- Cloud-based identity and access management company Okta recently announced its quarterly earnings. And the company’s RPO exceeded $1 billion for the first time.
Cloud-based identity and access management company Okta recently announced its quarterly earnings and there were a few milestones that were revealed during the call. Revenue for the quarter increased 45% to $153 million, which was well above analyst expectations. And the company’s subscription revenue increased 48% to $144.5 million. Plus the company’s Remaining Performance Obligations (RPO) increased 68% to $1.03 billion.
Okta chief operating officer Frederic Kerrest pointed out that many of the contract lengths were five years or longer, which is a positive sign of the company’s growing trust with customers. And the current RPO — which is going to be recognized in the next year — increased 52% to $515.9 million. Okta also raised its full-year guidance for revenue growth of 44% at between $575 million and $575 million. And revenue guidance for fiscal 2020 is expected to be about $750 million to $760 million. The company was being conservative in the 2021 estimates as its fourth-quarter is not finished yet.
In terms of the number of customers, Okta added 400 more during the quarter. Now Okta has 7,400 customers total. Plus the company added 103 more customers with contracts valued at over $103,000 to a total of 1,325. And its top 25 customers now have contract values of more than $1 million.
“That’s great progress as we continue to focus on broadening our enterprise business, with the investments we’re making in our customer-facing teams and deepening our relationships with global systems integrators,” said Okta co-founder and CEO Todd McKinnon. “For a while now, we’ve talked about the three massive secular market tailwinds that help drive our business. First, organizations are moving to the cloud. Second, they are going through a digital transformation; and the third market tailwind is that businesses are embracing Zero Trust security environments. We’re still in the very early stages of each of these trends.”
Some of the notable customers that were signed this quarter include plastic packaging company Berry Global. And the company expanded relationships with athenahealth, Cardinal Health, Tableau, and Dentsu Group.
Growth for the quarter was largely driven by its new product offerings such as Dynamic Scale and SecurityInsights.