[December 06, 2017] |
|
Okta Announces Record Third Quarter Fiscal 2018 Financial Results
Okta, Inc. (NASDAQ: OKTA), the leading independent provider of identity
for the enterprise, today announced financial results for its third
fiscal quarter ended October 31, 2017.
"We are pleased with another strong quarter, reporting 61 percent
year-over-year revenue growth while we continued to improve our free
cash flow margins," said Todd McKinnon, CEO of Okta. "Okta's
business benefits from three critical market trends: the continued move
for organizations to build an elegant cloud architecture with the best
of breed partners in the market, the need for every organization to
enhance customer experience while protecting customers' identities, and
the need for every organization to become more secure. Our
financial results today continue to confirm these trends."
Third Quarter Fiscal 2018 Financial Highlights:
-
Revenue: Total revenue was $68.2 million, an increase of 61%
year-over-year. Subscription revenue was $62.7 million, an increase of
64% year-over-year.
-
Operating Loss: GAAP operating loss was $35.2 million, or 51.6%
of total revenue, compared to $21.9 million in the third quarter of
fiscal 2017, or 51.8% of total revenue. Non-GAAP operating loss was
$20.1 million, or 29.4% of total revenue, compared to $17.0 million in
the third quarter of fiscal 2017, or 40.0% of total revenue.
-
Net Loss: GAAP net loss was $33.8 million, compared to $21.9
million in the third quarter of fiscal 2017. GAAP net loss per share
was $0.35, compared to $1.14 in the third quarter of fiscal 2017.
Non-GAAP net loss was $18.6 million, compared to $17.0 million in the
third quarter of fiscal 2017. Non-GAAP net loss per share was $0.19,
compared to $0.89 in the third quarter of fiscal 2017.
-
Cash Flow: Net cash used in operations was $9.5 million,
compared to $8.5 million in the third quarter of fiscal 2017. 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
third quarter of fiscal 2017.
-
Cash, cash equivalents and short-term investments were $223.6
million as of October 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 fourth quarter of fiscal 2018, the Company currently expects:
-
Total revenue of $70 to $71 million
-
Non-GAAP operating loss of $18 to $17 million
-
Non-GAAP net loss per share of $0.18 to $0.17, assuming shares
outstanding of approximately 100 million
For the full fiscal 2018, the Company now expects:
-
Total revenue of $252 to $253 million
-
Non-GAAP operating loss of $73 to $72 million
-
Non-GAAP net loss per share of $0.87 to $0.86, assuming shares
outstanding of approximately 82 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 December 6, 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 888-428-9498 or 719-457-2617,
using the passcode 7164507.
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 December 20, 2017 and may
be accessed by dialing 888-203-1112 or 719-457-0820, using the passcode
7164507.
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 and
charitable contributions.
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 the Company's filings and reports with the Securities
and Exchange Commission (SEC), including our Quarterly Report on Form
10-Q for the quarter ended July 31, 2017, as well as other filings and
reports that may be filed by the Company from time to time with the SEC.
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.
|
OKTA, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
October 31,
|
|
October 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
62,705
|
|
|
$
|
38,123
|
|
|
$
|
167,142
|
|
|
$
|
99,125
|
|
Professional services and other
|
|
5,533
|
|
|
4,160
|
|
|
15,098
|
|
|
12,381
|
|
Total revenue
|
|
68,238
|
|
|
42,283
|
|
|
182,240
|
|
|
111,506
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
Subscription (1)
|
|
13,553
|
|
|
8,597
|
|
|
37,401
|
|
|
24,523
|
|
Professional services and other (1)
|
|
7,570
|
|
|
5,506
|
|
|
20,867
|
|
|
15,739
|
|
Total cost of revenue
|
|
21,123
|
|
|
14,103
|
|
|
58,268
|
|
|
40,262
|
|
Gross profit
|
|
47,115
|
|
|
28,180
|
|
|
123,972
|
|
|
71,244
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
19,190
|
|
|
9,706
|
|
|
51,472
|
|
|
28,127
|
|
Sales and marketing (1)
|
|
49,606
|
|
|
32,442
|
|
|
126,383
|
|
|
87,264
|
|
General and administrative (1)
|
|
13,546
|
|
|
7,922
|
|
|
37,133
|
|
|
21,009
|
|
Total operating expenses
|
|
82,342
|
|
|
50,070
|
|
|
214,988
|
|
|
136,400
|
|
Operating loss
|
|
(35,227
|
)
|
|
(21,890
|
)
|
|
(91,016
|
)
|
|
(65,156
|
)
|
Other income, net
|
|
509
|
|
|
50
|
|
|
872
|
|
|
138
|
|
Loss before income taxes
|
|
(34,718
|
)
|
|
(21,840
|
)
|
|
(90,144
|
)
|
|
(65,018
|
)
|
Provision (benefit) for income taxes
|
|
(940
|
)
|
|
91
|
|
|
(463
|
)
|
|
267
|
|
Net loss
|
|
$
|
(33,778
|
)
|
|
$
|
(21,931
|
)
|
|
$
|
(89,681
|
)
|
|
$
|
(65,285
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per common share, basic and diluted
|
|
$
|
(0.35
|
)
|
|
$
|
(1.14
|
)
|
|
$
|
(1.17
|
)
|
|
$
|
(3.46
|
)
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net loss per common share
|
|
95,474
|
|
|
19,174
|
|
|
76,950
|
|
|
18,850
|
|
______________________________
|
|
|
(1) Amounts include share-based compensation expense as
follows (in thousands):
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
October 31,
|
|
October 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Cost of subscription revenue
|
|
$
|
1,421
|
|
|
$
|
578
|
|
|
$
|
3,163
|
|
|
$
|
1,417
|
Cost of professional services and other revenue
|
|
979
|
|
|
304
|
|
|
2,186
|
|
|
890
|
Research and development
|
|
5,174
|
|
|
808
|
|
|
12,913
|
|
|
2,162
|
Sales and marketing
|
|
3,894
|
|
|
1,619
|
|
|
9,290
|
|
|
4,385
|
General and administrative
|
|
2,940
|
|
|
1,527
|
|
|
7,740
|
|
|
3,015
|
Total share-based compensation expense
|
|
$
|
14,408
|
|
|
$
|
4,836
|
|
|
$
|
35,292
|
|
|
$
|
11,869
|
|
OKTA, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
|
|
|
October 31,
|
|
January 31,
|
|
|
2017
|
|
2017
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
137,575
|
|
|
$
|
23,282
|
|
Short-term investments
|
|
86,043
|
|
|
14,390
|
|
Accounts receivable, net of allowances of $976 and $1,306
|
|
46,882
|
|
|
34,544
|
|
Deferred commissions
|
|
14,134
|
|
|
13,549
|
|
Prepaid expenses and other current assets
|
|
10,038
|
|
|
7,025
|
|
Total current assets
|
|
294,672
|
|
|
92,790
|
|
Property and equipment, net
|
|
13,122
|
|
|
11,026
|
|
Deferred commissions, noncurrent
|
|
9,163
|
|
|
10,050
|
|
Intangible assets, net
|
|
11,455
|
|
|
9,155
|
|
Goodwill
|
|
6,282
|
|
|
2,630
|
|
Other assets
|
|
2,463
|
|
|
4,984
|
|
Total assets
|
|
$
|
337,157
|
|
|
$
|
130,635
|
|
Liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable (1)
|
|
$
|
12,875
|
|
|
$
|
9,387
|
|
Accrued expenses and other current liabilities (1)
|
|
4,955
|
|
|
8,363
|
|
Accrued compensation
|
|
14,671
|
|
|
9,866
|
|
Deferred revenue
|
|
138,460
|
|
|
108,012
|
|
Total current liabilities
|
|
170,961
|
|
|
135,628
|
|
Deferred revenue, noncurrent
|
|
3,188
|
|
|
5,711
|
|
Other liabilities, noncurrent
|
|
6,553
|
|
|
4,947
|
|
Total liabilities
|
|
180,702
|
|
|
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
|
|
534,304
|
|
|
44,469
|
|
Accumulated other comprehensive loss
|
|
(69
|
)
|
|
(167
|
)
|
Accumulated deficit
|
|
(377,790
|
)
|
|
(287,909
|
)
|
Total stockholders' equity (deficit)
|
|
156,455
|
|
|
(243,605
|
)
|
Total liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
$
|
337,157
|
|
|
$
|
130,635
|
|
|
|
|
|
|
|
|
|
|
(1) Certain reclassifications of prior period amounts
have been made in our condensed consolidated balance sheets to
conform to the current period presentation.
|
|
OKTA, INC.
|
SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(unaudited)
|
|
|
|
Nine Months Ended
|
|
|
October 31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(89,681
|
)
|
|
$
|
(65,285
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation, amortization and accretion
|
|
5,111
|
|
|
3,177
|
|
Stock-based compensation
|
|
35,292
|
|
|
11,869
|
|
Amortization of deferred commissions
|
|
12,798
|
|
|
9,926
|
|
Deferred income taxes
|
|
(960
|
)
|
|
-
|
|
Non-cash charitable contributions
|
|
708
|
|
|
129
|
|
Other
|
|
997
|
|
|
173
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
(12,742
|
)
|
|
(3,606
|
)
|
Deferred commissions
|
|
(12,495
|
)
|
|
(11,207
|
)
|
Prepaid expenses and other current and noncurrent assets
|
|
(2,989
|
)
|
|
(2,312
|
)
|
Accounts payable (1)
|
|
6,255
|
|
|
2,453
|
|
Accrued compensation
|
|
5,931
|
|
|
(1,268
|
)
|
Accrued expenses and other current and noncurrent liabilities (1)
|
|
(1,545
|
)
|
|
259
|
|
Deferred revenue
|
|
27,925
|
|
|
20,293
|
|
Net cash used in operating activities
|
|
(25,395
|
)
|
|
(35,399
|
)
|
Cash flows from investing activities:
|
|
|
|
|
Capitalization of internal-use software costs
|
|
(4,072
|
)
|
|
(3,992
|
)
|
Purchases of property and equipment and other
|
|
(5,570
|
)
|
|
(4,647
|
)
|
Net purchases of securities available for sale
|
|
(71,821
|
)
|
|
11,207
|
|
Net cash provided by (used in) investing activities
|
|
(81,463
|
)
|
|
2,568
|
|
Cash flows from financing activities:
|
|
|
|
|
Proceeds from initial public offering, net of underwriters'
discounts and commissions
|
|
199,948
|
|
|
-
|
|
Other financing activities
|
|
21,419
|
|
|
462
|
|
Net cash provided by financing activities
|
|
221,367
|
|
|
462
|
|
Effects of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
53
|
|
|
(144
|
)
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
114,562
|
|
|
(32,513
|
)
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
23,282
|
|
|
58,081
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
137,844
|
|
|
$
|
25,568
|
|
|
|
|
|
|
|
|
|
|
(1) Certain reclassifications of prior period amounts
have been made in our condensed consolidated statements of cash
flows to conform to the current period presentation.
|
|
OKTA, INC.
|
Reconciliation of GAAP to Non-GAAP Data
|
(In thousands, except percentages and per share data)
|
(unaudited)
|
|
|
|
Nine Months Ended October 31, 2017
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
37,401
|
|
|
$
|
(3,163
|
)
|
|
$
|
-
|
|
|
$
|
(4
|
)
|
|
$
|
34,234
|
|
Cost of professional services
|
|
20,867
|
|
|
(2,186
|
)
|
|
-
|
|
|
-
|
|
|
18,681
|
|
Gross profit
|
|
123,972
|
|
|
5,349
|
|
|
-
|
|
|
4
|
|
|
129,325
|
|
Gross margin
|
|
68
|
%
|
|
3
|
%
|
|
-
|
|
|
-
|
|
|
71
|
%
|
Research and development
|
|
51,472
|
|
|
(12,913
|
)
|
|
-
|
|
|
-
|
|
|
38,559
|
|
Sales and marketing
|
|
126,383
|
|
|
(9,290
|
)
|
|
-
|
|
|
-
|
|
|
117,093
|
|
General and administrative
|
|
37,133
|
|
|
(7,740
|
)
|
|
(754
|
)
|
|
-
|
|
|
28,639
|
|
Operating loss
|
|
(91,016
|
)
|
|
35,292
|
|
|
754
|
|
|
4
|
|
|
(54,966
|
)
|
Operating margin
|
|
(50
|
)%
|
|
20
|
%
|
|
-
|
%
|
|
-
|
|
|
(30
|
)%
|
Net loss
|
|
$
|
(89,681
|
)
|
|
$
|
35,292
|
|
|
$
|
754
|
|
|
$
|
4
|
|
|
$
|
(53,631
|
)
|
Net loss per share (1)
|
|
$
|
(1.17
|
)
|
|
$
|
0.46
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
(0.70
|
)
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 76,950 basic and diluted weighted-average
shares of common stock.
|
|
|
|
Nine Months Ended October 31, 2016
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
24,523
|
|
|
$
|
(1,417
|
)
|
|
$
|
-
|
|
|
$
|
(141
|
)
|
|
|
$
|
22,965
|
|
Cost of professional services
|
|
15,739
|
|
|
(890
|
)
|
|
-
|
|
|
-
|
|
|
14,849
|
|
Gross profit
|
|
71,244
|
|
|
2,307
|
|
|
-
|
|
|
141
|
|
|
73,692
|
|
Gross margin
|
|
64
|
%
|
|
2
|
%
|
|
-
|
|
|
-
|
|
|
66
|
%
|
Research and development
|
|
28,127
|
|
|
(2,162
|
)
|
|
-
|
|
|
-
|
|
|
25,965
|
|
Sales and marketing
|
|
87,264
|
|
|
(4,385
|
)
|
|
-
|
|
|
-
|
|
|
82,879
|
|
General and administrative
|
|
21,009
|
|
|
(3,015
|
)
|
|
-
|
|
|
-
|
|
|
17,994
|
|
Operating loss
|
|
(65,156
|
)
|
|
11,869
|
|
|
-
|
|
|
141
|
|
|
(53,146
|
)
|
Operating margin
|
|
(58
|
)%
|
|
10
|
%
|
|
-
|
|
|
-
|
%
|
|
|
(48
|
)%
|
Net loss
|
|
$
|
(65,285
|
)
|
|
$
|
11,869
|
|
|
$
|
-
|
|
|
$
|
141
|
|
|
$
|
(53,275
|
)
|
Net loss per share (1)
|
|
$
|
(3.46
|
)
|
|
$
|
0.63
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(2.83
|
)
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 18,850 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 October 31, 2017
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
13,553
|
|
|
$
|
(1,421
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
12,132
|
|
Cost of professional services
|
|
7,570
|
|
|
(979
|
)
|
|
-
|
|
|
-
|
|
|
6,591
|
|
Gross profit
|
|
47,115
|
|
|
2,400
|
|
|
-
|
|
|
-
|
|
|
49,515
|
|
Gross margin
|
|
69
|
%
|
|
4
|
%
|
|
-
|
|
|
-
|
|
|
73
|
%
|
Research and development
|
|
19,190
|
|
|
(5,174
|
)
|
|
-
|
|
|
-
|
|
|
14,016
|
|
Sales and marketing
|
|
49,606
|
|
|
(3,894
|
)
|
|
-
|
|
|
-
|
|
|
45,712
|
|
General and administrative
|
|
13,546
|
|
|
(2,940
|
)
|
|
(754
|
)
|
|
-
|
|
|
9,852
|
|
Operating loss
|
|
(35,227
|
)
|
|
14,408
|
|
|
754
|
|
|
-
|
|
|
(20,065
|
)
|
Operating margin
|
|
(52
|
)%
|
|
23
|
%
|
|
-
|
%
|
|
-
|
|
|
(29
|
)%
|
Net loss
|
|
$
|
(33,778
|
)
|
|
$
|
14,408
|
|
|
$
|
754
|
|
|
$
|
-
|
|
|
$
|
(18,616
|
)
|
Net loss per share (1)
|
|
$
|
(0.35
|
)
|
|
$
|
0.15
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
(0.19
|
)
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 95,474 basic and diluted weighted-average
shares of common stock.
|
|
|
|
Three Months Ended October 31, 2016
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
8,597
|
|
|
$
|
(578
|
)
|
|
$
|
-
|
|
$
|
(47
|
)
|
|
$
|
7,972
|
|
Cost of professional services
|
|
5,506
|
|
|
(304
|
)
|
|
-
|
|
-
|
|
|
5,202
|
|
Gross profit
|
|
28,180
|
|
|
882
|
|
|
-
|
|
47
|
|
|
29,109
|
|
Gross margin
|
|
67
|
%
|
|
2
|
%
|
|
-
|
|
-
|
|
|
69
|
%
|
Research and development
|
|
9,706
|
|
|
(808
|
)
|
|
-
|
|
-
|
|
|
8,898
|
|
Sales and marketing
|
|
32,442
|
|
|
(1,619
|
)
|
|
-
|
|
-
|
|
|
30,823
|
|
General and administrative
|
|
7,922
|
|
|
(1,527
|
)
|
|
-
|
|
-
|
|
|
6,395
|
|
Operating loss
|
|
(21,890
|
)
|
|
4,836
|
|
|
-
|
|
47
|
|
|
(17,007
|
)
|
Operating margin
|
|
(52
|
)%
|
|
11
|
%
|
|
-
|
|
1
|
%
|
|
(40
|
)%
|
Net loss
|
|
$
|
(21,931
|
)
|
|
$
|
4,836
|
|
|
$
|
-
|
|
$
|
47
|
|
|
$
|
(17,048
|
)
|
Net loss per share (1)
|
|
$
|
(1.14
|
)
|
|
$
|
0.25
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
(0.89
|
)
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 19,174 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
|
|
Nine Months Ended
|
|
|
October 31,
|
|
October 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash used in operating activities
|
|
$
|
(9,471
|
)
|
|
$
|
(8,526
|
)
|
|
$
|
(25,395
|
)
|
|
$
|
(35,399
|
)
|
Less:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(414
|
)
|
|
|
(1,618
|
)
|
|
|
(5,570
|
)
|
|
|
(4,647
|
)
|
Capitalized internal-use software costs
|
|
|
(1,329
|
)
|
|
|
(1,667
|
)
|
|
|
(4,072
|
)
|
|
|
(3,992
|
)
|
Free Cash Flow
|
|
$
|
(11,214
|
)
|
|
$
|
(11,811
|
)
|
|
$
|
(35,037
|
)
|
|
$
|
(44,038
|
)
|
Net cash provided by (used in) investing activities
|
|
|
(1,161
|
)
|
|
|
715
|
|
|
|
(81,463
|
)
|
|
|
2,568
|
|
Net cash provided by (used in) financing activities
|
|
|
21,814
|
|
|
|
751
|
|
|
|
221,367
|
|
|
|
462
|
|
Free Cash Flow Margin
|
|
|
(16
|
)%
|
|
|
(28
|
)%
|
|
|
(19
|
)%
|
|
|
(39
|
)%
|
|
|
|
Calculated Billings
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
October 31,
|
|
October 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Total revenue
|
|
$
|
68,238
|
|
|
$
|
42,283
|
|
|
$
|
182,240
|
|
|
$
|
111,506
|
|
Add:
|
|
|
|
|
|
|
|
|
Deferred revenue (end of period)
|
|
|
141,648
|
|
|
|
99,818
|
|
|
|
141,648
|
|
|
|
99,818
|
|
Less:
|
|
|
|
|
|
|
|
|
Deferred revenue (beginning of period)
|
|
|
(131,326
|
)
|
|
|
(90,981
|
)
|
|
|
(113,723
|
)
|
|
|
(79,525
|
)
|
Calculated Billings
|
|
$
|
78,560
|
|
|
$
|
51,120
|
|
|
$
|
210,165
|
|
|
$
|
131,799
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171206006072/en/
[ Back To TMCnet.com's Homepage ]
|