[March 07, 2018] |
|
Okta Announces Record Fourth Quarter and Fiscal Year 2018 Financial Results
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, 2018.
"We had a record quarter, highlighted by 64 percent subscription revenue
growth, acceleration in new customer growth and a 17 percentage point
year-over-year improvement in our free cash flow margin," said Todd
McKinnon, chief executive officer of Okta. "The strength in our business
was driven by more customers and larger deals as well as increased
investments from our existing customers. As every organization
modernizes its business, and has to do so more securely, we continue to
gain traction. Identity is becoming a foundational technology, and
organizations in every major industry are turning to Okta for our
leadership. Looking forward, we are focused on increasing our share of
IT security spend, taking early leadership in the customer identity
market, and expanding our leverage with the Okta Integration Network."
Fourth Quarter Fiscal 2018 Financial Highlights:
-
Revenue: Total revenue was $77.8 million, an increase of 59%
year-over-year. Subscription revenue was $72.0 million, an increase of
64% year-over-year.
-
Operating Loss: GAAP operating loss was $25.3 million, or 32.6%
of total revenue, compared to $18.0 million in the fourth quarter of
fiscal 2017, or 36.8% of total revenue. Non-GAAP operating loss was
$10.8 million, or 13.9% of total revenue, compared to $12.7 million in
the fourth quarter of fiscal 2017, or 25.9% of total revenue.
-
Net Loss: GAAP net loss was $24.7 million, compared to $18.2
million in the fourth quarter of fiscal 2017. GAAP net loss per share
was $0.24, compared to $0.93 in the fourth quarter of fiscal 2017.
Non-GAAP net loss was $10.1 million, compared to $12.9 million in the
fourth quarter of fiscal 2017. Non-GAAP net loss per share was $0.10,
compared to $0.66 in the fourth quarter of fiscal 2017.
-
Cash Flow: Net cash provided by operations was $0.2 million or
0.2% of total revenue, compared to cash used in operations of $6.7
million or 13.7% of total revenue, in the fourth quarter of fiscal
2017. Free cash flow was negative $2.2 million, or 2.8% of total
revenue, compared to negative $9.8 million, or 20.1% of total revenue,
in the fourth quarter of fiscal 2017.
-
Cash, cash equivalents and short-term investments were $229.7
million as of January 31, 2018.
Full Year Fiscal 2018 Financial Highlights:
-
Revenue: Total revenue was $260.0 million, an increase of 62%
year-over-year. Subscription revenue was $239.2 million, an increase
of 67% year-over-year.
-
Operating Loss: GAAP operating loss was $116.4 million, or
44.8% of total revenue, compared to $83.1 million for fiscal year
2017, or 51.8% of total revenue. Non-GAAP operating loss was $65.7
million, or 25.3% of total revenue, compared to $65.8 million for
fiscal year 2017, or 41.0% of total revenue.
-
Net Loss: GAAP net loss was $114.4 million, compared to $83.5
million for fiscal 2017. GAAP net loss per share was $1.38, compared
to $4.39 for fiscal year 2017. Non-GAAP net loss was $63.7 million,
compared to $66.2 million for fiscal year 2017. Non-GAAP net loss per
share was $0.77, compared to $3.48 for fiscal year 2017.
-
Cash Flow: Net cash used in operations was $25.2 million,
compared to $42.1 million for fiscal year 2017. Free cash flow was
negative $37.2 million, or 14.3% of total revenue, compared to
negative $53.8 million, or 33.6% of total revenue, for fiscal year
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.
Fiscal Year 2018 and Recent Business Highlights
During fiscal year 2018 and recently, Okta:
-
Completed its initial public offering in April 2017, receiving
proceeds of $194 million, net of underwriting discounts and
commissions and other offering expenses.
-
Had record attendance at Oktane17, the company's annual customer and
partner conference. Registration for the conference grew more than 50%
over the previous year.
-
Was named a leader by Gartner in its inaugural Magic
Quadrant for Access Management, Worldwide and was positioned
highest in "ability to execute." The new report evaluated 15
companies, looking at both on-premises and cloud-delivered solutions.
-
Was named a leader by Forrester Research in The
Forrester Wave™: Identity-As-A-Service, Q4 2017 report. The report
evaluated seven Identity-as-a-Service (IDaaS) vendors across strategy,
market presence and current offering, and Okta was positioned as a
Leader, earning the highest ranking in both the "current offering" and
"strategy" categories.
-
In February 2018, completed a private offering of convertible senior
notes due 2023, receiving proceeds of $334 million net of underwriter
discounts and commissions and other offering costs. The Company used
approximately $27.6 million of the net proceeds to pay the cost of
bond hedge transactions offset by proceeds from warrant transactions.
Financial Outlook:
The guidance below and corresponding growth rates are presented under
ASC Topic 606, which the Company adopted on February 1, 2018, using the
retrospective method. Please refer to the supplemental tables posted on
the Company's investor relations website for updated historical
financials under ASC Topic 606.
For the first quarter of fiscal 2019, the Company currently expects:
-
Total revenue of $78 to $79 million, representing a growth rate of 49
to 50% year-over-year
-
Non-GAAP operating loss of $17.1 to $16.1 million
-
Non-GAAP net loss per share of $0.16 to $0.15, assuming shares
outstanding of approximately 103 million
For the full fiscal 2019, the Company expects:
-
Total revenue of $343 to $348 million, representing a growth rate of
33 to 35% year-over-year
-
Non-GAAP operating loss of $72.0 to $67.0 million
-
Non-GAAP net loss per share of $0.67 to $0.62, assuming shares
outstanding of approximately 106 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 outlook 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 March 7, 2018. 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) 245-0988 or (719) 325-2144, using
the passcode 8312374.
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 March 21, 2018 and may be
accessed by dialing (888) 203-1112 or (719) 457-0820 using the passcode
8312374.
Recently Adopted Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board issued a new
standard related to revenue recognition from contracts with customers
("Topic 606"), which is effective beginning January 1, 2018. Topic 606
supersedes the prior revenue recognition standard ("Topic 605"). The
financial information under the heading "Financial Outlook" above is
prepared in accordance with Topic 606. Unless otherwise indicated, all
other financial information in this release is prepared in accordance
with Topic 605.
Under Topic 606, revenue recognition is no longer constrained by the
invoicing terms of a contract and will therefore more align with the
value delivered by our service over time. Due to the complexity of
certain customer contracts, however, the actual revenue recognition
treatment required under Topic 606 will depend on contract specific
terms and may result in greater variability in revenue from period to
period. In addition, under Topic 606, revenue for all professional
services will be recognized using proportional performance, which will
align the revenue with the related costs as the professional services
are delivered. We previously recognized revenue on certain fixed fee
professional services upon completion.
Under Topic 606, we will defer all incremental commission costs to
obtain customer contracts, including indirect costs that are not tied to
a specific contract. These costs will be amortized over a period of
benefit that we have determined to be generally five years. Under Topic
605, we deferred only direct and incremental commission costs to obtain
a contract and amortized those costs over the contract term, which is
generally one to three years.
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, free cash flow
margin, current calculated billings, 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 October 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.
Disclaimer
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.
About Okta
Okta is the leading independent provider of identity for the enterprise.
The Okta Identity Cloud connects and protects employees, contractors and
partners of many of the world's largest enterprises. It also securely
connects enterprises to their customers. With deep integrations to over
5,500 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Year Ended January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(unaudited)
|
|
(unaudited)
|
Revenue
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
72,035
|
|
|
$
|
44,011
|
|
|
$
|
239,177
|
|
|
$
|
143,136
|
|
Professional services and other
|
|
5,715
|
|
|
4,809
|
|
|
20,813
|
|
|
17,190
|
|
Total revenue
|
|
77,750
|
|
|
48,820
|
|
|
259,990
|
|
|
160,326
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
Subscription (1)
|
|
15,080
|
|
|
9,688
|
|
|
52,481
|
|
|
34,211
|
|
Professional services and other (1)
|
|
7,407
|
|
|
5,999
|
|
|
28,274
|
|
|
21,738
|
|
Total cost of revenue
|
|
22,487
|
|
|
15,687
|
|
|
80,755
|
|
|
55,949
|
|
Gross profit
|
|
55,263
|
|
|
33,133
|
|
|
179,235
|
|
|
104,377
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
19,349
|
|
|
10,532
|
|
|
70,821
|
|
|
38,659
|
|
Sales and marketing (1)
|
|
46,590
|
|
|
31,478
|
|
|
172,973
|
|
|
118,742
|
|
General and administrative (1)
|
|
14,670
|
|
|
9,090
|
|
|
51,803
|
|
|
30,099
|
|
Total operating expenses
|
|
80,609
|
|
|
51,100
|
|
|
295,597
|
|
|
187,500
|
|
Operating loss
|
|
(25,346
|
)
|
|
(17,967
|
)
|
|
(116,362
|
)
|
|
(83,123
|
)
|
Other income (expense), net
|
|
810
|
|
|
(99
|
)
|
|
1,682
|
|
|
39
|
|
Loss before income taxes
|
|
(24,536
|
)
|
|
(18,066
|
)
|
|
(114,680
|
)
|
|
(83,084
|
)
|
Provision for (benefit from) income taxes
|
|
142
|
|
|
158
|
|
|
(321
|
)
|
|
425
|
|
Net loss
|
|
$
|
(24,678
|
)
|
|
$
|
(18,224
|
)
|
|
$
|
(114,359
|
)
|
|
$
|
(83,509
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
$
|
(0.24
|
)
|
|
$
|
(0.93
|
)
|
|
$
|
(1.38
|
)
|
|
$
|
(4.39
|
)
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding used to compute
net loss per share
|
|
100,969
|
|
|
19,596
|
|
|
83,004
|
|
|
19,038
|
|
___________________________________
(1) Amounts include share-based compensation expense as
follows (in thousands):
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Year Ended January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Cost of subscription revenue
|
|
$
|
1,437
|
|
|
$
|
562
|
|
|
$
|
4,600
|
|
|
$
|
1,979
|
Cost of professional services and other revenue
|
|
951
|
|
|
393
|
|
|
3,137
|
|
|
1,283
|
Research and development
|
|
5,194
|
|
|
830
|
|
|
18,107
|
|
|
2,992
|
Sales and marketing
|
|
3,952
|
|
|
1,644
|
|
|
13,242
|
|
|
6,029
|
General and administrative
|
|
3,034
|
|
|
1,829
|
|
|
10,774
|
|
|
4,844
|
Total share-based compensation expense
|
|
$
|
14,568
|
|
|
$
|
5,258
|
|
|
$
|
49,860
|
|
|
$
|
17,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OKTA, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
|
|
|
|
|
|
January 31, 2018
|
|
January 31, 2017
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
127,949
|
|
|
$
|
23,282
|
|
Short-term investments
|
|
101,765
|
|
|
14,390
|
|
Accounts receivable, net of allowances of $1,472 and $1,306
|
|
52,248
|
|
|
34,544
|
|
Deferred commissions
|
|
16,481
|
|
|
13,549
|
|
Prepaid expenses and other current assets
|
|
16,973
|
|
|
7,025
|
|
Total current assets
|
|
315,416
|
|
|
92,790
|
|
Property and equipment, net
|
|
12,540
|
|
|
11,026
|
|
Deferred commissions, noncurrent
|
|
10,971
|
|
|
10,050
|
|
Intangible assets, net
|
|
11,761
|
|
|
9,155
|
|
Goodwill
|
|
6,282
|
|
|
2,630
|
|
Other assets
|
|
10,427
|
|
|
4,984
|
|
Total assets
|
|
$
|
367,397
|
|
|
$
|
130,635
|
|
Liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable (1)
|
|
$
|
9,566
|
|
|
$
|
9,387
|
|
Accrued expenses and other current liabilities (1)
|
|
6,187
|
|
|
8,363
|
|
Accrued compensation (1)
|
|
12,374
|
|
|
8,734
|
|
Deferred revenue
|
|
162,633
|
|
|
108,012
|
|
Total current liabilities
|
|
190,760
|
|
|
134,496
|
|
Deferred revenue, noncurrent
|
|
6,034
|
|
|
5,711
|
|
Other liabilities, noncurrent (1)
|
|
7,017
|
|
|
6,079
|
|
Total liabilities
|
|
203,811
|
|
|
146,286
|
|
Commitments and contingencies
|
|
|
|
|
Redeemable convertible preferred stock
|
|
-
|
|
|
227,954
|
|
Stockholders' equity (deficit):
|
|
|
|
|
Preferred stock
|
|
-
|
|
|
-
|
|
Class A common stock
|
|
7
|
|
|
-
|
|
Class B common stock
|
|
3
|
|
|
2
|
|
Additional paid-in capital
|
|
565,653
|
|
|
44,469
|
|
Accumulated other comprehensive loss
|
|
391
|
|
|
(167
|
)
|
Accumulated deficit
|
|
(402,468
|
)
|
|
(287,909
|
)
|
Total stockholders' equity (deficit)
|
|
163,586
|
|
|
(243,605
|
)
|
Total liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
$
|
367,397
|
|
|
$
|
130,635
|
|
(1) Certain reclassifications of prior period amounts
have been made in our consolidated balance sheets to conform to the
current period presentation.
|
|
|
|
|
OKTA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
Year Ended January 31,
|
|
|
2018
|
|
2017
|
|
|
(unaudited)
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(114,359
|
)
|
|
$
|
(83,509
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation, amortization and accretion
|
|
7,001
|
|
|
4,568
|
|
Stock-based compensation
|
|
49,860
|
|
|
17,127
|
|
Amortization of deferred commissions
|
|
17,584
|
|
|
13,734
|
|
Deferred income taxes
|
|
(534
|
)
|
|
-
|
|
Non-cash charitable contributions
|
|
708
|
|
|
-
|
|
Write-off of intangible assets
|
|
1,114
|
|
|
-
|
|
Other
|
|
719
|
|
|
704
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
(18,321
|
)
|
|
(11,993
|
)
|
Deferred commissions
|
|
(21,437
|
)
|
|
(19,391
|
)
|
Prepaid expenses and other assets
|
|
(10,128
|
)
|
|
(3,422
|
)
|
Accounts payable (1)
|
|
3,505
|
|
|
1,529
|
|
Accrued compensation
|
|
3,582
|
|
|
1,967
|
|
Accrued expenses and other liabilities (1)
|
|
521
|
|
|
2,387
|
|
Deferred revenue
|
|
54,945
|
|
|
34,198
|
|
Net cash used in operating activities
|
|
(25,240
|
)
|
|
(42,101
|
)
|
Cash flows from investing activities:
|
|
|
|
|
Capitalization of internal-use software costs
|
|
(5,431
|
)
|
|
(5,489
|
)
|
Purchases of property and equipment and other
|
|
(6,550
|
)
|
|
(6,253
|
)
|
Purchases of securities available for sale
|
|
(129,086
|
)
|
|
-
|
|
Proceeds from maturities and redemption of securities available for
sale
|
|
39,825
|
|
|
12,500
|
|
Proceeds from sales of securities available for sale
|
|
1,538
|
|
|
6,207
|
|
Net cash provided by (used in) investing activities
|
|
(99,704
|
)
|
|
6,965
|
|
Cash flows from financing activities:
|
|
|
|
|
Proceeds from initial public offering, net of underwriters'
discounts and commissions
|
|
199,948
|
|
|
-
|
|
Payments of deferred offering costs
|
|
(4,038
|
)
|
|
(1,584
|
)
|
Proceeds from stock option exercises, net of repurchases, and other
|
|
33,646
|
|
|
2,437
|
|
Proceeds from shares issued in connection with employee stock
purchase plan
|
|
8,369
|
|
|
-
|
|
Other
|
|
(517
|
)
|
|
(396
|
)
|
Net cash provided by financing activities
|
|
237,408
|
|
|
457
|
|
Effects of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
487
|
|
|
(120
|
)
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
112,951
|
|
|
(34,799
|
)
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
23,282
|
|
|
58,081
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
136,233
|
|
|
$
|
23,282
|
|
(1) Certain reclassifications of prior period amounts
have been made in our 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)
|
|
|
|
|
|
Year Ended January 31, 2018
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
52,481
|
|
|
$
|
(4,600
|
)
|
|
$
|
-
|
|
|
$
|
(4
|
)
|
|
$
|
47,877
|
|
Cost of professional services
|
|
28,274
|
|
|
(3,137
|
)
|
|
-
|
|
|
-
|
|
|
25,137
|
|
Gross profit
|
|
179,235
|
|
|
7,737
|
|
|
-
|
|
|
4
|
|
|
186,976
|
|
Gross margin
|
|
69
|
%
|
|
3
|
%
|
|
-
|
|
|
-
|
|
|
72
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
70,821
|
|
|
(18,107
|
)
|
|
-
|
|
|
-
|
|
|
52,714
|
|
Sales and marketing
|
|
172,973
|
|
|
(13,242
|
)
|
|
-
|
|
|
-
|
|
|
159,731
|
|
General and administrative
|
|
51,803
|
|
|
(10,774
|
)
|
|
(754
|
)
|
|
-
|
|
|
40,275
|
|
Operating loss
|
|
(116,362
|
)
|
|
49,860
|
|
|
754
|
|
|
4
|
|
|
(65,744
|
)
|
Operating margin
|
|
(45
|
)%
|
|
20
|
%
|
|
-
|
%
|
|
-
|
|
|
(25
|
)%
|
Net loss
|
|
$
|
(114,359
|
)
|
|
$
|
49,860
|
|
|
$
|
754
|
|
|
$
|
4
|
|
|
$
|
(63,741
|
)
|
Net loss per share (1)
|
|
$
|
(1.38
|
)
|
|
$
|
0.60
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
(0.77
|
)
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 83,004 basic and diluted weighted-average
shares of common stock.
|
|
|
|
|
|
|
Year Ended January 31, 2017
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
34,211
|
|
|
$
|
(1,979
|
)
|
|
$
|
-
|
|
|
$
|
(190
|
)
|
|
$
|
32,042
|
|
Cost of professional services
|
|
21,738
|
|
|
(1,283
|
)
|
|
-
|
|
|
-
|
|
|
20,455
|
|
Gross profit
|
|
104,377
|
|
|
3,262
|
|
|
-
|
|
|
190
|
|
|
107,829
|
|
Gross margin
|
|
65
|
%
|
|
2
|
%
|
|
-
|
|
|
-
|
|
|
67
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
38,659
|
|
|
(2,992
|
)
|
|
-
|
|
|
-
|
|
|
35,667
|
|
Sales and marketing
|
|
118,742
|
|
|
(6,029
|
)
|
|
-
|
|
|
-
|
|
|
112,713
|
|
General and administrative
|
|
30,099
|
|
|
(4,844
|
)
|
|
-
|
|
|
-
|
|
|
25,255
|
|
Operating loss
|
|
(83,123
|
)
|
|
17,127
|
|
|
-
|
|
|
190
|
|
|
(65,806
|
)
|
Operating margin
|
|
(52
|
)%
|
|
11
|
%
|
|
-
|
|
|
-
|
%
|
|
(41
|
)%
|
Net loss
|
|
$
|
(83,509
|
)
|
|
$
|
17,127
|
|
|
$
|
-
|
|
|
$
|
190
|
|
|
$
|
(66,192
|
)
|
Net loss per share (1)
|
|
$
|
(4.39
|
)
|
|
$
|
0.90
|
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
$
|
(3.48
|
)
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 19,038 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 January 31, 2018
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
15,080
|
|
|
$
|
(1,437
|
)
|
|
$
|
-
|
|
|
$
|
13,643
|
|
Cost of professional services
|
|
7,407
|
|
|
(951
|
)
|
|
-
|
|
|
6,456
|
|
Gross profit
|
|
55,263
|
|
|
2,388
|
|
|
-
|
|
|
57,651
|
|
Gross margin
|
|
71
|
%
|
|
3
|
%
|
|
-
|
|
|
74
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
19,349
|
|
|
(5,194
|
)
|
|
-
|
|
|
14,155
|
|
Sales and marketing
|
|
46,590
|
|
|
(3,952
|
)
|
|
-
|
|
|
42,638
|
|
General and administrative
|
|
14,670
|
|
|
(3,034
|
)
|
|
-
|
|
|
11,636
|
|
Operating loss
|
|
(25,346
|
)
|
|
14,568
|
|
|
-
|
|
|
(10,778
|
)
|
Operating margin
|
|
(33
|
)%
|
|
19
|
%
|
|
-
|
|
|
(14
|
)%
|
Net loss
|
|
$
|
(24,678
|
)
|
|
$
|
14,568
|
|
|
$
|
-
|
|
|
$
|
(10,110
|
)
|
Net loss per share (1)
|
|
$
|
(0.24
|
)
|
|
$
|
0.14
|
|
|
$
|
-
|
|
|
$
|
(0.10
|
)
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 100,969 basic and diluted weighted-average
shares of common stock.
|
|
|
|
Three Months Ended January 31, 2017
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Amortization of acquired intangibles
|
|
Non-GAAP
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
9,688
|
|
|
$
|
(562
|
)
|
|
$
|
(47
|
)
|
|
$
|
9,079
|
|
Cost of professional services
|
|
5,999
|
|
|
(393
|
)
|
|
-
|
|
|
5,606
|
|
Gross profit
|
|
33,133
|
|
|
955
|
|
|
47
|
|
|
34,135
|
|
Gross margin
|
|
68
|
%
|
|
2
|
%
|
|
-
|
|
|
70
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
10,532
|
|
|
(830
|
)
|
|
-
|
|
|
9,702
|
|
Sales and marketing
|
|
31,478
|
|
|
(1,644
|
)
|
|
-
|
|
|
29,834
|
|
General and administrative
|
|
9,090
|
|
|
(1,829
|
)
|
|
-
|
|
|
7,261
|
|
Operating loss
|
|
(17,967
|
)
|
|
5,258
|
|
|
47
|
|
|
(12,662
|
)
|
Operating margin
|
|
(37
|
)%
|
|
11
|
%
|
|
-
|
%
|
|
(26
|
)%
|
Net loss
|
|
$
|
(18,224
|
)
|
|
$
|
5,258
|
|
|
$
|
47
|
|
|
$
|
(12,919
|
)
|
Net loss per share (1)
|
|
$
|
(0.93
|
)
|
|
$
|
0.27
|
|
|
$
|
-
|
|
|
$
|
(0.66
|
)
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 19,596 basic and diluted weighted-average
shares of common stock.
|
|
|
|
|
|
|
|
|
|
|
OKTA, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Year Ended January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net cash provided by (used in) operating activities
|
|
$
|
155
|
|
|
$
|
(6,702
|
)
|
|
$
|
(25,240
|
)
|
|
$
|
(42,101
|
)
|
Less:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(980
|
)
|
|
(1,606
|
)
|
|
(6,550
|
)
|
|
(6,253
|
)
|
Capitalized internal-use software costs
|
|
(1,359
|
)
|
|
(1,497
|
)
|
|
(5,431
|
)
|
|
(5,489
|
)
|
Free Cash Flow
|
|
$
|
(2,184
|
)
|
|
$
|
(9,805
|
)
|
|
$
|
(37,221
|
)
|
|
$
|
(53,843
|
)
|
Net cash provided by (used in) investing activities
|
|
$
|
(18,241
|
)
|
|
$
|
4,397
|
|
|
$
|
(99,704
|
)
|
|
$
|
6,965
|
|
Net cash provided by (used in) financing activities
|
|
16,041
|
|
|
(5
|
)
|
|
237,408
|
|
|
457
|
|
Operating Cash Flow Margin
|
|
-
|
%
|
|
(14
|
)%
|
|
(10
|
)%
|
|
(26
|
)%
|
Free Cash Flow Margin
|
|
(3
|
)%
|
|
(20
|
)%
|
|
(14
|
)%
|
|
(34
|
)%
|
|
|
|
|
|
|
|
|
|
Calculated Billings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
Year Ended January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total revenue
|
|
$
|
77,750
|
|
|
$
|
48,820
|
|
|
$
|
259,990
|
|
|
$
|
160,326
|
|
Add:
|
|
|
|
|
|
|
|
|
Deferred revenue, current (end of period)
|
|
162,633
|
|
|
108,012
|
|
|
162,633
|
|
|
108,012
|
|
Less:
|
|
|
|
|
|
|
|
|
Deferred revenue, current (beginning of period)
|
|
(138,460
|
)
|
|
(93,103
|
)
|
|
(108,012
|
)
|
|
(67,818
|
)
|
Current Calculated Billings
|
|
101,923
|
|
|
63,729
|
|
|
314,611
|
|
|
200,520
|
|
Add:
|
|
|
|
|
|
|
|
|
Deferred revenue, noncurrent (end of period)(1)
|
|
6,034
|
|
|
5,711
|
|
|
6,034
|
|
|
5,711
|
|
Less:
|
|
|
|
|
|
|
|
|
Deferred revenue, noncurrent (beginning of period)
|
|
(3,188
|
)
|
|
(6,715
|
)
|
|
(5,711
|
)
|
|
(11,707
|
)
|
Calculated Billings
|
|
$
|
104,769
|
|
|
$
|
62,725
|
|
|
$
|
314,934
|
|
|
$
|
194,524
|
|
(1) The increase in deferred revenue, noncurrent is
primarily attributable to a few customers with multi-year upfront
billings.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180307006193/en/
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