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Oct 31, 2021

Okta Q3 2022 Earnings Report

Announced strong third quarter results with revenue growth and increased outlook.

Key Takeaways

Okta reported a strong third quarter with total revenue of $351 million, a 61% year-over-year increase. Subscription revenue grew by 63% year-over-year. The company also increased its revenue and operating profit outlook for fiscal year 2022.

Total revenue was $351 million, up 61% year-over-year.

Subscription revenue reached $337 million, a 63% increase year-over-year.

Remaining performance obligations (RPO) grew 49% year-over-year to $2.35 billion.

GAAP operating loss was $199 million, or 57% of total revenue.

Total Revenue
$351M
Previous year: $217M
+61.3%
EPS
-$0.07
Previous year: $0.04
-275.0%
RPO
$2.35B
Previous year: $1.58B
+48.7%
Gross Profit
$241M
Previous year: $160M
+50.2%
Cash and Equivalents
$372M
Previous year: $410M
-9.1%
Free Cash Flow
$33M
Previous year: $41.6M
-20.7%
Total Assets
$9B
Previous year: $3.17B
+183.8%

Okta

Okta

Okta Revenue by Segment

Forward Guidance

Okta's financial outlook for the fourth quarter and full year fiscal 2022 includes the expected contribution from the acquisition of Auth0, net of purchase accounting adjustments.

Positive Outlook

  • Total revenue of $358 million to $360 million, representing a growth rate of 53% year-over-year for Q4 2022.
  • Total revenue of $1.275 billion to $1.277 billion, representing a growth rate of 53% year-over-year for fiscal year 2022.

Challenges Ahead

  • Non-GAAP operating loss of $35 million to $34 million for Q4 2022.
  • Non-GAAP net loss per share of $0.25 to $0.24, assuming weighted-average shares outstanding of approximately 154 million for Q4 2022.
  • Non-GAAP operating loss of $85 million to $84 million for fiscal year 2022.
  • Non-GAAP net loss per share of $0.53 to $0.52, assuming weighted-average shares outstanding of approximately 147 million for fiscal year 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income