NASDAQ$OKTA

Okta Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong Q3 results with increased revenue and operating profit outlook for fiscal 2021.

Okta reported strong Q3 results, with revenue growing 42% year-over-year and subscription revenue growing 43% year-over-year. The company's remaining performance obligations (RPO) grew 53% year-over-year, and it achieved record quarterly operating and free cash flows.

  • Total revenue was $217.4 million, an increase of 42% year-over-year.
  • Subscription revenue was $206.7 million, an increase of 43% year-over-year.
  • Remaining Performance Obligations (RPO) was $1.58 billion, an increase of 53% year-over-year.
  • Free cash flow was $41.6 million, or 19.1% of total revenue, compared to $9.2 million, or 6.0% of total revenue, in the third quarter of fiscal 2020.

Headline financials

Total Revenue

$217M

Previous: $153M+42.0%
EPS (adj)

$0.04

Previous: -$0.07+157.1%
Remaining performance obligations

$1.58B

No prior period
Capital Expenditures

-$11.3M

Previous: -$9.98M-13.2%
Free Cash Flow

$81.8M

Previous: $20.8M+293.3%
Net Income

-$72.8M

Previous: -$63.5M-14.6%
Operating Income

-$52M

Previous: -$45.7M-13.7%
Gross Profit

$160M

Previous: $112M+43.0%
Cash & Equivalents

$410M

Previous: $1.04B-60.6%
Total Assets

$3.17B

Previous: $1.87B+69.5%
Stock-Based Comp

$53.7M

No prior period

Revenue & EPS history

Okta · Revenue · Quarterly

$217M

Q3 2021+42%vs Q3 2020
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Revenue by segment

Okta · $217M total across 2 segments · Q3 2021

  • Subscription
    $207M+43.0%
  • Professional services and other
    $10.6M+24.8%

Forward guidance

For the fourth quarter of fiscal 2021, Okta expects total revenue of $221 million to $222 million, representing a growth rate of 32% to 33% year-over-year and Non-GAAP net loss per share of $0.02 to $0.01.

Tailwinds

  • Total revenue of $221 million to $222 million, representing a growth rate of 32% to 33% year-over-year
  • Non-GAAP operating loss of $2.0 million to $1.0 million
  • Non-GAAP net loss per share of $0.02 to $0.01, assuming weighted shares outstanding of approximately 131 million
  • Total revenue of $822 million to $823 million, representing a growth rate of 40% year-over-year for the full year fiscal 2021
  • Non-GAAP net income per share, diluted of $0.04 to $0.05 for the full year fiscal 2021

Headwinds

  • Non-GAAP operating loss of $2.0 million to $1.0 million for Q4 2021
  • Non-GAAP net loss per share of $0.02 to $0.01 for Q4 2021
  • Non-GAAP operating loss of $2.3 million to $1.3 million for fiscal year 2021
  • Okta has not reconciled its expectations as to non-GAAP operating loss and non-GAAP net income (loss) per share, diluted to its most directly comparable GAAP measure because certain items are out of Okta’s control or cannot be reasonably predicted.
  • These statements are forward-looking and actual results may differ materially.

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 Q3 2021

Historical avgQ3 2021

+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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