NASDAQ$OKTA

Okta Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Okta reported strong Q4 and fiscal year 2021 results, marked by substantial revenue growth and strategic acquisition announcement.

Okta announced strong Q4 and Fiscal Year 2021 results. Q4 revenue grew 40% year-over-year, and the company entered into an agreement to acquire Auth0.

  • Q4 revenue grew 40% year-over-year.
  • Subscription revenue grew 42% year-over-year.
  • Remaining performance obligations (RPO) grew 49% year-over-year to $1.80 billion.
  • Okta signed a definitive agreement to acquire Auth0.

Headline financials

Total Revenue

$235M

Previous: $167M+40.3%
EPS (adj)

$0.06

Previous: -$0.01+700.0%
Remaining performance obligations

$1.8B

Previous: $1.21B+48.8%
Capital Expenditures

$1.79M

Previous: $5.46M-67.3%
Free Cash Flow

$32.5M

Previous: $18.1M+79.1%
Net Income

-$75.8M

Previous: -$50.5M-50.2%
Operating Income

-$54.6M

Previous: -$44.7M-22.1%
Gross Profit

$174M

Previous: $123M+41.5%
Cash & Equivalents

$435M

Previous: $520M-16.4%
Total Assets

$3.3B

Previous: $1.96B+68.7%
Stock-Based Comp

$56.4M

Previous: $36.9M+52.7%

Revenue & EPS history

Okta · Revenue · Quarterly

$235M

Q4 2021+40.3%vs Q4 2020
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Revenue by segment

Okta · $235M total across 2 segments · Q4 2021

  • Subscription
    $225M+42.2%
  • Professional services and other
    $9.34M+6.0%

Forward guidance

For the first quarter of fiscal 2022, the Company expects total revenue of $237 million to $239 million, representing a growth rate of 30% to 31% year-over-year. For the full year fiscal 2022, the Company expects total revenue of $1.08 billion to $1.09 billion, representing a growth rate of 29% to 30% year-over-year.

Tailwinds

  • Total revenue of $237 million to $239 million, representing a growth rate of 30% to 31% year-over-year for Q1 2022
  • Full year fiscal 2022 total revenue of $1.08 billion to $1.09 billion, representing a growth rate of 29% to 30% year-over-year
  • Continued strength in RPO
  • Continued strength in revenue
  • Continued strength in cash flows

Headwinds

  • Non-GAAP operating loss of $28.0 million to $27.0 million for Q1 2022
  • Non-GAAP net loss per share of $0.21 to $0.20, assuming weighted-average shares outstanding of approximately 133 million for Q1 2022
  • Non-GAAP operating loss of $61.0 million to $55.0 million for FY 2022
  • Non-GAAP net loss per share of $0.49 to $0.44, assuming weighted-average shares outstanding of approximately 135 million for FY 2022
  • Financial outlook does not include any potential impact from the proposed acquisition of Auth0.

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 Q4 2021

Historical avgQ4 2021

+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

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