Okta(OKTA) - 2026 Q1 - Quarterly Results

Financial Performance - Q1 revenue was $688 million, a 12% year-over-year increase, with subscription revenue also growing 12% to $673 million[6]. - GAAP operating income was $39 million, representing 6% of total revenue, compared to a loss of $47 million in Q1 FY25[6]. - Non-GAAP operating income increased to $184 million, or 27% of total revenue, up from $133 million, or 22% of total revenue, in Q1 FY25[6]. - GAAP net income was $62 million, compared to a net loss of $40 million in Q1 FY25, with diluted net income per share at $0.35[6]. - Non-GAAP net income rose to $158 million, with diluted net income per share at $0.86, compared to $117 million and $0.65 in Q1 FY25[6]. - Operating cash flow was $241 million, or 35% of total revenue, while free cash flow was $238 million, also 35% of total revenue[6]. - Total revenue for the three months ended April 30, 2025, was $688 million, a 11.5% increase from $617 million in the same period of 2024[27]. - Subscription revenue increased to $673 million, up 11.6% from $603 million year-over-year[27]. - Net income for the three months ended April 30, 2025, was $62 million, compared to a net loss of $40 million in the same period of 2024[27]. - Non-GAAP net income for the same period was $158 million, up from $117 million year-over-year, resulting in a non-GAAP net margin of 23%[40]. - Free cash flow for the three months ended April 30, 2025, was $238 million, compared to $214 million in the same period of 2024, maintaining a free cash flow margin of 35%[43]. - Operating income for the three months ended April 30, 2025, was $39 million, a significant improvement from an operating loss of $47 million in the same period of 2024[37]. - Total operating expenses decreased to $494 million from $516 million year-over-year, reflecting a reduction in research and development costs[27]. - The company reported a gross profit of $533 million for the three months ended April 30, 2025, resulting in a gross margin of 77%[35]. Future Projections - For Q2 FY26, the company expects total revenue between $710 million and $712 million, reflecting a growth rate of 10% year-over-year[10]. - For the full year FY26, total revenue is projected to be between $2.850 billion and $2.860 billion, indicating a growth rate of 9% to 10% year-over-year[10]. Strategic Focus - The company is focusing on profitable growth and innovation in identity security solutions for large organizations[3]. Performance Obligations - Remaining performance obligations (RPO) reached $4.084 billion, up 21% year-over-year, while current remaining performance obligations (cRPO) grew 14% to $2.227 billion[6]. Cash Position - Cash and cash equivalents increased to $494 million as of April 30, 2025, compared to $409 million at the end of January 2025[30]. - Total assets decreased slightly to $9,365 million from $9,437 million at the end of January 2025[30].