NASDAQ$OKTA

Okta Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Okta's Q1 2022 earnings showcased strong growth, with revenue increasing and significant advancements in remaining performance obligations and cash flows.

Okta reported a strong first quarter in fiscal year 2022, marked by a 37% year-over-year increase in total revenue, reaching $251 million. Subscription revenue grew by 38% year-over-year, and the company achieved record quarterly operating and free cash flows. The acquisition of Auth0 was completed, further enhancing Okta's identity platform.

  • Total revenue increased by 37% year-over-year to $251 million.
  • Subscription revenue grew by 38% year-over-year to $240 million.
  • Remaining performance obligations (RPO) increased by 52% year-over-year to $1.89 billion.
  • The company reported record quarterly operating and free cash flows.

Headline financials

Total Revenue

$251M

Previous: $183M+37.3%
EPS (adj)

-$0.10

Previous: -$0.07-42.9%
Remaining performance obligations

$1.89B

Previous: $1.24B+52.4%
Capital Expenditures

-$3.26M

Previous: -$7.93M+58.9%
Free Cash Flow

$52.8M

Previous: $30.8M+71.7%
Net Income

-$109M

Previous: -$57.7M-89.4%
Operating Income

-$90.7M

Previous: -$52.2M-73.7%
Gross Profit

$185M

Previous: $134M+37.6%
Cash & Equivalents

$660M

Previous: $619M+6.6%
Total Assets

$3.43B

Previous: $2.04B+68.4%
Stock-Based Comp

$64.1M

Previous: $37.7M+69.9%

Revenue & EPS history

Okta · Revenue · Quarterly

$251M

Q1 2022+37.3%vs Q1 2021
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Revenue by segment

Okta · $251M total across 2 segments · Q1 2022

  • Subscription
    $240M+38.1%
  • Professional services and other
    $10.9M+20.6%

Forward guidance

Okta's financial outlook for the second quarter and full year fiscal 2022 includes the expected contribution from the acquisition of Auth0, net of purchase accounting adjustments.

Tailwinds

  • Total revenue of $295 million to $297 million, representing a growth rate of 47% to 48% year-over-year for Q2 2022.
  • Total revenue of $1.215 billion to $1.225 billion, representing a growth rate of 45% to 47% year-over-year for full year 2022.
  • The financial outlook includes the expected contribution from the acquisition of Auth0.
  • The acquisition of Auth0 will enable to provide even more choice and unprecedented innovation to customers and developers.
  • Together, we’ll capture more of the massive $80 billion identity market opportunity even faster.

Headwinds

  • Non-GAAP operating loss of $55 million to $53 million for Q2 2022.
  • Non-GAAP net loss per share of $0.36 to $0.35, assuming weighted-average shares outstanding of approximately 154 million for Q2 2022.
  • Non-GAAP operating loss of $172 million to $167 million for full year 2022.
  • Non-GAAP net loss per share of $1.16 to $1.13, assuming weighted-average shares outstanding of approximately 150 million for full year 2022.
  • Okta has not reconciled its expectations as to non-GAAP operating loss and non-GAAP net loss per share to their most directly comparable GAAP measures because certain items are out of Okta’s control or cannot be reasonably predicted.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+2.3%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+0.4%

Avg return

30 days after

58%

21 / 36 earnings

Positive

+31.6%

Q3 2023

Best reaction

-33.5%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+11.0%+11.0%+11.8%
Q3 2026+5.3%+6.6%+2.2%
Q2 2026+1.4%+1.3%-0.4%
Q1 2026-16.1%-16.5%-21.6%
Q4 2025+24.3%+29.0%+15.0%
Q3 2025+6.5%+4.9%-2.5%
Q2 2025-18.0%-18.8%-23.7%
Q1 2025-7.6%-8.0%-2.6%
Q4 2024+23.5%+25.7%+20.4%
Q3 2024-7.7%-0.2%+24.7%
Q2 2024+16.2%+19.9%+13.4%
Q1 2024-17.1%-20.1%-23.0%
Q4 2023+13.5%+18.0%+21.0%
Q3 2023+31.6%+20.9%+33.3%
Q2 2023-33.5%-29.1%-37.6%
Q1 2023+16.5%+18.1%+13.7%
Q4 2022-8.8%-16.2%-19.2%
Q3 2022+2.8%+1.2%+4.2%
Q2 2022+3.1%+2.6%-9.7%
Q1 2022-8.9%-8.9%+0.8%
Q4 2021-12.7%-19.5%-11.3%
Q3 2021+2.3%+3.8%+7.3%
Q2 2021-7.2%+0.2%-3.5%
Q1 2021+9.0%+11.3%+13.4%
Q4 2020-4.1%-9.2%-9.4%
Q3 2020-2.9%-1.8%-2.9%
Q2 2020-5.8%-6.3%-28.1%
Q1 2020+7.3%+8.1%+17.1%
Q4 2019-1.9%+0.8%+8.6%
Q3 2019+10.4%+6.4%+4.1%
Q2 2019+20.1%+21.7%+8.7%
Q1 2019-6.8%-5.4%-3.7%
Q4 2018+11.5%+3.8%+1.1%
Q3 2018+2.9%-6.6%-6.4%
Q2 2018+12.1%+8.8%+3.6%
Q1 2018+9.3%-4.2%-5.8%
Q4 2017
Q3 2017
Q2 2016
Q1 2016
Q4 2015
Q3 2015

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