Okta (OKTA) Q4 Earnings: What to Expect

As the calendar turns to 2025, investors are eagerly anticipating Okta's (OKTA) fourth-quarter earnings report, scheduled for release on March 14, 2025. Okta, a leading independent identity partner, has been on a strong growth trajectory, and its Q4 earnings are expected to reflect this positive momentum. Here's what investors should keep an eye on when Okta's earnings are announced.



Revenue Growth and Subscription Revenue

Okta's revenue growth has been a key driver of its success, and investors will be closely watching the company's top-line performance in Q4. Analysts expect Okta to report revenue of $668.8 million, representing a 10.6% increase year-over-year. Subscription revenue, which accounts for the majority of Okta's revenue, is expected to grow by 10.8% year-over-year to $654.53 million. This growth is a testament to Okta's ability to retain and expand its customer base.

Remaining Performance Obligations (RPOs) and Current RPOs (cRPOs)

RPOs and cRPOs are crucial metrics for evaluating Okta's sales pipeline and growth prospects. Analysts expect Okta's RPOs to reach $3.83 billion, indicating a strong sales pipeline. Additionally, cRPOs, which represent the portion of RPOs expected to be recognized over the next 12 months, are expected to reach $2.14 billion. This metric suggests that Okta has a robust sales pipeline and is well-positioned for future growth.



Total Customers and Dollar-Based Net Retention Rate

Okta's customer base has been expanding, and investors will be interested in the company's total customer count in Q4. Analysts expect Okta to report 19,810 total customers, up from 18,950 in the same quarter last year. Additionally, the dollar-based net retention rate, which measures the percentage of revenue retained from existing customers, is expected to reach 107.0%. This metric indicates that Okta is successfully retaining and expanding its customer base.



Outlook and Guidance

Okta's guidance for Q1 2025 and the full fiscal year 2025 reflects the company's confidence in its growth prospects. The company expects total revenue of $603 million to $605 million for Q1 2025, representing a 16% to 17% year-over-year growth rate, and $2.495 billion to $2.505 billion for the full fiscal year 2025, a 10% to 11% year-over-year growth rate. Okta also anticipates a non-GAAP operating margin of 18% to 19% for the full year.



In conclusion, Okta's Q4 earnings report is expected to showcase the company's strong revenue growth, expanding customer base, and robust sales pipeline. Investors should focus on key metrics such as subscription revenue growth, RPOs, cRPOs, total customers, and the dollar-based net retention rate to gain insights into Okta's financial health and growth prospects. With a positive outlook and strong guidance, Okta is well-positioned for continued success in the identity and access management market.