Okta raises FY 2022 outlook after strong Q2

The cloud-based identity management firm beat market expectations for Q2, its first quarter as a combined company with Auth0.

Okta on Wednesday raised its outlook for the fiscal year 2022, following solid second-quarter financial results. 

The cloud-based identity management firm reported a non-GAAP net loss of $16 million, or 11 cents per share. Total revenue was $316 million, an increase of 57% year-over-year.

Analysts were expecting a net loss of 35 cents on revenue of $296.52 million.

The quarter marked Okta's first as a combined company with Auth0, the identity platform for developers that Okta acquired for $6.5 billion. 

The newly-combined company was off to a "fantastic start," CEO and co-founder Todd McKinnon said in a statement. "Execution remained sharp with strong demand for Okta's workforce and customer identity solutions, as well as Auth0's developer-centric identity solutions. As organizations advance on their journey of improving their customers' digital experience, adopting zero-trust security environments, and deploying more cloud applications, they continue to turn to Okta to deliver an unmatched array of modern identity solutions to meet these challenges."

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Okta

Subscription revenue was $303 million, an increase of 59% year-over-year. On an Okta standalone basis (excluding $38 million attributable to Auth0), total revenue grew 39%. 

Total calculated billings in Q2 was $362 million, an increase of 83% year-over-year. 

RPO, or subscription backlog, was $2.24 billion, an increase of 57% year-over-year. Current RPO, which is contracted subscription revenue expected to be recognized over the next 12 months, was $1.10 billion, up 60% compared to a year prior. On an Okta standalone basis (excluding Auth0), RPO and current RPO increased 42% and 43% year-over-year, respectively. 

The company expects a Q3 non-GAAP net loss per share of 25 cents to 24 cents. Revenue is expected to be between $325 million and $327 million.

For the full-year fiscal 2022, Okta now expects a non-GAAP net loss per share between 77 cents and 74 cents. It expects revenue between $1.243 billion and $1.250 billion, representing a growth rate of 49% to 50% year-over-year.