Summary by Moomoo AI
For the quarter ended October 31, 2024, Okta reported a 14% YoY increase in total revenue, reaching $665 million, driven by a 14% rise in subscription revenue. The company achieved a net income of $16 million, a significant improvement from a net loss of $81 million in the same period last year. Gross profit increased by 16% to $508 million, maintaining a gross margin of 76%. Management attributed the revenue growth to an increase in users and sales of additional products to existing customers, as well as the addition of new customers. However, the company faced challenges due to longer sales cycles and macroeconomic uncertainties, which could impact future revenue growth. Okta's Dollar-Based Net Retention Rate decreased to 108% from 115% a year ago, reflecting slower growth in existing customer revenue. Looking ahead, Okta anticipates continued investment in technology and infrastructure to support growth. The company remains cautious about potential impacts from cybersecurity incidents and economic conditions, which may affect financial performance. Despite these risks, Okta expects its subscription-based model to provide revenue predictability.