Okta Q3 2021 Earnings Report
Key Takeaways
Okta reported strong Q3 results, with revenue growing 42% year-over-year and subscription revenue growing 43% year-over-year. The company's remaining performance obligations (RPO) grew 53% year-over-year, and it achieved record quarterly operating and free cash flows.
Total revenue was $217.4 million, an increase of 42% year-over-year.
Subscription revenue was $206.7 million, an increase of 43% year-over-year.
Remaining Performance Obligations (RPO) was $1.58 billion, an increase of 53% year-over-year.
Free cash flow was $41.6 million, or 19.1% of total revenue, compared to $9.2 million, or 6.0% of total revenue, in the third quarter of fiscal 2020.
Okta
Okta
Okta Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal 2021, Okta expects total revenue of $221 million to $222 million, representing a growth rate of 32% to 33% year-over-year and Non-GAAP net loss per share of $0.02 to $0.01.
Positive Outlook
- Total revenue of $221 million to $222 million, representing a growth rate of 32% to 33% year-over-year
- Non-GAAP operating loss of $2.0 million to $1.0 million
- Non-GAAP net loss per share of $0.02 to $0.01, assuming weighted shares outstanding of approximately 131 million
- Total revenue of $822 million to $823 million, representing a growth rate of 40% year-over-year for the full year fiscal 2021
- Non-GAAP net income per share, diluted of $0.04 to $0.05 for the full year fiscal 2021
Challenges Ahead
- Non-GAAP operating loss of $2.0 million to $1.0 million for Q4 2021
- Non-GAAP net loss per share of $0.02 to $0.01 for Q4 2021
- Non-GAAP operating loss of $2.3 million to $1.3 million for fiscal year 2021
- Okta has not reconciled its expectations as to non-GAAP operating loss and non-GAAP net income (loss) per share, diluted to its most directly comparable GAAP measure because certain items are out of Okta’s control or cannot be reasonably predicted.
- These statements are forward-looking and actual results may differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income