(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Exhibit Number | Description | |
Press release dated May 28, 2020, issued by Okta, Inc. | ||
Okta, Inc. | ||
By: | /s/ William E. Losch | |
Name: | William E. Losch | |
Title: | Chief Financial Officer | |
(Principal Financial Officer) |
• | Reaffirms revenue outlook and improves operating profit outlook for fiscal 2021 |
• | Q1 revenue grew 46% year-over-year; subscription revenue grew 48% year-over-year |
• | Remaining performance obligations, or subscription revenue backlog, grew 57% year-over-year |
• | Record operating and free cash flows |
• | Revenue: Total revenue was $182.9 million, an increase of 46% year-over-year. Subscription revenue was $173.8 million, an increase of 48% year-over-year. |
• | Remaining Performance Obligations (RPO): RPO was $1.24 billion, an increase of 57% year-over-year. Current RPO, which is contracted subscription revenue expected to be recognized over the next 12 months, was $619.1 million, up 49% compared to the first quarter of fiscal 2020. |
• | Calculated Billings: Total calculated billings were $209.5 million, an increase of 42% year-over-year. |
• | Operating Loss: GAAP operating loss was $52.2 million, or 28.5% of total revenue, compared to $51.8 million, or 41.4% of total revenue, in the first quarter of fiscal 2020. Non-GAAP operating loss was $12.3 million, or 6.7% of total revenue, compared to $24.9 million, or 19.9% of total revenue, in the first quarter of fiscal 2020. |
• | Net Loss: GAAP net loss was $57.7 million, compared to $52.0 million in the first quarter of fiscal 2020. GAAP net loss per share was $0.47, compared to $0.46 in the first quarter of fiscal 2020. Non-GAAP net loss was $8.1 million, compared to $21.4 million in the first quarter of fiscal 2020. Non-GAAP net loss per share was $0.07, compared to $0.19 in the first quarter of fiscal 2020. |
• | Cash Flow: Net cash provided by operations was a record $38.7 million, or 21.2% of total revenue, compared to net cash provided by operations of $21.3 million, or 17.0% of total revenue, in the first quarter of fiscal 2020. Free cash flow was a record $29.8 million, or 16.3% of total revenue, compared to $13.2 million, or 10.5% of total revenue, in the first quarter of fiscal 2020. |
• | Cash, cash equivalents, and short-term investments were $1.45 billion at April 30, 2020. |
• | Total revenue of $185 million to $187 million, representing a growth rate of 32% to 33% year-over-year |
• | Non-GAAP operating loss of $5.0 million to $4.0 million |
• | Non-GAAP net loss per share of $0.02 to $0.01, assuming weighted shares outstanding of approximately 125 million |
• | Total revenue of $770 million to $780 million, representing a growth rate of 31% to 33% year-over-year |
• | Non-GAAP operating loss of $37.0 million to $30.0 million |
• | Non-GAAP net loss per share of $0.23 to $0.18, assuming weighted shares outstanding of approximately 125 million |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Revenue: | |||||||
Subscription | $ | 173,781 | $ | 117,163 | |||
Professional services and other | 9,078 | 8,060 | |||||
Total revenue | 182,859 | 125,223 | |||||
Cost of revenue: | |||||||
Subscription(1) | 37,157 | 24,540 | |||||
Professional services and other(1) | 11,329 | 10,555 | |||||
Total cost of revenue | 48,486 | 35,095 | |||||
Gross profit | 134,373 | 90,128 | |||||
Operating expenses: | |||||||
Research and development(1) | 48,494 | 34,032 | |||||
Sales and marketing(1) | 104,043 | 82,112 | |||||
General and administrative(1) | 34,035 | 25,766 | |||||
Total operating expenses | 186,572 | 141,910 | |||||
Operating loss | (52,199 | ) | (51,782 | ) | |||
Interest expense | (10,764 | ) | (4,241 | ) | |||
Interest income and other, net | 4,899 | 2,900 | |||||
Interest and other, net | (5,865 | ) | (1,341 | ) | |||
Loss before benefit from income taxes | (58,064 | ) | (53,123 | ) | |||
Benefit from income taxes | (402 | ) | (1,157 | ) | |||
Net loss | $ | (57,662 | ) | $ | (51,966 | ) | |
Net loss per share, basic and diluted | $ | (0.47 | ) | $ | (0.46 | ) | |
Weighted-average shares used to compute net loss per share, basic and diluted | 123,494 | 112,682 |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Cost of subscription revenue | $ | 3,975 | $ | 2,422 | |||
Cost of professional services and other revenue | 1,811 | 1,519 | |||||
Research and development | 11,935 | 6,346 | |||||
Sales and marketing | 11,160 | 6,786 | |||||
General and administrative | 8,847 | 5,612 | |||||
Total share-based compensation expense | $ | 37,728 | $ | 22,685 |
April 30, | January 31, | |||||||
2020 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 619,221 | $ | 520,048 | ||||
Short-term investments | 827,556 | 882,976 | ||||||
Accounts receivable, net of allowances | 111,039 | 130,115 | ||||||
Deferred commissions | 34,795 | 33,636 | ||||||
Prepaid expenses and other current assets | 40,912 | 32,950 | ||||||
Total current assets | 1,633,523 | 1,599,725 | ||||||
Property and equipment, net | 61,914 | 53,535 | ||||||
Operating lease right-of-use assets | 162,763 | 125,204 | ||||||
Deferred commissions, noncurrent | 79,270 | 77,874 | ||||||
Intangible assets, net | 31,032 | 32,529 | ||||||
Goodwill | 48,023 | 48,023 | ||||||
Other assets | 20,482 | 18,505 | ||||||
Total assets | $ | 2,037,007 | $ | 1,955,395 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 8,021 | $ | 3,837 | ||||
Accrued expenses and other current liabilities | 36,601 | 36,887 | ||||||
Accrued compensation | 31,447 | 40,300 | ||||||
2023 convertible senior notes, net | 102,198 | 100,703 | ||||||
Deferred revenue | 392,121 | 365,236 | ||||||
Total current liabilities | 570,388 | 546,963 | ||||||
2025 convertible senior notes, net | 845,862 | 837,002 | ||||||
Operating lease liabilities, noncurrent | 194,889 | 154,511 | ||||||
Deferred revenue, noncurrent | 6,070 | 6,214 | ||||||
Other liabilities, noncurrent | 6,702 | 5,361 | ||||||
Total liabilities | 1,623,911 | 1,550,051 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | — | — | ||||||
Class A common stock | 12 | 11 | ||||||
Class B common stock | 1 | 1 | ||||||
Additional paid-in capital | 1,168,127 | 1,105,564 | ||||||
Accumulated other comprehensive income | 3,742 | 892 | ||||||
Accumulated deficit | (758,786 | ) | (701,124 | ) | ||||
Total stockholders’ equity | 413,096 | 405,344 | ||||||
Total liabilities and stockholders' equity | $ | 2,037,007 | $ | 1,955,395 |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (57,662 | ) | $ | (51,966 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Stock-based compensation | 37,728 | 22,685 | |||||
Depreciation, amortization and accretion | 5,466 | 3,399 | |||||
Amortization of debt discount and issuance costs | 10,357 | 4,025 | |||||
Amortization of deferred commissions | 8,680 | 6,328 | |||||
Deferred income taxes | (905 | ) | (1,369 | ) | |||
Non-cash charitable contributions | 536 | — | |||||
Other, net | 915 | (100 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 18,250 | 9,297 | |||||
Deferred commissions | (11,865 | ) | (9,795 | ) | |||
Prepaid expenses and other assets | (3,493 | ) | 5,975 | ||||
Operating lease right-of-use assets | 4,055 | 3,066 | |||||
Accounts payable | 3,943 | 1,640 | |||||
Accrued compensation | 2,995 | 4,143 | |||||
Accrued expenses and other liabilities | (2,773 | ) | 3,288 | ||||
Operating lease liabilities | (4,270 | ) | (39 | ) | |||
Deferred revenue | 26,740 | 20,685 | |||||
Net cash provided by operating activities | 38,697 | 21,262 | |||||
Cash flows from investing activities: | |||||||
Capitalization of internal-use software costs | (1,000 | ) | (369 | ) | |||
Purchases of property and equipment | (7,930 | ) | (7,710 | ) | |||
Purchases of securities available for sale and other | (129,079 | ) | (146,545 | ) | |||
Proceeds from maturities and redemption of securities available for sale | 102,293 | 61,244 | |||||
Proceeds from sales of securities available for sale | 86,320 | 11,996 | |||||
Payments for business acquisition, net of cash acquired | — | (44,223 | ) | ||||
Net cash provided by (used in) investing activities | 50,604 | (125,607 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from stock option exercises | 14,172 | 13,388 | |||||
Other, net | (5 | ) | (126 | ) | |||
Net cash provided by financing activities | 14,167 | 13,262 | |||||
Effects of changes in foreign currency exchange rates on cash, cash equivalents and restricted cash | (1,128 | ) | (282 | ) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 102,340 | (91,365 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 531,953 | 311,215 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 634,293 | $ | 219,850 |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Gross profit | $ | 134,373 | $ | 90,128 | |||
Add: | |||||||
Stock-based compensation expense included in cost of revenue(1) | 5,786 | 3,941 | |||||
Amortization of acquired intangibles | 1,593 | 763 | |||||
Non-GAAP gross profit | $ | 141,752 | $ | 94,832 | |||
Gross margin | 73 | % | 72 | % | |||
Non-GAAP gross margin | 78 | % | 76 | % |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Operating loss | $ | (52,199 | ) | $ | (51,782 | ) | |
Add: | |||||||
Stock-based compensation expense(1) | 37,728 | 22,685 | |||||
Charitable contributions | 536 | — | |||||
Amortization of acquired intangibles | 1,593 | 763 | |||||
Acquisition-related expenses(2) | — | 3,449 | |||||
Non-GAAP operating loss | $ | (12,342 | ) | $ | (24,885 | ) | |
Operating margin | (29 | )% | (41 | )% | |||
Non-GAAP operating margin | (7 | )% | (20 | )% |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Net loss | $ | (57,662 | ) | $ | (51,966 | ) | |
Add: | |||||||
Stock-based compensation expense(1) | 37,728 | 22,685 | |||||
Charitable contributions | 536 | — | |||||
Amortization of acquired intangibles | 1,593 | 763 | |||||
Acquisition-related expenses(2) | — | 3,449 | |||||
Amortization of debt discount | 9,724 | 3,706 | |||||
Non-GAAP net loss | $ | (8,081 | ) | $ | (21,363 | ) | |
Net margin | (32 | )% | (41 | )% | |||
Non-GAAP net margin | (4 | )% | (17 | )% | |||
Net loss per share | $ | (0.47 | ) | $ | (0.46 | ) | |
Non-GAAP net loss per share | $ | (0.07 | ) | $ | (0.19 | ) |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Net cash provided by operating activities | $ | 38,697 | $ | 21,262 | |||
Less: | |||||||
Purchases of property and equipment | (7,930 | ) | (7,710 | ) | |||
Capitalization of internal-use software costs | (1,000 | ) | (369 | ) | |||
Free cash flow | $ | 29,767 | $ | 13,183 | |||
Net cash provided by (used in) investing activities | $ | 50,604 | $ | (125,607 | ) | ||
Net cash provided by financing activities | $ | 14,167 | $ | 13,262 | |||
Free cash flow margin | 16% | 11% |
Three Months Ended April 30, | |||||||
2020 | 2019 | ||||||
Total revenue | $ | 182,859 | $ | 125,223 | |||
Add: | |||||||
Unbilled receivables, current (beginning of period) | 1,026 | 1,457 | |||||
Deferred revenue, current (end of period) | 392,121 | 268,033 | |||||
Less: | |||||||
Unbilled receivables, current (end of period) | (1,121 | ) | (799 | ) | |||
Deferred revenue, current (beginning of period) | (365,236 | ) | (245,622 | ) | |||
Current calculated billings | 209,649 | 148,292 | |||||
Add: | |||||||
Deferred revenue, noncurrent (end of period) | 6,070 | 7,671 | |||||
Less: | |||||||
Deferred revenue, noncurrent (beginning of period) | (6,214 | ) | (8,768 | ) | |||
Calculated billings | $ | 209,505 | $ | 147,195 |
Cover Page |
May 26, 2020 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 26, 2020 |
Entity Registrant Name | Okta, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-38044 |
Entity Tax Identification Number | 26-4175727 |
Entity Address, Address Line One | 100 First Street, Suite 600 |
Entity Address, City or Town | San Francisco |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94105 |
City Area Code | 888 |
Local Phone Number | 722-7871 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share |
Trading Symbol | OKTA |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001660134 |
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