[December 05, 2018] |
|
Okta Announces Record Third Quarter Fiscal 2019 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, 2018.
"We had a record third quarter with 58% year-over-year growth for both
revenue and billings, which was driven by increased momentum in the
enterprise. We saw 55% growth in customers with over $100,000 annual
recurring revenue, representing a record 100 net new adds in a quarter,"
said Todd McKinnon, CEO of Okta. "We are also pleased to report that we
were free cash flow positive for the first time in the third quarter.
Our continued strength is a testament to the growing pervasiveness of
identity and we believe we are well positioned to further benefit from
these tailwinds as organizations continue their move to the cloud, while
digitally transforming and securing their businesses."
Third Quarter Fiscal 2019 Financial Highlights:
-
Revenue: Total revenue was $105.6 million, an increase of 58%
year-over-year. Subscription revenue was $97.7 million, an increase of
58% year-over-year.
-
Operating Loss: GAAP operating loss was $28.5 million, or 27.0%
of total revenue, compared to $34.5 million, or 51.6% of total
revenue, in the third quarter of fiscal 2018. Non-GAAP operating loss
was $6.5 million, or 6.1% of total revenue, compared to $19.4 million,
or 28.9% of total revenue, in the third quarter of fiscal 2018.
-
Net Loss: GAAP net loss was $29.5 million, compared to $33.1
million in the third quarter of fiscal 2018. GAAP net loss per share
was $0.27, compared to $0.35 in the third quarter of fiscal 2018.
Non-GAAP net loss was $3.9 million, compared to $17.9 million in the
third quarter of fiscal 2018. Non-GAAP net loss per share was $0.04,
compared to $0.19 in the third quarter of fiscal 2018.
-
Cash Flow: Net cash provided by operations was $6.4 million, or
6.1% of total revenue, compared to cash used in operations of $9.5
million, or negative 14.2% of total revenue, in the third quarter of
fiscal 2018. Free cash flow was positive $1.4 million, or 1.3% of
total revenue, compared to negative $11.2 million, or negative 16.8%
of total revenue, in the third quarter of fiscal 2018.
-
Cash, cash equivalents and short-term investments were $546.0
million as of October 31, 2018.
The section titled "Non-GAAP Financial Measures" below contains a
description of the non-GAAP financial measures and reconciliations
between historical GAAP and non-GAAP information are contained in the
tables below.
Financial Outlook:
For the fourth quarter of fiscal 2019, the Company currently expects:
-
Total revenue of $107 to $108 million, representing a growth rate of
39% to 40% year-over-year
-
Non-GAAP operating loss of $12.5 to $11.5 million
-
Non-GAAP net loss per share of $0.09 to $0.08, assuming shares
outstanding of approximately 110 million
For the full fiscal 2019, the Company now expects:
-
Total revenue of $391 to $392 million, representing a growth rate of
52% to 53% year-over-year
-
Non-GAAP operating loss of $49 to $48 million
-
Non-GAAP net loss per share of $0.37 to $0.36, assuming shares
outstanding of approximately 107 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 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 conference call and live webcast for analysts and
investors at 2:00 p.m. Pacific Time on December 5, 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) 256-1007 or (323) 994-2093
and using the passcode 1069664.
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 19, 2018 and may
be accessed by dialing (888) 203-1112 or (719) 457-0820, conference ID:
1069664.
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 loss, non-GAAP operating margin, non-GAAP net
loss, non-GAAP net loss per share, free cash flow, current calculated
billings and calculated billings. The accompanying tables present and
define calculated billings consistent with ASC 606. Certain of these
non-GAAP financial measures exclude stock-based compensation,
amortization of debt discount, charitable contributions, and
amortization of intangible assets.
Okta believes that non-GAAP financial information, when taken
collectively, 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 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 the Company's management about which expenses and income 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.
Please see the reconciliation tables at the end of this release for the
reconciliation of GAAP and non-GAAP results.
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 Form 10-Q for the fiscal
quarter ended July 31, 2018, 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; any unreleased products, features or functionality
referenced in this or other presentations, press releases or public
statements are not currently available and may not be delivered on time
or at all; 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; 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; our ability to
successfully identify and integrate acquisitions, strategic investments,
partnerships or alliances; our ability to pay off our convertible senior
notes when due; 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 enables organizations to both secure and manage
their extended enterprise, and transform their customers' experiences.
With over 5,500 pre-built integrations to applications and
infrastructure providers, Okta customers can easily and securely adopt
the technologies they need to fulfill their missions. Over 5,600
organizations, including 20th Century Fox, JetBlue, Nordstrom, Slack,
Teach for America and Twilio, trust Okta to securely connect their
people and technology.
|
OKTA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
As Adjusted (1)
|
|
|
As Adjusted (1)
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
97,698
|
|
|
$
|
61,863
|
|
|
$
|
262,393
|
|
|
$
|
165,459
|
|
Professional services and other
|
|
7,878
|
|
|
5,048
|
|
|
21,390
|
|
|
14,036
|
|
Total revenue
|
|
105,576
|
|
|
66,911
|
|
|
283,783
|
|
|
179,495
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Subscription (2)
|
|
20,265
|
|
|
13,553
|
|
|
55,808
|
|
|
37,401
|
|
Professional services and other (2)
|
|
9,435
|
|
|
7,570
|
|
|
26,227
|
|
|
20,867
|
|
Total cost of revenue
|
|
29,700
|
|
|
21,123
|
|
|
82,035
|
|
|
58,268
|
|
Gross profit
|
|
75,876
|
|
|
45,788
|
|
|
201,748
|
|
|
121,227
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development (2)
|
|
27,596
|
|
|
19,190
|
|
|
72,354
|
|
|
51,472
|
|
Sales and marketing (2)
|
|
56,911
|
|
|
47,567
|
|
|
165,408
|
|
|
120,761
|
|
General and administrative (2)
|
|
19,848
|
|
|
13,546
|
|
|
55,873
|
|
|
37,133
|
|
Total operating expenses
|
|
104,355
|
|
|
80,303
|
|
|
293,635
|
|
|
209,366
|
|
Operating loss
|
|
(28,479
|
)
|
|
(34,515
|
)
|
|
(91,887
|
)
|
|
(88,139
|
)
|
Other income (expense), net
|
|
(1,705
|
)
|
|
509
|
|
|
(4,682
|
)
|
|
872
|
|
Loss before provision for (benefit from) income taxes
|
|
(30,184
|
)
|
|
(34,006
|
)
|
|
(96,569
|
)
|
|
(87,267
|
)
|
Provision for (benefit from) income taxes
|
|
(667
|
)
|
|
(940
|
)
|
|
(1,883
|
)
|
|
(463
|
)
|
Net loss
|
|
$
|
(29,517
|
)
|
|
$
|
(33,066
|
)
|
|
$
|
(94,686
|
)
|
|
$
|
(86,804
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
$
|
(0.27
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
(0.89
|
)
|
|
$
|
(1.13
|
)
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
108,776
|
|
|
95,474
|
|
|
106,587
|
|
|
76,950
|
|
|
|
|
|
|
|
|
|
|
___________________________________
(1) The condensed consolidated statement of operations
for the prior periods presented above have been adjusted to
reflect the adoption of ASC 606.
|
(2) Amounts include share-based compensation expense as
follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Cost of subscription revenue
|
|
$
|
2,383
|
|
|
$
|
1,421
|
|
|
$
|
5,813
|
|
|
$
|
3,163
|
|
Cost of professional services and other revenue
|
|
1,305
|
|
|
979
|
|
|
3,277
|
|
|
2,186
|
|
Research and development
|
|
6,291
|
|
|
5,174
|
|
|
15,776
|
|
|
12,913
|
|
Sales and marketing
|
|
6,228
|
|
|
3,894
|
|
|
15,852
|
|
|
9,290
|
|
General and administrative
|
|
5,335
|
|
|
2,940
|
|
|
13,181
|
|
|
7,740
|
|
Total share-based compensation expense
|
|
$
|
21,542
|
|
|
$
|
14,408
|
|
|
$
|
53,899
|
|
|
$
|
35,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OKTA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
|
|
|
|
|
|
|
|
October 31, 2018
|
|
January 31, 2018
|
|
|
|
As Adjusted (1)
|
|
|
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
195,898
|
|
|
$
|
127,949
|
|
Short-term investments
|
|
350,105
|
|
|
101,765
|
|
Accounts receivable, net of allowances of $1,425 and $1,472
|
|
70,136
|
|
|
52,248
|
|
Deferred commissions
|
|
21,695
|
|
|
17,755
|
|
Prepaid expenses and other current assets
|
|
20,280
|
|
|
17,781
|
|
Total current assets
|
|
658,114
|
|
|
317,498
|
|
Property and equipment, net
|
|
44,251
|
|
|
12,540
|
|
Deferred commissions, noncurrent
|
|
47,756
|
|
|
40,755
|
|
Intangible assets, net
|
|
14,989
|
|
|
11,761
|
|
Goodwill
|
|
18,074
|
|
|
6,282
|
|
Other assets
|
|
13,525
|
|
|
10,427
|
|
Total assets
|
|
$
|
796,709
|
|
|
$
|
399,263
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
12,085
|
|
|
$
|
9,566
|
|
Accrued expenses and other current liabilities
|
|
6,305
|
|
|
6,187
|
|
Accrued compensation
|
|
20,250
|
|
|
12,374
|
|
Deferred revenue
|
|
206,146
|
|
|
159,816
|
|
Total current liabilities
|
|
244,786
|
|
|
187,943
|
|
Convertible senior notes, net
|
|
267,665
|
|
|
-
|
|
Deferred revenue, noncurrent
|
|
4,977
|
|
|
4,963
|
|
Other liabilities, noncurrent
|
|
34,778
|
|
|
7,017
|
|
Total liabilities
|
|
552,206
|
|
|
199,923
|
|
Commitments and contingencies
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock
|
|
-
|
|
|
-
|
|
Class A common stock
|
|
10
|
|
|
7
|
|
Class B common stock
|
|
1
|
|
|
3
|
|
Additional paid-in capital
|
|
706,810
|
|
|
565,653
|
|
Accumulated other comprehensive income (loss)
|
|
(918
|
)
|
|
391
|
|
Accumulated deficit
|
|
(461,400
|
)
|
|
(366,714
|
)
|
Total stockholders' equity
|
|
244,503
|
|
|
199,340
|
|
Total liabilities and stockholders' equity
|
|
$
|
796,709
|
|
|
$
|
399,263
|
|
|
|
|
|
|
|
|
|
|
(1) The condensed consolidated balance sheet for the
prior period has been adjusted to reflect the adoption of ASC 606.
|
|
OKTA, INC.
SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
|
|
|
|
|
|
Nine Months Ended October 31,
|
|
|
2018
|
|
2017
|
|
|
|
As Adjusted (1)
|
Cash flows from operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(94,686
|
)
|
|
$
|
(86,804
|
)
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
Stock-based compensation
|
|
53,899
|
|
|
35,292
|
|
Depreciation, amortization and accretion
|
|
5,824
|
|
|
5,111
|
|
Amortization of debt discount and issuance costs
|
|
10,315
|
|
|
-
|
|
Amortization of deferred commissions
|
|
14,963
|
|
|
10,911
|
|
Deferred income taxes
|
|
(2,269
|
)
|
|
(960
|
)
|
Non-cash charitable contributions
|
|
1,008
|
|
|
708
|
|
Other
|
|
153
|
|
|
997
|
|
Changes in operating assets and liabilities, net of business
combination:
|
|
|
|
|
Accounts receivable
|
|
(17,539
|
)
|
|
(12,742
|
)
|
Deferred commissions
|
|
(25,907
|
)
|
|
(16,230
|
)
|
Prepaid expenses and other assets
|
|
(4,238
|
)
|
|
(2,353
|
)
|
Accounts payable
|
|
1,354
|
|
|
6,255
|
|
Accrued compensation
|
|
7,973
|
|
|
5,931
|
|
Accrued expenses and other liabilities
|
|
8,182
|
|
|
(1,545
|
)
|
Deferred revenue
|
|
46,036
|
|
|
30,034
|
|
Net cash provided by (used in) operating activities
|
|
5,068
|
|
|
(25,395
|
)
|
Cash flows from investing activities:
|
|
|
|
|
Capitalization of internal-use software costs
|
|
(2,329
|
)
|
|
(4,072
|
)
|
Purchases of property and equipment
|
|
(14,253
|
)
|
|
(5,570
|
)
|
Purchases of securities available for sale
|
|
(478,138
|
)
|
|
(95,344
|
)
|
Proceeds from maturities of securities available for sale
|
|
219,650
|
|
|
21,985
|
|
Proceeds from sales of securities available for sale
|
|
12,470
|
|
|
1,538
|
|
Payments for business acquisition, net of cash acquired
|
|
(15,616
|
)
|
|
-
|
|
Net cash used in investing activities
|
|
(278,216
|
)
|
|
(81,463
|
)
|
Cash flows from financing activities:
|
|
|
|
|
Proceeds from initial public offering, net of underwriters'
discounts and commissions
|
|
-
|
|
|
199,948
|
|
Proceeds from issuance of convertible senior notes, net of issuance
costs
|
|
334,980
|
|
|
-
|
|
Purchase of convertible senior notes hedge
|
|
(80,040
|
)
|
|
-
|
|
Proceeds from issuance of warrants related to convertible notes
|
|
52,440
|
|
|
-
|
|
Payments of deferred offering costs
|
|
-
|
|
|
(4,038
|
)
|
Proceeds from stock option exercises, net of repurchases
|
|
28,524
|
|
|
25,800
|
|
Proceeds from shares issued in connection with employee stock
purchase plan
|
|
6,654
|
|
|
-
|
|
Other
|
|
(206
|
)
|
|
(343
|
)
|
Net cash provided by financing activities
|
|
342,352
|
|
|
221,367
|
|
Effects of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
(990
|
)
|
|
53
|
|
Net increase in cash, cash equivalents and restricted cash
|
|
68,214
|
|
|
114,562
|
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
136,233
|
|
|
23,282
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
204,447
|
|
|
$
|
137,844
|
|
|
|
|
|
|
|
|
|
|
(1) The condensed consolidated statement of cash flows
for the prior period has been adjusted to reflect the adoption of
ASC 606.
|
|
OKTA, INC.
Reconciliation of GAAP to Non-GAAP Data
(In thousands, except percentages and per share data)
(unaudited)
|
|
|
|
|
|
Three Months Ended October 31, 2018
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Amortization of acquired intangibles
|
|
Amortization of debt discount
|
|
Non-GAAP
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
20,265
|
|
|
$
|
(2,383
|
)
|
|
$
|
(449
|
)
|
|
$
|
-
|
|
|
$
|
17,433
|
|
Cost of professional services
|
|
9,435
|
|
|
(1,305
|
)
|
|
-
|
|
|
-
|
|
|
8,130
|
|
Gross profit
|
|
75,876
|
|
|
3,688
|
|
|
449
|
|
|
-
|
|
|
80,013
|
|
Gross margin
|
|
71.9
|
%
|
|
3.4
|
%
|
|
0.5
|
%
|
|
-
|
%
|
|
75.8
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
27,596
|
|
|
(6,291
|
)
|
|
-
|
|
|
-
|
|
|
21,305
|
|
Sales and marketing
|
|
56,911
|
|
|
(6,228
|
)
|
|
-
|
|
|
-
|
|
|
50,683
|
|
General and administrative
|
|
19,848
|
|
|
(5,335
|
)
|
|
-
|
|
|
-
|
|
|
14,513
|
|
Operating loss
|
|
(28,479
|
)
|
|
21,542
|
|
|
449
|
|
|
-
|
|
|
(6,488
|
)
|
Operating margin
|
|
(27.0
|
)%
|
|
20.5
|
%
|
|
0.4
|
%
|
|
-
|
%
|
|
(6.1
|
)%
|
Other income (expense), net
|
|
(1,705
|
)
|
|
-
|
|
|
-
|
|
|
3,604
|
|
|
1,899
|
|
Net loss
|
|
$
|
(29,517
|
)
|
|
$
|
21,542
|
|
|
$
|
449
|
|
|
$
|
3,604
|
|
|
$
|
(3,922
|
)
|
Net loss per share (1)
|
|
$
|
(0.27
|
)
|
|
$
|
0.20
|
|
|
$
|
-
|
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 108,776 basic and diluted weighted-average
shares of common stock.
|
|
|
|
Three Months Ended October 31, 2017
|
|
|
GAAP (2)
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Non-GAAP (2)
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
13,553
|
|
|
$
|
(1,421
|
)
|
|
$
|
-
|
|
|
$
|
12,132
|
|
Cost of professional services
|
|
7,570
|
|
|
(979
|
)
|
|
-
|
|
|
6,591
|
|
Gross profit
|
|
45,788
|
|
|
2,400
|
|
|
-
|
|
|
48,188
|
|
Gross margin
|
|
68.4
|
%
|
|
3.6
|
%
|
|
-
|
|
|
72.0
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
19,190
|
|
|
(5,174
|
)
|
|
-
|
|
|
14,016
|
|
Sales and marketing
|
|
47,567
|
|
|
(3,894
|
)
|
|
-
|
|
|
43,673
|
|
General and administrative
|
|
13,546
|
|
|
(2,940
|
)
|
|
(754
|
)
|
|
9,852
|
|
Operating loss
|
|
(34,515
|
)
|
|
14,408
|
|
|
754
|
|
|
(19,353
|
)
|
Operating margin
|
|
(51.6
|
)%
|
|
21.6
|
%
|
|
1.1
|
%
|
|
(28.9
|
)%
|
Other income (expense), net
|
|
509
|
|
|
-
|
|
|
-
|
|
|
509
|
|
Net loss
|
|
$
|
(33,066
|
)
|
|
$
|
14,408
|
|
|
$
|
754
|
|
|
$
|
(17,904
|
)
|
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.
|
(2) Financial information for prior period presented
above has been adjusted to reflect the adoption of ASC 606.
|
|
OKTA, INC.
Reconciliation of GAAP to Non-GAAP Data
(In thousands, except percentages and per share data)
(unaudited)
|
|
|
|
|
|
Nine Months Ended October 31, 2018
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Amortization of debt discount
|
|
Non-GAAP
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
55,808
|
|
|
$
|
(5,813
|
)
|
|
$
|
-
|
|
|
$
|
(449
|
)
|
|
$
|
-
|
|
|
$
|
49,546
|
|
Cost of professional services
|
|
26,227
|
|
|
(3,277
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
22,950
|
|
Gross profit
|
|
201,748
|
|
|
9,090
|
|
|
-
|
|
|
449
|
|
|
-
|
|
|
211,287
|
|
Gross margin
|
|
71.1
|
%
|
|
3.2
|
%
|
|
-
|
%
|
|
0.2
|
%
|
|
-
|
%
|
|
74.5
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
72,354
|
|
|
(15,776
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
56,578
|
|
Sales and marketing
|
|
165,408
|
|
|
(15,852
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
149,556
|
|
General and administrative
|
|
55,873
|
|
|
(13,181
|
)
|
|
(1,008
|
)
|
|
-
|
|
|
-
|
|
|
41,684
|
|
Operating loss
|
|
(91,887
|
)
|
|
53,899
|
|
|
1,008
|
|
|
449
|
|
|
-
|
|
|
(36,531
|
)
|
Operating margin
|
|
(32.4
|
)%
|
|
18.9
|
%
|
|
0.4
|
%
|
|
0.2
|
%
|
|
-
|
%
|
|
(12.9
|
)%
|
Other income (expense), net
|
|
(4,682
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,539
|
|
|
4,857
|
|
Net loss
|
|
(94,686
|
)
|
|
53,899
|
|
|
1,008
|
|
|
449
|
|
|
9,539
|
|
|
(29,791
|
)
|
Net loss per share (1)
|
|
$
|
(0.89
|
)
|
|
$
|
0.51
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
0.09
|
|
|
$
|
(0.28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 106,587 basic and diluted weighted-average
shares of common stock.
|
|
|
|
Nine Months Ended October 31, 2017
|
|
|
GAAP (2)
|
|
Stock-based compensation
|
|
Charitable contributions
|
|
Amortization of acquired intangibles
|
|
Non-GAAP (2)
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription services
|
|
$
|
37,401
|
|
|
$
|
(3,163
|
)
|
|
$
|
-
|
|
|
$
|
(4
|
)
|
|
$
|
34,234
|
|
Cost of professional services
|
|
20,867
|
|
|
(2,186
|
)
|
|
-
|
|
|
-
|
|
|
18,681
|
|
Gross profit
|
|
121,227
|
|
|
5,349
|
|
|
-
|
|
|
4
|
|
|
126,580
|
|
Gross margin
|
|
67.5
|
%
|
|
3.0
|
%
|
|
-
|
%
|
|
-
|
%
|
|
70.5
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
51,472
|
|
|
(12,913
|
)
|
|
-
|
|
|
-
|
|
|
38,559
|
|
Sales and marketing
|
|
120,761
|
|
|
(9,290
|
)
|
|
-
|
|
|
-
|
|
|
111,471
|
|
General and administrative
|
|
37,133
|
|
|
(7,740
|
)
|
|
(754
|
)
|
|
-
|
|
|
28,639
|
|
Operating loss
|
|
(88,139
|
)
|
|
35,292
|
|
|
754
|
|
|
4
|
|
|
(52,089
|
)
|
Operating margin
|
|
(49.1
|
)%
|
|
19.7
|
%
|
|
0.4
|
%
|
|
-
|
%
|
|
(29.0
|
)%
|
Other income (expense), net
|
|
872
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
872
|
|
Net loss
|
|
$
|
(86,804
|
)
|
|
$
|
35,292
|
|
|
$
|
754
|
|
|
$
|
4
|
|
|
$
|
(50,754
|
)
|
Net loss per share (1)
|
|
$
|
(1.13
|
)
|
|
$
|
0.46
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
(0.66
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 76,950 basic and diluted weighted-average
shares of common stock.
|
(2) Financial information for prior period presented
above has been adjusted to reflect the adoption of ASC 606.
|
|
OKTA, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(unaudited)
|
|
Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net cash provided by (used in) operating activities
|
|
$
|
6,439
|
|
|
$
|
(9,471
|
)
|
|
$
|
5,068
|
|
|
$
|
(25,395
|
)
|
Less:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(4,463
|
)
|
|
(414
|
)
|
|
(14,253
|
)
|
|
(5,570
|
)
|
Capitalization of internal-use software costs
|
|
(604
|
)
|
|
(1,329
|
)
|
|
(2,329
|
)
|
|
(4,072
|
)
|
Free Cash Flow
|
|
$
|
1,372
|
|
|
$
|
(11,214
|
)
|
|
$
|
(11,514
|
)
|
|
$
|
(35,037
|
)
|
Net cash used in investing activities
|
|
(10,545
|
)
|
|
(1,161
|
)
|
|
(278,216
|
)
|
|
(81,463
|
)
|
Net cash provided by financing activities
|
|
7,469
|
|
|
21,814
|
|
|
342,352
|
|
|
221,367
|
|
Free Cash Flow Margin
|
|
1.3
|
%
|
|
(16.8
|
)%
|
|
(4.1
|
)%
|
|
(19.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculated Billings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
|
|
2018
|
|
2017 (1)
|
|
2018
|
|
2017 (1)
|
Total revenue
|
|
$
|
105,576
|
|
|
$
|
66,911
|
|
|
$
|
283,783
|
|
|
$
|
179,495
|
|
Add:
|
|
|
|
|
|
|
|
|
Unbilled receivables, current (beginning of period)
|
|
818
|
|
|
498
|
|
|
809
|
|
|
1,537
|
|
Deferred revenue, current (end of period)
|
|
206,146
|
|
|
135,010
|
|
|
206,146
|
|
|
135,010
|
|
Less:
|
|
|
|
|
|
|
|
|
Unbilled receivables, current (end of period)
|
|
(1,581
|
)
|
|
(902
|
)
|
|
(1,581
|
)
|
|
(902
|
)
|
Deferred revenue, current (beginning of period)
|
|
(186,427
|
)
|
|
(122,173
|
)
|
|
(159,816
|
)
|
|
(102,966
|
)
|
Current calculated billings
|
|
124,532
|
|
|
79,344
|
|
|
329,341
|
|
|
212,174
|
|
Add:
|
|
|
|
|
|
|
|
|
Deferred revenue, noncurrent (end of period)
|
|
4,977
|
|
|
2,145
|
|
|
4,977
|
|
|
2,145
|
|
Less:
|
|
|
|
|
|
|
|
|
Deferred revenue, noncurrent (beginning of period)
|
|
(5,471
|
)
|
|
(2,929
|
)
|
|
(4,963
|
)
|
|
(4,154
|
)
|
Calculated billings
|
|
$
|
124,038
|
|
|
$
|
78,560
|
|
|
$
|
329,355
|
|
|
$
|
210,165
|
|
|
(1) Current calculated billings and calculated billings
for the three and nine months ended October 31, 2017 presented
above have been modified to conform with the adoption of ASC 606,
which now includes unbilled receivables.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181205005192/en/
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|