Financial Data and Key Metrics Changes - The company reported a record bookings quarter, crossing $1 billion in total contract value for the first time [25][37] - RPO increased by 25%, surpassing $4 billion, driven by an increase in the weighted average term length for deals [25][26] - Operating margin grew by approximately nine points, and free cash flow margin increased by six points for FY 2025 [22] Business Line Data and Key Metrics Changes - Over 20% of Q4 bookings were from new products, including Okta Identity Governance and privilege access [5][6] - Okta Identity Governance has over 1,300 customers contributing over $100 million in annual contract value [6][7] - The combined business from Okta Lifecycle Management and Okta Workflows is approximately $300 million, totaling over $400 million in governance-related business [7] Market Data and Key Metrics Changes - The company added 25 customers in Q4 with $1 million-plus annual contract value, growing the total base of such customers by 22% to 470 [26] - Revenue from AWS Marketplace grew over 80% in FY 2025, with over $1 billion in aggregate total contract value since the partnership began [28] Company Strategy and Development Direction - The company aims to transform into one of the most secure companies globally and reignite growth through product innovation and partner ecosystem prioritization [3][14] - FY 2026 priorities include elevating the industry with the Okta Secure Identity Commitment, winning IT and security with Okta, and winning developers with Auth0 [14][15][17] - The company is focusing on further specialization in its sales teams to better serve customer needs [12][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market opportunities, particularly in identity security as organizations modernize their systems [39][41] - The macro environment remains consistent, with identity being a foundational layer for large companies [39][41] - Management is optimistic about the federal government market, citing opportunities to modernize legacy identity systems [151][153] Other Important Information - The company announced the promotion of Eric Kelleher to chief operating officer, focusing on growth and the Okta Secure Identity Commitment [18] - The company is excited about the momentum built going into FY 2026 and is taking steps to advance its position in the identity market [19][20] Q&A Session Summary Question: Guidance Prudence - Management acknowledged the strong Q4 performance and indicated that while they are optimistic, they remain prudent in their guidance for FY 2026 [34][41] Question: CRPO Guidance - Management explained that Q1 typically has lower expectations due to seasonality, and they are focused on executing well throughout the year [50][53] Question: Seat-Based Headwinds - Management noted that while seat-based headwinds persist, the success in governance and new products is offsetting these challenges [68][75] Question: $1 Million Cohort Growth - Management indicated that there is significant growth potential with large customers, and they are just scratching the surface of IT spend opportunities [81][84] Question: Auth0 Go-to-Market Strategy - Management discussed the transition to specialized sales teams for Auth0, emphasizing the complexity of the products and the need for focused expertise [90][95]

Financial Data and Key Metrics Changes - The company reported a record bookings quarter, crossing $1 billion in total contract value for the first time [25][21] - RPO increased by 25%, surpassing $4 billion, with the weighted average term length for Q4 deals reaching a multiyear high [25][22] - Operating margin grew by approximately nine points, and free cash flow margin increased by six points for FY 2025 [22][21] Business Line Data and Key Metrics Changes - Over 20% of Q4 bookings were from new products, including Okta Identity Governance and privilege access [5][6] - The company has over 1,300 customers for Okta Identity Governance, contributing over $100 million in annual contract value [6][7] - Governance-related business, including Okta Lifecycle Management and Okta Workflows, totals over $400 million [7] Market Data and Key Metrics Changes - The company experienced strong demand for both workforce and customer identity products, with significant contributions from the partner ecosystem [3][27] - Revenue from AWS Marketplace grew over 80% in FY 2025, highlighting the success of partnerships [28] Company Strategy and Development Direction - The company aims to transform into one of the most secure companies globally and reignite growth through product innovation and partner ecosystem prioritization [3][4] - FY 2026 priorities include elevating the industry with the Okta Secure Identity Commitment and winning IT and security with Okta [14][15] - The company is focusing on further specialization in sales to better serve customer needs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market opportunities, particularly in identity security as organizations modernize their systems [39][41] - The macro environment remains consistent, with identity being a foundational layer for large companies [39][41] - Management is optimistic about the federal government market, citing opportunities for modernization and security improvements [152] Other Important Information - The company announced the promotion of Eric Kelleher to chief operating officer, focusing on growth and the Okta Secure Identity Commitment [18] - The company is excited about the momentum built going into FY 2026 and is positioned for long-term profitable growth [31][19] Q&A Session Summary Question: Guidance Prudence - Management acknowledged the strong Q4 results and indicated that while they are optimistic, they will remain prudent in guidance for FY 2026 [34][41] Question: CRPO Guidance - Management explained that Q1 typically has lower expectations due to seasonality, but they are confident in the overall growth trajectory [50][53] Question: Seat-Based Headwinds - Management noted that while seat-based headwinds persist, the execution in new business and upsell opportunities has been strong [68][75] Question: $1 Million Cohort Growth - Management indicated that there is significant opportunity remaining with large customers, and net revenue retention rates are strong [80][81] Question: Auth0 Go-to-Market Strategy - Management discussed the transition to specialized sales teams for Auth0, emphasizing the complexity of the products and the need for focused expertise [90][92] Question: Federal Market Outlook - Management expressed confidence in the federal market, highlighting the potential for modernization and efficiency improvements [152][148]

Core Insights - Okta reported revenue of $682 million for the quarter ended January 2025, reflecting a year-over-year increase of 12.7% [1] - The company's EPS was $0.78, up from $0.63 in the same quarter last year, exceeding the consensus estimate of $0.73 by 6.85% [1] - The revenue surpassed the Zacks Consensus Estimate of $668.8 million, resulting in a surprise of 1.97% [1] Financial Metrics - Remaining performance obligations stood at $4.22 billion, exceeding the five-analyst average estimate of $3.83 billion [4] - Current remaining performance obligations (cRPO) were reported at $2.25 billion, compared to the average estimate of $2.14 billion [4] - Total customers reached 19,650, slightly below the average estimate of 19,810 [4] - The TTM Dollar Based Net Retention Rate was 107%, matching the average estimate [4] - Subscription revenue was $670 million, surpassing the average estimate of $654.53 million, representing a year-over-year increase of 13.4% [4] - Revenue from professional services and other was $12 million, below the average estimate of $13.78 million, indicating a year-over-year decline of 14.3% [4] Stock Performance - Okta's shares have returned -4% over the past month, compared to a -1.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [3]

Okta (OKTA) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.85%. A quarter ago, it was expected that this cloud identity management company would post earnings of $0.57 per share when it actually produced earnings of $0.67, delivering a surprise of 17.54%.Over the last four quarters ...

Core Insights - Okta reported strong fiscal Q4 2025 results, outperforming both analysts' estimates and management's guidance [1] - Non-GAAP EPS was $0.78, exceeding the consensus estimate of $0.74, while revenue reached $682 million, surpassing the anticipated $668 million [1][2] Financial Performance - Non-GAAP EPS increased by 23.8% year over year from $0.63 [2] - Revenue rose by 12.7% from $605 million in the previous year [2] - Non-GAAP operating income grew by 30.2% to $168 million, exceeding management's guidance [2][6] - Free cash flow surged by 71.1% year over year to $284 million, indicating strong cash management [2][7] Business Overview - Okta operates in the identity and access management sector, focusing on user identity verification and security [3] - The company employs a zero-trust model to enhance security and limit risks of breaches [3] - Key products include the Workforce Identity Cloud and Customer Identity Cloud [3] Strategic Developments - Okta is expanding its product offerings with enhanced identity solutions and emphasizes integration with over 7,000 applications [4] - The company achieved a current remaining performance obligation of $2.248 billion, reflecting strong bookings [6] Future Guidance - For fiscal Q1 2026, management projects revenue between $678 million and $680 million, indicating approximately 10% growth [8] - For fiscal 2026, total revenue is anticipated to be in the range of $2.85 billion to $2.86 billion, representing a 9% to 10% increase [8] - Management aims to maintain a non-GAAP operating margin of 25% throughout the year [8] Customer Focus - The company plans to concentrate on acquiring new customers and retaining existing ones, particularly in the $1 million-plus annual contract value segment [9]

Enterprise-scale customers are plumping up the bottom line.Here's our initial take on Okta's (OKTA -3.68%) financial report.Key MetricsMetricQ4 2024Q4 2025Changevs. ExpectationsRevenue$605 million$682 million13%BeatEarnings per share$0.63$0.7824%BeatNet retention rate111%107%-400 bpn/aFree cash flow$166 million$284 million71%n/aOkta's Focus on Large Customers Pays OffIdentity verification software vendor Okta reported solid numbers in the fourth quarter of its 2025 fiscal year, beating Wall Street top- and ...

Core Viewpoint - Okta Inc. has provided an optimistic revenue forecast for the upcoming fiscal year, exceeding analyst expectations [1] Revenue Forecast - The company projects revenue between $2.85 billion and $2.86 billion for the new fiscal year, surpassing the FactSet consensus of $2.79 billion [1] - For the fiscal first quarter, Okta anticipates revenue of $678 million to $680 million, compared to analyst projections of $670 million [1]

Exhibit 99.1 Okta Announces Fourth Quarter And Fiscal Year 2025 Financial Results SAN FRANCISCO – March 3, 2025 – Okta, Inc. (Nasdaq: OKTA), the leading independent Identity partner, today announced financial results for its fourth quarter and fiscal year ended January 31, 2025. "Okta's strong financial results were highlighted by accelerating RPO and cRPO, coupled with record profitability and cash flow," said Todd McKinnon, Chief Executive Officer and co-founder of Okta. "In a rapidly evolving IT and secu ...

WestPark Capital analyst Casey Ryan reiterated Okta Inc OKTA with a Buy and a $140 price target.Okta will report fourth-quarter and fiscal 2025 results on March 3 after the market close.Street estimates call for revenues of $668 million and EPS of $0.73 compared to WestPark estimates for $670 million and $0.71.Also Read: Citigroup Accidentally Sends $81 Trillion To Client, Reverses Error Within HoursKey metrics include total remaining performance obligations (Total RPO), which grew 19% in the third quarter, ...

Company Overview - Okta is set to release its fourth-quarter fiscal 2025 results on March 3, with anticipated non-GAAP earnings in the range of 73-74 cents per share and revenues expected between $667-$669 million, indicating a growth of 10-11% year-over-year [1] - The Zacks Consensus Estimate for earnings has remained steady at 73 cents per share, reflecting a year-over-year growth of 15.87%, while the revenue consensus is pegged at $668.8 million, indicating an increase of 10.6% from the previous year [2] Customer Growth and Product Adoption - Okta exited the third-quarter fiscal 2025 with 19,450 customers and $2.062 billion in current remaining performance obligations, showcasing strong growth prospects for subscription revenues [3] - The number of customers with more than $100 thousand in Annual Contract Value increased by 8% year-over-year to 4,705, indicating robust demand for Okta's solutions [3] - The adoption of Okta's Workforce and Customer Identity solutions is expected to have continued momentum, driven by the integration of AI capabilities across its platforms [4] Product Innovations and Market Demand - Okta is benefiting from strong demand for its Identity Governance solutions, which represent about one-third of contract value in workforce deals, with new products gaining traction [5] - The enhancements to the Auth0 Free Plan, including increased monthly active users and new security features, are expected to help expand Okta's clientele [6] Stock Performance and Valuation - Okta shares have declined by 16.8% over the past 12 months, underperforming the Zacks Computer & Technology sector and the Zacks Security industry [7] - The stock is currently trading at a forward Price/Cash Flow ratio of 23.86X, which is higher than the broader sector's 21.72X, indicating a stretched valuation [10] Industry Trends and Growth Prospects - The global security market is expected to witness double-digit growth over the next five years, with revenues projected to reach $200 billion by 2028, and Identity and Access Management (IAM) is anticipated to be one of the fastest-growing segments [17] - The growing need for secured remote access and enhanced protection during digital transformation is expected to drive demand for IAM solutions, benefiting Okta's long-term prospects [18] Conclusion - Okta's strong portfolio and positive industry trends justify its premium valuation, with a Zacks Rank of 1 (Strong Buy) and a Growth Score of A, indicating a strong investment opportunity [19]