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Oct 31, 2023
Okta Q3 2024 Earnings Report
Q3 performance was marked by revenue growth and record cash flow.
Key Takeaways
Okta's Q3 2024 shows strong growth with a 21% increase in revenue year-over-year, reaching $584 million. The company also reported record non-GAAP operating profit and free cash flow, highlighting efficient financial management.
Total revenue increased by 21% year-over-year, amounting to $584 million.
Subscription revenue saw a 22% increase year-over-year, totaling $569 million.
Current remaining performance obligations (cRPO) grew by 16% year-over-year, reaching $1.83 billion.
The company achieved record operating cash flow of $156 million and a record free cash flow of $150 million.
Okta
Okta
Okta Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProf. Services & Other Revenue
CapyFin.com Forward Guidance
For the fourth quarter of fiscal 2024, Okta expects total revenue between $585 million and $587 million, representing a 15% year-over-year growth rate. They anticipate a current RPO of $1.875 billion to $1.880 billion, a non-GAAP operating income of $102 million to $104 million, and a non-GAAP diluted net income per share of $0.50 to $0.51.
Positive Outlook
- Total revenue of $585 million to $587 million, representing a growth rate of 15% year-over-year
- Current RPO of $1.875 billion to $1.880 billion, representing a growth rate of 11% to 12% year-over-year
- Non-GAAP operating income of $102 million to $104 million, which yields a non-GAAP operating margin of 17% to 18%
- Non-GAAP diluted net income per share of $0.50 to $0.51, assuming diluted weighted-average shares outstanding of approximately 180 million and a non-GAAP tax rate of 26%
- Full year fiscal 2024 total revenue of $2.243 billion to $2.245 billion, representing a growth rate of 21% year-over-year
Challenges Ahead
- All periods factor in a stable, but still challenging macro environment
- Potential impact on our business related to the October 2023 security incident
- Okta has not reconciled its forward-looking non-GAAP financial measures to their most directly comparable GAAP measures because certain items are out of Okta’s control or cannot be reasonably predicted.
- Accordingly, reconciliations for forward-looking non-GAAP financial measures are not available without unreasonable effort.
- Preliminary outlook for fiscal 2025 total revenue represents a growth rate of 10% year-over-year
Revenue & Expenses
Visualization of income flow from segment revenue to net income