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

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed August 28, 2024
Period End
August 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 August 28, 2024. Cited figures are marked; the original filing is the authoritative source.

Okta, Inc. reported financial results for its second quarter of fiscal 2025, ended July 31, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Total revenue was $646 milliona, up 16% year-over-year, and subscription revenue was $632 million, up 17%. Current remaining performance obligations (cRPO) grew 13% to $1.995 billion, and total RPO was $3.505 billion, up 16%. The company reported GAAP operating loss of $19 million, or (3)% of total revenue, compared with a GAAP operating loss of $162 million in the prior-year quarter.

GAAP net income was $29 millionb, compared with a GAAP net loss of $111 million a year earlier, and the press release describes this as GAAP profitability for the first time. Non-GAAP operating income was $148 million, or 23% of total revenue, and operating cash flow was $86 million, with free cash flow of $78 million, or 12% of total revenue. For the third quarter of fiscal 2025, Okta expects total revenue of $648 million to $650 million, representing 11% year-over-year growth, and non-GAAP operating income of $118 million to $120 million, a non-GAAP operating margin of 18%.

For the full fiscal 2025 year, the company now expects total revenue of $2.555 billion to $2.565 billionc, representing 13% year-over-year growth, non-GAAP operating income of $535 million to $545 million (a 21% margin), and non-GAAP free cash flow margin of approximately 23%. The outlook factors in a challenging macro environment and continued conservatism as the company monitors potential impacts related to the October 2023 security incident. The filing also states that Okta posted supplemental investor materials on its investor relations website and that it uses investor.okta.com and okta.com/blog as channels for Regulation FD disclosures.

The company will hold a webcast on August 28, 2024 at 2:00 p.m. Pacific Time to discuss the results and outlook.

02—Key points

Key Highlights

  1. Total revenue of $646 million in Q2 FY2025, up 16% year-over-year; subscription revenue of $632 million, up 17%.
  2. cRPO grew 13% year-over-year to $1.995 billion; total RPO was $3.505 billion, up 16%.
  3. GAAP net income of $29 million, versus a GAAP net loss of $111 million in Q2 FY2024; the press release describes this as GAAP profitability for the first time.
  4. Non-GAAP operating income of $148 million, or 23% of total revenue, compared with $59 million, or 11%, a year earlier.
  5. Operating cash flow of $86 million and free cash flow of $78 million, or 12% of total revenue; cash, cash equivalents and short-term investments totaled $2.358 billion at July 31, 2024.
  6. Q3 FY2025 guidance calls for total revenue of $648 million to $650 million (11% growth) and a non-GAAP operating margin of 18%.
  7. Full-year FY2025 guidance calls for total revenue of $2.555 billion to $2.565 billion (13% growth), non-GAAP operating income of $535 million to $545 million, and non-GAAP free cash flow margin of approximately 23%.

03—Questions

Frequently Asked Questions

  1. How did Okta perform in its second quarter of fiscal 2025?

    Total revenue was $646 million, up 16% year-over-year, and subscription revenue was $632 million, up 17%. The company reported a GAAP net income of $29 million, compared with a GAAP net loss of $111 million in the prior-year quarter, and a GAAP operating loss of $19 million, narrowed from $162 million a year earlier.

  2. What does the company expect for the rest of fiscal 2025?

    For the third quarter, Okta expects total revenue of $648 million to $650 million (11% growth) and non-GAAP operating income of $118 million to $120 million. For the full year, it expects total revenue of $2.555 billion to $2.565 billion (13% growth), non-GAAP operating income of $535 million to $545 million, and non-GAAP free cash flow margin of approximately 23%. The outlook reflects a challenging macro environment and conservatism tied to monitoring potential impacts from the October 2023 security incident.

  3. How is the company's future revenue visibility trending?

    Total RPO was $3.505 billion, up 16% year-over-year, and cRPO, the portion expected to be recognized over the next 12 months, was $1.995 billion, up 13%. For the third quarter, the company expects cRPO of $1.985 billion to $1.990 billion, representing 9% year-over-year growth.

  4. How strong is Okta's cash generation?

    Net cash provided by operations was $86 million, or 13% of total revenue, compared with $53 million, or 10%, a year earlier. Free cash flow was $78 million, or 12% of total revenue, versus $49 million, or 9%. Cash, cash equivalents and short-term investments totaled $2.358 billion at July 31, 2024.

04—Continue

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