Okta's Revenue Grows 14% in Q3

By Bobby Samwell • Wednesday, December 04 10:24 • Permanent Link

Okta, Inc. has recently released its 10-Q report, providing insights into its financial performance and operations. Okta operates as an identity partner, offering a suite of products and services for managing and securing identities, including Single Sign-On, Adaptive Multi-Factor Authentication, API Access Management, and more. The company generates revenue primarily through multi-year subscriptions to its cloud-based offerings, with subscription revenue accounting for approximately 98% of total revenue for the nine months ended October 31, 2024.

In the three months ended October 31, 2024, Okta reported total revenue of $665 million, a 14% increase from the same period in 2023. Subscription revenue, which constitutes the majority of the company's revenue, amounted to $651 million, reflecting a 14% year-over-year growth. The professional services and other revenue totaled $14 million, slightly down from $15 million in the same period last year.

The company's cost of revenue for the three months ended October 31, 2024, was $157 million, compared to $145 million in the same period in 2023. This resulted in a gross profit of $508 million, representing a gross margin of 76%, up from 75% in the prior year.

Operating expenses for the three months ended October 31, 2024, totaled $524 million, a decrease from $550 million in the same period in 2023. The decrease in operating expenses contributed to an improvement in the company's operating loss, which narrowed to $16 million from $111 million in the prior year.

For the nine months ended October 31, 2024, Okta reported subscription revenue of $1.89 billion, a 17% increase from the same period in 2023. The company's total revenue for the nine months amounted to $1.93 billion, up from $1.66 billion in the prior year.

Okta's gross margin for the nine months ended October 31, 2024, improved to 76% from 74% in the same period in 2023, driven by the growth in subscription revenue and effective cost management.

As a result of these announcements, the company's shares have moved 4.0% on the market, and are now trading at a price of $85.0. For more information, read the company's full 10-Q submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.