Okta on Wednesday published its first quarter financial results, beating top and bottom line expectations.
The cloud-based identity management firm also announced an expansion of its public sector business with new deployments for the states of Kansas and Iowa. Additionally, Okta announced it has received provisional authorization from the US Defense Department to offer its cloud identity services to government agencies and their contractors.
For the first quarter, Okta’s non-GAAP basic and diluted net loss per share was 10 cents. Total revenue was $251 million, an increase of 37 percent year-over-year.
Analysts were expecting a net loss of 20 cents on revenue of $238.31 million.
“Broad-based demand for both our customer and workforce identity solutions led to another quarter of strong financial results and an excellent start to the fiscal year,” CEO and co-founder Todd McKinnon said in a statement. “Organizations around the world are turning to Okta to improve the digital customer experience and to improve how their employees safely connect to their applications from anywhere.”
Okta had a busy quarter, opening up into new markets and accelerating its growth in others. First, the company announced its $6.5 billion acquisition of Auth0, speeding up its growth in the customer identity market. The acquisition closed on May 3, Okta said. Then, it announced products bringing it into two new markets — governance and privileged access — and expanding Okta’s total addressable market from $55 billion to $80 billion.
Okta’s first quarter subscription revenue was $240 million, an increase of 38 percent year-over-year.
Total calculated billings in Q1 were $364 million, an increase of 74 percent year-over-year. Calculated billings includes the effect of billings process improvements that were enacted at the end of the first quarter of fiscal year 2022. Excluding these changes, calculated billings would have been $293 million, an increase of 40 percent year-over-year.
RPO, or subscription backlog, was $1.89 billion, an increase of 52 percent year-over-year. Current RPO, which is contracted subscription revenue expected to be recognized over the next 12 months, was $899 million, up 45 percent compared to a year prior.
Net cash provided by operations was $56 million, or 22 percent of total revenue, compared to net cash provided by operations of $39 million, or 21 percent of total revenue, a year prior. Free cash flow was $53 million, or 21 percent of total revenue, compared to $30 million, or 16 percent of total revenue, a year prior.
Okta’s financial outlook for the second quarter and full year fiscal 2022 includes the expected contribution from the acquisition of Auth0. The company expects a Q2 non-GAAP net loss per share of 36 cents to 35 cents. Revenue is expected to be between $295 million to $297 million.
For the full year fiscal 2022, Okta expects a non-GAAP net loss per share of $1.16 to $1.13. It expects revenue of $1.215 billion to $1.225 billion, representing a growth rate of 45% to 47% year-over-year.
The company also announced that former Oracle CFO Jeff Epstein will join the board of directors, effective May 25.