NASDAQ$OKTA

Okta Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Okta's Q4 2024 financial results were announced, demonstrating strong revenue growth and record profitability.

Okta reported strong Q4 2024 financial results, including a 19% year-over-year increase in revenue, record non-GAAP profitability, and record cash flow. The company's performance was driven by strength with large customers, as organizations continue to adopt Okta's identity solutions.

  • Total revenue increased by 19% year-over-year, reaching $605 million.
  • Subscription revenue grew by 20% year-over-year, totaling $591 million.
  • Current remaining performance obligations (cRPO) increased by 16% year-over-year to $1.952 billion.
  • The company achieved a record operating cash flow of $174 million and a free cash flow of $166 million.

Headline financials

Total Revenue

$605M

Previous: $510M+18.6%
EPS (adj)

$0.63

Previous: $0.30+110.0%
Remaining performance obligations

$1.95B

Previous: $1.68B+16.2%
Capital Expenditures

-$8M

Previous: $2.62M-405.0%
Net Income

-$44M

Previous: -$153M+71.2%
Operating Income

-$83M

Previous: -$157M+47.1%
Gross Profit

$460M

Previous: $371M+24.0%
R&D Expense

$156M

No prior period
Stock-Based Comp

$161M

Previous: $165M-2.6%

Revenue & EPS history

Okta · Revenue · Quarterly

$605M

Q4 2024+18.6%vs Q4 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Okta · $765M total across 2 segments · Q1 2027

  • Subscription
    $750M
  • Professional services and other
    $15M

Forward guidance

For the first quarter of fiscal 2025, Okta expects total revenue of $603 million to $605 million, representing a growth rate of 16% to 17% year-over-year. For the full year fiscal 2025, the Company now expects total revenue of $2.495 billion to $2.505 billion, representing a growth rate of 10% to 11% year-over-year.

Tailwinds

  • Total revenue of $603 million to $605 million, representing a growth rate of 16% to 17% year-over-year
  • Current RPO of $1.915 billion to $1.920 billion, representing a growth rate of 13% year-over-year
  • Non-GAAP operating income of $108 million to $110 million, which yields a non-GAAP operating margin of 18%
  • Non-GAAP diluted net income per share of $0.54 to $0.55, assuming diluted weighted-average shares outstanding of approximately 182 million and a non-GAAP tax rate of 26%
  • Non-GAAP free cash flow margin of approximately 25%, inclusive of the expected cash impact of approximately $24 million related to the organizational restructuring expected to be paid out in the first quarter

Headwinds

  • All periods factor in a stable, but still challenging macro environment
  • Potential impacts 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.
  • These statements are forward-looking and actual results may differ materially.

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 2024

Historical avgQ4 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

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