Okta Reports $2.61 Billion Revenue for Fiscal Year 2025, Achieves Net Income Turnaround

Okta, Inc. reported a total revenue of $2.61 billion for the fiscal year ending January 31, 2025, marking a 15% increase from $2.26 billion in the previous fiscal year. The company's subscription revenue, which constitutes approximately 98% of total revenue, rose to $2.56 billion, up from $2.21 billion, driven by an increase in users and additional sales to existing customers. The company achieved a net income of $28 million, a significant turnaround from net losses of $355 million in fiscal 2024 and $815 million in fiscal 2023. This improvement in profitability is attributed to enhanced operational efficiencies and a focus on cost management.

In terms of customer growth, Okta reported having over 19,650 customers as of January 31, 2025, an increase from 18,950 the previous year. Notably, the number of customers with an annual contract value exceeding $100,000 rose to 4,800, up from 4,485. However, the company's dollar-based net retention rate declined to 107% from 111% in the prior year, reflecting slower revenue growth from existing customers amid a challenging macroeconomic environment. The company also reported current remaining performance obligations of $2.25 billion, indicating a strong pipeline for future revenue.

Strategically, Okta expanded its capabilities through the acquisition of Spera Cybersecurity, Inc. in February 2024 for $58 million, aimed at enhancing its identity security offerings. The company continues to invest in research and development, with expenses in this area totaling $642 million for fiscal 2025, a slight decrease from $656 million in the previous year. Okta's workforce was reduced by approximately 180 employees as part of a restructuring plan to streamline operations and focus on growth priorities.

Operationally, Okta's employee headcount stood at 5,914 as of January 31, 2025, with 62% based in the United States. The company has also made strides in geographic expansion, generating 21% of its revenue from international markets, which grew by 14% year-over-year. The company maintains a robust integration network with over 7,000 integrations with various applications and IT infrastructure providers, further solidifying its market position.

Looking ahead, Okta anticipates continued growth driven by the increasing demand for identity management solutions amid ongoing digital transformation trends. The company plans to leverage its existing customer base, expand its international footprint, and enhance its product offerings to capture new market opportunities. However, it acknowledges potential challenges from economic conditions and competitive pressures that could impact its growth trajectory.