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Okta 8-K Report, Financial Results (Dec 3, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed December 3, 2024
Period End
December 3, 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 December 3, 2024. Cited figures are marked; the original filing is the authoritative source.

Okta, Inc. (OKTA) reported third-quarter fiscal 2025 results for the quarter ended October 31, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Total revenue was $665 milliona, up 14% year-over-year, and subscription revenue was $651 million, also up 14%. Remaining performance obligations (RPO) were $3.659 billion, up 19%, and current RPO (cRPO) was $2.062 billion, up 13%. GAAP operating loss narrowed to $16 million from $111 million a year earlier, and GAAP net income was $16 million, compared with a net loss of $81 million.

Non-GAAP operating income rose to $138 millionb, or 21% of total revenue, from $85 million, or 15%. Cash flow remained strong, with operating cash flow of $159 million and free cash flow of $154 million in the quarter. Cash, cash equivalents, and short-term investments totaled $2.248 billion at October 31, 2024.

During the quarter, the company repurchased $42 millionc principal amount of convertible senior notes due 2025 and $215 million principal amount of convertible senior notes due 2026, producing a $16 million gain on early extinguishment of debt. For the fourth quarter of fiscal 2025, Okta expects total revenue of $667 million to $669 million, representing 10% to 11% year-over-year growth, and cRPO of $2.130 billion to $2.135 billion, representing 9% growth.

For full fiscal 2025, the company now expects total revenue of $2.595 billion to $2.597 billiond, representing 15% growth, and non-GAAP diluted net income per share of $2.75 to $2.76. Management noted that all periods factor in a challenging macro environment.

02—Key points

Key Highlights

  1. Q3 total revenue of $665 million, up 14% year-over-year; subscription revenue of $651 million, up 14%.
  2. RPO of $3.659 billion, up 19% year-over-year; cRPO of $2.062 billion, up 13%.
  3. GAAP operating loss of $16 million (2% of total revenue), improved from a $111 million loss (19%) in the prior-year quarter.
  4. Non-GAAP operating income of $138 million (21% of total revenue), versus $85 million (15%) a year earlier.
  5. GAAP net income of $16 million ($0.00 diluted per share) versus a net loss of $81 million; non-GAAP diluted net income per share of $0.67 versus $0.44.
  6. Operating cash flow of $159 million and free cash flow of $154 million; cash, cash equivalents, and short-term investments of $2.248 billion at October 31, 2024.
  7. Q4 guidance: revenue of $667 million to $669 million (10% to 11% growth); FY2025 revenue guidance of $2.595 billion to $2.597 billion (15% growth) and non-GAAP diluted EPS of $2.75 to $2.76.

03—Questions

Frequently Asked Questions

  1. How did Okta perform in the third quarter of fiscal 2025?

    Total revenue was $665 million, up 14% year-over-year, and subscription revenue was $651 million, also up 14%. GAAP operating loss was $16 million, compared with a $111 million loss a year earlier, and GAAP net income was $16 million versus a net loss of $81 million.

  2. What do the RPO and cRPO figures indicate about future business?

    RPO, or subscription backlog, was $3.659 billion, up 19% year-over-year. cRPO, the portion expected to be recognized over the next 12 months, was $2.062 billion, up 13% compared with the third quarter of fiscal 2024.

  3. What is Okta's outlook for the fourth quarter and full fiscal 2025?

    For Q4 fiscal 2025, Okta expects total revenue of $667 million to $669 million (10% to 11% growth) and cRPO of $2.130 billion to $2.135 billion (9% growth). For full fiscal 2025, it expects revenue of $2.595 billion to $2.597 billion (15% growth) and non-GAAP diluted net income per share of $2.75 to $2.76. The company said all periods factor in a challenging macro environment.

  4. How strong is Okta's cash position and cash generation?

    Operating cash flow was $159 million and free cash flow was $154 million in the quarter. Cash, cash equivalents, and short-term investments totaled $2.248 billion at October 31, 2024.

  5. What debt actions did Okta take during the quarter?

    Okta repurchased $42 million principal amount of convertible senior notes due 2025 and $215 million principal amount of convertible senior notes due 2026. These repurchases produced a gain on early extinguishment of debt of $16 million.

04—Continue

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