| [September 07, 2017] |
 |
Okta Announces Record Second Quarter Fiscal 2018 Financial Results
Okta, Inc. (NASDAQ:OKTA), the leading independent provider of identity
for the enterprise, today announced financial results for its second
fiscal quarter ended July 31, 2017.
"We had a very strong second quarter with revenue up 63% year-over-year
while operating margin improved significantly once again," said Todd
McKinnon, CEO of Okta. "We also had record attendance last week at
Oktane17, our annual customer and partner conference. We were thrilled
to have had over 2,400 registrants, representing growth of more than 50%
year-over-year, and we announced a number of new and exciting product
enhancements. With these enhancements, we further extended our
leadership in identity management. The Okta Identity Cloud remains the
leading independent and neutral cloud identity solution to manage and
secure the extended enterprise and transform the customer experience."
Second Quarter Fiscal 2018 Financial Highlights:
-
Revenue: Total revenue was $61.0 million, an increase of 62.9%
year-over-year. Subscription revenue was $56.1 million, an increase of
67.7% year-over-year.
-
Operating Loss: GAAP operating loss was $27.2 million, or 44.5%
of total revenue, compared to $20.6 million in the second quarter of
fiscal 2017, or 54.9% of total revenue. Non-GAAP operating loss was
$15.2 million, or 24.9% of total revenue, compared to $16.9 million in
the second quarter of fiscal 2017, or 45.0% of total revenue.
-
Net Loss: GAAP net loss was $27.0 million, compared to $20.6
million in the second quarter of fiscal 2017. GAAP net loss per share
was $0.29, compared to $1.10 in the second quarter of fiscal 2017.
Non-GAAP net loss was $15.0 million, compared to $16.9 million in the
second quarter of fiscal 2017. Non-GAAP net loss per share was $0.16,
compared to $0.90 in the second quarter of fiscal 2017.
-
Cash Flow: Net cash used in operations was $6.2 million,
compared to $11.8 million in the second quarter of fiscal 2017. Free
cash flow was negative $10.5 million, or 17.2% of total revenue,
compared to negative $15.0 million, or 40.2% of total revenue, in the
second quarter of fiscal 2017.
-
Cash, cash equivalents and short term investments were $213.2
million as of July 31, 2017.
The section titled "Non-GAAP Financial Measures" below contains a
description of the non-GAAP financial measures and a reconciliation
between historical GAAP and non-GAAP information is contained in the
tables below.
Financial Outlook:
For the third quarter of fiscal 2018, the Company currently expects:
-
Total revenue of $62.0 to $63.0 million
-
Non-GAAP operating loss of $23.5 to $22.5 million
-
Non-GAAP net loss per share of $0.25 to $0.24 assuming shares
outstanding of approximately 94.0 million
For the full fiscal 2018, the Company now expects:
-
Total revenue of $243.0 to $245.0 million
-
Non-GAAP operating loss of $78.4 to $76.4 million
-
Non-GAAP net loss per share of $0.98 to $0.95 assuming shares
outstanding of approximately 80.6 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 their most directly comparable GAAP
measure because certain items are out of Okta's control or cannot be
reasonably predicted. Accordingly, a reconciliation for 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 September 7, 2017. 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
888-378-4361 or 719-325-4747, using the passcode 3768251.
A live webcast of the conference call will be accessible from the Okta
investor relations website at investor.okta.com.
A telephonic replay of the conference call will be available through
September 21, 2017 and may be accessed by dialing 888-203-1112 or
719-457-0820, using the passcode 3768251.
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 loss per share, free cash flow and calculated
billings. Certain of these non-GAAP financial measures exclude
stock-based compensation and amortization of intangible assets.
Okta believes that these non-GAAP measures of financial results provide
useful information to management and investors regarding certain
financial and business trends relating to Okta's financial condition and
results of operations. The Company's management uses these non-GAAP
measures to compare the Company's performance to that of prior periods
for trend analysis, for purposes of determining executive and senior
management incentive compensation and for budgeting and planning
purposes. The Company believes that the use of these non-GAAP financial
measures provides an additional tool for investors to use in evaluating
ongoing operating results and trends and in comparing the Company's
financial measures with other software companies, many of which present
similar non-GAAP financial measures to investors.
Management of the Company does not consider these non-GAAP measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. The principal limitation of these non-GAAP
financial measures is that they exclude significant expenses and income
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 management about which expenses
and income are excluded or included in determining these non-GAAP
financial measures. Okta urges investors to review the reconciliation of
its non-GAAP financial measures to the 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.
Reconciliation tables of the most comparable GAAP financial measures to
the non-GAAP financial measures used in this press release are included
with the financial tables at the end of this release.
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 and market positioning. These
forward-looking statements are made as of the date they were first
issued and were based on current expectations, estimates, forecasts and
projections as well as the beliefs and assumptions of management. 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 or the
negative of these terms and similar expressions are intended to identify
these forward-looking statements. Forward-looking statements are subject
to a number of risks and uncertainties, many of which involve factors or
circumstances that are beyond Okta's control. Okta's actual results
could differ materially from those stated or implied in forward-looking
statements due to a number of factors, including but not limited to,
risks detailed in Okta's Prospectus filed with the Securities and
Exchange Commission effective on April 6, 2017 as well as other
documents that may be filed by the Company from time to time with
the Securities and Exchange Commission. In particular, the following
factors, among others, could cause results to differ materially from
those expressed or implied by such forward-looking statements: the
market for our products may develop more slowly than expected or than it
has in the past; quarterly and annual operating results may fluctuate
more than expected; variations related to our revenue recognition may
cause significant fluctuations in our results of operations and cash
flows; assertions by third parties that we violate their intellectual
property rights could substantially harm our business; a network or data
security incident that allows unauthorized access to our network or data
or our customers' data could harm our reputation, create additional
liability and adversely impact our financial results; the risk of
interruptions or performance problems, including a service outage,
associated with our technology; we face intense competition in our
market; weakened global economic conditions may adversely affect our
industry; the risk of losing key employees; changes in foreign exchange
rates; general political or destabilizing events, including war,
conflict or acts of terrorism; and other risks and uncertainties. Past
performance is not necessarily indicative of future results. The
forward-looking statements included in this press release represent
Okta's views as of the date of this press release. The Company
anticipates that subsequent events and developments will cause its views
to change. Okta undertakes no intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. These forward-looking
statements should not be relied upon as representing Okta's views as of
any date subsequent to the date of this press release.
About Okta
Okta is the leading independent provider of identity for the enterprise.
The Okta Identity Cloud connects and protects employees of many of the
world's largest enterprises. It also securely connects enterprises to
their partners, suppliers and customers. With deep integrations to over
5,000 applications, the Okta Identity Cloud enables simple and secure
access for any user from any device. Thousands of customers, including
20th Century Fox, Adobe, Dish Networks, Experian, Flex, LinkedIn, and
News Corp, trust Okta to help them work faster, boost revenue and stay
secure. Okta helps customers fulfill their missions faster by making it
safe and easy to use the technologies they need to do their most
significant work. Learn more at www.okta.com.
About Gartner
Gartner does not endorse any vendor, product or service depicted in its
research publications, and does not advise technology users to select
only those vendors with the highest ratings or other designation.
Gartner research publications consist of the opinions of Gartner's
research organization and should not be construed as statements of fact.
Gartner disclaims all warranties, expressed or implied, with respect to
this research, including any warranties of merchantability or fitness
for a particular purpose.
|
|
|
OKTA, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
July 31,
|
|
July 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
56,080
|
|
|
$
|
33,439
|
|
|
$
|
104,437
|
|
|
$
|
61,002
|
|
|
Professional services and other
|
|
4,915
|
|
|
3,997
|
|
|
9,565
|
|
|
8,221
|
|
|
Total revenue
|
|
60,995
|
|
|
37,436
|
|
|
114,002
|
|
|
69,223
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
Subscription (1)
|
|
12,691
|
|
|
8,466
|
|
|
23,848
|
|
|
15,926
|
|
|
Professional services and other (1)
|
|
6,991
|
|
|
5,314
|
|
|
13,297
|
|
|
10,233
|
|
|
Total cost of revenue
|
|
19,682
|
|
|
13,780
|
|
|
37,145
|
|
|
26,159
|
|
|
Gross profit
|
|
41,313
|
|
|
23,656
|
|
|
76,857
|
|
|
43,064
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
16,923
|
|
|
9,655
|
|
|
32,282
|
|
|
18,421
|
|
|
Sales and marketing (1)
|
|
39,597
|
|
|
28,421
|
|
|
76,777
|
|
|
54,822
|
|
|
General and administrative (1)
|
|
11,948
|
|
|
6,142
|
|
|
23,587
|
|
|
13,087
|
|
|
Total operating expenses
|
|
68,468
|
|
|
44,218
|
|
|
132,646
|
|
|
86,330
|
|
|
Operating loss
|
|
(27,155
|
)
|
|
(20,562
|
)
|
|
(55,789
|
)
|
|
(43,266
|
)
|
|
Other income, net
|
|
382
|
|
|
56
|
|
|
363
|
|
|
88
|
|
|
Loss before income taxes
|
|
(26,773
|
)
|
|
(20,506
|
)
|
|
(55,426
|
)
|
|
(43,178
|
)
|
|
Provision for income taxes
|
|
229
|
|
|
95
|
|
|
477
|
|
|
176
|
|
|
Net loss
|
|
$
|
(27,002
|
)
|
|
$
|
(20,601
|
)
|
|
$
|
(55,903
|
)
|
|
$
|
(43,354
|
)
|
|
|
|
Net loss per common share, basic and diluted
|
|
$
|
(0.29
|
)
|
|
$
|
(1.10
|
)
|
|
$
|
(0.83
|
)
|
|
$
|
(2.32
|
)
|
|
|
|
Weighted-average shares used to compute net loss per common share
|
|
93,576
|
|
|
18,802
|
|
|
67,125
|
|
|
18,687
|
|
|
|
|
|
|
|
|
(1) Amounts include share-based compensation expense as
follows (in thousands):
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
July 31,
|
|
July 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Cost of subscription revenue
|
|
$
|
1,056
|
|
|
$
|
446
|
|
|
$
|
1,742
|
|
|
$
|
839
|
|
|
Cost of professional services and other revenue
|
|
738
|
|
|
313
|
|
|
1,207
|
|
|
586
|
|
|
Research and development
|
|
4,438
|
|
|
736
|
|
|
7,739
|
|
|
1,354
|
|
|
Sales and marketing
|
|
3,021
|
|
|
1,412
|
|
|
5,396
|
|
|
2,766
|
|
|
General and administrative
|
|
2,725
|
|
|
757
|
|
|
4,800
|
|
|
1,488
|
|
|
Total share-based compensation expense
|
|
$
|
11,978
|
|
|
$
|
3,664
|
|
|
$
|
20,884
|
|
|
$
|
7,033
|
|
|
|
|
|
|
OKTA, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
|
|
|
|
July 31,
|
|
January 31,
|
|
|
|
2017
|
|
2017
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
126,464
|
|
|
$
|
23,282
|
|
|
Short-term investments
|
|
86,755
|
|
|
14,390
|
|
|
Accounts receivable, net of allowances of $1,261 and $1,306
|
|
35,304
|
|
|
34,544
|
|
|
Deferred commissions
|
|
13,279
|
|
|
13,549
|
|
|
Prepaid expenses and other current assets
|
|
12,884
|
|
|
7,025
|
|
|
Total current assets
|
|
274,686
|
|
|
92,790
|
|
|
Property and equipment, net
|
|
13,302
|
|
|
11,026
|
|
|
Deferred commissions, noncurrent
|
|
9,248
|
|
|
10,050
|
|
|
Intangible assets, net
|
|
11,051
|
|
|
9,155
|
|
|
Goodwill
|
|
6,282
|
|
|
2,630
|
|
|
Other assets
|
|
1,658
|
|
|
4,984
|
|
|
Total assets
|
|
$
|
316,227
|
|
|
$
|
130,635
|
|
|
Liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,848
|
|
|
$
|
11,897
|
|
|
Accrued expenses and other current liabilities
|
|
4,399
|
|
|
5,853
|
|
|
Accrued compensation
|
|
11,334
|
|
|
9,866
|
|
|
Deferred revenue
|
|
127,218
|
|
|
108,012
|
|
|
Total current liabilities
|
|
152,799
|
|
|
135,628
|
|
|
Deferred revenue, noncurrent
|
|
4,108
|
|
|
5,711
|
|
|
Other liabilities, noncurrent
|
|
6,451
|
|
|
4,947
|
|
|
Total liabilities
|
|
163,358
|
|
|
146,286
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Redeemable convertible preferred stock
|
|
-
|
|
|
227,954
|
|
|
Stockholders' equity (deficit):
|
|
|
|
|
|
Preferred stock
|
|
-
|
|
|
-
|
|
|
Class A common stock
|
|
2
|
|
|
-
|
|
|
Class B common stock
|
|
8
|
|
|
2
|
|
|
Additional paid-in capital
|
|
496,801
|
|
|
44,469
|
|
|
Accumulated other comprehensive income (loss)
|
|
70
|
|
|
(167
|
)
|
|
Accumulated deficit
|
|
(344,012
|
)
|
|
(287,909
|
)
|
|
Total stockholders' equity (deficit)
|
|
152,869
|
|
|
(243,605
|
)
|
|
Total liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
$
|
316,227
|
|
|
$
|
130,635
|
|
|
|
|
|
|
OKTA, INC.
|
|
SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(unaudited)
|
|
|
|
|
|
Six Months Ended July
|
|
|
|
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
Operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(55,903
|
)
|
|
$
|
(43,354
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
3,288
|
|
|
1,972
|
|
|
Stock-based compensation
|
|
20,884
|
|
|
7,033
|
|
|
Amortization of deferred commissions
|
|
8,333
|
|
|
6,389
|
|
|
Other
|
|
689
|
|
|
(114
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(1,311
|
)
|
|
690
|
|
|
Deferred commissions
|
|
(7,261
|
)
|
|
(6,122
|
)
|
|
Prepaid expenses and other assets
|
|
(5,940
|
)
|
|
(3,403
|
)
|
|
Accounts payable
|
|
1,183
|
|
|
1,650
|
|
|
Accrued compensation
|
|
2,562
|
|
|
(2,901
|
)
|
|
Accrued expenses and other liabilities
|
|
(52
|
)
|
|
(169
|
)
|
|
Deferred revenue
|
|
17,604
|
|
|
11,456
|
|
|
Net cash used in operating activities
|
|
(15,924
|
)
|
|
(26,873
|
)
|
|
Investing activities:
|
|
|
|
|
|
Capitalization of internal-use software costs
|
|
(2,743
|
)
|
|
(2,325
|
)
|
|
Purchases of property and equipment and other
|
|
(5,156
|
)
|
|
(3,029
|
)
|
|
Net purchases of securities available for sale
|
|
(72,403
|
)
|
|
7,207
|
|
|
Net cash provided by (used in) investing activities
|
|
(80,302
|
)
|
|
1,853
|
|
|
Financing activities:
|
|
|
|
|
|
Proceeds from initial public offering, net of underwriters'
discounts and commissions
|
|
199,948
|
|
|
-
|
|
|
Other financing activities
|
|
(395
|
)
|
|
(289
|
)
|
|
Net cash provided by (used in) financing activities
|
|
199,553
|
|
|
(289
|
)
|
|
Effects of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
134
|
|
|
(54
|
)
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
103,461
|
|
|
(25,363
|
)
|
|
Cash, cash equivalents and restricted cash at beginning of year
|
|
23,282
|
|
|
58,081
|
|
|
Cash, cash equivalents and restricted cash at end of year
|
|
$
|
126,743
|
|
|
$
|
32,718
|
|
|
|
|
|
|
OKTA, INC.
|
|
Reconciliation of GAAP to Non-GAAP Data
|
|
(In thousands, except percentages and per share data)
|
|
(unaudited)
|
|
|
|
|
|
Six Months Ended July 31, 2017
|
|
|
|
|
|
|
|
Amortization
|
|
|
|
|
|
|
|
Stock-based
|
|
of acquired
|
|
|
|
|
|
GAAP
|
|
compensation
|
|
intangibles
|
|
Non-GAAP
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
23,848
|
|
|
$
|
(1,742
|
)
|
|
$
|
(4
|
)
|
|
$
|
22,102
|
|
|
Cost of professional services
|
|
13,297
|
|
|
(1,207
|
)
|
|
-
|
|
|
12,090
|
|
|
Gross profit
|
|
76,857
|
|
|
2,949
|
|
|
4
|
|
|
79,810
|
|
|
Gross margin
|
|
67
|
%
|
|
3
|
%
|
|
-
|
|
|
70
|
%
|
|
Research and development
|
|
32,282
|
|
|
(7,739
|
)
|
|
-
|
|
|
24,543
|
|
|
Sales and marketing
|
|
76,777
|
|
|
(5,396
|
)
|
|
-
|
|
|
71,381
|
|
|
General and administrative
|
|
23,587
|
|
|
(4,800
|
)
|
|
-
|
|
|
18,787
|
|
|
Operating loss
|
|
(55,789
|
)
|
|
20,884
|
|
|
4
|
|
|
(34,901
|
)
|
|
Operating margin
|
|
(49
|
)%
|
|
18
|
%
|
|
-
|
|
|
(31
|
)%
|
|
Net loss
|
|
$
|
(55,903
|
)
|
|
$
|
20,884
|
|
|
$
|
4
|
|
|
$
|
(35,015
|
)
|
|
Net loss per share (1)
|
|
$
|
(0.83
|
)
|
|
$
|
0.31
|
|
|
$
|
-
|
|
|
$
|
(0.52
|
)
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 67,125 basic and diluted weighted-average
shares of common stock.
|
|
|
|
|
|
Six Months Ended July 31, 2016
|
|
|
|
|
|
|
|
Amortization
|
|
|
|
|
|
|
|
Stock-based
|
|
of acquired
|
|
|
|
|
|
GAAP
|
|
compensation
|
|
intangibles
|
|
Non-GAAP
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
15,926
|
|
|
$
|
(839
|
)
|
|
$
|
(94
|
)
|
|
$
|
14,993
|
|
|
Cost of professional services
|
|
10,233
|
|
|
(586
|
)
|
|
-
|
|
|
9,647
|
|
|
Gross profit
|
|
43,064
|
|
|
1,425
|
|
|
94
|
|
|
44,583
|
|
|
Gross margin
|
|
62
|
%
|
|
2
|
%
|
|
-
|
|
|
64
|
%
|
|
Research and development
|
|
18,421
|
|
|
(1,354
|
)
|
|
-
|
|
|
17,067
|
|
|
Sales and marketing
|
|
54,822
|
|
|
(2,766
|
)
|
|
-
|
|
|
52,056
|
|
|
General and administrative
|
|
13,087
|
|
|
(1,488
|
)
|
|
-
|
|
|
11,599
|
|
|
Operating loss
|
|
(43,266
|
)
|
|
7,033
|
|
|
94
|
|
|
(36,139
|
)
|
|
Operating margin
|
|
(63
|
)%
|
|
10
|
%
|
|
1
|
%
|
|
(52
|
)%
|
|
Net loss
|
|
$
|
(43,354
|
)
|
|
$
|
7,033
|
|
|
$
|
94
|
|
|
$
|
(36,227
|
)
|
|
Net loss per share (1)
|
|
$
|
(2.32
|
)
|
|
$
|
0.38
|
|
|
$
|
-
|
|
|
$
|
(1.94
|
)
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 18,687 basic and diluted weighted-average
shares of common stock.
|
|
|
|
|
|
OKTA, INC.
|
|
Reconciliation of GAAP to Non-GAAP Data
|
|
(In thousands, except percentages and per share data)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended July 31, 2017
|
|
|
|
|
|
|
|
Amortization
|
|
|
|
|
|
|
|
Stock-based
|
|
of acquired
|
|
|
|
|
|
GAAP
|
|
compensation
|
|
intangibles
|
|
Non-GAAP
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
12,691
|
|
|
$
|
(1,056
|
)
|
|
$
|
-
|
|
|
$
|
11,635
|
|
|
Cost of professional services
|
|
6,991
|
|
|
(738
|
)
|
|
-
|
|
|
6,253
|
|
|
Gross profit
|
|
41,313
|
|
|
1,794
|
|
|
-
|
|
|
43,107
|
|
|
Gross margin
|
|
68
|
%
|
|
3
|
%
|
|
-
|
|
|
71
|
%
|
|
Research and development
|
|
16,923
|
|
|
(4,438
|
)
|
|
-
|
|
|
12,485
|
|
|
Sales and marketing
|
|
39,597
|
|
|
(3,021
|
)
|
|
-
|
|
|
36,576
|
|
|
General and administrative
|
|
11,948
|
|
|
(2,725
|
)
|
|
-
|
|
|
9,223
|
|
|
Operating loss
|
|
(27,155
|
)
|
|
11,978
|
|
|
-
|
|
|
(15,177
|
)
|
|
Operating margin
|
|
(45
|
)%
|
|
20
|
%
|
|
-
|
|
|
(25
|
)%
|
|
Net loss
|
|
$
|
(27,002
|
)
|
|
$
|
11,978
|
|
|
$
|
-
|
|
|
$
|
(15,024
|
)
|
|
Net loss per share (1)
|
|
$
|
(0.29
|
)
|
|
$
|
0.13
|
|
|
$
|
-
|
|
|
$
|
(0.16
|
)
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 93,576 basic and diluted weighted-average
shares of common stock.
|
|
|
|
|
|
Three Months Ended July 31, 2016
|
|
|
|
|
|
|
|
Amortization
|
|
|
|
|
|
|
|
Stock-based
|
|
of acquired
|
|
|
|
|
|
GAAP
|
|
compensation
|
|
intangibles
|
|
Non-GAAP
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
8,466
|
|
|
$
|
(446
|
)
|
|
$
|
(47
|
)
|
|
$
|
7,973
|
|
|
Cost of professional services
|
|
5,314
|
|
|
(313
|
)
|
|
-
|
|
|
5,001
|
|
|
Gross profit
|
|
23,656
|
|
|
759
|
|
|
47
|
|
|
24,462
|
|
|
Gross margin
|
|
63
|
%
|
|
2
|
%
|
|
-
|
|
|
65
|
%
|
|
Research and development
|
|
9,655
|
|
|
(736
|
)
|
|
-
|
|
|
8,919
|
|
|
Sales and marketing
|
|
28,421
|
|
|
(1,412
|
)
|
|
-
|
|
|
27,009
|
|
|
General and administrative
|
|
6,142
|
|
|
(757
|
)
|
|
-
|
|
|
5,385
|
|
|
Operating loss
|
|
(20,562
|
)
|
|
3,664
|
|
|
47
|
|
|
(16,851
|
)
|
|
Operating margin
|
|
(55
|
)%
|
|
10
|
%
|
|
-
|
|
|
(45
|
)%
|
|
Net loss
|
|
$
|
(20,601
|
)
|
|
$
|
3,664
|
|
|
$
|
47
|
|
|
$
|
(16,890
|
)
|
|
Net loss per share (1)
|
|
$
|
(1.10
|
)
|
|
$
|
0.19
|
|
|
$
|
0.01
|
|
|
$
|
(0.90
|
)
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 18,802 basic and diluted weighted-average
shares of common stock.
|
|
|
|
|
|
OKTA, INC.
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
(In thousands)
|
|
(unaudited)
|
|
|
|
Free Cash Flow
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
July 31,
|
|
July 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net cash used in operating activities
|
|
$
|
(6,238
|
)
|
|
$
|
(11,838
|
)
|
|
$
|
(15,924
|
)
|
|
$
|
(26,873
|
)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(2,708
|
)
|
|
(2,102
|
)
|
|
(5,156
|
)
|
|
(3,029
|
)
|
|
Capitalized internal-use software costs
|
|
(1,535
|
)
|
|
(1,093
|
)
|
|
(2,743
|
)
|
|
(2,325
|
)
|
|
Free Cash Flow
|
|
$
|
(10,481
|
)
|
|
$
|
(15,033
|
)
|
|
$
|
(23,823
|
)
|
|
$
|
(32,227
|
)
|
|
Net cash provided by (used in) investing activities
|
|
(88,519
|
)
|
|
1,012
|
|
|
(80,302
|
)
|
|
1,853
|
|
|
Net cash provided by (used in) financing activities
|
|
(555
|
)
|
|
48
|
|
|
199,553
|
|
|
(289
|
)
|
|
Free Cash Flow Margin
|
|
(17)%
|
|
(40)%
|
|
(21)%
|
|
(47)%
|
|
|
|
Calculated Billings
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
July 31,
|
|
July 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Total revenue
|
|
$
|
60,995
|
|
|
$
|
37,436
|
|
|
$
|
114,002
|
|
|
$
|
69,223
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Deferred revenue (end of period)
|
|
131,326
|
|
|
90,981
|
|
|
131,326
|
|
|
90,981
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Deferred revenue (beginning of period)
|
|
(120,644
|
)
|
|
(81,962
|
)
|
|
(113,723
|
)
|
|
(79,525
|
)
|
|
Calculated Billings
|
|
$
|
71,677
|
|
|
$
|
46,455
|
|
|
$
|
131,605
|
|
|
$
|
80,679
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170907006294/en/
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