Okta Announces Second Quarter Fiscal 2025 Financial Results
Intellectia.AI Updated: 2024-08-28
Okta Announces Second Quarter Fiscal 2025 Financial Results
Okta, Inc. (NASDAQ: OKTA), a leading independent identity security provider, reported its financial results for the second quarter ended July 31, 2024.
Key Financial Metrics:
| Metric | Q2 2025 | Q2 2024 | YoY Change | Consensus Estimate | Actual vs. Estimate |
|---|---|---|---|---|---|
| Total Revenue | $646 million | $556 million | +16% | $632.94 million | Beat by $13.06 million |
| GAAP Net Income (Loss) | $29 million | ($111 million) | +126% | N/A | N/A |
| GAAP Basic Net Income (Loss) EPS | $0.18 | ($0.68) | +126% | N/A | N/A |
| Non-GAAP Operating Income | $148 million | $59 million | +151% | N/A | N/A |
| Non-GAAP Diluted Net Income (Loss) EPS | $0.72 | $0.31 | +132% | $0.61 | Beat by $0.11 |
In the second quarter of fiscal 2025, Okta demonstrated strong financial performance with a 16% year-over-year revenue growth and a non-GAAP diluted net income per share significantly ahead of consensus estimates. The company’s GAAP profitability signals robust operational efficiency.
Revenue Performance Across Major Segments:
| Segment | Q2 2025 Revenue | Q2 2024 Revenue | YoY Change |
|---|---|---|---|
| Subscription Revenue | $632 million | $540 million | +17% |
Subscription revenue increased by 17% year-over-year, highlighting Okta's solid growth trajectory in its core business segments. The performance aligns well with the company’s strategy of broadening its product offerings in the Workforce Identity Cloud and Customer Identity Cloud.
Key Developments and Operational Highlights:
- Record Profitability : Achieved GAAP profitability for the first time.
- Strong Cash Flow : Operating cash flow of $86 million and free cash flow of $78 million.
- RPO Growth : Current remaining performance obligations (cRPO) grew 13% year-over-year to $1.995 billion.
Comments from Company Officers:
"Okta is setting the standard for identity security by focusing on relentless innovation and expanding our product offerings. We're achieving record profitability while maintaining strong cash flow," said Todd McKinnon, CEO and co-founder of Okta. He emphasized the company’s commitment to providing modern solutions in a dynamic cybersecurity landscape.
Dividends and Share Repurchase Programs:
There were no announced dividends or share repurchase programs mentioned in the report.
Forward Guidance:
For the third quarter of fiscal 2025, Okta expects: - Total revenue of $648 million to $650 million (+11% YoY). - Current RPO between $1.985 billion to $1.990 billion (+9% YoY). - Non-GAAP operating income of $118 million to $120 million. - Non-GAAP diluted net income per share of $0.57 to $0.58.
For the full fiscal year 2025, the company projects: - Total revenue between $2.555 billion to $2.565 billion (+13% YoY). - Non-GAAP operating income between $535 million to $545 million. - Non-GAAP diluted net income per share of $2.58 to $2.63.
Stock Price Movement:
Following the earnings release, Okta's stock experienced a minor decline of -0.74%.
Okta’s latest financial results underscore its strong market position and ability to drive growth amidst a competitive landscape. The company’s forward-looking strategies and performance metrics indicate positive momentum going into the next quarters.
This report accurately incorporates the provided financial data and qualitative statements, ensuring comprehensive coverage of Okta’s recent performance and outlook while maintaining a professional tone suitable for financial journalism.
