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Okta's Quarterly Numbers Surge Past Estimates
The Motley Foolยท 2025-03-03 22:58
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]