Kelvin Hill April 5, 2024
Okta Inc. Reports Strong Earnings and Revenue in Q4
Shares in Okta Inc. jumped over 20% in late trading today after the identity and access management company impressed investors with strong earnings and revenue beats in its fiscal fourth quarter.
For the quarter that ended Jan. 31, Okta reported adjusted earnings per share of 63 cents, up from 30 cents in the same quarter of the previous year, on revenue of $605 million, up 19% year-over-year. Analysts were expecting adjusted earnings per share of 51 cents on revenue of $587.16 million.
Okta’s better-than-expected figures were driven by customer growth. Remaining performance obligations, the revenue it expects to recognize in the future from contracted but not yet delivered services, rose 13% from a year ago, to $3.385 billion.
For its full fiscal year 2024, Okta reported adjusted earnings per share of $1.60, a significant turnaround from a loss per adjusted share of four cents in its fiscal 2023 year, on revenue of 2.263 billion, up 22% year-over-year.
The impressive figures come after Okta announced on Feb. 1 that it was laying off 7% of its staff, or about 400 employees, in a cost-cutting measure. The layoffs came one year after the company’s last round of layoffs in February 2023, which cut its workforce by 5%, or about 300 employees at the time.
“We achieved record non-GAAP profitability and record cash flow in the fourth quarter, capping a year of significant margin expansion,” co-founder and chief executive Todd McKinnon said in the company’s earnings release. “We’re also pleased with the strong top-line performance, which was driven by strength with large customers.”
For its fiscal 2025 first quarter, Okta said it expects adjusted earnings per share of 54 to 55 cents on revenue of $603 million to $605 million. Both were beats, as analysts were expecting a first-quarter outlook of 42 cents on revenue of $584.50 million.
For the full year, Okta forecasts adjusted earnings of $2.24 to $2.29 per share on revenue of $2.495 billion to $2.505 billion. The figures were both ahead of an expected $1.97 per adjusted share on revenue of $2.47 billion.
