icon
icon
icon
icon
Upgrade
icon

Okta shares jump 25% following beat and raise quarter

AInvestThursday, Feb 29, 2024 2:39 am ET
1min read

Okta, Inc., a leading provider of identity and access management solutions, saw its stock rip 25% higher in after hours after posting a solid beat and raise quarter. OKTA shares broke above $91 resistance and the $100-psych level to rally to $107, its best level since August 2022. 

reported Q4 earnings of $0.63 per share, excluding non-recurring items, beating estimates of $0.51. Revenue for the quarter rose 18.6% year-over-year to $605 million, surpassing estimates of $587.2 million. 

Okta's financial performance in Q4 was driven by strong growth in subscription revenue, which increased by 20% year-over-year to $591 million. The company's subscription backlog, or RPO, was $3.385 billion, up 13% year-over-year, while current RPO, or cRPO, was $1.952 billion, up 16% compared to the fourth quarter of fiscal 2023.

Non-GAAP operating income was $129 million, or 21% of total revenue, compared to a non-GAAP operating income of $46 million, or 9% of total revenue, in the fourth quarter of fiscal 2023. Non-GAAP net income was $113 million, compared to non-GAAP net income of $52 million in the fourth quarter of fiscal 2023. 

The company generated $174 million in net cash from operations, or 29% of total revenue, compared to $76 million, or 15% of total revenue, in the fourth quarter of fiscal 2023. Free cash flow was $166 million, or 28% of total revenue, compared to $72 million, or 14% of total revenue, in the fourth quarter of fiscal 2023.

For the first quarter of fiscal 2025, Okta expects total revenue of $603 to $605 million, representing a growth rate of 16% to 17% year-over-year. The company expects non-GAAP operating income of $108 to $110 million, a non-GAAP operating margin of 18%, and non- GAAP diluted net income per share of $0.54 to $0.55. 

For the full year fiscal 2025, Okta expects total revenue of $2.495 to $2.505 billion, representing a growth rate of 10% to 11% year-over-year. The company expects non-GAAP operating income of $455 to $465 million, a non-GAAP operating margin of 18% to 19%, and non-GAAP diluted net income per share of $2.24 to $2.29. 

Okta's strong financial performance and upside guidance for Q1 and FY25 are a testament to the company's ability to deliver value to its shareholders. With a focus on innovation and customer satisfaction,Okta is well-positioned to capitalize on the growing demand for identity and access management solutions in today's digital world.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.