Okta, Inc. (OKTA - Free Report) reported second-quarter fiscal 2023 adjusted loss of 10 cents per share, beating the Zacks Consensus Estimate by 66.67%. The company had reported a loss of 11 cents per share in the year-ago quarter.
Total revenues surged 43.2% year over year to $451.8 million and surpassed the consensus mark by 4.93%. The upside can be attributed to higher subscription revenues.
Subscription revenues (96.4% of total revenues) surged 43.6% year over year to $435.4 million. Professional services and other revenues (3.6% of total revenues) increased 32.7% year over year to $16.4 million.
Okta shares were down 11.93% in after-hours trading following the second-quarter results. Okta shares are down 71.1%, underperforming the Zacks Computer & Technology sector’s decline of 28.2% year to date.
Quarter Details
Location-wise, revenues from the United States (78% of total revenues) in the fiscal second quarter were $352.4 million, up 41.4% year over year. International revenues (22% of total revenues) soared 50% year over year to $99.4 million.
Total calculated billings were $491.3 million, up 35.6% year over year. The uptick was driven by new and existing commercial as well as enterprise customers and increased bookings.
The dollar-based retention rate in the trailing 12 months was 122%, down 200 basis points (bps).
Remaining Performance Obligations (“RPO”) totaled $2.79 billion, up 25% year over year. Current RPO, expected to be recognized over the next 12 months, was $1.49 billion, up 36% year over year.
Okta’s total customer count was 16,400, up 26% year over year. Customers with more than $100K in Annual Contract Value increased 35% year over year.
Operating Details
Non-GAAP total gross profits surged 43.7% year over year to $347.1 million. Gross margin contracted 30 bps to 76.8%.
Non-GAAP subscription gross margin was flat on a year-over-year basis.
Research and development expenses increased 27.3% year over year to $155.8 million. Sales and marketing increased 33.4% year over year to $264.7 million.
However, general and administrative expenses decreased 35.3% year over year to $101.7 million.
Total operating expenses increased 9.3% year over year to $522.2 million.
Non-GAAP operating loss was $15 million compared with a loss of $24.5 million in the year-ago quarter.
Balance Sheet
Okta had $2.49 billion in cash, cash equivalents and short-term investments as of Apr 30, 2022 compared with $2.49 billion as of Apr 30, 2022.
Guidance
For third-quarter fiscal 2022, Okta expects revenues in the range of $463-$465 million, which indicates year-over-year growth between 32% and 33%.
Non-GAAP operating loss is expected in the range of $37-$36 million while non-GAAP net loss is anticipated to be 25-24 cents per share.
For fiscal 2023, revenues are expected to be $1.812-$1.820 billion, indicating year-over-year growth between 39% and 40%.
Non-GAAP operating loss is expected in the range of $110-$105 million and non-GAAP net loss is anticipated between 73 and 70 cents per share.
Zacks Rank & Stocks to Consider
Currently, Okta carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Computer & Technology sector are Audioeye (AEYE - Free Report) , Airbnb (ABNB - Free Report) and Amphenol (APH - Free Report) . All three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Audioeye, Airbnb and Amphenol are down 7.4%, 33.6% and 17%, respectively, on a year-to-date basis.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
Okta, Inc. (OKTA - Free Report) reported second-quarter fiscal 2023 adjusted loss of 10 cents per share, beating the Zacks Consensus Estimate by 66.67%. The company had reported a loss of 11 cents per share in the year-ago quarter.
Total revenues surged 43.2% year over year to $451.8 million and surpassed the consensus mark by 4.93%. The upside can be attributed to higher subscription revenues.
Subscription revenues (96.4% of total revenues) surged 43.6% year over year to $435.4 million. Professional services and other revenues (3.6% of total revenues) increased 32.7% year over year to $16.4 million.
Okta shares were down 11.93% in after-hours trading following the second-quarter results. Okta shares are down 71.1%, underperforming the Zacks Computer & Technology sector’s decline of 28.2% year to date.
Quarter Details
Location-wise, revenues from the United States (78% of total revenues) in the fiscal second quarter were $352.4 million, up 41.4% year over year. International revenues (22% of total revenues) soared 50% year over year to $99.4 million.
Total calculated billings were $491.3 million, up 35.6% year over year. The uptick was driven by new and existing commercial as well as enterprise customers and increased bookings.
The dollar-based retention rate in the trailing 12 months was 122%, down 200 basis points (bps).
Remaining Performance Obligations (“RPO”) totaled $2.79 billion, up 25% year over year. Current RPO, expected to be recognized over the next 12 months, was $1.49 billion, up 36% year over year.
Okta’s total customer count was 16,400, up 26% year over year. Customers with more than $100K in Annual Contract Value increased 35% year over year.
Operating Details
Non-GAAP total gross profits surged 43.7% year over year to $347.1 million. Gross margin contracted 30 bps to 76.8%.
Non-GAAP subscription gross margin was flat on a year-over-year basis.
Research and development expenses increased 27.3% year over year to $155.8 million. Sales and marketing increased 33.4% year over year to $264.7 million.
However, general and administrative expenses decreased 35.3% year over year to $101.7 million.
Total operating expenses increased 9.3% year over year to $522.2 million.
Non-GAAP operating loss was $15 million compared with a loss of $24.5 million in the year-ago quarter.
Balance Sheet
Okta had $2.49 billion in cash, cash equivalents and short-term investments as of Apr 30, 2022 compared with $2.49 billion as of Apr 30, 2022.
Guidance
For third-quarter fiscal 2022, Okta expects revenues in the range of $463-$465 million, which indicates year-over-year growth between 32% and 33%.
Non-GAAP operating loss is expected in the range of $37-$36 million while non-GAAP net loss is anticipated to be 25-24 cents per share.
For fiscal 2023, revenues are expected to be $1.812-$1.820 billion, indicating year-over-year growth between 39% and 40%.
Non-GAAP operating loss is expected in the range of $110-$105 million and non-GAAP net loss is anticipated between 73 and 70 cents per share.
Zacks Rank & Stocks to Consider
Currently, Okta carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Computer & Technology sector are Audioeye (AEYE - Free Report) , Airbnb (ABNB - Free Report) and Amphenol (APH - Free Report) . All three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Audioeye, Airbnb and Amphenol are down 7.4%, 33.6% and 17%, respectively, on a year-to-date basis.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
Get the latest research report on APH - FREE
Get the latest research report on OKTA - FREE
Get the latest research report on AEYE - FREE
Get the latest research report on ABNB - FREE