NASDAQ$OKTA

Okta Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced strong third quarter results with revenue growth and increased outlook.

Okta reported a strong third quarter with total revenue of $351 million, a 61% year-over-year increase. Subscription revenue grew by 63% year-over-year. The company also increased its revenue and operating profit outlook for fiscal year 2022.

  • Total revenue was $351 million, up 61% year-over-year.
  • Subscription revenue reached $337 million, a 63% increase year-over-year.
  • Remaining performance obligations (RPO) grew 49% year-over-year to $2.35 billion.
  • GAAP operating loss was $199 million, or 57% of total revenue.

Headline financials

Total Revenue

$351M

Previous: $217M+61.3%
EPS (adj)

-$0.07

Previous: $0.04-275.0%
Remaining performance obligations

$2.35B

Previous: $1.58B+48.7%
Capital Expenditures

-$5.8M

Previous: -$11.3M+48.7%
Free Cash Flow

$84.8M

Previous: $81.8M+3.7%
Net Income

-$221M

Previous: -$72.8M-204.1%
Operating Income

-$199M

Previous: -$52M-282.0%
Gross Profit

$241M

Previous: $160M+50.2%
Cash & Equivalents

$372M

Previous: $410M-9.1%
Total Assets

$9B

Previous: $3.17B+183.8%
Stock-Based Comp

$156M

Previous: $53.7M+190.3%

Revenue & EPS history

Okta · Revenue · Quarterly

$351M

Q3 2022+61.3%vs Q3 2021
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Okta · $351M total across 2 segments · Q3 2022

  • Subscription
    $337M+63.0%
  • Professional services and other
    $14M+31.4%

Forward guidance

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

Tailwinds

  • Total revenue of $358 million to $360 million, representing a growth rate of 53% year-over-year for Q4 2022.
  • Total revenue of $1.275 billion to $1.277 billion, representing a growth rate of 53% year-over-year for fiscal year 2022.

Headwinds

  • Non-GAAP operating loss of $35 million to $34 million for Q4 2022.
  • Non-GAAP net loss per share of $0.25 to $0.24, assuming weighted-average shares outstanding of approximately 154 million for Q4 2022.
  • Non-GAAP operating loss of $85 million to $84 million for fiscal year 2022.
  • Non-GAAP net loss per share of $0.53 to $0.52, assuming weighted-average shares outstanding of approximately 147 million for fiscal year 2022.

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 2022

Historical avgQ3 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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