We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
OKTA Incurs Loss in Q1, Subscription Revenues Increase Y/Y
Read MoreHide Full Article
Okta, Inc. (OKTA - Free Report) reported first-quarter fiscal 2023 adjusted loss of 27 cents per share that beat the Zacks Consensus Estimate by 20.59%. The company had reported a loss of 10 cents per share in the year-ago quarter.
Total revenues surged 65.3% year over year to $414.9 million and surpassed the consensus mark by 6.68%. The upside can be attributed to higher subscription revenues.
Subscription revenues (95.9% of total revenues) surged 65.8% year over year to $397.9 million. Professional services and other revenues (4.1% of total revenues) increased 55.3% year over year to $17 million.
Quarter Details
Location wise, revenues from the United States (78% of total revenues) in the fiscal first quarter were $323.7 million, up 55.4% year over year. International revenues (22% of total revenues) soared 113.8% year over year to $91 million.
Total calculated billings were $389.2 million, up 6.9% 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 123%, up more than 300 basis points (bps).
Remaining Performance Obligations (“RPO”) totaled $2.71 billion, up 43% year over year. Current RPO, expected to be recognized over the next 12 months, was $1.41 billion, up 57% year over year.
Okta’s total customer count was 15,800, up 48% year over year. Customers with more than $100K in Annual Contract Value increased 59% year over year.
Operating Details
Non-GAAP total gross profit surged 61.1% year over year to $315.8 million. Gross margin contracted 200 basis points (bps) to 76.1%.
Non-GAAP subscription gross margin contracted 260 bps on a year-over-year basis.
Non-GAAP research and development expenses increased 134.7% year over year to $161.7 million. Non-GAAP sales and marketing; and general and administrative expenses increased 72.3% and 81.7% year over year to $252.5 million and $109.3 million, respectively.
Non-GAAP total operating expenses surged 90% year over year to $523.5 million.
Non-GAAP operating loss was $41 million compared with a loss of $15.9 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 $2.50 billion as of Jan 31, 2022.
Guidance
For second-quarter fiscal 2022, Okta expects revenues in the range of $428-$430 million, which indicates year-over-year growth of 36%.
Non-GAAP operating loss is expected in the range of $44-$43 million while non-GAAP net loss is anticipated to be 32-31 cents per share.
For fiscal 2023, revenues are expected to be $1.805- $1.815 billion (up from $1.78-$1.79 billion), indicating year-over-year growth between 39% and 40%.
Non-GAAP operating loss is expected in the range of $167-$162 million and non-GAAP net loss is anticipated between $1.14 and $1.11 per share.
Zacks Rank & Stocks to Consider
Currently, Okta carries a Zacks Rank #3 (Hold).
Okta shares are down 58.2%, underperforming the Zacks Computer & Technology sector’s decline of 24.9% year to date.
Image: Bigstock
OKTA Incurs Loss in Q1, Subscription Revenues Increase Y/Y
Okta, Inc. (OKTA - Free Report) reported first-quarter fiscal 2023 adjusted loss of 27 cents per share that beat the Zacks Consensus Estimate by 20.59%. The company had reported a loss of 10 cents per share in the year-ago quarter.
Total revenues surged 65.3% year over year to $414.9 million and surpassed the consensus mark by 6.68%. The upside can be attributed to higher subscription revenues.
Subscription revenues (95.9% of total revenues) surged 65.8% year over year to $397.9 million. Professional services and other revenues (4.1% of total revenues) increased 55.3% year over year to $17 million.
Quarter Details
Location wise, revenues from the United States (78% of total revenues) in the fiscal first quarter were $323.7 million, up 55.4% year over year. International revenues (22% of total revenues) soared 113.8% year over year to $91 million.
Total calculated billings were $389.2 million, up 6.9% 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 123%, up more than 300 basis points (bps).
Remaining Performance Obligations (“RPO”) totaled $2.71 billion, up 43% year over year. Current RPO, expected to be recognized over the next 12 months, was $1.41 billion, up 57% year over year.
Okta’s total customer count was 15,800, up 48% year over year. Customers with more than $100K in Annual Contract Value increased 59% year over year.
Operating Details
Non-GAAP total gross profit surged 61.1% year over year to $315.8 million. Gross margin contracted 200 basis points (bps) to 76.1%.
Non-GAAP subscription gross margin contracted 260 bps on a year-over-year basis.
Non-GAAP research and development expenses increased 134.7% year over year to $161.7 million. Non-GAAP sales and marketing; and general and administrative expenses increased 72.3% and 81.7% year over year to $252.5 million and $109.3 million, respectively.
Non-GAAP total operating expenses surged 90% year over year to $523.5 million.
Non-GAAP operating loss was $41 million compared with a loss of $15.9 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 $2.50 billion as of Jan 31, 2022.
Guidance
For second-quarter fiscal 2022, Okta expects revenues in the range of $428-$430 million, which indicates year-over-year growth of 36%.
Non-GAAP operating loss is expected in the range of $44-$43 million while non-GAAP net loss is anticipated to be 32-31 cents per share.
For fiscal 2023, revenues are expected to be $1.805- $1.815 billion (up from $1.78-$1.79 billion), indicating year-over-year growth between 39% and 40%.
Non-GAAP operating loss is expected in the range of $167-$162 million and non-GAAP net loss is anticipated between $1.14 and $1.11 per share.
Zacks Rank & Stocks to Consider
Currently, Okta carries a Zacks Rank #3 (Hold).
Okta shares are down 58.2%, underperforming the Zacks Computer & Technology sector’s decline of 24.9% year to date.
Better-ranked stocks in the sector are Nova (NVMI - Free Report) , Photronics (PLAB - Free Report) and Perion Network (PERI - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While shares of Photronics are 19.8% year to date, Perion and Nova are down 13.6% and 25%, respectively.