Looks like you have Javascript turned off! Please enable it to improve your browsing experience.

Financial News Releases

Okta Announces Strong Fourth Quarter And Fiscal Year 2022 Results

Okta Announces Strong Fourth Quarter And Fiscal Year 2022 Results

March 2, 2022
  • Q4 revenue grew 63% year-over-year; subscription revenue grew 64% year-over-year
  • Fiscal year 2022 revenue totaled $1.30 billion and grew 56% year-over-year; subscription revenue grew 57% year-over-year
  • Remaining performance obligations (RPO) grew 50% year-over-year to $2.69 billion; current remaining performance obligations (cRPO) grew 60% year-over-year to $1.35 billion

SAN FRANCISCO--(BUSINESS WIRE)--Mar. 2, 2022-- Okta, Inc. (Nasdaq: OKTA), the leading independent identity provider, today announced financial results for its fourth quarter and fiscal year ended January 31, 2022.

"Identity management is at the forefront of today's rapidly evolving security environment," said Todd McKinnon, Chief Executive Officer and co-founder of Okta. "Today, C-level executives and developers are increasingly turning to Okta to help provide their employees and customers the freedom to safely use any technology. We exited FY22 with accelerating top-line metrics driven by strong execution and robust demand across our workforce solutions and both Okta and Auth0 customer identity solutions. Okta brings an unparalleled platform of cloud native identity management solutions to a massive market that continues to move towards us, propelled by the three mega-trends of cloud and hybrid IT, digital transformation, and zero trust security.”

Fourth Quarter Fiscal 2022 Financial Highlights:

  • Revenue: Total revenue was $383 million, an increase of 63% year-over-year. Subscription revenue was $369 million, an increase of 64% year-over-year. On an Okta standalone basis (excluding $56 million attributable to Auth0), total revenue grew 39%.
  • Remaining Performance Obligations (RPO): RPO, or subscription backlog, was $2.69 billion, an increase of 50% year-over-year. Current RPO, which is contracted subscription revenue expected to be recognized over the next 12 months, was $1.35 billion, up 60% compared to the fourth quarter of fiscal 2021.
  • Calculated Billings: Total calculated billings, net of acquired deferred revenue, was $603 million, an increase of 91% year-over-year. Calculated billings includes the effect of billings process improvements that were enacted at the end of the first quarter of fiscal 2022. Excluding these changes, calculated billings would have been $540 million, an increase of 71% year-over-year.
  • GAAP Operating Loss: GAAP operating loss was $214 million, or 56% of total revenue, compared to a GAAP operating loss of $55 million, or 23% of total revenue, in the fourth quarter of fiscal 2021.
  • Non-GAAP Operating Income/Loss: Non-GAAP operating loss was $24 million, or 6% of total revenue, compared to non-GAAP operating income of $8 million, or 3% of total revenue, in the fourth quarter of fiscal 2021.
  • GAAP Net Loss: GAAP net loss was $241 million, compared to a GAAP net loss of $76 million in the fourth quarter of fiscal 2021. GAAP net loss per share was $1.56, compared to a GAAP net loss per share of $0.58 in the fourth quarter of fiscal 2021. GAAP net loss and GAAP net loss per share include $115 million and $0.74, respectively, attributable to Auth0 in the fourth quarter of fiscal 2022.
  • Non-GAAP Net Income/Loss: Non-GAAP net loss was $29 million, compared to non-GAAP net income of $8 million in the fourth quarter of fiscal 2021. Non-GAAP basic and diluted net loss per share was $0.18, compared to non-GAAP basic and diluted net income per share of $0.06 in the fourth quarter of fiscal 2021.
  • Cash Flow: Net cash provided by operations was $14 million, or 4% of total revenue, compared to net cash provided by operations of $35 million, or 15% of total revenue, in the fourth quarter of fiscal 2021. Free cash flow was $5 million, or 1% of total revenue, compared to $32 million, or 14% of total revenue, in the fourth quarter of fiscal 2021.
  • Cash, cash equivalents, and short-term investments were $2.50 billion at January 31, 2022.

Full Year Fiscal 2022 Financial Highlights:

  • Revenue: Total revenue was $1.30 billion, an increase of 56% year-over-year. Subscription revenue was $1.25 billion, an increase of 57% year-over-year. On an Okta standalone basis (excluding $140 million attributable to Auth0), total revenue grew 39%.
  • Calculated Billings: Total calculated billings were $1.72 billion, an increase of 76% year-over-year. Calculated billings includes the effect of billings process improvements that were enacted at the end of the first quarter of fiscal 2022. Excluding these changes, calculated billings would have been $1.57 billion, an increase of 60% year-over-year.
  • Operating Income/Loss: GAAP operating loss was $767 million, or 59% of total revenue, compared to a GAAP operating loss of $204 million, or 24% of total revenue for fiscal 2021. Non-GAAP operating loss was $74 million, or 6% of total revenue, compared to non-GAAP operating income of $8 million, or 1% of total revenue for fiscal 2021.
  • GAAP Net Loss: GAAP net loss was $848 million, compared to a GAAP net loss of $266 million for fiscal 2021. GAAP net loss per share was $5.73, compared to a GAAP net loss per share of $2.09 for fiscal 2021. GAAP net loss and GAAP net loss per share include $385 million and $2.60, respectively, attributable to Auth0.
  • Non-GAAP Net Income/Loss: Non-GAAP net loss was $68 million, compared to non-GAAP net income of $16 million for fiscal 2021. Non-GAAP basic and diluted net loss per share was $0.46, compared to non-GAAP basic and diluted net income per share of $0.13 and $0.11, respectively, for fiscal 2021.
  • Cash Flow: Net cash provided by operations was $104 million, or 8% of total revenue, compared to $128 million, or 15% of total revenue, for fiscal 2021. Free cash flow was $87 million, or 7% of total revenue, compared to $111 million, or 13% of total revenue, for fiscal 2021.

The section titled "Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures, and reconciliations between GAAP and non-GAAP information are contained in the tables below.

Financial Outlook:

Okta's financial outlook for the first quarter and full year fiscal 2023 includes the expected contribution from the acquisition of Auth0, net of purchase accounting adjustments.

For the first quarter of fiscal 2023, the Company expects:

  • Total revenue of $388 million to $390 million, representing a growth rate of 55% year-over-year;
  • Non-GAAP operating loss of $51 million to $50 million; and
  • Non-GAAP net loss per share of $0.35 to $0.34, assuming weighted-average shares outstanding of approximately 155 million.

For the full year fiscal 2023, the Company now expects:

  • Total revenue of $1.78 billion to $1.79 billion, representing a growth rate of 37% to 38% year-over-year;
  • Non-GAAP operating loss of $185 million to $180 million; and
  • Non-GAAP net loss per share of $1.27 to $1.24, assuming weighted-average shares outstanding of approximately 157 million.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Okta has not reconciled its expectations as to non-GAAP operating loss and non-GAAP net loss per share to their most directly comparable GAAP measures because certain items are out of Okta’s control or cannot be reasonably predicted. Accordingly, reconciliations for forward-looking non-GAAP operating loss and non-GAAP net loss per share are not available without unreasonable effort.

Conference Call Information:

Okta will host a live video webcast at 2:00 p.m. Pacific Time on March 2, 2022 to discuss the results and outlook. The news release with the financial results will be accessible from the Company’s website at investor.okta.com prior to the conference call. The live video webcast of the conference call will be accessible from the Okta investor relations website at investor.okta.com.

Supplemental Financial and Other Information:

Supplemental financial and other information can be accessed through the Company’s investor relations website at investor.okta.com.

Non-GAAP Financial Measures:

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net margin, non-GAAP net income (loss) per share, basic and diluted, free cash flow, free cash flow margin, current calculated billings and calculated billings. Certain of these non-GAAP financial measures exclude stock-based compensation, non-cash charitable contributions, amortization of acquired intangibles, acquisition and integration-related expenses, amortization of debt discount and debt issuance costs and loss on early extinguishment and conversion of debt.

Okta believes that non-GAAP financial information, when taken collectively with GAAP financial measures, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by the Company's management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.

Okta encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Forward-Looking Statements: This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, business strategy and plans, market trends and market size, opportunities and positioning. These forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. For example, the market for our products may develop more slowly than expected or than it has in the past; our results of operations may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; the impact of COVID-19, related public health measures and any associated economic downturn on our business and results of operations may be more than we expect; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; we may not be able to pay off our convertible senior notes when due; global economic conditions could deteriorate; we may not achieve expected synergies and efficiencies of operations between Okta and Auth0, and we may not be able to successfully integrate the companies. Further information on potential factors that could affect our financial results is included in our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission. The forward-looking statements included in this press release represent our views only as of the date of this press release and we assume no obligation and do not intend to update these forward-looking statements.

About Okta

Okta is the leading independent identity provider. The Okta Identity Cloud enables organizations to securely connect the right people to the right technologies at the right time. With more than 7,000 pre-built integrations to applications and infrastructure providers, Okta provides simple and secure access to people and organizations everywhere, giving them the confidence to reach their full potential. More than 15,000 organizations, including JetBlue, Nordstrom, Siemens, Slack, Takeda, Teach for America, and Twilio, trust Okta to help protect the identities of their workforces and customers.

Okta uses its investor.okta.com website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings and public conference calls and webcasts.

OKTA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

 

 

 

 

 

Three Months Ended

January 31,

 

Twelve Months Ended

January 31,

 

2022

 

2021

 

2022

 

2021

Revenue:

 

 

 

 

 

 

 

Subscription

$

369,329

 

 

$

225,400

 

 

$

1,249,210

 

 

$

796,613

 

Professional services and other

 

13,686

 

 

 

9,340

 

 

 

50,991

 

 

 

38,811

 

Total revenue

 

383,015

 

 

 

234,740

 

 

 

1,300,201

 

 

 

835,424

 

Cost of revenue:

 

 

 

 

 

 

 

Subscription(1)

 

101,228

 

 

 

48,675

 

 

 

329,131

 

 

 

170,095

 

Professional services and other(1)

 

18,274

 

 

 

12,465

 

 

 

67,274

 

 

 

47,586

 

Total cost of revenue

 

119,502

 

 

 

61,140

 

 

 

396,405

 

 

 

217,681

 

Gross profit

 

263,513

 

 

 

173,600

 

 

 

903,796

 

 

 

617,743

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

147,454

 

 

 

62,316

 

 

 

469,259

 

 

 

222,826

 

Sales and marketing(1)

 

221,577

 

 

 

115,173

 

 

 

770,326

 

 

 

427,350

 

General and administrative(1)

 

108,908

 

 

 

50,707

 

 

 

431,314

 

 

 

171,726

 

Total operating expenses

 

477,939

 

 

 

228,196

 

 

 

1,670,899

 

 

 

821,902

 

Operating loss

 

(214,426

)

 

 

(54,596

)

 

 

(767,103

)

 

 

(204,159

)

Interest expense

 

(23,406

)

 

 

(22,597

)

 

 

(92,182

)

 

 

(72,660

)

Interest income and other, net

 

2,146

 

 

 

2,154

 

 

 

9,768

 

 

 

12,891

 

Loss on early extinguishment and conversion of debt

 

 

 

 

 

 

 

(179

)

 

 

(2,263

)

Interest and other, net

 

(21,260

)

 

 

(20,443

)

 

 

(82,593

)

 

 

(62,032

)

Loss before provision for (benefit from) income taxes

 

(235,686

)

 

 

(75,039

)

 

 

(849,696

)

 

 

(266,191

)

Provision for (benefit from) income taxes

 

5,500

 

 

 

767

 

 

 

(1,285

)

 

 

141

 

Net loss

$

(241,186

)

 

$

(75,806

)

 

$

(848,411

)

 

$

(266,332

)

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

$

(1.56

)

 

$

(0.58

)

 

$

(5.73

)

 

$

(2.09

)

 

 

 

 

 

 

 

 

Weighted-average shares used to compute net loss per share, basic and diluted

 

154,720

 

 

 

130,138

 

 

 

148,036

 

 

 

127,212

 

(1) Amounts include stock-based compensation expense as follows (in thousands):

 

 

Three Months Ended

January 31,

 

Twelve Months Ended

January 31,

 

 

2022

 

2021

 

2022

 

2021

Cost of subscription revenue

$

15,248

 

$

6,666

 

$

49,091

 

$

21,895

Cost of professional services and other

 

3,445

 

 

2,159

 

 

12,324

 

 

8,083

Research and development

 

62,714

 

 

18,836

 

 

192,712

 

 

63,270

Sales and marketing

 

34,314

 

 

15,109

 

 

135,916

 

 

53,802

General and administrative

 

42,148

 

 

13,637

 

 

175,437

 

 

49,131

Total stock-based compensation expense

$

157,869

 

$

56,407

 

$

565,480

 

$

196,181

OKTA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

 

 

 

 

 

 

 

January 31,

 

January 31,

 

 

2022

 

2021

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

260,134

 

 

$

434,607

 

Short-term investments

 

 

2,241,657

 

 

 

2,121,584

 

Accounts receivable, net of allowances

 

 

397,509

 

 

 

194,818

 

Deferred commissions

 

 

74,728

 

 

 

45,949

 

Prepaid expenses and other current assets

 

 

66,605

 

 

 

81,609

 

Total current assets

 

 

3,040,633

 

 

 

2,878,567

 

Property and equipment, net

 

 

65,488

 

 

 

62,783

 

Operating lease right-of-use assets

 

 

147,940

 

 

 

149,604

 

Deferred commissions, noncurrent

 

 

191,029

 

 

 

108,555

 

Intangible assets, net

 

 

316,968

 

 

 

27,009

 

Goodwill

 

 

5,401,343

 

 

 

48,023

 

Other assets

 

 

42,294

 

 

 

24,256

 

Total assets

 

$

9,205,695

 

 

$

3,298,797

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

20,203

 

 

$

8,557

 

Accrued expenses and other current liabilities

 

 

89,315

 

 

 

53,729

 

Accrued compensation

 

 

143,805

 

 

 

71,906

 

Convertible senior notes, net

 

 

16,194

 

 

 

908,684

 

Deferred revenue

 

 

973,289

 

 

 

502,738

 

Total current liabilities

 

 

1,242,806

 

 

 

1,545,614

 

Convertible senior notes, net, noncurrent

 

 

1,815,714

 

 

 

857,387

 

Operating lease liabilities, noncurrent

 

 

170,611

 

 

 

179,518

 

Deferred revenue, noncurrent

 

 

22,933

 

 

 

10,860

 

Other liabilities, noncurrent

 

 

31,775

 

 

 

11,375

 

Total liabilities

 

 

3,283,839

 

 

 

2,604,754

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

 

 

 

 

 

Class A common stock

 

 

15

 

 

 

12

 

Class B common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

7,749,716

 

 

 

1,656,096

 

Accumulated other comprehensive income

 

 

(12,009

)

 

 

5,390

 

Accumulated deficit

 

 

(1,815,867

)

 

 

(967,456

)

Total stockholders’ equity

 

 

5,921,856

 

 

 

694,043

 

Total liabilities and stockholders' equity

 

$

9,205,695

 

 

$

3,298,797

 

OKTA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

 

 

 

 

 

Twelve Months Ended January 31,

 

 

2022

 

2021(1)

Cash flows from operating activities:

 

 

 

Net loss

$

(848,411

)

 

$

(266,332

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Stock-based compensation

 

565,480

 

 

 

196,181

 

Depreciation, amortization and accretion

 

107,612

 

 

 

36,865

 

Amortization of debt discount and issuance costs

 

86,461

 

 

 

68,424

 

Amortization of deferred commissions

 

57,177

 

 

 

39,661

 

Deferred income taxes

 

(6,157

)

 

 

(1,182

)

Non-cash charitable contributions

 

7,238

 

 

 

9,292

 

Loss on early extinguishment and conversion of debt

 

179

 

 

 

2,263

 

(Gain) loss on strategic investments

 

(7,609

)

 

 

628

 

Other, net

 

1,051

 

 

 

4,909

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(174,817

)

 

 

(66,373

)

Deferred commissions

 

(170,577

)

 

 

(81,016

)

Prepaid expenses and other assets

 

(6,758

)

 

 

(13,174

)

Operating lease right-of-use assets

 

22,856

 

 

 

19,053

 

Accounts payable

 

6,764

 

 

 

4,081

 

Accrued compensation

 

50,309

 

 

 

44,157

 

Accrued expenses and other liabilities

 

21,391

 

 

 

5,527

 

Operating lease liabilities

 

(24,455

)

 

 

(17,150

)

Deferred revenue

 

416,385

 

 

 

142,148

 

Net cash provided by operating activities

 

104,119

 

 

 

127,962

 

Cash flows from investing activities:

 

 

 

Capitalization of internal-use software costs

 

(4,336

)

 

 

(4,159

)

Purchases of property and equipment

 

(12,310

)

 

 

(13,083

)

Purchases of securities available for sale and other

 

(1,846,709

)

 

 

(2,029,030

)

Proceeds from maturities and redemption of securities available for sale

 

1,482,033

 

 

 

535,123

 

Proceeds from sales of securities available for sale and other

 

229,798

 

 

 

206,129

 

Payments for business acquisitions, net of cash acquired

 

(215,175

)

 

 

 

Purchases of intangible assets

 

(113

)

 

 

(126

)

Net cash used in investing activities

 

(366,812

)

 

 

(1,305,146

)

Cash flows from financing activities:

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

 

 

 

 

1,134,841

 

Payments for repurchases and conversions of convertible senior notes

 

(26

)

 

 

(446

)

Proceeds from hedges related to convertible senior notes

 

2

 

 

 

195,046

 

Payments for warrants related to convertible senior notes

 

 

 

 

(175,399

)

Purchases of capped calls related to convertible senior notes

 

 

 

 

(133,975

)

Proceeds from stock option exercises

 

53,522

 

 

 

45,620

 

Proceeds from shares issued in connection with employee stock purchase plan

 

35,568

 

 

 

25,911

 

Net cash provided by financing activities

 

89,066

 

 

 

1,091,598

 

Effects of changes in foreign currency exchange rates on cash, cash equivalents and restricted cash

 

(2,347

)

 

 

2,263

 

Net decrease in cash, cash equivalents and restricted cash

 

(175,974

)

 

 

(83,323

)

Cash, cash equivalents and restricted cash at beginning of period

 

448,630

 

 

 

531,953

 

Cash, cash equivalents and restricted cash at end of period

$

272,656

 

 

$

448,630

 

(1)

The condensed consolidated statement of cash flows for the prior period has been adjusted to conform to current period presentation.

OKTA, INC.
Reconciliation of GAAP to Non-GAAP Data
(In thousands, except percentages and per share data)
(unaudited)

Non-GAAP Gross Profit and Non-GAAP Gross Margin

We define Non-GAAP gross profit and Non-GAAP gross margin as GAAP gross profit and GAAP gross margin, adjusted for stock-based compensation expense included in cost of revenue, amortization of acquired intangibles and acquisition and integration-related expenses.

 

 

Three Months Ended

January 31,

 

Twelve Months Ended

January 31,

 

 

2022

 

2021

 

2022

 

2021

Gross profit

$

263,513

 

 

$

173,600

 

 

$

903,796

 

 

$

617,743

 

Add:

 

 

 

 

 

 

 

Stock-based compensation expense included in cost of revenue(1)

 

18,693

 

 

 

8,825

 

 

 

61,415

 

 

 

29,978

 

Amortization of acquired intangibles

 

11,335

 

 

 

1,593

 

 

 

34,391

 

 

 

6,373

 

Acquisition and integration-related expenses(2)

 

573

 

 

 

 

 

 

1,889

 

 

 

 

Non-GAAP gross profit

$

294,114

 

 

$

184,018

 

 

$

1,001,491

 

 

$

654,094

 

Gross margin

 

69

%

 

 

74

%

 

 

70

%

 

 

74

%

Non-GAAP gross margin

 

77

%

 

 

78

%

 

 

77

%

 

 

78

%

(1)

See table in footnote (1) to the condensed consolidated statements of operations above for breakdown of stock-based compensation expense by line item.

(2)

Acquisition and integration-related expenses include transaction costs and other non-recurring incremental costs incurred through the one-year anniversary of transaction close.

Non-GAAP Operating Income (Loss) and Non-GAAP Operating Margin

We define Non-GAAP operating income (loss) and Non-GAAP operating margin as GAAP operating loss and GAAP operating margin, adjusted for stock-based compensation expense, non-cash charitable contributions, amortization of acquired intangibles and acquisition and integration-related expenses.

 

Three Months Ended

January 31,

 

Twelve Months Ended

January 31,

 

2022

 

2021

 

2022

 

2021

Operating loss

$

(214,426

)

 

$

(54,596

)

 

$

(767,103

)

 

$

(204,159

)

Add:

 

 

 

 

 

 

 

Stock-based compensation expense(1)

 

157,869

 

 

 

56,407

 

 

 

565,480

 

 

 

196,181

 

Non-cash charitable contributions

 

1,589

 

 

 

4,630

 

 

 

7,238

 

 

 

9,292

 

Amortization of acquired intangibles

 

21,205

 

 

 

1,593

 

 

 

64,000

 

 

 

6,373

 

Acquisition and integration-related expenses(2)

 

10,003

 

 

 

 

 

 

56,667

 

 

 

 

Non-GAAP operating income (loss)

$

(23,760

)

 

$

8,034

 

 

$

(73,718

)

 

$

7,687

 

Operating margin

 

(56

)%

 

 

(23

)%

 

 

(59

)%

 

 

(24

)%

Non-GAAP operating margin

 

(6

)%

 

 

3

%

 

 

(6

)%

 

 

1

%

(1)

See table in footnote (1) to the condensed consolidated statements of operations above for breakdown of stock-based compensation expense by line item.

(2)

Acquisition and integration-related expenses include transaction costs and other non-recurring incremental costs incurred through the one-year anniversary of transaction close.

Non-GAAP Net Income (Loss), Non-GAAP Net Margin and Non-GAAP Net Income (Loss) Per Share, Basic and Diluted

We define Non-GAAP net income (loss) and Non-GAAP net margin as GAAP net loss and GAAP net margin, adjusted for stock-based compensation expense, non-cash charitable contributions, amortization of acquired intangibles, acquisition and integration-related expenses, amortization of debt discount and debt issuance costs and loss on early extinguishment and conversion of debt.

We define Non-GAAP net income (loss) per share, basic, as Non-GAAP net income (loss) divided by GAAP weighted-average shares used to compute net loss per share, basic and diluted.

We define Non-GAAP net income (loss) per share, diluted, as Non-GAAP net income (loss) divided by GAAP weighted-average shares used to compute net loss per share, basic and diluted adjusted for the potentially dilutive effect of (i) employee equity incentive plans, excluding the impact of unrecognized stock-based compensation expense, and (ii) convertible senior notes outstanding and related warrants. In addition, Non-GAAP net income (loss) per share, diluted, includes the anti-dilutive impact of our note hedge and capped call agreements on convertible senior notes outstanding. Accordingly, we did not record any adjustments to Non-GAAP net income (loss) for the potential impact of the convertible senior notes outstanding under the if-converted method.

 

Three Months Ended

January 31,

 

Twelve Months Ended

January 31,

 

2022

 

2021

 

2022

 

2021

Net loss

$

(241,186

)

 

$

(75,806

)

 

$

(848,411

)

 

$

(266,332

)

Add:

 

 

 

 

 

 

 

Stock-based compensation expense(1)

 

157,869

 

 

 

56,407

 

 

 

565,480

 

 

 

196,181

 

Non-cash charitable contributions

 

1,589

 

 

 

4,630

 

 

 

7,238

 

 

 

9,292

 

Amortization of acquired intangibles

 

21,205

 

 

 

1,593

 

 

 

64,000

 

 

 

6,373

 

Acquisition and integration-related expenses(2)

 

10,003

 

 

 

 

 

 

56,667

 

 

 

 

Amortization of debt discount and debt issuance costs

 

21,983

 

 

 

21,163

 

 

 

86,461

 

 

 

68,424

 

Loss on early extinguishment and conversion of debt

 

 

 

 

 

 

 

179

 

 

 

2,263

 

Non-GAAP net income (loss)

$

(28,537

)

 

$

7,987

 

 

$

(68,386

)

 

$

16,201

 

 

 

 

 

 

 

 

 

Net margin

 

(63

)%

 

 

(32

)%

 

 

(65

)%

 

 

(32

)%

Non-GAAP net margin

 

(7

)%

 

 

3

%

 

 

(5

)%

 

 

2

%

 

 

 

 

 

 

 

 

Weighted-average shares used to compute net loss per share, basic and diluted

 

154,720

 

 

 

130,138

 

 

 

148,036

 

 

 

127,212

 

Non-GAAP weighted-average effect of potentially dilutive securities

 

 

 

 

13,541

 

 

 

 

 

 

15,171

 

Non-GAAP weighted-average shares used to compute non-GAAP net income (loss) per share, diluted

 

154,720

 

 

 

143,679

 

 

 

148,036

 

 

 

142,383

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

$

(1.56

)

 

$

(0.58

)

 

$

(5.73

)

 

$

(2.09

)

Non-GAAP net income (loss) per share, basic

$

(0.18

)

 

$

0.06

 

 

$

(0.46

)

 

$

0.13

 

Non-GAAP net income (loss) per share, diluted

$

(0.18

)

 

$

0.06

 

 

$

(0.46

)

 

$

0.11

 

(1)

See table in footnote (1) to the condensed consolidated statements of operations above for breakdown of stock-based compensation expense by line item.

(2)

Acquisition and integration-related expenses include transaction costs and other non-recurring incremental costs incurred through the one-year anniversary of transaction close.

OKTA, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages)
(unaudited)

Free Cash Flow and Free Cash Flow Margin

We define Free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment, net of sales proceeds, and capitalized internal-use software costs. Free cash flow margin is calculated as Free cash flow divided by total revenue.

 

 

Three Months Ended

January 31,

 

Twelve Months Ended

January 31,

 

 

2022

 

2021

 

2022

 

2021

Net cash provided by operating activities

$

13,532

 

 

$

34,909

 

 

$

104,119

 

 

$

127,962

 

Less:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(6,510

)

 

 

(1,786

)

 

 

(12,310

)

 

 

(13,083

)

Capitalization of internal-use software costs

 

(1,988

)

 

 

(629

)

 

 

(4,336

)

 

 

(4,159

)

Free cash flow

$

5,034

 

 

$

32,494

 

 

$

87,473

 

 

$

110,720

 

Net cash used in investing activities

$

(156,710

)

 

$

(37,264

)

 

$

(366,812

)

 

$

(1,305,146

)

Net cash provided by financing activities

$

30,619

 

 

$

25,141

 

 

$

89,066

 

 

$

1,091,598

 

Free cash flow margin

 

1

%

 

 

14

%

 

 

7

%

 

 

13

%

Calculated Billings

We define Calculated billings as total revenue plus the change in deferred revenue, net of acquired deferred revenue, and less the change in unbilled receivables, net of acquired unbilled receivables, in the period.

 

Three Months Ended

January 31,

 

Twelve Months Ended

January 31,

 

2022

 

2021

 

2022

 

2021

Total revenue

$

383,015

 

 

$

234,740

 

 

$

1,300,201

 

 

$

835,424

 

Add:

 

 

 

 

 

 

 

Deferred revenue, current (end of period)

 

973,289

 

 

 

502,738

 

 

 

973,289

 

 

 

502,738

 

Unbilled receivables, current (beginning of period)

 

5,085

 

 

 

2,427

 

 

 

2,604

 

 

 

1,026

 

Acquired unbilled receivables, current

 

 

 

 

 

 

 

2,327

 

 

 

 

Less:

 

 

 

 

 

 

 

Deferred revenue, current (beginning of period)

 

(759,914

)

 

 

(424,765

)

 

 

(502,738

)

 

 

(365,236

)

Unbilled receivables, current (end of period)

 

(3,228

)

 

 

(2,604

)

 

 

(3,228

)

 

 

(2,604

)

Acquired deferred revenue, current

 

 

 

 

 

 

 

(61,422

)

 

 

 

Current calculated billings

 

598,247

 

 

 

312,536

 

 

 

1,711,033

 

 

 

971,348

 

Add:

 

 

 

 

 

 

 

Deferred revenue, noncurrent (end of period)

 

22,933

 

 

 

10,860

 

 

 

22,933

 

 

 

10,860

 

Less:

 

 

 

 

 

 

 

Deferred revenue, noncurrent (beginning of period)

 

(17,958

)

 

 

(7,349

)

 

 

(10,860

)

 

 

(6,214

)

Acquired deferred revenue, noncurrent

 

 

 

 

 

 

 

(4,817

)

 

 

 

Calculated billings

$

603,222

 

 

$

316,047

 

 

$

1,718,289

 

 

$

975,994

 

 

Investor Contact:
Dave Gennarelli
investor@okta.com

Media Contact:
Vitor De Souza
press@okta.com

Source: Okta, Inc.