Okta Q4 Earnings: Revenue Beat, EPS Beat, Strong Guidance, Shares Jump 12%

Okta Inc OKTA reported fourth-quarter financial results after the market close on Monday. Here’s a look at the key metrics from the quarter.

Q4 Earnings: Okta reported fourth-quarter revenue of $682 million, beating analyst estimates of $669.46 million, according to Benzinga Pro. The cloud-native cybersecurity company reported adjusted earnings of 78 cents per share, beating analyst estimates of 74 cents per share.

Total revenue and subscription revenue were both up 13% on a year-over-year basis. Remaining performance obligations totaled $4.215 billion at quarter's end, up 25% year-over-year.

Net cash provided by operations was $286 million, up from $174 million in the prior year’s quarter. The company generated free cash flow of $284 million in the quarter, up from $166 million year-over-year. Okta ended the quarter with $2.523 billion in cash, cash equivalents and short-term investments.

“Okta’s strong financial results were highlighted by accelerating RPO and cRPO, coupled with record profitability and cash flow,” said Todd McKinnon, co-founder and CEO of Okta.

“In a rapidly evolving IT and security landscape, organizations are turning to Okta as their identity partner for our ability to deliver the broadest array of modern identity security with the flexibility to meet their demands.”

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Outlook: Okta expects first-quarter revenue to be in the range of $678 million to $680 million versus estimates of $670.81 million. The company anticipates first-quarter adjusted earnings of 76 to 77 cents per share versus estimates of 70 cents per share. 

Okta expects full-year 2026 revenue to be in the range of $2.85 billion to $2.86 billion versus estimates of $2.8 billion. The company expects full-year adjusted earnings of $3.15 to $3.20 per share versus estimates of $2.94 per share.

“We’re entering the new fiscal year laser focused on serving our customers with even more innovation on the Okta and Auth0 platforms while further elevating the industry with the Okta Secure Identity Commitment,” McKinnon said.

Okta also announced that it passed $1 billion in total sales on the Amazon Web Services (AWS) Marketplace in January. The company first listed its secure identity solutions in AWS Marketplace in December 2020.

Okta executives will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.

OKTA Price Action: Okta shares were up 11.3% after hours, trading at $98.58 at the time of publication Monday, according to Benzinga Pro.

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