Okta Inc · Q2 2024 earnings

Briefing

Delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year.

Okta's Q2 2024 financial results showed a 23% year-over-year revenue increase, driven by a 24% increase in subscription revenue. The company's focus on execution and efficiency led to significant improvements in operating profit and cash flow. Current remaining performance obligations (cRPO) grew 18% year-over-year to $1.77 billion. Operating cash flow was $53 million and free cash flow was $49 million.

• Total revenue was $556 million, an increase of 23% year-over-year.
• Subscription revenue was $542 million, an increase of 24% year-over-year.
• Current remaining performance obligations (cRPO) grew 18% year-over-year to $1.77 billion.
• Operating cash flow of $53 million and free cash flow of $49 million.

Headline financials

Revenue & EPS history

For the third quarter of fiscal 2024, the Company expects: •Total revenue of $558 million to $560 million, representing a growth rate of 16% year-over-year; •Current RPO of $1.780 billion to $1.785 billion, representing a growth rate of 13% year-over-year; •Non-GAAP operating income of $53 million to $55 million; and •Non-GAAP diluted net income per share of $0.29 to $0.30, assuming diluted weighted-average shares outstanding of approximately 180 million and a non-GAAP tax rate of 26%. For the full year fiscal 2024, the Company now expects: •Total revenue of $2.207 billion to $2.215 billion, representing a growth rate of 19% year-over-year; •Non-GAAP operating income of $215 million to $220 million; •Non-GAAP diluted net income per share of $1.17 to $1.20, assuming diluted weighted-average shares outstanding of approximately 179 million and a non-GAAP tax rate of 26%; and •Non-GAAP free cash flow margin of 15%.