Thu, May 30, 10:02 AM (144 days ago)
Okta, Inc. reported a 19% increase in total revenue for the quarter ended April 30, 2024, reaching $617 million, driven primarily by a 20% growth in subscription revenue. However, professional services and other revenue saw a slight decline. Despite the revenue growth, the company posted a net loss of $40 million, an improvement from the $119 million loss in the same period last year. The gross margin improved to 76% from 73%, due to better spend efficiency. Operating expenses decreased by 4%, primarily due to reduced sales and marketing costs. Okta also did not incur any restructuring charges this quarter, unlike the $7 million in the prior year. The company's cash flow from operating activities increased significantly to $219 million, up from $129 million, attributed to better cash collection and spend efficiency. Okta's customer base grew to over 19,100, with customers having annual contract values above $100,000 increasing to 4,550. However, the Dollar-Based Net Retention Rate declined to 111% from 117%, reflecting slower ACV growth from existing customers due to the macroeconomic environment. The company’s remaining performance obligations stood at $3,364 million, with $1,949 million expected to be recognized over the next 12 months. Overall, Okta's financial health shows robust revenue growth and improved gross margins, but challenges remain in achieving profitability and managing operating expenses. Future performance will depend on maintaining customer growth and retention, as well as navigating economic uncertainties.