Okta Japan Co., Ltd.
Okta Announces Fourth Quarter and Full Year 2023 Financial Results
Q4 sales up 33% year-on-year, subscription sales up 34% year-on-year Remaining Performance Obligation (cRPO) increased 25% year over year to $1.68 billion
Record-high operating cash flow of $76 million, free cash flow of $72 million
Okta, Inc. (Headquarters: San Francisco, USA, hereafter Okta), a leading company in identity management services, today announced financial results for the fourth quarter of fiscal 2023 and the full year ending January 31, 2023.
Okta CEO and Co-Founder Todd McKinnon said: “I am pleased with our fourth quarter performance and continued improvement in execution of our go-to-market strategy. Identity is at the top of the agenda for organizations around the world. It is the only independent, neutral platform that delivers market-leading solutions at scale for both , and despite the changing macroeconomic environment, Okta delivered non-GAAP earnings growth and We are more excited than ever to be able to demonstrate leadership in a huge market.”
FY2023 Fourth Quarter Financial Highlights
● Sales: Total sales increased 33% year-on-year to US$510 million. Subscription revenue was US$495 million, up 34% year-on-year. • Remaining Performance Obligation (RPO): RPO, or contract
outstanding, was $3.01 billion, up 12% from the prior year period. Contract-based revenue expected to be recognized over the next 12 months, cRPO, was $1.68 billion, an increase of 25% year-over-year. • Calculated Claims: Total calculated claims were $710 million, up 18% year-over-year.
• GAAP Operating Loss: GAAP operating loss was $157 million (31% of total revenue), compared with $214 million (56% of total revenue) in the prior-year quarter.
• Non-GAAP Operating Income/Loss: Non-GAAP operating income was $46 million, or 9% of total revenues. By comparison, non-GAAP operating loss was $24 million, or 6% of total revenue.
• GAAP Net Loss: GAAP net loss was $153 million. This compares to a GAAP net loss of $241 million for the fourth quarter of 2022. GAAP net loss per share was $0.95. This compares to a GAAP net loss of $1.56 per share for the fourth quarter of 2022.
• Non-GAAP Net Income/Loss: Non-GAAP net income was $52 million. This compares to a net loss of $29 million in the fourth quarter of fiscal 2022. Non-GAAP basic and diluted net earnings per share were $0.33 and $0.30, respectively. This compares to a non-GAAP basic and diluted net loss per share of $0.18 for the fourth quarter of 2022.
● Cash Flow: Cash flow from operating activities was $76 million (15% of total sales). This compares to cash flow from operations of $14 million, or 4% of total revenue, in the fourth quarter of 2022. Free cash flow was $72 million (14% of total sales). In comparison, free cash flow for the fourth quarter of 2022 was $5 million, or 1% of total revenue.
● Cash, cash equivalents and short-term investments were $2.58 billion as of January 31, 2023.
FY2023 Full-Year Financial Highlights
● Sales: Total sales were $1.86 billion, an increase of 43% from the previous year. Subscription revenue was $1.79 billion, up 44% year over year.
• Calculated Claims: Total calculated claims increased 24% year over year to $2.12 billion.
• Operating loss: GAAP operating loss was $812 million, or 44% of total sales. This compares to a 2022 GAAP operating loss of $768 million, or 59% of total revenue. Non-GAAP operating loss was $10 million, or 1% of total revenue. This compares to a non-GAAP operating loss of $74 million, or 6% of total revenue, in 2022.
• GAAP net loss: GAAP net loss was $815 million. This compares to a 2022 GAAP net loss of $848 million. GAAP net loss per share was $5.16. This compares to a GAAP net loss of $5.73 per share for fiscal 2022. • Non-GAAP Net Loss: Non-GAAP net loss was $7 million. This compares to a non-GAAP net loss of $68 million in 2022. Non-GAAP basic and diluted net loss per share was $0.04. This compares to non-GAAP basic and diluted net loss per share of $0.46 in 2022.
• Cash Flow: Cash flow from operating activities was $86 million (5% of total sales). This compares to cash flow from operations of $104 million (8% of total sales) in 2022. Free cash flow was $65 million (3% of total sales). In comparison, free cash flow in 2022 was $87 million, or 7% of total revenue.
The Non-GAAP Financial Measures section below provides a discussion of the non-GAAP financial measures and the reconciliation of GAAP and non-GAAP information is provided in the table below.
Business outlook
For the first quarter of fiscal 2024, we expect the following. Total revenue of $509 million to $511 million, a 23% year-over-year growth rate The current RPO is between $1.675 billion and $1.685 billion, a 19% year-over-year growth rate
– Non-GAAP operating income of $18 million to $20 million
Assuming approximately 178 million diluted weighted-average shares outstanding and a non-GAAP tax rate of 26%, non-GAAP diluted net income per share of $0.11 to $0.12 dollar
For the full year of 2024, we expect the following.
– Total sales were $2.155 billion to $2.17 billion, a year-over-year growth rate of 16% to 17%
– Non-GAAP operating income of $136 million to $145 million
Assuming approximately 180 million diluted weighted-average shares outstanding and a non-GAAP tax rate of 26%, non-GAAP diluted net income per share starts at $0.74 $0.79
These statements are forward-looking statements and actual results may differ materially. Please see the safe harbor under “Forward-Looking Statements” below regarding factors that could cause our actual results to differ materially from these forward-looking statements. Certain items are beyond Okta’s control or are not reasonably predictable and have been adjusted to the most directly comparable GAAP measures of non-GAAP operating income (loss) and non-GAAP net income (loss) per share. I have not. Accordingly, adjustments to future non-GAAP operating income (loss) and non-GAAP net income (loss) per share are not possible without unreasonable efforts.
Supplemental financial and other information
Supplemental financial and other information can be accessed through our investor website at investor.okta.com.
Non-GAAP financial measures
This press release includes the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss) and non-GAAP operating. Earnings margin, non-GAAP net income (loss), non-GAAP net income (loss), basic and diluted per share, non-gayup tax rate, free cash flow, free cash flow margin, current calculation Billed amount, calculated billed amount. These non-GAAP financial measures include stock-based compensation, non-cash charitable contributions, acquisition intangible amortization, acquisition and integration-related charges, restructuring charges related to severance and termination benefits, and leases related to certain rental facility closures. Includes asset impairment, debt discount amortization, debt issuance cost amortization and early debt amortization loss. Acquisition and integration related costs include transaction costs and other non-recurring additional costs incurred within one year of closing.
We periodically review the components of our non-GAAP reconciling items to consider changes in our performance evaluation methodology, changes in our financial and operating decision-making practices, and our competitors’ and industry peers’ use of these measures. We ensure the adequacy and significance of adjustment items. In 2023, we will update our definitions of non-GAAP operating income (loss) and non-GAAP operating margin to include restructuring charges related to severance and severance benefits, and impairment losses on leased assets related to the closure of certain rental facilities. I accounted for it.
Based on our guidance for the first quarter and full year of 2024, we have used a long-term projected tax rate of 26% in calculating our non-GAAP income tax rate effective February 1, 2023. This non-GAAP tax rate is subject to change due to a number of factors, including changes in tax laws and regulations, significant changes in our geographic earnings mix, or other changes related to our strategy or business operations. . We periodically update long-term tax rate projections, as appropriate, for material events based on our ongoing analysis of changes in relevant tax laws, anticipated material changes in our geographic earnings mix, and significant acquisitions. I plan to review it.
Non-GAAP financial information, when considered together with GAAP financial measures, provides consistency and comparability with historical financial results and uses similar non-GAAP financial information to supplement GAAP results. We believe this is useful for investors as it helps in comparison with other companies. Non-GAAP financial information is provided for supplemental information only and should not be considered a substitute for financial information presented in accordance with GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. may vary. The primary limitation of these non-GAAP financial measures is that they exclude significant expenses that are required to be accounted for in financial statements in accordance with GAAP. In addition, there are inherent limitations as they reflect the Company’s management’s judgment as to which expenses to exclude or include in determining these non-GAAP financial measures. Below is a
reconciliation of each non-GAAP financial measure to the most directly comparable financial measure in accordance with GAAP.
Okta has identified relevant GAAP financial measures and
reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures contained in press releases announcing quarterly results, including this press release, We encourage investors not to rely on a single financial measure to measure our business.
Forward-Looking Statements: This press release contains
“forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, which include the Company’s financial prospects and business prospects. including, but not limited to, statements regarding strategy and plans, market trends and size, opportunities and positioning; These forward-looking statements are based on our current expectations, estimates, projections and expectations. “expect”, “anticipate”, “should”, “believe”, “hope”, “target”, “project”, “goal”, “estimate”, “possibility”, ” Words such as “anticipate,” “may,” “may,” “intend,” “will,” and variations and similar expressions of these words are used to identify these forward-looking statements. However, not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors and circumstances beyond our control. For example, the markets for our products may develop more slowly than expected or more slowly than in the past; and Auth0 could not achieve the expected synergies and operational efficiency, the integration of the two companies may not go well, and the global economic situation may worsen. Any network or data security incident that allows unauthorized access to our network or data or that of our customers could damage our reputation and result in significant costs. We may also experience interruptions and performance issues related to our technology, including service outages. The impact of COVID-19, related public health measures and related economic downturns on our business and results of operations may exceed our expectations and we may not be able to redeem senior convertible notes in time. Additional information regarding the potential factors affecting our results of operations is contained in our most recent Quarterly Report on Form 10-Q and other filings we file with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent only the views of the Company as of the date of this press release, and the Company undertakes no obligation and does not intend to update these forward-looking statements.
About Okta
Okta is the leading independent identity company that securely enables anyone, anywhere, on any device or app, with any technology. The most trusted brands trust Okta for secure access, authentication and automation. Flexibility and neutrality are at the core of Okta’s Workforce Identity Cloud and Customer Identity Cloud, allowing business leaders and developers to focus on innovation and digital transformation with customizable solutions and pre-integrated with over 7,500 applications. can be accelerated. We are building a world where your identity belongs to you. See below for details.
https://www.okta.com/en/
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