Okta Reports 5% Growth in Q3 Revenue; Expects Further Expansion in Q4

Key Takeaways:

• Okta's Q3 revenue grew 5% year-over-year, reaching $560 million.
• The company anticipates continued growth in Q4, with expected revenue between $558 million and $560 million.
• Okta's customer base grew by 20% in Q3, demonstrating strong demand for its identity management solutions.

Financial Performance:

Okta reported a total revenue of $560 million for the third quarter of fiscal 2024, representing a 5% increase compared to the same period last year.

Subscription revenue, which accounts for the majority of Okta's revenue, grew 6% year-over-year to $524 million in Q3.

Professional services revenue declined by 11% to $36 million in Q3, due to a decrease in customer demand for implementation and consulting services.

Growth Drivers:

Okta's growth in Q3 was driven by strong demand for its identity management solutions, particularly from large enterprises.

The company's focus on cloud-based identity services, as well as its ability to integrate with a wide range of applications, has made it a preferred choice for many organizations.

Okta's customer base grew by 20% in Q3, with notable additions including Bayer, Chevron, and the University of California, Berkeley.

Outlook:

For the fourth quarter of fiscal 2024, Okta expects total revenue between $558 million and $560 million, representing a potential growth of up to 7% year-over-year.

The company anticipates continued momentum in its subscription revenue, driven by ongoing demand for its identity management solutions.

Okta remains optimistic about its long-term growth prospects, as the increasing adoption of cloud computing and digital transformation initiatives creates a growing need for effective identity management solutions.