OKTA Okta Inc

• Q4 revenue grew 45% year-over-year; subscription revenue grew 46% year-over-year
• Remaining performance obligations, or subscription revenue backlog, grew 66% year-over-year
• Achieved positive operating and free cash flows for fiscal 2020

Okta, Inc. (NASDAQ: OKTA), the leading independent provider of identity for the enterprise, today announced financial results for its fourth quarter and fiscal year ended January 31, 2020.

"Our strong fourth quarter performance caps another fantastic year of growth and expansion," said Todd McKinnon, Chief Executive Officer and co-founder of Okta. "We continue to post industry leading growth for subscription revenue, remaining performance obligations, and billings, while achieving positive operating and free cash flows for the year. Our unparalleled cloud-based platform and continued execution is allowing us to achieve this exceptional growth at scale. We’re still in the early days of a massive addressable market to modernize identity for the workforce and customers and we are in the leading position to capitalize on the opportunity for many years to come."

Fourth Quarter Fiscal 2020 Financial Highlights:

• Revenue: Total revenue was $167.3 million, an increase of 45% year-over-year. Subscription revenue was $158.5 million, an increase of 46% year-over-year.
• Remaining Performance Obligations (RPO): RPO was $1.21 billion, an increase of 66% year-over-year. Current RPO, which is subscription revenue expected to be recognized over the next 12 months, was $592.3 million, up 54% compared to the fourth quarter of fiscal 2019.
• Calculated Billings: Total calculated billings were $225.0 million, an increase of 42% year-over-year.
• Operating Loss: GAAP operating loss was $44.7 million, or 26.7% of total revenue, compared to $27.7 million, or 24.0% of total revenue, in the fourth quarter of fiscal 2019. Non-GAAP operating loss was $5.6 million, or 3.3% of total revenue, compared to $4.9 million, or 4.3% of total revenue, in the fourth quarter of fiscal 2019.
• Net Loss: GAAP net loss was $50.5 million, compared to $30.8 million in the fourth quarter of fiscal 2019. GAAP net loss per share was $0.42, compared to $0.28 in the fourth quarter of fiscal 2019. Non-GAAP net loss was $1.7 million, compared to $4.4 million in the fourth quarter of fiscal 2019. Non-GAAP net loss per share was $0.01, compared to $0.04 in the fourth quarter of fiscal 2019.
• Cash Flow: Net cash provided by operations was $24.8 million, or 14.8% of total revenue, compared to net cash provided by operations of $10.1 million, or 8.8% of total revenue, in the fourth quarter of fiscal 2019. Free cash flow was $18.1 million, or 10.8% of total revenue, compared to $4.8 million, or 4.1% of total revenue, in the fourth quarter of fiscal 2019.
• Cash, cash equivalents, and short-term investments were $1.40 billion.

Full Year Fiscal 2020 Financial Highlights:

• Revenue: Total revenue was $586.1 million, an increase of 47% year-over-year. Subscription revenue was $552.7 million, an increase of 49% year-over-year.
• Calculated Billings: Total calculated billings were $703.6 million, an increase of 44% year-over-year.
• Operating Loss: GAAP operating loss was $185.8 million, or 31.7% of total revenue, compared to $119.6 million, or 30.0% of total revenue for fiscal 2019. Non-GAAP operating loss was $48.5 million, or 8.3% of total revenue, compared to $41.5 million, or 10.4% of total revenue for fiscal 2019.
• Net Loss: GAAP net loss was $208.9 million, compared to $125.5 million for fiscal 2019. GAAP net loss per share was $1.78, compared to $1.17 for fiscal 2019. Non-GAAP net loss was $36.7 million, compared to $34.1 million for fiscal 2019. Non-GAAP net loss per share was $0.31, compared to $0.32 for fiscal 2019.
• Cash Flow: Net cash provided by operations was $55.6 million, or 9.5% of total revenue, compared to net cash provided by operations of $15.2 million, or 3.8% of total revenue for fiscal 2019. Free cash flow was $36.3 million, or 6.2% of total revenue, compared to negative $6.8 million, or 1.7% of total revenue for fiscal 2019.

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:

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

• Total revenue of $171 million to $173 million, representing a growth rate of 37% to 38% year-over-year
• Non-GAAP operating loss of $33.2 million to $32.2 million
• Non-GAAP net loss per share of $0.24 to $0.23, assuming weighted shares outstanding of approximately 123 million

For the full year fiscal 2021, the Company 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 $65.0 million to $57.0 million
• Non-GAAP net loss per share of $0.42 to $0.37, assuming weighted shares outstanding of approximately 125 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 its most directly comparable GAAP measure because certain items are out of Okta’s control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP operating loss and non-GAAP net loss per share is not available without unreasonable effort.

Conference Call Information:

Okta will host a conference call and live webcast for analysts and investors at 2:00 p.m. Pacific Time on March 5, 2020. The news release with the financial results will be accessible from the Company’s website at investor.okta.com prior to the conference call. Interested parties can access the call by dialing (800) 458-4121 or (323) 794-2093 and using the passcode 4522098.

A live 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 loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net margin, non-GAAP net loss per share, free cash flow, current calculated billings and calculated billings. Certain of these non-GAAP financial measures exclude stock-based compensation, amortization of debt discount, charitable contributions, amortization of acquired intangibles, acquisition-related expenses and loss on early extinguishment of debt, net of debt issuance costs.

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, product development, 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 operating results 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; 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; and global economic conditions could deteriorate. 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 provider of identity for the enterprise. The Okta Identity Cloud enables organizations to securely connect the right people to the right technologies at the right time. With over 6,500 pre-built integrations to applications and infrastructure providers, Okta customers can easily and securely use the best technologies for their business. Over 7,950 organizations, including 20th Century Fox, JetBlue, Nordstrom, Slack, 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,

 

2020

 

2019

 

2020

 

2019

Revenue:

 

 

 

 

 

 

 

Subscription

$

158,514

 

 

$

108,462

 

 

$

552,688

 

 

$

370,855

 

Professional services and other

8,813

 

 

7,009

 

 

33,379

 

 

28,399

 

Total revenue

167,327

 

 

115,471

 

 

586,067

 

 

399,254

 

Cost of revenue:

 

 

 

 

 

 

 

Subscription(1)

33,864

 

 

21,546

 

 

116,445

 

 

77,354

 

Professional services and other(1)

10,819

 

 

9,840

 

 

42,937

 

 

36,067

 

Total cost of revenue

44,683

 

 

31,386

 

 

159,382

 

 

113,421

 

Gross profit

122,644

 

 

84,085

 

 

426,685

 

 

285,833

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

43,360

 

 

30,031

 

 

159,269

 

 

102,385

 

Sales and marketing(1)

92,635

 

 

62,552

 

 

340,356

 

 

227,960

 

General and administrative(1)

31,352

 

 

19,237

 

 

112,892

 

 

75,110

 

Total operating expenses

167,347

 

 

111,820

 

 

612,517

 

 

405,455

 

Operating loss

(44,703

)

 

(27,735

)

 

(185,832

)

 

(119,622

)

Interest expense

(10,646

)

 

(4,179

)

 

(27,017

)

 

(15,072

)

Interest income and other, net

5,743

 

 

2,969

 

 

17,089

 

 

9,180

 

Loss on early extinguishment of debt

—

 

 

—

 

 

(14,572

)

 

—

 

Interest expense and other, net

(4,903

)

 

(1,210

)

 

(24,500

)

 

(5,892

)

Loss before provision for (benefit from) income taxes

(49,606

)

 

(28,945

)

 

(210,332

)

 

(125,514

)

Provision for (benefit from) income taxes

866

 

 

1,866

 

 

(1,419

)

 

(17

)

Net loss

$

(50,472

)

 

$

(30,811

)

 

$

(208,913

)

 

$

(125,497

)

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

$

(0.42

)

 

$

(0.28

)

 

$

(1.78

)

 

$

(1.17

)

 

 

 

 

 

 

 

 

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

121,562

 

 

110,223

 

 

117,221

 

 

107,504

 

 

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

 

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2020

 

2019

 

2020

 

2019

Cost of subscription revenue

$

3,786

 

 

$

2,024

 

 

$

12,923

 

 

$

7,837

 

Cost of professional services and other revenue

1,872

 

 

1,706

 

 

7,164

 

 

4,983

 

Research and development

11,361

 

 

6,866

 

 

37,683

 

 

22,642

 

Sales and marketing

11,118

 

 

7,064

 

 

38,077

 

 

22,916

 

General and administrative

8,793

 

 

4,761

 

 

30,777

 

 

17,942

 

Total share-based compensation expense

$

36,930

 

 

$

22,421

 

 

$

126,624

 

 

$

76,320

 

OKTA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

 

 

 

As of January 31,

 

 

2020

 

2019

 

 

 

 

As Adjusted(1)

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

520,048

 

 

$

298,394

 

Short-term investments

 

882,976

 

 

265,374

 

Accounts receivable, net of allowances

 

130,115

 

 

91,926

 

Deferred commissions

 

33,636

 

 

24,185

 

Prepaid expenses and other current assets

 

32,950

 

 

28,237

 

Total current assets

 

1,599,725

 

 

708,116

 

Property and equipment, net

 

53,535

 

 

52,921

 

Operating lease right-of-use assets

 

125,204

 

 

121,389

 

Deferred commissions, noncurrent

 

77,874

 

 

54,812

 

Intangible assets, net

 

32,529

 

 

13,897

 

Goodwill

 

48,023

 

 

18,089

 

Other assets

 

18,505

 

 

15,089

 

Total assets

 

$

1,955,395

 

 

$

984,313

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

3,837

 

 

$

2,431

 

Accrued expenses and other current liabilities

 

36,887

 

 

33,653

 

Accrued compensation

 

40,300

 

 

19,770

 

2023 Convertible senior notes, net

 

100,703

 

 

271,628

 

Deferred revenue

 

365,236

 

 

245,622

 

Total current liabilities

 

546,963

 

 

573,104

 

2025 Convertible senior notes, net

 

837,002

 

 

—

 

Operating lease liabilities, noncurrent

 

154,511

 

 

147,046

 

Deferred revenue, noncurrent

 

6,214

 

 

8,768

 

Other liabilities, noncurrent

 

5,361

 

 

3,018

 

Total liabilities

 

1,550,051

 

 

731,936

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

—

 

 

—

 

Class A common stock

 

11

 

 

10

 

Class B common stock

 

1

 

 

1

 

Additional paid-in capital

 

1,105,564

 

 

744,896

 

Accumulated other comprehensive income (loss)

 

892

 

 

(319

)

Accumulated deficit

 

(701,124

)

 

(492,211

)

Total stockholders’ equity

 

405,344

 

 

252,377

 

Total liabilities and stockholders' equity

 

$

1,955,395

 

 

$

984,313

 

(1)

The condensed consolidated balance sheet for the prior period has been adjusted to reflect the adoption of ASC 842.

OKTA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

 

 

Twelve Months Ended January 31,

 

2020

 

2019

 

 

As Adjusted(1)

Cash flows from operating activities:

 

 

 

Net loss

$

(208,913

)

 

$

(125,497

)

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

 

 

 

Stock-based compensation

126,624

 

 

76,320

 

Depreciation, amortization and accretion

17,815

 

 

8,001

 

Amortization of debt discount and issuance costs

25,892

 

 

14,279

 

Amortization of deferred commissions

28,588

 

 

20,852

 

Deferred income taxes

(2,253

)

 

(765

)

Non-cash charitable contributions

1,746

 

 

1,008

 

Loss on early extinguishment of debt

14,572

 

 

—

 

Other, net

(130

)

 

640

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

(37,515

)

 

(39,682

)

Deferred commissions

(61,224

)

 

(41,342

)

Prepaid expenses and other assets

(4,080

)

 

(10,334

)

Operating lease right-of-use assets

12,951

 

 

17,239

 

Accounts payable

1,689

 

 

(1,437

)

Accrued compensation

23,034

 

 

7,429

 

Accrued expenses and other liabilities

9,972

 

 

5,800

 

Operating lease liabilities

(9,716

)

 

(6,642

)

Deferred revenue

116,432

 

 

89,303

 

Net cash provided by operating activities

55,603

 

 

15,172

 

Cash flows from investing activities:

 

 

 

Capitalization of internal-use software costs

(3,888

)

 

(2,851

)

Purchases of property and equipment

(15,442

)

 

(19,811

)

Proceeds from sales of property and equipment

—

 

 

740

 

Purchases of securities available for sale and other

(999,387

)

 

(631,488

)

Proceeds from maturities and redemption of securities available for sale

356,277

 

 

298,650

 

Proceeds from sales of securities available for sale and other

27,271

 

 

173,072

 

Purchases of intangible assets

(8,589

)

 

—

 

Payments for business acquisition, net of cash acquired

(44,283

)

 

(15,632

)

Net cash used in investing activities

(688,041

)

 

(197,320

)

Cash flows from financing activities:

 

 

 

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

1,040,660

 

 

334,980

 

Payments for repurchases of 2023 convertible senior notes

(224,414

)

 

—

 

Purchases of hedges related to 2023 convertible senior notes

—

 

 

(80,040

)

Proceeds from hedges related to 2023 convertible senior notes

405,851

 

 

—

 

Proceeds from issuance of warrants related to 2023 convertible senior notes

—

 

 

52,440

 

Payments for warrants related to 2023 convertible senior notes

(358,622

)

 

—

 

Purchases of capped calls related to 2025 convertible senior notes

(74,094

)

 

—

 

Proceeds from stock option exercises, net of repurchases

45,363

 

 

36,861

 

Proceeds from shares issued in connection with employee stock purchase plan

18,767

 

 

13,727

 

Other, net

(126

)

 

(206

)

Net cash provided by financing activities

853,385

 

 

357,762

 

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

(209

)

 

(632

)

Net increase in cash, cash equivalents and restricted cash

220,738

 

 

174,982

 

Cash, cash equivalents and restricted cash at beginning of period

311,215

 

 

136,233

 

Cash, cash equivalents and restricted cash at end of period

$

531,953

 

 

$

311,215

 

(1) The condensed consolidated statement of cash flows for the prior period has been adjusted to reflect the adoption of ASC 842.

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 and amortization of acquired intangibles.

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2020

 

2019

 

2020

 

2019

Gross profit

$

122,644

 

 

$

84,085

 

 

$

426,685

 

 

$

285,833

 

Add:

 

 

 

 

 

 

 

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

5,658

 

 

3,730

 

 

20,087

 

 

12,820

 

Amortization of acquired intangibles

1,593

 

 

383

 

 

5,488

 

 

832

 

Non-GAAP gross profit

$

129,895

 

 

$

88,198

 

 

$

452,260

 

 

$

299,485

 

Gross margin

73

%

 

73

%

 

73

%

 

72

%

Non-GAAP gross margin

78

%

 

76

%

 

77

%

 

75

%

(1) See table above for breakdown of stock-based compensation expense by line item.

Non-GAAP Operating Loss and Non-GAAP Operating Margin

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

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2020

 

2019

 

2020

 

2019

Operating loss

$

(44,703

)

 

$

(27,735

)

 

$

(185,832

)

 

$

(119,622

)

Add:

 

 

 

 

 

 

 

Stock-based compensation expense(1)

36,930

 

 

22,421

 

 

126,624

 

 

76,320

 

Charitable contributions

584

 

 

—

 

 

1,746

 

 

1,008

 

Amortization of acquired intangibles

1,593

 

 

383

 

 

5,488

 

 

832

 

Acquisition-related expenses(2)

—

 

 

—

 

 

3,449

 

 

—

 

Non-GAAP operating loss

$

(5,596

)

 

$

(4,931

)

 

$

(48,525

)

 

$

(41,462

)

Operating margin

(27

)%

 

(24

)%

 

(32

)%

 

(30

)%

Non-GAAP operating margin

(3

)%

 

(4

)%

 

(8

)%

 

(10

)%

(1) See table above for breakdown of stock-based compensation expense by line item. (2) We define acquisition-related expenses as costs associated with acquisitions, including transaction costs and other non-recurring incremental costs incurred.

Non-GAAP Net Loss and Non-GAAP Net Margin

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

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2020

 

2019

 

2020

 

2019

Net loss

$

(50,472

)

 

$

(30,811

)

 

$

(208,913

)

 

$

(125,497

)

Add:

 

 

 

 

 

 

 

Stock-based compensation expense(1)

36,930

 

 

22,421

 

 

126,624

 

 

76,320

 

Charitable contributions

584

 

 

—

 

 

1,746

 

 

1,008

 

Amortization of acquired intangibles

1,593

 

 

383

 

 

5,488

 

 

832

 

Acquisition-related expenses(2)

—

 

 

—

 

 

3,449

 

 

—

 

Amortization of debt discount

9,621

 

 

3,655

 

 

24,138

 

 

13,194

 

Loss on early extinguishment of debt, net of debt issuance costs

—

 

 

—

 

 

10,794

 

 

—

 

Non-GAAP net loss

$

(1,744

)

 

$

(4,352

)

 

$

(36,674

)

 

$

(34,143

)

Net margin

(30

)%

 

(27

)%

 

(36

)%

 

(31

)%

Non-GAAP net margin

(1

)%

 

(4

)%

 

(6

)%

 

(9

)%

Net loss per share

$

(0.42

)

 

$

(0.28

)

 

$

(1.78

)

 

$

(1.17

)

Non-GAAP net loss per share

$

(0.01

)

 

$

(0.04

)

 

$

(0.31

)

 

$

(0.32

)

(1) See table in footnote 1 in the condensed consolidated statements of operations above for breakdown of stock-based compensation expense by line item. (2) We define acquisition-related expenses as costs associated with acquisitions, including transaction costs and other non-recurring incremental costs incurred.

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.

Free Cash Flow

 

 

 

 

 

 

 

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2020

 

2019

 

2020

 

2019

Net cash provided by operating activities

$

24,835

 

 

$

10,104

 

 

$

55,603

 

 

$

15,172

 

Less:

 

 

 

 

 

 

 

Purchases of property and equipment

(5,462

)

 

(5,558

)

 

(15,442

)

 

(19,811

)

Capitalization of internal-use software costs

(1,229

)

 

(522

)

 

(3,888

)

 

(2,851

)

Proceeds from sales of property and equipment

—

 

 

740

 

 

—

 

 

740

 

Free cash flow

$

18,144

 

 

$

4,764

 

 

$

36,273

 

 

$

(6,750

)

Net cash provided by (used in) investing activities

$

(562,939

)

 

$

80,896

 

 

$

(688,041

)

 

$

(197,320

)

Net cash provided by financing activities

$

18,654

 

 

$

15,410

 

 

$

853,385

 

 

$

357,762

 

Free cash flow margin

10.8%

 

4.1%

 

6.2%

 

(1.7)%

Calculated Billings

We define Calculated Billings as total revenue plus the change in deferred revenue and less the change in unbilled receivables during the period.

Calculated Billings

 

 

 

 

 

 

 

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2020

 

2019

 

2020

 

2019

Total revenue

$

167,327

 

 

$

115,471

 

 

$

586,067

 

 

$

399,254

 

Add:

 

 

 

 

 

 

 

Unbilled receivables, current (beginning of period)

1,028

 

 

1,581

 

 

1,457

 

 

809

 

Deferred revenue, current (end of period)

365,236

 

 

245,622

 

 

365,236

 

 

245,622

 

Less:

 

 

 

 

 

 

 

Unbilled receivables, current (end of period)

(1,026

)

 

(1,457

)

 

(1,026

)

 

(1,457

)

Deferred revenue, current (beginning of period)

(306,743

)

 

(206,146

)

 

(245,622

)

 

(159,816

)

Current calculated billings

225,822

 

 

155,071

 

 

706,112

 

 

484,412

 

Add:

 

 

 

 

 

 

 

Deferred revenue, noncurrent (end of period)

6,214

 

 

8,768

 

 

6,214

 

 

8,768

 

Less:

 

 

 

 

 

 

 

Deferred revenue, noncurrent (beginning of period)

(7,013

)

 

(4,977

)

 

(8,768

)

 

(4,963

)

Calculated billings

$

225,023

 

 

$

158,862

 

 

$

703,558

 

 

$

488,217

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200305005782/en/

Investor Contact: Dave Gennarelli investor@okta.com 415-851-4744

Media Contact: Jenna Kozel press@okta.com 415-418-9600