Summary
Okta reported total revenue of $518 million for FY2024 Q1, up 24.8% year over year. Subscription revenue grew 26% year over year and represented 97% of total revenue. Gross profit was $376 million, and gross margin was 72.6%, up 4.2 percentage points. Operating loss was $160 million, and operating margin was negative 30.9%, up 26.9 percentage points. Net loss was $119 million, and diluted EPS was negative $0.74. The loss narrowed. Operating cash flow was $129 million, up 578.9%. Deferred revenue was $1.17 billion, up 23.2%. RPO was $2.94 billion, up 8.6%. cRPO was $1.70 billion, up 20%. Customer count reached 18,050, up 14% from over 15,800 a year earlier. Customers with annual contract value above $100,000 reached 4,080, up from 3,305 a year earlier. Dollar-based net retention rate was 117%, down from 123% a year earlier.
Non-GAAP results showed a swing to profitability. Non-GAAP operating income was $37 million, or 7% of total revenue, compared with non-GAAP operating loss of $41 million a year earlier. Non-GAAP net income was $38 million, and non-GAAP diluted EPS was $0.22. These figures exclude stock-based compensation, amortization of acquired intangibles, restructuring costs, and other items. Non-GAAP gross profit was $408 million, compared with $316 million a year earlier. Non-GAAP gross margin was 79%, compared with 76% a year earlier. Non-GAAP operating margin was 7%, compared with negative 10% a year earlier. Non-GAAP net margin was 7%, compared with negative 10% a year earlier. Non-GAAP net income was $38 million, compared with non-GAAP net loss of $43 million a year earlier. Non-GAAP diluted EPS was $0.22, compared with non-GAAP diluted net loss per share of $0.27 a year earlier. Free cash flow was $124 million, or 24% of total revenue. The company also repurchased $366 million principal amount of convertible notes during the quarter. That repurchase resulted in a gain on early extinguishment of debt.
For the second quarter of fiscal 2024, Okta guides revenue growth of 18% year-over-year. It expects current RPO of $1.71 billion to $1.72 billion, representing 14% to 15% year-over-year growth. Non-GAAP operating income is guided to $36 million to $38 million, and non-GAAP diluted EPS to $0.21 to $0.22. For the full year fiscal 2024, the company now expects revenue growth of 17% to 18% year-over-year. Full-year non-GAAP operating income is guided to $161 million to $170 million, and non-GAAP diluted EPS to $0.88 to $0.93. It also targets a non-GAAP free cash flow margin of approximately 12%. The guidance assumes a non-GAAP tax rate of 26%. The company has not reconciled forward-looking non-GAAP measures to GAAP because certain items are out of its control or cannot be reasonably predicted.
Management flagged increasing macroeconomic pressures. Longer sales cycles have been experienced, which could delay deal closings and create near-term headwinds for cash flow and RPO growth. That could also affect revenue growth and other key metrics on a trailing basis. Other risks include a network or data security incident, service outages, integration challenges with Auth0, and the ability to pay off convertible notes when due. The company also faces global economic uncertainty, rising interest rates, inflation, and bank failures. It holds cash across large financial institutions and has policy restrictions on investments. The dollar-based net retention rate declined to 117% from 123%. Customer count grew 14% to 18,050. The company may not achieve expected synergies and efficiencies of operations between Okta and Auth0, and may not successfully integrate the companies. The market for its products may develop more slowly than expected. There may be significant fluctuations in results of operations and cash flows related to revenue recognition. A network or data security incident that allows unauthorized access to its network or data or its customers' data could damage its reputation and cause significant costs. It could experience interruptions or performance problems associated with its technology, including a service outage. It may not be able to pay off its convertible senior notes when due. Global economic conditions could worsen. The company expects to continue incurring operating losses and cash flows that may fluctuate between positive and negative amounts.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $518.0M | $510.2M | +1.5% | $414.9M | +24.8% |
| Gross profit | $376.0M | $370.7M | +1.4% | $283.8M | +32.5% |
| Gross margin | 72.6% | 72.7% | -0.1 pp | 68.4% | +4.2 pp |
| Research & development | $163.0M | $154.0M | +5.8% | $161.7M | +0.8% |
| Sales & marketing | $256.0M | $258.9M | -1.1% | $252.5M | +1.4% |
| General & administrative | $110.0M | $86.5M | +27.2% | $109.3M | +0.6% |
| Total operating expenses | $536.0M | $528.4M | +1.4% | $523.5M | +2.4% |
| Operating income (loss) | -$160.0M | -$157.7M | -1.5% | -$239.7M | +33.2% |
| Operating margin | -30.9% | -30.9% | +0.0 pp | -57.8% | +26.9 pp |
| Net income (loss) | -$119.0M | -$152.9M | +22.2% | -$242.7M | +51.0% |
| Net margin | -23.0% | -30.0% | +7.0 pp | -58.5% | +35.5 pp |
| Diluted EPS | -$0.74 | -$0.97 | +$0.23 | -$1.56 | +$0.82 |
| Customers | 18,050 | — | — | 15,800 | +14.2% |
| Net retention rate | 117.0% | 120.0% | -3.0 pp | — | — |
Risks
Rising interest rates, inflation and bank failures have increased economic uncertainty and could reduce workforce identity and customer identity spending, leading customers to renegotiate, delay or fail to renew contracts.
Okta has experienced longer sales cycles, especially as it focuses on larger organizations, which can delay deal closings and create near-term headwinds for cash flow and RPO growth. RPO was $2.94 billion, up 8.6% versus the prior-year quarter.
Dollar-Based Net Retention Rate declined to 117% as of April 30, 2023 from 123% as of April 30, 2022, and the filing states any material decline would harm future results of operations.
Okta faces intense competition, especially from larger, well-established companies, with Microsoft named as its principal competitor and larger competitors able to bundle products or sell at zero or negative margins.
Okta has experienced cybersecurity attacks in the past, including the January 2022 compromise of a third-party service provider that was widely publicized and became the subject of lawsuits, and as an identity and security provider it remains an attractive target.
The filing highlights evolving privacy and data transfer rules, including GDPR fines up to €20 million or 4% of worldwide annual revenue, the CPRA effective January 1, 2023, and uncertainty around the EU-U.S. Data Privacy Framework, which could restrict cross-border data flows.
During Q1 FY2024 Okta announced a worldwide restructuring plan to reduce operating expenses and improve profitability, and it may incur additional charges from its ongoing real estate optimization plan. Restructuring and other charges were $7 million in the quarter.
Okta repurchased $366 million principal amount of its 2025 Notes for $332 million in cash during Q1 FY2024 and may lack sufficient cash to settle conversions or repurchase notes upon a fundamental change.
SaaS KPIs
All quarters →Remaining Performance Obligations (RPO)
Current Remaining Performance Obligations (cRPO)
Free Cash Flow Margin
Free Cash Flow
Non-GAAP Operating Margin
Customers with annual contract value (ACV) above $100,000
Non-GAAP Operating Income
Number of Customers
Summary, forecast, risks and KPIs are extracted from Okta, Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.