- Increases revenue and operating profit outlook for fiscal
2021
- Q2 revenue grew 43% year-over-year; subscription revenue grew
44% year-over-year
- Remaining performance obligations, or subscription revenue
backlog, grew 56% year-over-year
Okta, Inc. (NASDAQ: OKTA), the leading independent provider of
identity for the enterprise, today announced financial results for
its second quarter ended July 31, 2020.
“The three mega-trends that have been driving our business for
the past several years - the adoption of cloud and hybrid IT,
digital transformation, and zero trust security - are all being
accelerated globally by the current environment,” said Todd
McKinnon, Chief Executive Officer and co-founder of Okta. “These
trends are reflected in our strong second quarter results and
reflect the work that Okta is doing to help organizations around
the world accelerate their adoption and deployment of cloud
applications, and remote access, and re-imagine their digital
customer experiences. As part of this process, organizations are
re-evaluating their roadmap to modernize their identity systems and
Okta’s platform is the linchpin of the new cloud technology stack.
We believe that the world will not return to the pre-COVID work
environment and Okta is committed to helping our customers on their
journeys.”
Second Quarter Fiscal 2021 Financial Highlights:
- Revenue: Total revenue was $200.4 million, an
increase of 43% year-over-year. Subscription revenue was $190.7
million, an increase of 44% year-over-year.
- Remaining Performance Obligations (RPO): RPO was
$1.43 billion, an increase of 56% year-over-year. Current RPO,
which is contracted subscription revenue expected to be recognized
over the next 12 months, was $684.5 million, up 48% compared to the
second quarter of fiscal 2020.
- Calculated Billings: Total calculated billings were
$198.1 million, an increase of 27% year-over-year.
- GAAP Operating Loss: GAAP operating loss was $45.4
million, or 22.6% of total revenue, compared to $43.6 million, or
31.0% of total revenue, in the second quarter of fiscal 2020.
- Non-GAAP Operating Income/Loss: Non-GAAP operating
income was $6.5 million, or 3.2% of total revenue, compared to a
non-GAAP operating loss of $9.9 million, or 7.1% of total revenue,
in the second quarter of fiscal 2020.
- GAAP Net Loss: GAAP net loss was $60.1 million, compared
to $43.0 million in the second quarter of fiscal 2020. GAAP net
loss per share was $0.48, compared to $0.37 in the second quarter
of fiscal 2020.
- Non-GAAP Net Income/Loss: Non-GAAP net income was $9.9
million, compared to a non-GAAP net loss of $5.2 million in the
second quarter of fiscal 2020. Non-GAAP basic net income per share
was $0.08, compared to a non-GAAP basic net loss per share of $0.05
in the second quarter of fiscal 2020. Non-GAAP diluted net income
per share was $0.07, compared to a non-GAAP diluted net loss per
share of $0.05 in the second quarter of fiscal 2020.
- Cash Flow: Net cash provided by operations was
$10.9 million, or 5.5% of total revenue, compared to net cash
provided by operations of $1.1 million, or 0.8% of total revenue,
in the second quarter of fiscal 2020. Free cash flow was $6.9
million, or 3.4% of total revenue, compared to negative $4.3
million, or 3.1% of total revenue, in the second quarter of fiscal
2020.
- Cash, cash equivalents, and short-term investments were
$2.5 billion at July 31, 2020.
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:
“We are pleased with our continued execution and excellent
second quarter results,” said Bill Losch, Chief Financial Officer
of Okta. “We believe it’s prudent to continue to expect some
near-term economic uncertainty as the business impacts stemming
from the pandemic further unfold; however, our strong first half
results give us confidence in raising our fiscal year 2021 outlook
for both revenue and profitability.”
For the third quarter of fiscal 2021, the Company expects:
- Total revenue of $202 million to $203 million, representing a
growth rate of 32% to 33% year-over-year
- Non-GAAP operating loss of $3.0 million to $2.0 million
- Non-GAAP net loss per share of $0.02 to $0.01, assuming
weighted shares outstanding of approximately 129 million
For the full year fiscal 2021, the Company now expects:
- Total revenue of $800 million to $803 million, representing a
growth rate of 37% year-over-year
- Non-GAAP operating loss of $13.0 million to $11.0 million
- Non-GAAP net loss per share of $0.03 to $0.01, assuming
weighted shares outstanding of approximately 127 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 live video webcast at 2:00 p.m. Pacific Time on
August 27, 2020 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, amortization of debt discount and
debt issuance costs, non-cash charitable contributions,
amortization of acquired intangibles, acquisition-related expenses
and loss on early extinguishment 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; 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 8,950
organizations, including Engie, JetBlue, Nordstrom, Takeda
Pharmaceutical, Teach for America, T-Mobile 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 July
31,
Six Months Ended July
31,
2020
2019
2020
2019
Revenue:
Subscription
$
190,689
$
132,494
$
364,470
$
249,657
Professional services and other
9,757
7,986
18,835
16,046
Total revenue
200,446
140,480
383,305
265,703
Cost of revenue:
Subscription(1)
39,501
27,917
76,658
52,457
Professional services and other(1)
11,646
10,863
22,975
21,418
Total cost of revenue
51,147
38,780
99,633
73,875
Gross profit
149,299
101,700
283,672
191,828
Operating expenses:
Research and development(1)
53,866
40,045
102,360
74,077
Sales and marketing(1)
98,322
78,385
202,365
160,497
General and administrative(1)
42,499
26,887
76,534
52,653
Total operating expenses
194,687
145,317
381,259
287,227
Operating loss
(45,388
)
(43,617
)
(97,587
)
(95,399
)
Interest expense
(16,931
)
(4,304
)
(27,695
)
(8,545
)
Interest income and other, net
3,960
3,464
8,859
6,364
Loss on early extinguishment of debt
(2,174
)
—
(2,174
)
—
Interest and other, net
(15,145
)
(840
)
(21,010
)
(2,181
)
Loss before benefit from income taxes
(60,533
)
(44,457
)
(118,597
)
(97,580
)
Benefit from income taxes
(433
)
(1,477
)
(835
)
(2,634
)
Net loss
$
(60,100
)
$
(42,980
)
$
(117,762
)
$
(94,946
)
Net loss per share, basic and diluted
$
(0.48
)
$
(0.37
)
$
(0.94
)
$
(0.83
)
Weighted-average shares used to compute
net loss per share, basic and diluted
126,319
115,033
124,922
114,042
(1) Amounts include stock-based
compensation expense as follows (in thousands):
Three Months Ended July
31,
Six Months Ended July
31,
2020
2019
2020
2019
Cost of subscription revenue
$
5,164
$
3,111
$
9,139
$
5,533
Cost of professional services and other
2,000
1,873
3,811
3,392
Research and development
14,953
9,082
26,888
15,428
Sales and marketing
13,165
9,236
24,325
16,022
General and administrative
13,112
7,972
21,959
13,584
Total stock-based compensation expense
$
48,394
$
31,274
$
86,122
$
53,959
OKTA, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(unaudited)
July 31,
January 31,
2020
2020
Assets
Current assets:
Cash and cash equivalents
$
957,234
$
520,048
Short-term investments
1,557,279
882,976
Accounts receivable, net of allowances
110,540
130,115
Deferred commissions
37,808
33,636
Prepaid expenses and other current
assets
44,074
32,950
Total current assets
2,706,935
1,599,725
Property and equipment, net
63,406
53,535
Operating lease right-of-use assets
157,781
125,204
Deferred commissions, noncurrent
86,556
77,874
Intangible assets, net
30,031
32,529
Goodwill
48,023
48,023
Other assets
22,283
18,505
Total assets
$
3,115,015
$
1,955,395
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
4,726
$
3,837
Accrued expenses and other current
liabilities
54,803
36,887
Accrued compensation
39,227
40,300
Convertible senior notes, net
43,578
100,703
Deferred revenue
391,246
365,236
Total current liabilities
533,580
546,963
Convertible senior notes, net,
noncurrent
1,689,438
837,002
Operating lease liabilities,
noncurrent
189,208
154,511
Deferred revenue, noncurrent
5,574
6,214
Other liabilities, noncurrent
12,018
5,361
Total liabilities
2,429,818
1,550,051
Stockholders’ equity:
Preferred stock
—
—
Class A common stock
12
11
Class B common stock
1
1
Additional paid-in capital
1,498,549
1,105,564
Accumulated other comprehensive income
5,521
892
Accumulated deficit
(818,886
)
(701,124
)
Total stockholders’ equity
685,197
405,344
Total liabilities and stockholders'
equity
$
3,115,015
$
1,955,395
OKTA, INC.
SUMMARY OF CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six Months Ended July
31,
2020
2019
Cash flows from operating
activities:
Net loss
$
(117,762
)
$
(94,946
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Stock-based compensation
86,106
53,959
Depreciation, amortization and
accretion
12,691
7,916
Amortization of debt discount and issuance
costs
26,330
8,113
Amortization of deferred commissions
18,077
13,192
Deferred income taxes
(1,915
)
(3,057
)
Non-cash charitable contributions
2,417
652
Loss on early extinguishment of debt
2,174
—
Other, net
1,435
84
Changes in operating assets and
liabilities:
Accounts receivable
18,626
4,459
Deferred commissions
(30,332
)
(21,372
)
Prepaid expenses and other assets
(7,622
)
1,534
Operating lease right-of-use assets
8,972
6,189
Accounts payable
810
1,368
Accrued compensation
15,045
4,717
Accrued expenses and other liabilities
(3,131
)
1,304
Operating lease liabilities
(7,663
)
(159
)
Deferred revenue
25,369
36,175
Net cash provided by operating
activities
49,627
20,128
Cash flows from investing
activities:
Capitalization of internal-use software
costs
(2,326
)
(1,330
)
Purchases of property and equipment
(10,669
)
(9,917
)
Purchases of securities available for sale
and other
(1,029,281
)
(237,693
)
Proceeds from maturities and redemption of
securities available for sale
280,395
136,344
Proceeds from sales of securities
available for sale and other
89,620
17,329
Purchases of intangible assets
—
(8,500
)
Payments for business acquisition, net of
cash acquired
—
(44,223
)
Net cash used in investing activities
(672,261
)
(147,990
)
Cash flows from financing
activities:
Proceeds from issuance of convertible
senior notes, net of issuance costs
1,135,418
—
Payments for repurchases of convertible
senior notes
(181
)
—
Proceeds from hedges related to
convertible senior notes
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
27,517
27,453
Proceeds from shares issued in connection
with employee stock purchase plan
12,821
9,005
Other, net
—
(126
)
Net cash provided by financing
activities
1,061,247
36,332
Effects of changes in foreign currency
exchange rates on cash, cash equivalents and restricted cash
578
(1,187
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
439,191
(92,717
)
Cash, cash equivalents and restricted cash
at beginning of period
531,953
311,215
Cash, cash equivalents and restricted
cash at end of period
$
971,144
$
218,498
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 July
31,
Six Months Ended July
31,
2020
2019
2020
2019
Gross profit
$
149,299
$
101,700
$
283,672
$
191,828
Add:
Stock-based compensation expense included
in cost of revenue(1)
7,164
4,984
12,950
8,925
Amortization of acquired intangibles
1,594
1,785
3,187
2,548
Non-GAAP gross profit
$
158,057
$
108,469
$
299,809
$
203,301
Gross margin
74
%
72
%
74
%
72
%
Non-GAAP gross margin
79
%
77
%
78
%
77
%
(1)
See table in footnote (1) to the condensed
consolidated statements of operations above for breakdown of
stock-based compensation expense by line item.
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-related expenses.
Three Months Ended July
31,
Six Months Ended July
31,
2020
2019
2020
2019
Operating loss
$
(45,388
)
$
(43,617
)
$
(97,587
)
$
(95,399
)
Add:
Stock-based compensation expense(1)
48,394
31,274
86,122
53,959
Non-cash charitable contributions
1,881
652
2,417
652
Amortization of acquired intangibles
1,594
1,785
3,187
2,548
Acquisition-related expenses(2)
—
—
—
3,449
Non-GAAP operating income (loss)
$
6,481
$
(9,906
)
$
(5,861
)
$
(34,791
)
Operating margin
(23
)%
(31
)%
(25
)%
(36
)%
Non-GAAP operating margin
3
%
(7
)%
(2
)%
(13
)%
(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)
We define acquisition-related expenses as
costs associated with acquisitions, including transaction costs and
other non-recurring incremental costs incurred.
Non-GAAP Net Income (Loss) and Non-GAAP Net Margin
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-related expenses,
amortization of debt discount and debt issuance costs and loss on
early extinguishment of debt.
Three Months Ended July
31,
Six Months Ended July
31,
2020
2019(1)
2020
2019(1)
Net loss
$
(60,100
)
$
(42,980
)
$
(117,762
)
$
(94,946
)
Add:
Stock-based compensation expense(2)
48,394
31,274
86,122
53,959
Non-cash charitable contributions
1,881
652
2,417
652
Amortization of acquired intangibles
1,594
1,785
3,187
2,548
Acquisition-related expenses(3)
—
—
—
3,449
Amortization of debt discount and debt
issuance costs(4)
15,973
4,088
26,330
8,113
Loss on early extinguishment of
debt(5)
2,174
—
2,174
—
Non-GAAP net income (loss)
$
9,916
$
(5,181
)
$
2,468
$
(26,225
)
Net margin
(30
)%
(31
)%
(31
)%
(36
)%
Non-GAAP net margin
5
%
(4
)%
1
%
(10
)%
(1)
Prior periods have been adjusted to
conform to the current presentation. See footnotes (4) and (5) for
additional details.
(2)
See table in footnote (1) to the condensed
consolidated statements of operations above for breakdown of
stock-based compensation expense by line item.
(3)
We define acquisition-related expenses as
costs associated with acquisitions, including transaction costs and
other non-recurring incremental costs incurred.
(4)
Amortization of debt issuance costs is an
adjustment to non-GAAP net income (loss), effective the three and
six months ended July 31, 2020. Debt issuance costs included are
$0.8 million and $1.4 million for the three and six months ended
July 31, 2020, respectively, and $0.3 million and $0.6 million for
the three and six months ended July 31, 2019, respectively.
(5)
Loss on early extinguishment of debt is
calculated inclusive of write-offs of debt issuance costs,
effective the three and six months ended July 31, 2020. The amounts
of these write-offs are $1.0 million for the three and six months
ended July 31, 2020, respectively, and nil for the three and six
months ended July 31, 2019, respectively.
Non-GAAP Net Income (Loss) per share, basic and
diluted
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 the Company’s
note hedge and capped call agreements on convertible senior notes
outstanding, which fully reduced the potential dilutive effect of
the convertible senior notes outstanding. Accordingly, the Company
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 July
31,
Six Months Ended July
31,
2020
2019(1)
2020
2019(1)
Net loss
$
(60,100
)
$
(42,980
)
$
(117,762
)
$
(94,946
)
Add:
Stock-based compensation expense(2)
48,394
31,274
86,122
53,959
Non-cash charitable contributions
1,881
652
2,417
652
Amortization of acquired intangibles
1,594
1,785
3,187
2,548
Acquisition-related expenses(3)
—
—
—
3,449
Amortization of debt discount and debt
issuance costs(4)
15,973
4,088
26,330
8,113
Loss on early extinguishment of
debt(5)
2,174
—
2,174
—
Non-GAAP net income (loss)
$
9,916
$
(5,181
)
$
2,468
$
(26,225
)
Weighted-average shares used to compute
net loss per share, basic and diluted
126,319
115,033
124,922
114,042
Non-GAAP weighted-average effect of
potentially dilutive securities
15,936
—
16,281
—
Non-GAAP weighted-average shares used to
compute non-GAAP net income (loss) per share, diluted
142,255
115,033
141,203
114,042
Net loss per share, basic and diluted
$
(0.48
)
$
(0.37
)
$
(0.94
)
$
(0.83
)
Non-GAAP net income (loss) per share,
basic(6)
$
0.08
$
(0.05
)
$
0.02
$
(0.23
)
Non-GAAP net income (loss) per share,
diluted(6)
$
0.07
$
(0.05
)
$
0.02
$
(0.23
)
(1)
Prior periods have been adjusted to
conform to the current presentation. See footnotes (4), (5) and (6)
for additional details.
(2)
See table in footnote (1) to the condensed
consolidated statements of operations above for breakdown of
stock-based compensation expense by line item.
(3)
We define acquisition-related expenses as
costs associated with acquisitions, including transaction costs and
other non-recurring incremental costs incurred.
(4)
Amortization of debt issuance costs is an
adjustment to non-GAAP net income (loss), effective the three and
six months ended July 31, 2020. Debt issuance costs included are
$0.8 million and $1.4 million for the three and six months ended
July 31, 2020, respectively, and $0.3 million and $0.6 million for
the three and six months ended July 31, 2019, respectively.
(5)
Loss on early extinguishment of debt is
calculated inclusive of write-offs of debt issuance costs,
effective the three and six months ended July 31, 2020. The amounts
of these write-offs are $1.0 million for the three and six months
ended July 31, 2020, respectively, and nil for the three and six
months ended July 31, 2019, respectively.
(6)
The total impact of the adjustments noted
in footnotes (4) and (5) and for the periods noted in footnote (1)
above on non-GAAP net income (loss) per share, basic and diluted is
nil and $0.01 for the three and six months ended July 31, 2019,
respectively.
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
and capitalized internal-use software costs. Free cash flow margin
is calculated as free cash flow divided by total revenue.
Three Months Ended July
31,
Six Months Ended July
31,
2020
2019
2020
2019
Net cash provided by (used in) operating
activities
$
10,930
$
(1,134
)
$
49,627
$
20,128
Less:
Purchases of property and equipment
(2,739
)
(2,207
)
(10,669
)
(9,917
)
Capitalization of internal-use software
costs
(1,326
)
(961
)
(2,326
)
(1,330
)
Free cash flow
$
6,865
$
(4,302
)
$
36,632
$
8,881
Net cash used in investing activities
$
(722,865
)
$
(22,383
)
$
(672,261
)
$
(147,990
)
Net cash provided by financing
activities
$
1,047,080
$
23,070
$
1,061,247
$
36,332
Free cash flow margin
3
%
(3
)%
10
%
3
%
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.
Three Months Ended July
31,
Six Months Ended July
31,
2020
2019
2020
2019
Total revenue
$
200,446
$
140,480
$
383,305
$
265,703
Add:
Unbilled receivables, current (beginning
of period)
1,121
799
1,026
1,457
Deferred revenue, current (end of
period)
391,246
283,724
391,246
283,724
Less:
Unbilled receivables, current (end of
period)
(2,113
)
(1,004
)
(2,113
)
(1,004
)
Deferred revenue, current (beginning of
period)
(392,121
)
(268,033
)
(365,236
)
(245,622
)
Current calculated billings
198,579
155,966
408,228
304,258
Add:
Deferred revenue, noncurrent (end of
period)
5,574
7,469
5,574
7,469
Less:
Deferred revenue, noncurrent (beginning of
period)
(6,070
)
(7,671
)
(6,214
)
(8,768
)
Calculated billings
$
198,083
$
155,764
$
407,588
$
302,959
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200827005238/en/
Investor Contact: Dave Gennarelli investor@okta.com
415-851-4744
Media Contact: Jenna Kozel press@okta.com
415-418-9600
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