NASDAQ$OKTA

Okta Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Q3 performance was marked by revenue growth and record cash flow.

Okta's Q3 2024 shows strong growth with a 21% increase in revenue year-over-year, reaching $584 million. The company also reported record non-GAAP operating profit and free cash flow, highlighting efficient financial management.

  • Total revenue increased by 21% year-over-year, amounting to $584 million.
  • Subscription revenue saw a 22% increase year-over-year, totaling $569 million.
  • Current remaining performance obligations (cRPO) grew by 16% year-over-year, reaching $1.83 billion.
  • The company achieved record operating cash flow of $156 million and a record free cash flow of $150 million.

Headline financials

Total Revenue

$584M

Previous: $481M+21.4%
EPS (adj)

$0.44

Previous: -$1.09+140.4%
Remaining performance obligations

$1.83B

Previous: $2.85B-35.8%
Capital Expenditures

-$5M

Previous: -$9.38M+46.7%
Free Cash Flow

$333M

Previous: $385K+86393.5%
Net Income

-$81M

Previous: -$209M+61.2%
Operating Income

-$111M

Previous: -$207M+46.3%
Gross Profit

$439M

Previous: $343M+27.8%
Cash & Equivalents

$400M

Previous: $250M+60.2%
Total Assets

$8.74B

Previous: $9.09B-3.9%
R&D Expense

$165M

No prior period
Stock-Based Comp

$172M

Previous: $171M+0.6%

Revenue & EPS history

Okta · Revenue · Quarterly

$584M

Q3 2024+21.4%vs Q3 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Okta · $584M total across 2 segments · Q3 2024

  • Subscription
    $569M+22.1%
  • Professional services and other
    $15M-1.2%

Forward guidance

For the fourth quarter of fiscal 2024, Okta expects total revenue between $585 million and $587 million, representing a 15% year-over-year growth rate. They anticipate a current RPO of $1.875 billion to $1.880 billion, a non-GAAP operating income of $102 million to $104 million, and a non-GAAP diluted net income per share of $0.50 to $0.51.

Tailwinds

  • Total revenue of $585 million to $587 million, representing a growth rate of 15% year-over-year
  • Current RPO of $1.875 billion to $1.880 billion, representing a growth rate of 11% to 12% year-over-year
  • Non-GAAP operating income of $102 million to $104 million, which yields a non-GAAP operating margin of 17% to 18%
  • Non-GAAP diluted net income per share of $0.50 to $0.51, assuming diluted weighted-average shares outstanding of approximately 180 million and a non-GAAP tax rate of 26%
  • Full year fiscal 2024 total revenue of $2.243 billion to $2.245 billion, representing a growth rate of 21% year-over-year

Headwinds

  • All periods factor in a stable, but still challenging macro environment
  • Potential impact on our business related to the October 2023 security incident
  • Okta has not reconciled its forward-looking non-GAAP financial measures to their most directly comparable GAAP measures because certain items are out of Okta’s control or cannot be reasonably predicted.
  • Accordingly, reconciliations for forward-looking non-GAAP financial measures are not available without unreasonable effort.
  • Preliminary outlook for fiscal 2025 total revenue represents a growth rate of 10% year-over-year

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 2024

Historical avgQ3 2024

+3.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+0.4%

Avg return

30 days after

59%

22 / 37 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+30.0%+31.6%
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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro