In This Article:
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Operating Margin Growth: Approximately 9 points increase for FY25.
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Free Cash Flow Margin Growth: 6 points increase for FY25.
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RPO Growth: Increased 25%, crossing the $4 billion mark.
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Total Contract Value: Record bookings in Q4, crossing $1 billion for the first time.
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Top 25 Deals Total Contract Value: Over $320 million in Q4.
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$1 Million-Plus ACV Customers: Grew 22% to 470 customers.
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Partner-Influenced Deals: Over 70% of deals in Q4 were partner influenced.
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AWS Marketplace Revenue Growth: Over 80% growth in FY25.
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Q1 FY26 Revenue Growth Outlook: Expected growth of 10%.
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Q1 FY26 Non-GAAP Operating Margin: Expected to be 25%.
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Q1 FY26 Free Cash Flow Margin: Expected to be approximately 25%.
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FY26 Revenue Growth Outlook: Expected growth of 9% to 10%.
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FY26 Non-GAAP Operating Margin: Expected to be 25%.
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FY26 Free Cash Flow Margin: Expected to be approximately 26%.
Release Date: March 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Okta Inc (NASDAQ:OKTA) reported strong Q4 results with record profitability and free cash flow.
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The company achieved record bookings in Q4, surpassing $1 billion in total contract value for the first time.
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Okta Inc (NASDAQ:OKTA) saw significant growth in new products, with over 20% of Q4 bookings from innovations like Okta Identity Governance and Identity Threat Protection with Okta AI.
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The partnership with AWS Marketplace has been successful, with revenue from AWS Marketplace growing over 80% in FY25.
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Okta Inc (NASDAQ:OKTA) experienced a multiyear high in sales productivity, with notable success in cross-selling workforce products to existing customers.
Negative Points
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The company faces ongoing macroeconomic challenges, with a consistent environment over the past couple of years.
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There is a noted headwind from seat-based pricing, as customers are now more conservative in their purchasing compared to previous years.
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Okta Inc (NASDAQ:OKTA) has a cautious approach to forward guidance, factoring in go-to-market specialization and potential macroeconomic uncertainties.
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The company is undergoing a headcount reduction to optimize cost structure, which may impact short-term operations.
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Despite strong results, Okta Inc (NASDAQ:OKTA) acknowledges the need for continued investment in product innovation and market expansion to maintain growth momentum.
Q & A Highlights
Q: Has Okta's guidance philosophy changed, especially given the strong Q4 results? A: Todd McKinnon, CEO, stated that Q4 was a blowout quarter with record bookings and significant growth in large deals. The macro environment remains consistent, but the importance of identity as a foundational layer is driving business. Brett Tighe, CFO, added that they have reduced conservatism in their guidance model and will continue this approach in FY26.