Okta, Inc. (OKTA) Tops Q4 EPS by 5c, Beats on Revenues; Offers FY19 EPS/Revenue Outlook Above Consensus

Note: EPS may not be comparable

Okta, Inc. (NASDAQ: OKTA) reported Q4 EPS of ($0.10), $0.05 better than the analyst estimate of ($0.15). Revenue for the quarter came in at $77.8 million versus the consensus estimate of $73.9 million.

Fourth Quarter Fiscal 2018 Financial Highlights:

• Revenue: Total revenue was $77.8 million, an increase of 59% year-over-year. Subscription revenue was $72.0 million, an increase of 64% year-over-year.
• Operating Loss: GAAP operating loss was $25.3 million, or 32.6% of total revenue, compared to $18.0 million in the fourth quarter of fiscal 2017, or 36.8% of total revenue. Non-GAAP operating loss was $10.8 million, or 13.9% of total revenue, compared to $12.7 million in the fourth quarter of fiscal 2017, or 25.9% of total revenue.
• Net Loss: GAAP net loss was $24.7 million, compared to $18.2 million in the fourth quarter of fiscal 2017. GAAP net loss per share was $0.24, compared to $0.93 in the fourth quarter of fiscal 2017. Non-GAAP net loss was $10.1 million, compared to $12.9 million in the fourth quarter of fiscal 2017. Non-GAAP net loss per share was $0.10, compared to $0.66 in the fourth quarter of fiscal 2017.
• Cash Flow: Net cash provided by operations was $0.2 million or 0.2% of total revenue, compared to cash used in operations of $6.7 million or 13.7% of total revenue, in the fourth quarter of fiscal 2017. Free cash flow was negative $2.2 million, or 2.8% of totalrevenue, compared to negative $9.8 million, or 20.1% of total revenue, in the fourth quarter of fiscal 2017.
• Cash, cash equivalents and short-term investments were $229.7 million as of January 31, 2018.

Financial Outlook:

The guidance below and corresponding growth rates are presented under ASC Topic 606, which the Company adopted on February 1, 2018, using the retrospective method. Please refer to the supplemental tables posted on the Company\'s investor relations website for updated historical financials under ASC Topic 606.

For the first quarter of fiscal 2019, the Company currently expects:

• Total revenue of $78 to $79 million, representing a growth rate of 49 to 50% year-over-year
• Non-GAAP operating loss of $17.1 to $16.1 million
• Non-GAAP net loss per share of $0.16 to $0.15, assuming shares outstanding of approximately 103 million

For the full fiscal 2019, the Company expects:

• Total revenue of $343 to $348 million, representing a growth rate of 33 to 35% year-over-year
• Non-GAAP operating loss of $72.0 to $67.0 million
• Non-GAAP net loss per share of $0.67 to $0.62, assuming shares outstanding of approximately 106 million

GUIDANCE:

Okta, Inc. sees FY2019 EPS of ($0.67)-($0.62), versus the consensus of ($0.75). Okta, Inc. sees FY2019 revenue of $343-348 million, versus the consensus of $343.89 million.

For earnings history and earnings-related data on Okta, Inc. (OKTA) click here.

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