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Okta(OKTA) - 2026 Q1 - Quarterly Results
OKTAOkta(OKTA)2025-05-27 20:06

Financial Performance - Q1 revenue was 688million,a12688 million, a 12% year-over-year increase, with subscription revenue also growing 12% to 673 million[6]. - GAAP operating income was 39million,representing639 million, representing 6% of total revenue, compared to a loss of 47 million in Q1 FY25[6]. - Non-GAAP operating income increased to 184million,or27184 million, or 27% of total revenue, up from 133 million, or 22% of total revenue, in Q1 FY25[6]. - GAAP net income was 62million,comparedtoanetlossof62 million, compared to a net loss of 40 million in Q1 FY25, with diluted net income per share at 0.35[6].−Non−GAAPnetincomeroseto0.35[6]. - Non-GAAP net income rose to 158 million, with diluted net income per share at 0.86,comparedto0.86, compared to 117 million and 0.65inQ1FY25[6].−Operatingcashflowwas0.65 in Q1 FY25[6]. - Operating cash flow was 241 million, or 35% of total revenue, while free cash flow was 238million,also35238 million, also 35% of total revenue[6]. - Total revenue for the three months ended April 30, 2025, was 688 million, a 11.5% increase from 617millioninthesameperiodof2024[27].−Subscriptionrevenueincreasedto617 million in the same period of 2024[27]. - Subscription revenue increased to 673 million, up 11.6% from 603millionyear−over−year[27].−NetincomeforthethreemonthsendedApril30,2025,was603 million year-over-year[27]. - Net income for the three months ended April 30, 2025, was 62 million, compared to a net loss of 40millioninthesameperiodof2024[27].−Non−GAAPnetincomeforthesameperiodwas40 million in the same period of 2024[27]. - Non-GAAP net income for the same period was 158 million, up from 117millionyear−over−year,resultinginanon−GAAPnetmarginof23117 million year-over-year, resulting in a non-GAAP net margin of 23%[40]. - Free cash flow for the three months ended April 30, 2025, was 238 million, compared to 214millioninthesameperiodof2024,maintainingafreecashflowmarginof35214 million in the same period of 2024, maintaining a free cash flow margin of 35%[43]. - Operating income for the three months ended April 30, 2025, was 39 million, a significant improvement from an operating loss of 47millioninthesameperiodof2024[37].−Totaloperatingexpensesdecreasedto47 million in the same period of 2024[37]. - Total operating expenses decreased to 494 million from 516millionyear−over−year,reflectingareductioninresearchanddevelopmentcosts[27].−Thecompanyreportedagrossprofitof516 million year-over-year, reflecting a reduction in research and development costs[27]. - The company reported a gross profit of 533 million for the three months ended April 30, 2025, resulting in a gross margin of 77%[35]. Future Projections - For Q2 FY26, the company expects total revenue between 710millionand710 million and 712 million, reflecting a growth rate of 10% year-over-year[10]. - For the full year FY26, total revenue is projected to be between 2.850billionand2.850 billion and 2.860 billion, indicating a growth rate of 9% to 10% year-over-year[10]. Strategic Focus - The company is focusing on profitable growth and innovation in identity security solutions for large organizations[3]. Performance Obligations - Remaining performance obligations (RPO) reached 4.084billion,up214.084 billion, up 21% year-over-year, while current remaining performance obligations (cRPO) grew 14% to 2.227 billion[6]. Cash Position - Cash and cash equivalents increased to 494millionasofApril30,2025,comparedto494 million as of April 30, 2025, compared to 409 million at the end of January 2025[30]. - Total assets decreased slightly to 9,365millionfrom9,365 million from 9,437 million at the end of January 2025[30].