Okta 8-K Report, Financial Results (Feb 1, 2024)

Okta, Inc. filed this Form 8-K to report two items.

Under Item 2.02, the company reaffirmed its financial guidance for the fourth quarter and fiscal year ending January 31, 2024, as previously provided in a press release issued November 29, 2023, furnished as Exhibit 99.1 to its November 29, 2023 Form 8-K. The company plans to release its fourth quarter fiscal 2024 results after market close on February 28, 2024. Under Item 8.01, Okta announced to employees on February 1, 2024 a restructuring plan intended to improve operating efficiencies and strengthen its commitment to profitable growth.

The plan reduces the workforce by approximately 400 full-time employees, or approximately 7%. The company estimates approximately $24 million^a of restructuring charges in the fourth quarter of fiscal 2024, mostly for future cash employee severance and benefits costs, which will primarily be paid in the first quarter of fiscal 2025.

It also expects an insignificant stock-based compensation adjustment in the first quarter of fiscal 2025, and intends to exclude the plan's charges from its non-GAAP financial measures. For investors, the key takeaways are the reaffirmed guidance, the restructuring charges that will affect fourth-quarter GAAP results, and the company's stated intent to exclude those charges from non-GAAP measures.