Okta Shares Down 6.21% On Q1 Fiscal Year 2025 Financial ResultsOkta ( NASDAQ:OKTA ), the leading independent identity partner, has announced its financial results for the first quarter of fiscal year 2025. The company reported a 19% year-over-year increase in Q1 revenue and a 20% year-over-year increase in subscription revenue. The current remaining performance obligations (cRPO) also increased by 15% to $1.949 billion. The company's CEO, Todd McKinnon, stated that the company began the new fiscal year with record non-GAAP profitability and cash flow.
The total revenue for Q1 was $617 million, an increase of 19% year-over-year. Subscription revenue was $603 million, an increase of 20% year-over-year. The RPO, or subscription backlog, was $3.364 billion, an increase of 14% year-over-year. The cRPO, or subscription backlog expected to be recognized over the next 12 months, was $1.949 billion, up 15% compared to the first quarter of fiscal 2024.
GAAP operating loss was $47 million, or 8% of total revenue, compared to a GAAP operating loss of $160 million, or (31)% of total revenue, in the first quarter of fiscal 2024. Non-GAAP operating income was $133 million, or 22% of total revenue, compared to a non-GAAP operating income of $37 million, or 7% of total revenue, in the first quarter of fiscal 2024.
GAAP net loss was $40 million, compared to a GAAP net loss of $119 million in the first quarter of fiscal 2024. Non-GAAP net income was $117 million, compared to a non-GAAP net income of $38 million in the first quarter of fiscal 2024. Net cash provided by operations was $219 million, or 36% of total revenue, compared to net cash provided by operations of $129 million, or 25% of total revenue, in the first quarter of fiscal 2024. Free cash flow was $214 million, or 35% of total revenue, compared to $124 million, or 24% of total revenue, in the first quarter of fiscal 2024.
The company's financial outlook for Q2 is expected to be stable but challenging, with growth rates of 13% to 14% year-over-year. For the full year, the company expects total revenue of $2.530 billion to $2.540 billion, with non-GAAP operating income of $490 million to $500 million, a non-GAAP operating margin of 19% to 20%, and a non-GAAP free cash flow margin of approximately 22%.
Technical Outlook
Okta shares is down 6.78% as of the time of writing trading with a weak Relative Strength Index (RSI) of 30.61 which is currently oversold. Due to the "Golden Cross Pattern" on the 11th of January, NASDAQ:OKTA shares surge to local monthly highs. The daily price chart depicts a long "Bearish Harami" candle stick pattern.
