |
|
$ |
(162 |
) |
|
$ |
(66 |
) |
|
$ |
(322 |
) |
|
Add: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense |
|
148 |
|
|
|
185 |
|
|
|
299 |
|
|
|
351 |
|
|
Non-cash charitable contributions |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
Amortization of acquired intangibles |
|
18 |
|
|
|
18 |
|
|
|
37 |
|
|
|
41 |
|
|
Restructuring costs |
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
24 |
|
|
Legal settlements and related expenses |
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
Non-GAAP operating income |
$ |
148 |
|
|
$ |
59 |
|
|
$ |
281 |
|
|
$ |
96 |
|
|
Operating margin |
|
(3 |
)% |
|
|
(29 |
)% |
|
|
(5 |
)% |
|
|
(30 |
)% |
|
Non-GAAP operating margin |
|
23 |
% |
|
|
11 |
% |
|
|
22 |
% |
|
|
9 |
% |
|
Non-GAAP Net Income, Non-GAAP Net Margin and Non-GAAP Diluted Net Income Per Share
We define non-GAAP net income and non-GAAP net margin as GAAP net income (loss) and GAAP net margin, adjusted for stock-based compensation expense, non-cash charitable contributions, amortization of acquired intangibles, acquisition and integration-related expenses, amortization of debt issuance costs, gain on early extinguishment of debt, restructuring costs related to severance and termination benefits and lease impairments in connection with the closing of certain leased facilities and certain non-ordinary course legal settlements and related expenses. In addition, we subtract an assumed provision for income taxes to calculate non-GAAP net income. We use a fixed long-term projected tax rate of
In fiscal 2025, we updated our definition of non-GAAP net income and non-GAAP net margin to include certain non-ordinary course legal settlements and related expenses.
We define non-GAAP diluted net income per share, as non-GAAP net income divided by GAAP weighted-average shares used to compute net income (loss) per share, basic, adjusted for the potentially dilutive effect of (i) employee equity incentive plans, excluding the impact of unrecognized stock-based compensation expense, and (ii) convertible senior notes outstanding and related warrants. In addition, non-GAAP net income per share, diluted, includes the impact of our capped call agreements on convertible senior notes outstanding. The capped call agreements are intended to offset potential dilution to our Class A common stock upon any conversion or settlement of the convertible senior notes under certain circumstances. Accordingly, we did not record any adjustments for the potential impact of the convertible senior notes outstanding under the if-converted method.
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income (loss) |
$ |
29 |
|
|
$ |
(111 |
) |
|
$ |
(11 |
) |
|
$ |
(230 |
) |
|
Add: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense |
|
148 |
|
|
|
185 |
|
|
|
299 |
|
|
|
351 |
|
|
Non-cash charitable contributions |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
Amortization of acquired intangibles |
|
18 |
|
|
|
18 |
|
|
|
37 |
|
|
|
41 |
|
|
Amortization of debt issuance costs |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
Gain on early extinguishment of debt |
|
(3 |
) |
|
|
(42 |
) |
|
|
(3 |
) |
|
|
(73 |
) |
|
Restructuring costs |
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
24 |
|
|
Legal settlements and related expenses |
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
Tax adjustment |
|
(63 |
) |
|
|
(13 |
) |
|
|
(86 |
) |
|
|
(23 |
) |
|
Non-GAAP net income |
$ |
131 |
|
|
$ |
56 |
|
|
$ |
248 |
|
|
$ |
94 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net margin |
|
5 |
% |
|
|
(20 |
)% |
|
|
(1 |
)% |
|
|
(21 |
)% |
|
Non-GAAP net margin |
|
20 |
% |
|
|
10 |
% |
|
|
20 |
% |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares used to compute net income (loss) per share, basic |
|
168,612 |
|
|
|
162,755 |
|
|
|
168,045 |
|
|
|
162,051 |
|
|
Non-GAAP weighted-average effect of potentially dilutive securities |
|
13,752 |
|
|
|
15,987 |
|
|
|
13,358 |
|
|
|
15,430 |
|
|
Non-GAAP weighted-average shares used to compute non-GAAP net income per share, diluted |
|
182,364 |
|
|
|
178,742 |
|
|
|
181,403 |
|
|
|
177,481 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share, diluted |
$ |
0.15 |
|
|
$ |
(0.68 |
) |
|
$ |
(0.06 |
) |
|
$ |
(1.42 |
) |
|
Non-GAAP net income per share, diluted |
$ |
0.72 |
|
|
$ |
0.31 |
|
|
$ |
1.37 |
|
|
$ |
0.53 |
|
|
OKTA, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(dollars in millions)
(unaudited)
Free Cash Flow and Free Cash Flow Margin
We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities, less cash used for purchases of property and equipment, net of sales proceeds, and capitalized software. Free cash flow margin is calculated as free cash flow divided by total revenue.
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net cash provided by operating activities |
$ |
86 |
|
|
$ |
53 |
|
|
$ |
305 |
|
|
$ |
182 |
|
|
Less: |
|
|
|
|
|
|
|
|||||||||
Purchases of property and equipment |
|
(5 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
Capitalized software |
|
(3 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
Free cash flow |
$ |
78 |
|
|
$ |
49 |
|
|
$ |
292 |
|
|
$ |
173 |
|
|
Net cash provided by (used in) investing activities |
$ |
156 |
|
|
$ |
495 |
|
|
$ |
(38 |
) |
|
$ |
554 |
|
|
Net cash used in financing activities |
$ |
(50 |
) |
|
$ |
(315 |
) |
|
$ |
(87 |
) |
|
$ |
(641 |
) |
|
Operating cash flow margin |
|
13 |
% |
|
|
10 |
% |
|
|
24 |
% |
|
|
17 |
% |
|
Free cash flow margin |
|
12 |
% |
|
|
9 |
% |
|
|
23 |
% |
|
|
16 |
% |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240827337445/en/
Investor Contact:
Dave Gennarelli
investor@okta.com
Media Contact:
Kyrk Storer
press@okta.com
Source: Okta, Inc.
FAQ
What was Okta's revenue growth in Q2 FY2025?
Did Okta (OKTA) achieve GAAP profitability in Q2 FY2025?
What is Okta's (OKTA) guidance for full-year fiscal 2025 revenue?
How much was Okta's (OKTA) free cash flow in Q2 FY2025?
