$OKTA (+0.68%) Q3 Earnings Highlights:

🔹 Non-GAAP EPS: $0.67 (Est. $0.58) 🟢

🔹 Revenue: $665M (Est. $649.7M) 🟢; UP +14% YoY

🔹 Subscription Revenue: $651M (Est. $634.7M) 🟢; UP +14% YoY

Q4 Guidance:

🔹 Revenue: $667M-$669M (Est. $651.3M) 🟢

🔹 Current RPO: $2.13B-$2.135B (Est. $2.12B) 🟡

🔹 Non-GAAP Operating Income: $154M-$156M; Operating Margin: 23%

🔹 Non-GAAP EPS: $0.73-$0.74 (Est. $0.67) 🟢

🔹 Non-GAAP Free Cash Flow Margin: ~32%

FY25 Guidance:

🔹 Revenue: $2.595B-$2.597B (Est. $2.56B-$2.57B) 🟡; Growth of +15% YoY

🔹 Non-GAAP Operating Income: $573M-$575M; Operating Margin: 22%

🔹 Non-GAAP EPS: $2.75-$2.76 (Est. $2.58-$2.63) 🟡

🔹 Non-GAAP Free Cash Flow Margin: ~25%

Key Q3 Metrics:

🔹 RPO: $3.659B (Est. $3.50B) 🟢; UP +19% YoY

🔹 Current RPO: $2.062B (Est. $1.99B) 🟢; UP +13% YoY

🔹 GAAP Operating Loss: $16M (-2% of revenue); Improved from -$111M (-19% of revenue) YoY

🔹 Non-GAAP Operating Income: $138M (Est. ~$121M) 🟢; 21% of revenue; UP +62% YoY

🔹 Operating Cash Flow: $159M (Est. $135.7M) 🟢; 24% of revenue

🔹 Free Cash Flow: $154M (23% of revenue); UP from $150M YoY

Operational Metrics:

🔹 Deferred Revenue: $1.44B (Est. $1.44B) 🟡

🔹 Billings: $677.5M (Est. $677.5M) 🟡

Key Highlights:

🔸 GAAP net income: $16M, compared to a net loss of -$81M YoY

🔸 Strong improvement in non-GAAP operating margins, reaching 21% from 15% YoY

🔸 Cash, cash equivalents, and short-term investments totaled $2.248B as of October 31, 2024

CEO Todd McKinnon’s Commentary:

🔸 "Our solid Q3 results were underpinned by continued strong profitability and cash flow. Investments in our partner ecosystem, public sector vertical, and large customers are yielding results, driving meaningful top-line growth. Our innovation in identity security continues to resonate with customers seeking to modernize their identity infrastructure."