Okta Q4 2024 Earnings Report
Key Takeaways
Okta reported strong Q4 2024 financial results, including a 19% year-over-year increase in revenue, record non-GAAP profitability, and record cash flow. The company's performance was driven by strength with large customers, as organizations continue to adopt Okta's identity solutions.
Total revenue increased by 19% year-over-year, reaching $605 million.
Subscription revenue grew by 20% year-over-year, totaling $591 million.
Current remaining performance obligations (cRPO) increased by 16% year-over-year to $1.952 billion.
The company achieved a record operating cash flow of $174 million and a free cash flow of $166 million.
Okta
Okta
Okta Revenue by Segment
Forward Guidance
For the first quarter of fiscal 2025, Okta expects total revenue of $603 million to $605 million, representing a growth rate of 16% to 17% year-over-year. For the full year fiscal 2025, the Company now expects total revenue of $2.495 billion to $2.505 billion, representing a growth rate of 10% to 11% year-over-year.
Positive Outlook
- Total revenue of $603 million to $605 million, representing a growth rate of 16% to 17% year-over-year
- Current RPO of $1.915 billion to $1.920 billion, representing a growth rate of 13% year-over-year
- Non-GAAP operating income of $108 million to $110 million, which yields a non-GAAP operating margin of 18%
- Non-GAAP diluted net income per share of $0.54 to $0.55, 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 25%, inclusive of the expected cash impact of approximately $24 million related to the organizational restructuring expected to be paid out in the first quarter
Challenges Ahead
- All periods factor in a stable, but still challenging macro environment
- Potential impacts 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.
- These statements are forward-looking and actual results may differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income