Okta, Inc. (Nasdaq: OKTA), recognized as a leading independent identity partner, has announced its financial results for the fourth quarter and the fiscal year ended January 31, 2025. The press release highlights a robust financial performance characterized by significant growth in revenue, profitability, and cash flow, underscoring Okta's position in the rapidly evolving IT and security landscape.

2. Fourth Quarter Highlights

Revenue Growth

In Q4 of fiscal 2025, Okta reported total revenue of $682 million, reflecting a 13% increase year-over-year. Subscription revenue, which constitutes the bulk of the company's earnings, was recorded at $670 million, also up 13% compared to the same quarter last year.

Record Subscription Backlog

The company's Remaining Performance Obligations (RPO), a key indicator of future revenue, reached $4.215 billion, marking a 25% increase year-over-year. The current RPO (cRPO), representing subscription backlog expected to be recognized over the next 12 months, was $2.248 billion, up 15% compared to Q4 of fiscal 2024.

Profitability Metrics

Okta made significant strides in profitability during the quarter:

GAAP Operating Income was $8 million, or 1% of total revenue, a strong turnaround from a GAAP operating loss of $83 million in Q4 of fiscal 2024.

Non-GAAP Operating Income surged to $168 million, representing 25% of total revenue, compared to $129 million or 21% of total revenue in the previous year.

Okta also reported a GAAP net income of $23 million, a notable recovery from a net loss of $44 million in the same quarter last year. Basic and diluted net income per share were $0.13, compared to a loss of $0.26 per share in Q4 of fiscal 2024.

Cash Flow Performance

The company generated $286 million in net cash from operations, equating to 42% of total revenue, a significant increase from $174 million or 29% of total revenue in Q4 of fiscal 2024. Free cash flow also improved to $284 million, representing 42% of total revenue.

As of January 31, 2025, Okta's cash, cash equivalents, and short-term investments totaled $2.523 billion.

3. Full Year Financial Performance

Annual Revenue

For the entire fiscal year 2025, Okta reported total revenue of $2.610 billion, a 15% increase year-over-year, with subscription revenue at $2.556 billion, up 16% from fiscal 2024.

Operating Loss and Income

The full-year results reflected a GAAP operating loss of $74 million, a considerable improvement from a loss of $516 million in fiscal 2024. Non-GAAP operating income for the year was $587 million, or 22% of total revenue, compared to $310 million or 14% in the previous year.

Net Income Growth

Okta achieved a GAAP net income of $28 million, recovering from a net loss of $355 million in fiscal 2024. Basic and diluted net income per share improved to $0.16 and $0.06, respectively, reversing the prior year’s losses.

The company reported a non-GAAP net income of $510 million, compared to $286 million in fiscal 2024, with non-GAAP diluted net income per share increasing to $2.81 from $1.60.

Cash Flow

For the fiscal year, net cash provided by operations was $750 million, representing 29% of total revenue, up from $512 million or 23% of total revenue in fiscal 2024. Free cash flow also rose to $730 million, or 28% of total revenue.

4. Looking Ahead

CEO Todd McKinnon emphasized Okta's commitment to innovation and customer service as the company enters the new fiscal year. With a focus on enhancing the Okta and Auth0 platforms, Okta aims to further solidify its position as a leading identity partner in the marketplace.

As organizations increasingly seek robust identity solutions in an ever-evolving IT landscape, Okta's strong financial results position it well for continued growth and leadership in identity security.

Original press release