Okta, Inc. (OKTA) Tops Q1 EPS by 10c, Revenues Beat; Reaffirms 2Q & FY21 EPS/Revenue Guidance

Okta, Inc. (NASDAQ: OKTA) reported Q1 EPS of ($0.07), $0.10 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $182.9 million versus the consensus estimate of $171.35 million.

• Reaffirms revenue outlook and improves operating profit outlook for fiscal 2021
• Q1 revenue grew 46% year-over-year; subscription revenue grew 48% year-over-year
• Remaining performance obligations, or subscription revenue backlog, grew 57% year-over-year
• Record operating and free cash flows

First Quarter Fiscal 2021 Financial Highlights:

• Revenue: Total revenue was $182.9 million, an increase of 46% year-over-year. Subscription revenue was $173.8 million, an increase of 48% year-over-year.
• Remaining Performance Obligations (RPO): RPO was $1.24 billion, an increase of 57% year-over-year. Current RPO, which is contracted subscription revenue expected to be recognized over the next 12 months, was $619.1 million, up 49% compared to the first quarter of fiscal 2020.
• Calculated Billings: Total calculated billings were $209.5 million, an increase of 42% year-over-year.
• Operating Loss: GAAP operating loss was $52.2 million, or 28.5% of total revenue, compared to $51.8 million, or 41.4% of total revenue, in the first quarter of fiscal 2020. Non-GAAP operating loss was $12.3 million, or 6.7% of total revenue, compared to $24.9 million, or 19.9% of total revenue, in the first quarter of fiscal 2020.
• Net Loss: GAAP net loss was $57.7 million, compared to $52.0 million in the first quarter of fiscal 2020. GAAP net loss per share was $0.47, compared to $0.46 in the first quarter of fiscal 2020. Non-GAAP net loss was $8.1 million, compared to $21.4 million in the first quarter of fiscal 2020. Non-GAAP net loss per share was $0.07, compared to $0.19 in the first quarter of fiscal 2020.
• Cash Flow: Net cash provided by operations was a record $38.7 million, or 21.2% of total revenue, compared to net cash provided by operations of $21.3 million, or 17.0% of total revenue, in the first quarter of fiscal 2020. Free cash flow was a record $29.8 million, or 16.3% of total revenue, compared to $13.2 million, or 10.5% of total revenue, in the first quarter of fiscal 2020.
• Cash, cash equivalents, and short-term investments were $1.45 billion at April 30, 2020.

"Okta is at the forefront of helping organizations adapt to the current environment where secure remote access has become a top priority across industries," said Todd McKinnon, Chief Executive Officer and co-founder of Okta. "Our strong first quarter performance reflects our market leadership and ability to effectively and quickly shift to a fully remote workforce. This shift is enabled through our core technology, which allows secure access to any technology from anywhere. When this crisis is over, we don't expect organizations to revert to their prior ways of working. Our commitment to our customers and continued focus on operational agility will help us navigate this environment, lead the new way of work, and seize the opportunity to emerge in an even stronger position."

GUIDANCE:

Okta, Inc. sees Q2 2021 EPS of ($0.02)-($0.01), versus the consensus of ($0.09). Okta, Inc. sees Q2 2021 revenue of $185-187 million, versus the consensus of $185.1 million.

Okta, Inc. sees FY2021 EPS of ($0.23)-($0.18), versus the consensus of ($0.33). Okta, Inc. sees FY2021 revenue of $770-780 million, versus the consensus of $771.15 million.

For the second quarter of fiscal 2021, the Company expects:

• Total revenue of $185 million to $187 million, representing a growth rate of 32% to 33% year-over-year
• Non-GAAP operating loss of $5.0 million to $4.0 million
• Non-GAAP net loss per share of $0.02 to $0.01, assuming weighted shares outstanding of approximately 125 million

For the full year fiscal 2021, the Company now expects:

• Total revenue of $770 million to $780 million, representing a growth rate of 31% to 33% year-over-year
• Non-GAAP operating loss of $37.0 million to $30.0 million
• Non-GAAP net loss per share of $0.23 to $0.18, assuming weighted shares outstanding of approximately 125 million

"We are pleased with our continued execution and strong first quarter results," said Bill Losch, Chief Financial Officer of Okta. "Looking ahead, our strong first quarter revenue performance and highly recurring business model give us confidence in reiterating our fiscal year 2021 revenue outlook. In addition, we are improving our operating loss and loss per share outlook for the fiscal year. While we believe it's prudent to continue to expect some near-term business headwinds as the economic impacts from the pandemic further unfold, we remain highly confident in our long-term success as the leader in the massive identity and access management market."

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

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