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Jan 31, 2023

Okta Q4 2023 Earnings Report

Okta's Q4 2023 financial performance showed revenue growth and improved go-to-market execution.

Key Takeaways

Okta reported a 33% year-over-year increase in Q4 revenue, reaching $510 million. Subscription revenue grew by 34% year-over-year. The company's operating cash flow was $76 million, and free cash flow was $72 million.

Total revenue was $510 million, up 33% year-over-year.

Subscription revenue reached $495 million, a 34% increase year-over-year.

Current remaining performance obligations (cRPO) grew 25% year-over-year to $1.68 billion.

The company had a record operating cash flow of $76 million and free cash flow of $72 million.

Total Revenue
$510M
Previous year: $383M
+33.2%
EPS
$0.3
Previous year: -$0.18
-266.7%
RPO
$1.68B
Previous year: $2.69B
-37.5%
Gross Profit
$371M
Previous year: $264M
+40.8%
Cash and Equivalents
$264M
Previous year: $260M
+1.5%
Free Cash Flow
$72M
Previous year: $5.03M
+1330.3%
Total Assets
$9.31B
Previous year: $9.21B
+1.1%

Okta

Okta

Okta Revenue by Segment

Forward Guidance

For Q1 2024, Okta expects revenue between $509 million and $511 million, cRPO between $1.675 billion and $1.685 billion, non-GAAP operating income between $18 million and $20 million, and non-GAAP diluted net income per share between $0.11 and $0.12. For FY 2024, Okta expects revenue between $2.155 billion and $2.170 billion, non-GAAP operating income between $136 million and $145 million, and non-GAAP diluted net income per share between $0.74 and $0.79.

Positive Outlook

  • Total revenue of $509 million to $511 million, representing a growth rate of 23% year-over-year
  • Current RPO of $1.675 billion to $1.685 billion, representing a growth rate of 19% year-over-year
  • Non-GAAP operating income of $18 million to $20 million
  • Non-GAAP diluted net income per share of $0.11 to $0.12
  • Total revenue of $2.155 billion to $2.170 billion, representing a growth rate of 16% to 17% year-over-year

Challenges Ahead

  • Non-GAAP operating income of $136 million to $145 million
  • Non-GAAP diluted net income per share of $0.74 to $0.79
  • These statements are forward-looking and actual results may differ materially.
  • Okta has not reconciled its expectations as to non-GAAP operating income and non-GAAP net income per share 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 operating income and non-GAAP net income per share are not available without unreasonable effort.

Revenue & Expenses

Visualization of income flow from segment revenue to net income