LONDON, UK / ACCESSWIRE / January 05, 2018 / Active-Investors.com has just released a free earnings report on Okta, Inc. (NASDAQ: OKTA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=OKTA. Okta reported its third quarter fiscal 2018 operating results on December 06, 2017. The cloud identity management company outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Okta most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For its third fiscal quarter ended October 31, 2017, Okta's total revenue soared 61% to $68.24 million compared to revenue of $42.28 million in Q3 FY17. Okta's revenue topped analysts' expectations of $62.8 million.
Okta's strong top-line growth was driven by three factors; new customer wins in the reported quarter; increases in deal sizes; and momentum with existing customer expansions. The total number of customers over $100,000 of Annual Recurring Revenue (ARR) grew 50% on a y-o-y basis, bringing the Company's total to 603 customers who spend more than $100,000 per year with Okta. This is an increase of 64 compared to the prior period and a record for the Company.
During Q3 FY18, Okta's GAAP operating loss was $35.2 million, or 51.6% of total revenue, compared to $21.9 million in Q3 FY17, or 51.8% of total revenue. The Company's non-GAAP operating loss was $20.1 million, or 29.4% of total revenue in the reported quarter, compared to $17.0 million in the year ago same period, or 40.0% of total revenue.
Okta's GAAP net loss was $33.8 million in Q3 FY18 compared to $21.9 million in Q3 FY17. The Company's GAAP net loss per share was $0.35 in the reported quarter, compared to $1.14 in the year earlier quarter. Okta's non-GAAP net loss was $18.6 million or $0.19 per share, compared to $17.0 million or $0.89 per share in the year earlier quarter. The Company's reported numbers were better than Wall Street estimates for a loss of $0.24 per share.
Okta's Segment Results
During Q3 FY18, the Subscription revenue surged 64% to $62.71 million. on a y-o-y basis compared to $38.12 million in Q3 FY17, and was comprised 92% of the Company's total revenue in the reported quarter, up from 90% in the year ago same period. Subscription gross margin was 80.7% for Q3 FY18, up over 150 basis points versus the year ago comparable period.
For Q3 FY18, the Professional service revenue was $5.5 million, reflecting an increase of 33% on a y-o-y basis. The segment's professional services gross margin was negative 19.1% compared to negative 25% in the year earlier corresponding quarter.
In terms of geographic breakdown, approximately 84% of Okta's Q3 FY18 revenue came from the US and 16% came from outside the US compared to 86% and 14%, respectively, in Q3 FY17. The Company's international revenue grew more than 80% on a y-o-y basis and outpaced overall revenue growth.
During Q3 FY18, Okta recorded calculated billings of $78.6 million, reflecting growth of 54%, driven by new business momentum, large deals, and strong upsells.
Cash Matters
Okta's net cash used in operations was $9.5 million in Q3 FY18 compared to $8.5 million in Q3 FY17. The Company's free cash flow was negative $11.2 million, or 16.4% of total revenue, compared to negative $11.8 million, or 27.9% of total revenue, in the year earlier same quarter.
Okta's cash, cash equivalents, and short-term investments were $223.6 million as of October 31, 2017.
Financial Outlook:
For the fourth quarter of fiscal 2018, Okta is forecasting total revenue of $70 million to $71 million; non-GAAP operating loss of $18 million to $17 million; and non-GAAP net loss per share of $0.18 to $0.17.
For the full fiscal 2018, the Company is projecting total revenue in the band of $252 million to $253 million; non-GAAP operating loss of $73 million to $72 million; and non-GAAP net loss per share of $0.87 to $0.86.
Stock Performance Snapshot
January 04, 2018 - At Thursday's closing bell, Okta's stock marginally climbed 0.30%, ending the trading session at $26.57.
Volume traded for the day: 948.78 thousand shares.
Stock performance in the last six-month - up 16.64%; and year-to-date - up 3.75%
After yesterday's close, Okta's market cap was at $2.72 billion.
The stock is part of the Technology sector, categorized under the Technical & System Software industry. This sector was up 0.4% at the end of the session.
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