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OKTA Incurs Loss in Q1, Subscription Revenues Increase Y/Y
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Okta, Inc. (OKTA - Free Report) reported first-quarter fiscal 2022 adjusted loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents but wider than loss of six cents reported in the year-ago quarter.
Total revenues surged 37.3% year over year to $251 million and surpassed the consensus mark by 5.2%. The upside can be attributed to higher subscription revenues.
Subscription revenues (95.6% of total revenues) surged 38.1% year over year to $240.1 million. Moreover, professional services and other revenues (4.4% of total revenues) increased 20.6% year over year to $10.9 million.
Quarter Details
Location wise, revenues from the United States (83% of total revenues) in fiscal first quarter were $208.3 million, up 35.6% year over year. International revenues (17% of total revenues) soared 45.8% year over year to $42.7 million.
Total calculated billings were $364 million, up 74% year over year. The uptick was driven by new and existing commercial as well as enterprise customers, and increased bookings.
Dollar-based retention rate in the trailing 12 months was 120% .
Remaining Performance Obligations (“RPO”) totaled $1.89 billion, up 52% year over year. Current RPO, expected to be recognized over the next 12 months, was $899 million, up 45% year over year.
User Details
Okta added 650 new customers in the reported quarter, taking the total customer count to 10,650, up 27% year over year.
Okta Identity Cloud’s capability to consolidate and easily integrate existing applications without compromising security or stability is attracting customers. Okta products’ ability to automate process, secure data and reduce costs is also a positive.
Moreover, partnership with the likes of salesforce.com (CRM - Free Report) is helping the company to win customers.
Operating Details
Non-GAAP total gross profit surged 38.3% year over year to $196.1 million. Gross margin expanded 60 basis points (bps) to 78.1%.
Non-GAAP research and development expenses increased 42% year over year to $68.9 million. Additionally, non-GAAP sales and marketing, and general and administrative expenses increased 40.8% and 76.8% year over year to $146.5 million and $60.2 million, respectively.
Non-GAAP total operating expenses increased 47.7% year over year to $275.6 million.
Non-GAAP operating loss was $15.9 million compared with operating loss of $5.6 million in the year-ago quarter.
Balance Sheet and Cash Flow
Okta had $2.69 billion in cash, cash equivalents and short-term investments, as of Apr 30, 2021, compared with $2.56 billion as of Jan 31, 2021.
Cash provided by operations was $56.1 million in the reported quarter compared with the previous quarter’s $34.9 million.
Okta recorded free cash of $52.8 million in the reported quarter compared with $32.5 million reported in the previous quarter.
Guidance
For second-quarter fiscal 2022, Okta expects revenues in the range of $295-$297 million, which indicates year-over-year growth of 47-48%.
Non-GAAP operating loss is expected in the range of $53-$55 million while non-GAAP net loss is anticipated in the band of 35-36 cents per share.
For fiscal 2022, revenues are expected in the range of $1.215-$1.225 billion, indicating year-over-year growth between 45% and 47%.
Non-GAAP operating loss is expected in the range of $167-$172 million and non-GAAP net loss is anticipated between $1.13 per share and $1.16 per share.
Both Digital Turbine and Zoom are set to report their quarterly results on Jun 1.
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OKTA Incurs Loss in Q1, Subscription Revenues Increase Y/Y
Okta, Inc. (OKTA - Free Report) reported first-quarter fiscal 2022 adjusted loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents but wider than loss of six cents reported in the year-ago quarter.
Total revenues surged 37.3% year over year to $251 million and surpassed the consensus mark by 5.2%. The upside can be attributed to higher subscription revenues.
Subscription revenues (95.6% of total revenues) surged 38.1% year over year to $240.1 million. Moreover, professional services and other revenues (4.4% of total revenues) increased 20.6% year over year to $10.9 million.
Quarter Details
Location wise, revenues from the United States (83% of total revenues) in fiscal first quarter were $208.3 million, up 35.6% year over year. International revenues (17% of total revenues) soared 45.8% year over year to $42.7 million.
Total calculated billings were $364 million, up 74% year over year. The uptick was driven by new and existing commercial as well as enterprise customers, and increased bookings.
Okta, Inc. Price, Consensus and EPS Surprise
Okta, Inc. price-consensus-eps-surprise-chart | Okta, Inc. Quote
Dollar-based retention rate in the trailing 12 months was 120% .
Remaining Performance Obligations (“RPO”) totaled $1.89 billion, up 52% year over year. Current RPO, expected to be recognized over the next 12 months, was $899 million, up 45% year over year.
User Details
Okta added 650 new customers in the reported quarter, taking the total customer count to 10,650, up 27% year over year.
Okta Identity Cloud’s capability to consolidate and easily integrate existing applications without compromising security or stability is attracting customers. Okta products’ ability to automate process, secure data and reduce costs is also a positive.
Moreover, partnership with the likes of salesforce.com (CRM - Free Report) is helping the company to win customers.
Operating Details
Non-GAAP total gross profit surged 38.3% year over year to $196.1 million. Gross margin expanded 60 basis points (bps) to 78.1%.
Non-GAAP research and development expenses increased 42% year over year to $68.9 million. Additionally, non-GAAP sales and marketing, and general and administrative expenses increased 40.8% and 76.8% year over year to $146.5 million and $60.2 million, respectively.
Non-GAAP total operating expenses increased 47.7% year over year to $275.6 million.
Non-GAAP operating loss was $15.9 million compared with operating loss of $5.6 million in the year-ago quarter.
Balance Sheet and Cash Flow
Okta had $2.69 billion in cash, cash equivalents and short-term investments, as of Apr 30, 2021, compared with $2.56 billion as of Jan 31, 2021.
Cash provided by operations was $56.1 million in the reported quarter compared with the previous quarter’s $34.9 million.
Okta recorded free cash of $52.8 million in the reported quarter compared with $32.5 million reported in the previous quarter.
Guidance
For second-quarter fiscal 2022, Okta expects revenues in the range of $295-$297 million, which indicates year-over-year growth of 47-48%.
Non-GAAP operating loss is expected in the range of $53-$55 million while non-GAAP net loss is anticipated in the band of 35-36 cents per share.
For fiscal 2022, revenues are expected in the range of $1.215-$1.225 billion, indicating year-over-year growth between 45% and 47%.
Non-GAAP operating loss is expected in the range of $167-$172 million and non-GAAP net loss is anticipated between $1.13 per share and $1.16 per share.
Zacks Rank & Stocks to Consider
Currently, Okta carries a Zacks Rank #4 (Sell).
Digital Turbine (APPS - Free Report) and Zoom (ZM - Free Report) are a couple of better-ranked stocks in the broader computer and technology sector. Both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Digital Turbine and Zoom are set to report their quarterly results on Jun 1.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>