How did Okta's revenue and recurring backlog perform in the first quarter of fiscal 2025?

Total revenue was $617 million, up 19% year-over-year, and subscription revenue was $603 million, up 20%. Current RPO grew 15% to $1.949 billion, and total RPO was $3.364 billion, up 14%.

Has Okta's profitability improved?

Yes. GAAP operating loss was $47 million, or (8)% of total revenue, versus a $160 million loss, or (31)%, in the first quarter of fiscal 2024. Non-GAAP operating income was $133 million, or 22% of revenue, compared with $37 million, or 7%, a year earlier.

What is Okta's cash generation and liquidity position?

Net cash provided by operations was $219 million, or 36% of revenue, and free cash flow was $214 million, or 35% of revenue. Cash, cash equivalents and short-term investments totaled $2.320 billion at April 30, 2024.

What factors could affect the outlook?

The company's guidance assumes a stable but still challenging macro environment and considers potential impacts related to the October 2023 security incident. The filing's forward-looking statements also cite risks such as reduced customer demand, cybersecurity incidents, slowing customer growth, and the ability to integrate acquisitions.

OKTA 8-K: Earnings & Results & Regulation FD

Q: What is Okta's updated fiscal 2025 guidance?

The company expects full-year total revenue of $2.530 billion to $2.540 billion, representing 12% year-over-year growth, and non-GAAP operating income of $490 million to $500 million, a 19% to 20% non-GAAP operating margin. It also expects non-GAAP free cash flow margin of approximately 22%.

01—Abstract

Summary

Summary of the 8-K filed May 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Okta, Inc. filed this Form 8-K on May 29, 2024 to furnish its press release announcing financial results for the first quarter of fiscal 2025, which ended April 30, 2024, along with supplemental investor materials posted on its investor relations website.

Total revenue was $617 million^a, up 19% year-over-year, and subscription revenue was $603 million, up 20%. Current remaining performance obligations (cRPO) grew 15% year-over-year to $1.949 billion, and total RPO was $3.364 billion, up 14%. Profitability improved substantially.

GAAP operating loss narrowed to $47 million^b (-8% of revenue) from $160 million (-31%) a year earlier, while non-GAAP operating income rose to $133 million (22% margin) from $37 million (7%). GAAP net loss was $40 million, or $0.24 per share, compared with $119 million, or $0.74 per share, in the prior-year quarter. Non-GAAP diluted net income per share was $0.65 versus $0.22.

Operating cash flow was $219 million^c and free cash flow was $214 million, with free cash flow margin of 35%, compared with 24% a year earlier. Cash, cash equivalents and short-term investments totaled $2.320 billion at April 30, 2024. For fiscal 2025, Okta now expects total revenue of $2.530 billion to $2.540 billion, representing 12% year-over-year growth, and non-GAAP operating income of $490 million to $500 million.

For the second quarter, it guides to revenue of $631 million to $633 million^d (13% to 14% growth). The outlook factors in a challenging macro environment and potential impacts related to the October 2023 security incident.

02—Key points

Key Highlights

Q1 fiscal 2025 total revenue of $617 million, up 19% year-over-year; subscription revenue of $603 million, up 20%.
cRPO grew 15% year-over-year to $1.949 billion; total RPO was $3.364 billion, up 14%.
GAAP operating loss narrowed to $47 million from $160 million in the prior-year quarter; non-GAAP operating income rose to $133 million (22% margin) from $37 million (7%).
GAAP net loss of $40 million ($0.24 per share) versus $119 million ($0.74 per share) a year earlier; non-GAAP diluted EPS of $0.65 versus $0.22.
Record operating cash flow of $219 million and free cash flow of $214 million (35% free cash flow margin).
Full-year fiscal 2025 revenue outlook of $2.530 billion to $2.540 billion (12% growth) and non-GAAP operating income of $490 million to $500 million.
Company reiterated that it uses investor.okta.com and okta.com/blog as channels for material disclosures under Regulation FD.

03—Questions

Frequently Asked Questions

How did Okta's revenue and recurring backlog perform in the first quarter of fiscal 2025?
Total revenue was $617 million, up 19% year-over-year, and subscription revenue was $603 million, up 20%. Current RPO grew 15% to $1.949 billion, and total RPO was $3.364 billion, up 14%.
Has Okta's profitability improved?
Yes. GAAP operating loss was $47 million, or (8)% of total revenue, versus a $160 million loss, or (31)%, in the first quarter of fiscal 2024. Non-GAAP operating income was $133 million, or 22% of revenue, compared with $37 million, or 7%, a year earlier.
What is Okta's updated fiscal 2025 guidance?
The company expects full-year total revenue of $2.530 billion to $2.540 billion, representing 12% year-over-year growth, and non-GAAP operating income of $490 million to $500 million, a 19% to 20% non-GAAP operating margin. It also expects non-GAAP free cash flow margin of approximately 22%.
What is Okta's cash generation and liquidity position?
Net cash provided by operations was $219 million, or 36% of revenue, and free cash flow was $214 million, or 35% of revenue. Cash, cash equivalents and short-term investments totaled $2.320 billion at April 30, 2024.
What factors could affect the outlook?
The company's guidance assumes a stable but still challenging macro environment and considers potential impacts related to the October 2023 security incident. The filing's forward-looking statements also cite risks such as reduced customer demand, cybersecurity incidents, slowing customer growth, and the ability to integrate acquisitions.

04—Continue

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