Summary by Futu AI
Okta, Inc., a leading independent identity partner, reported a 16% increase in total revenue to $646 million for the three months ended July 31, 2024, compared to $556 million in the same period of 2023. Subscription revenue, which constitutes 98% of total revenue, rose by 17% to $632 million. The company's gross profit improved by 20% to $491 million, with a total gross margin increase from 73% to 76%. Operating expenses saw a decrease in research and development by 5%, and sales and marketing expenses by 9%, contributing to a net income of $29 million, a significant improvement from a net loss of $111 million in the previous year. Okta's business development is highlighted by its Workforce Identity Cloud and Customer Identity Cloud, powered by Auth0, which secure connections for organizations and individuals to various technologies and services. The company's future plans include continued investment in technology to expand platform capabilities and improve gross margins over time. Despite recent cybersecurity incidents and economic uncertainties, Okta's customer base grew to over 19,300, with a Dollar-Based Net Retention Rate of 110% as of July 31, 2024.
