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Oct 31, 2022

Okta Q3 2023 Earnings Report

Announced third quarter results with revenue growth and strategic focus on profitability.

Key Takeaways

Okta reported a 37% year-over-year increase in revenue for Q3 2023, with subscription revenue growing by 38%. The company is focused on go-to-market execution, spend efficiency, and increasing profitability.

Q3 revenue grew 37% year-over-year, reaching $481 million.

Subscription revenue increased by 38% year-over-year, totaling $466 million.

Remaining performance obligations (RPO) grew 21% year-over-year to $2.85 billion.

Current remaining performance obligations (cRPO) increased 34% year-over-year to $1.58 billion.

Total Revenue
$481M
Previous year: $351M
+37.2%
EPS
-$1.09
Previous year: -$0.07
+1457.1%
RPO
$2.85B
Previous year: $2.35B
+21.3%
Gross Profit
$343M
Previous year: $241M
+42.5%
Cash and Equivalents
$250M
Previous year: $372M
-32.9%
Free Cash Flow
$8.1M
Previous year: $33M
-75.5%
Total Assets
$9.09B
Previous year: $9B
+1.1%

Okta

Okta

Okta Revenue by Segment

Forward Guidance

For the fourth quarter of fiscal 2023, Okta expects total revenue of $488 million to $490 million, representing a growth rate of 27% to 28% year-over-year.

Positive Outlook

  • Total revenue of $488 million to $490 million, representing a growth rate of 27% to 28% year-over-year
  • Current RPO of $1.63 billion to $1.64 billion, representing a growth rate of 21% year-over-year
  • Non-GAAP operating income of $15 million to $17 million
  • Non-GAAP diluted net income per share of $0.09 to $0.10
  • Assuming diluted weighted-average shares outstanding of approximately 175 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income