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
Revenue & EPS history
Okta · Revenue · Quarterly
$584M
Revenue by segment
Okta · $584M total across 2 segments · Q3 2024
- Subscription$569M+22.1%97.4%
- Professional services and other$15M-1.2%2.6%
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
+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
| Quarter | Report date | Reaction (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 | — | — | — |
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