NASDAQ$OKTA

Okta Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Okta's Q4 2023 financial performance showed revenue growth and improved go-to-market execution.

Okta reported a 33% year-over-year increase in Q4 revenue, reaching $510 million. Subscription revenue grew by 34% year-over-year. The company's operating cash flow was $76 million, and free cash flow was $72 million.

  • Total revenue was $510 million, up 33% year-over-year.
  • Subscription revenue reached $495 million, a 34% increase year-over-year.
  • Current remaining performance obligations (cRPO) grew 25% year-over-year to $1.68 billion.
  • The company had a record operating cash flow of $76 million and free cash flow of $72 million.

Headline financials

Total Revenue

$510M

Previous: $383M+33.2%
EPS (adj)

$0.30

Previous: -$0.18+266.7%
Remaining performance obligations

$1.68B

Previous: $2.69B-37.5%
Capital Expenditures

$2.62M

Previous: $6.51M-59.7%
Free Cash Flow

$72M

Previous: $5.03M+1330.3%
Net Income

-$153M

Previous: -$241M+36.6%
Operating Income

-$157M

Previous: -$214M+26.8%
Gross Profit

$371M

Previous: $264M+40.8%
Cash & Equivalents

$264M

Previous: $260M+1.5%
Total Assets

$9.31B

Previous: $9.21B+1.1%
Stock-Based Comp

$165M

Previous: $158M+4.7%

Revenue & EPS history

Okta · Revenue · Quarterly

$510M

Q4 2023+33.2%vs Q4 2022
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Okta · $510M total across 2 segments · Q4 2023

  • Subscription
    $495M+34.0%
  • Professional services and other
    $15M+9.6%

Forward guidance

For Q1 2024, Okta expects revenue between $509 million and $511 million, cRPO between $1.675 billion and $1.685 billion, non-GAAP operating income between $18 million and $20 million, and non-GAAP diluted net income per share between $0.11 and $0.12. For FY 2024, Okta expects revenue between $2.155 billion and $2.170 billion, non-GAAP operating income between $136 million and $145 million, and non-GAAP diluted net income per share between $0.74 and $0.79.

Tailwinds

  • Total revenue of $509 million to $511 million, representing a growth rate of 23% year-over-year
  • Current RPO of $1.675 billion to $1.685 billion, representing a growth rate of 19% year-over-year
  • Non-GAAP operating income of $18 million to $20 million
  • Non-GAAP diluted net income per share of $0.11 to $0.12
  • Total revenue of $2.155 billion to $2.170 billion, representing a growth rate of 16% to 17% year-over-year

Headwinds

  • Non-GAAP operating income of $136 million to $145 million
  • Non-GAAP diluted net income per share of $0.74 to $0.79
  • These statements are forward-looking and actual results may differ materially.
  • Okta has not reconciled its expectations as to non-GAAP operating income and non-GAAP net income per share 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 operating income and non-GAAP net income per share are not available without unreasonable effort.

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 2023

Historical avgQ4 2023

+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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