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Oct 31, 2024

Okta Q3 2025 Earnings Report

Reported solid Q3 results underpinned by strong profitability and cash flow.

Key Takeaways

Okta reported a 14% year-over-year increase in revenue, reaching $665 million. Subscription revenue also grew by 14% year-over-year, amounting to $651 million. The company's remaining performance obligations (RPO) increased by 19% year-over-year.

Q3 revenue grew 14% year-over-year and subscription revenue also grew 14% year-over-year.

Remaining performance obligations (RPO) grew 19% year-over-year.

Operating cash flow was $159 million and free cash flow was $154 million.

GAAP net income was $16 million, compared to a GAAP net loss of $81 million in the third quarter of fiscal 2024.

Total Revenue
$665M
Previous year: $584M
+13.9%
EPS
$0.67
Previous year: $0.44
+52.3%
RPO
$3.66B
Previous year: $1.83B
+99.9%
Gross Profit
$518M
Previous year: $450M
+15.1%
Cash and Equivalents
$310M
Previous year: $400M
-22.5%
Free Cash Flow
$154M
Previous year: $150M
+2.7%
Total Assets
$9.01B
Previous year: $8.74B
+3.1%

Okta

Okta

Okta Revenue by Segment

Forward Guidance

For the fourth quarter of fiscal 2025, the Company expects total revenue of $667 million to $669 million, representing a growth rate of 10% to 11% year-over-year.

Positive Outlook

  • Total revenue of $667 million to $669 million, representing a growth rate of 10% to 11% year-over-year
  • Current RPO of $2.130 billion to $2.135 billion, representing a growth rate of 9% year-over-year
  • Non-GAAP operating income of $154 million to $156 million, yielding a non-GAAP operating margin of 23%
  • Non-GAAP diluted net income per share of $0.73 to $0.74, assuming diluted weighted-average shares outstanding of approximately 182 million and a non-GAAP tax rate of 26%
  • Non-GAAP free cash flow margin of approximately 32%

Revenue & Expenses

Visualization of income flow from segment revenue to net income