NASDAQ$OKTA

Okta Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Announced financial results for the first quarter ended April 30, 2024.

Okta's Q1 2025 shows strong revenue growth and significant improvements in profitability and cash flow. Total revenue increased by 19% year-over-year to $617 million, with subscription revenue growing by 20% to $603 million. The company reported record operating cash flow of $219 million and free cash flow of $214 million.

  • Total revenue was $617 million, up 19% year-over-year.
  • Subscription revenue reached $603 million, a 20% increase year-over-year.
  • Current remaining performance obligations (cRPO) grew 15% year-over-year to $1.949 billion.
  • The company had record operating cash flow of $219 million and free cash flow of $214 million.

Headline financials

Total Revenue

$617M

Previous: $518M+19.1%
EPS

-$0.24

Previous: $0.22-209.1%
Remaining performance obligations

$3.37B

Previous: $1.7B+98.5%
Current remaining performance obligations

$1.95B

No prior period
Operating cash flow

$219M

No prior period
Capital Expenditures

-$1M

Previous: $0.00
Free Cash Flow

$218M

Previous: $129M+69.0%
Net Income

-$40M

Previous: -$119M+66.4%
Operating Income

-$47M

Previous: -$160M+70.6%
Gross Profit

$469M

Previous: $376M+24.7%
Cash & Equivalents

$322M

Previous: $125M+157.6%
Total Assets

$8.96B

Previous: $8.9B+0.6%
R&D Expense

$163M

No prior period
Stock-Based Comp

$151M

Previous: $166M-9.0%

Revenue & EPS history

Okta · Revenue · Quarterly

$617M

Q1 2025+19.1%vs Q1 2024
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Okta · $765M total across 2 segments · Q1 2027

  • Subscription
    $750M
  • Professional services and other
    $15M

Forward guidance

For the second quarter of fiscal 2025, Okta expects total revenue of $631 million to $633 million, representing a growth rate of 13% to 14% year-over-year. The company anticipates current RPO of $1.955 billion to $1.960 billion, a growth rate of 10% to 11% year-over-year.

Tailwinds

  • Total revenue of $631 million to $633 million, representing a growth rate of 13% to 14% year-over-year
  • Current RPO of $1.955 billion to $1.960 billion, representing a growth rate of 10% to 11% year-over-year
  • Non-GAAP operating income of $123 million to $125 million, which yields a non-GAAP operating margin of 19% to 20%
  • Non-GAAP diluted net income per share of $0.60 to $0.61, 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 5%

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 2025

Historical avgQ1 2025

+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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