Okta, Inc. (OKTA) Tops Q1 EPS by 7c, Revenues Beat; Offers FY19 EPS/Revenue Guidance Above Consensus

Okta, Inc. (NASDAQ: OKTA) reported Q1 EPS of ($0.09), $0.07 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $83.6 million versus the consensus estimate of $78.84 million.

"We had another strong quarter and a fantastic start to the year. Coming off the heels of Oktane18, our annual customer conference, it's clear that organizations see the strategic importance of identity and Okta's value as an independent and neutral cloud platform," said Todd McKinnon, chief executive officer at Okta. "Our growth is driven by three areas of focus that align with the needs of our customers: connecting people seamlessly to all of their technologies, providing an identity layer for customer facing applications, and strengthening security while making technology easier to use. The power of the Okta Integration Network with the Okta Identity Cloud uniquely positions us as the leading identity platform."

First Quarter Fiscal 2019 Financial Highlights:

• Revenue: Total revenue was $83.6 million, an increase of 60% year-over-year. Subscription revenue was $76.8 million, an increase of 59% year-over-year.
• Operating Loss: GAAP operating loss was $25.0 million, or 29.9% of total revenue, compared to $27.4 million in the first quarter of fiscal 2018, or 52.4% of total revenue. Non-GAAP operating loss was $10.8 million, or 13.0% of total revenue, compared to $18.5 million in the first quarter of fiscal 2018, or 35.4% of total revenue.
• Net Loss: GAAP net loss was $26.0 million, compared to $27.7 million in the first quarter of fiscal 2018. GAAP net loss per share was $0.25, compared to $0.70 in the first quarter of fiscal 2018. Non-GAAP net loss was $9.4 million, compared to $18.8 million in the first quarter of fiscal 2018. Non-GAAP net loss per share was $0.09, compared to $0.47 in the first quarter of fiscal 2018.
• Cash Flow: Net cash provided by operations was $4.0 million, or 4.8% of total revenue, compared to cash used in operations of $9.7 million, or 18.5% of total revenue, in the first quarter of fiscal 2018. Free cash flow was negative $1.6 million, or 1.9% of total revenue, compared to negative $13.3 million, or 25.5% of total revenue, in the first quarter of fiscal 2018.
• Cash, cash equivalents and short-term investments were $547.0 million as of April 30, 2018.

Financial Outlook:

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

• Total revenue of $84 to $85 million, representing a growth rate of 39 to 41% year-over-year
• Non-GAAP operating loss of $23 to $22 million
• Non-GAAP net loss per share of $0.21 to $0.20, assuming shares outstanding of approximately 106 million

For the full fiscal 2019, the Company now expects:

• Total revenue of $353 to $357 million, representing a growth rate of 38 to 39% year-over-year
• Non-GAAP operating loss of $67 to $62 million
• Non-GAAP net loss per share of $0.58 to $0.54, assuming shares outstanding of approximately 107 million

GUIDANCE:

Okta, Inc. sees FY2019 EPS of ($0.58)-($0.54), versus the consensus of ($0.64). Okta, Inc. sees FY2019 revenue of $353-357 million, versus the consensus of $347 million.

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

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