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Okta 8-K Report, Financial Results (Feb 28, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 28, 2024
Period End
February 28, 2024
Security
OKTA
In the record · 2017–202610-K910-Q298-K83

OKTA filed 9 annual reports (10-K), 29 quarterly reports (10-Q) and 83 current reports (8-K) between 2017 and 2026.

  1. Material agreement8-K · Feb ’18Feb ’18
  2. Material agreement8-K · Mar ’21Mar ’21
  3. Leadership change8-K · Apr ’23Apr ’23
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 28, 2024. Cited figures are marked; the original filing is the authoritative source.

Okta, Inc. filed this Form 8-K on February 28, 2024 to furnish its press release (Exhibit 99.1) announcing financial results for the fourth quarter and fiscal year ended January 31, 2024, along with supplemental investor materials posted to its investor relations website (Item 7.01).

For Q4 fiscal 2024, total revenue was $605 milliona, up 19% year-over-year, and subscription revenue was $591 million, up 20%. Current remaining performance obligations (cRPO) were $1.952 billion, up 16%. GAAP operating loss narrowed to $83 million from $157 million a year earlier, while non-GAAP operating income rose to $129 million (21% of revenue) from $46 million.

Operating cash flow was $174 millionb and free cash flow was $166 million, both described as records in the quarter. For full fiscal 2024, total revenue was $2.263 billion, up 22%, and subscription revenue was $2.205 billion, up 23%. GAAP net loss was $355 million, compared with $815 million in fiscal 2023, and non-GAAP net income was $286 million.

Free cash flow for the year was $489 millionc. The company repurchased $150 million principal of its convertible senior notes due 2026 in the quarter, producing a $15 million gain on early extinguishment of debt. Cash, cash equivalents and short-term investments totaled $2.202 billion at January 31, 2024.

For fiscal 2025, Okta expects total revenue of $2.495 billion to $2.505 billiond, representing 10% to 11% growth, and non-GAAP operating income of $455 million to $465 million. The outlook cites a stable but challenging macro environment and potential impacts from the October 2023 security incident. Guidance for the first quarter of fiscal 2025 calls for total revenue of $603 million to $605 million, and the company also cites an organizational restructuring expected to cost approximately $24 million in cash in that quarter.

02—Key points

Key Highlights

  1. Q4 fiscal 2024 total revenue of $605 million, up 19% year-over-year; subscription revenue of $591 million, up 20%.
  2. Current RPO grew 16% year-over-year to $1.952 billion; total RPO was $3.385 billion, up 13%.
  3. Q4 non-GAAP operating income of $129 million (21% of total revenue), versus $46 million (9%) a year earlier; GAAP operating loss narrowed to $83 million from $157 million.
  4. Record operating cash flow of $174 million and free cash flow of $166 million in the fourth quarter.
  5. Full fiscal 2024 revenue of $2.263 billion, up 22%; GAAP net loss of $355 million versus $815 million in fiscal 2023.
  6. Fiscal 2025 guidance: total revenue of $2.495 billion to $2.505 billion (10% to 11% growth) and non-GAAP operating income of $455 million to $465 million.
  7. Repurchased $150 million principal of 2026 convertible senior notes in Q4, generating a $15 million gain on early extinguishment of debt.

03—Questions

Frequently Asked Questions

  1. How did Okta perform in the fourth quarter of fiscal 2024?

    Total revenue was $605 million, up 19% year-over-year, and subscription revenue was $591 million, up 20%. GAAP operating loss was $83 million, compared with $157 million a year earlier, and non-GAAP operating income was $129 million, or 21% of revenue.

  2. What is Okta's outlook for fiscal 2025?

    Okta expects total revenue of $2.495 billion to $2.505 billion, representing 10% to 11% growth, and non-GAAP operating income of $455 million to $465 million, or an 18% to 19% operating margin. It also expects non-GAAP free cash flow margin of approximately 21%.

  3. What is the status of Okta's backlog?

    Current remaining performance obligations (cRPO) were $1.952 billion, up 16% year-over-year. Total RPO was $3.385 billion, up 13%.

  4. What factors does the company cite as risks to its outlook?

    The outlook factors in a stable but still challenging macro environment and potential impacts related to the October 2023 security incident. The forward-looking statements also cite risks such as slower market development, customer acquisition and retention, and the ability to integrate Auth0 and achieve expected synergies.

  5. How did Okta manage its convertible debt during the year?

    During the fourth quarter, Okta repurchased $150 million principal amount of its convertible senior notes due 2026, resulting in a $15 million gain on early extinguishment. For fiscal 2024, payments for repurchases of convertible senior notes totaled $937 million, and convertible senior notes, net, noncurrent were $1.154 billion at January 31, 2024.

04—Continue

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