Okta launches native identity integration with AWS, beats Q1 estimates

Pure Storage also posted strong first quarter financial results.
Written by Stephanie Condon, Senior Writer

Okta, the cloud-based identity management firm, announced on Thursday a new native integration with Amazon Web Services Single Sign-On (AWS SSO). The company also reported better-than-expected first quarter financial results, underscoring its ability to help enable remote work during the COVID-19 pandemic. 

The new AWS integration is available via the Okta Integration Network. It enables Okta customers to provision identities to AWS SSO for authorization management. Enterprises can automatically synchronize users and groups between Okta and AWS, making it easier to manage corresponding authentication and authorization policies.

Meanwhile, for the first quarter, Okta reported a non-GAAP net loss per share of 7 cents on revenue of $182.9 million, an increase of 46 percent year-over-year. 
Analysts were expecting a net loss of 17 cents per share on revenue of $171.35 million

"Okta is at the forefront of helping organizations adapt to the current environment where secure remote access has become a top priority across industries," Okta CEO Todd McKinnon said in a statement. "Our strong first quarter performance reflects our market leadership and ability to effectively and quickly shift to a fully remote workforce. This shift is enabled through our core technology, which allows secure access to any technology from anywhere. When this crisis is over, we don't expect organizations to revert to their prior ways of working. Our commitment to our customers and continued focus on operational agility will help us navigate this environment, lead the new way of work, and seize the opportunity to emerge in an even stronger position."

Subscription revenue was $173.8 million, an increase of 48 percent year-over-year.

Total Remaining Performance Obligations (RPO) was $1.24 billion, an increase of 57 percent year-over-year. Current RPO was $619.1 million, up 49 percent. 

RPO is an accounting metric that gives investors more visibility into recurring subscription business. While current RPOs refers to contracts coming due over the next 12 months, the total RPO gives a glimpse into the company's overall contractual business -- including multi-year contracts. 

Total calculated billings were $209.5 million, an increase of 42 percent year-over-year.

Free cash flow was a record $29.8 million, or 16.3 percent of total revenue. 

For the second quarter of fiscal 2021, Okta expects total revenue of $185 million to $187 million. For the full year fiscal 2021, it expects revenue of $770 million to $780 million. 

Separately, the company announced several new and expanded deals with major customers like FedEx, the Australian Red Cross, Moody's, Mouvement Edouard Leclerc, Parsons, Servus Credit Union, the State of Illinois, T-Mobile, Workday and Zoom.

Pure Storage also reported solid first quarter financial results, with a non-GAAP net loss of 2 cents per share. Revenue came to $367.1 million, up 12 percent year-over-year. 

Analysts were expecting a net loss of 15 cents per share on revenue of $352.26 million. 

"We are extremely proud of this quarter's solid results and growth, especially during the current global crisis," CEO Charles Giancarlo said in a statement. "The entire company adapted quickly and delivered the technology and services that our customers needed to keep their organizations up and running. Pure continues to deliver on the Modern Data Experience to enable customers to transform their storage operations to be simple, reliable, fast, and flexible." 

Subscription Services revenue for the quarter came to $120.2 million, up 37 percent year-over-year, reflecting strength in Pure's Evergreen, Pure as-a-Service and Cloud Block Store offerings.

First quarter free cash flow was $11.3 million, up $29 million year-over-year.

The company is withdrawing its official fiscal 2021 and Q2 guidance due to the COVID-19 pandemic, even though the company says its "core fundamentals" remain strong. However, Pure did say it currently expects Q2 sales to come in near flat year-over-year with operating profit expected to be near break-even. Pure also expects to see continued strength in sales and adoption of its subscription services.

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