Okta, Inc. (OKTA) SEC Filings & Earnings Calls

Professional services margin deterioration

“Our gross margin for professional services and other revenue decreased to (70)% for the three months ended July 31, 2026 compared to (24)% for the three months ended July 31, 2025 as a result of lower professional services and other revenue while associated costs remained relatively flat.” · word for word

Interest income decline

“We expect interest income to decrease in fiscal 2027 following the cash settlement of our 2026 Notes and as we deploy investable cash to fund our Share Repurchase Program.” · word for word

Valuation allowance uncertainty

“As of July 31, 2026, we continue to maintain a full valuation allowance on our deferred tax assets in the United States.” · word for word

Macroeconomic headwinds could reduce demand for identity solutions.

“Adverse macroeconomic conditions could reduce demand for our solutions.” · word for word

Cybersecurity incidents remain a risk for Okta and its third-party providers.

“We and our third-party service providers could experience additional cybersecurity incidents.” · word for word

Customer growth could further decelerate.

“Our customer growth could further decelerate.” · word for word

Interest income decline

“Interest and other, net decreased primarily due to lower interest income from our short-term investment holdings.” · word for word

Convertible note maturity

“As of April 30, 2026, the outstanding principal balance of the 2026 Notes of $350 million is classified as a current liability due to their upcoming maturity on June 15, 2026.” · word for word

Revenue growth deceleration expected: Q2 guidance implies 9% YoY growth, down from 11% in Q1. Full-year guidance 9-10% reflects continued deceleration.

“For the second quarter of fiscal 2027, the Company expects: Total revenue of $790 million to $794 million, representing a growth rate of 9% year-over-year.” · word for word

Professional services revenue headwind from partner shift: Company accelerating shift of professional services to partners, creating ~1ppt headwind to total revenue growth.

“Reflected in the revenue guidance is an approximately one percentage point impact to total revenue growth resulting from our decision to accelerate the shift of professional services business to our partners.” · word for word

Potential disruption in legal/compliance leadership, but mitigated by extended transition.

“Transition and separation agreement provides for continued employment as senior advisor through January 2027.”

No material risk; departure is planned and non-disagreement.

“Departure not result of any disagreement with the Company.”

No material risk; departure is non-disagreement.

“Departure not result of any disagreement with the Company.”

Cybersecurity incident recurrence

“In the past, we have experienced cybersecurity incidents that allowed unauthorized access to our systems or data or our customers’ data, harmed our reputation, created additional liability and adversely impacted our financial results.” · word for word

Competition from Microsoft

“Our principal competitor is Microsoft. Many of our competitors have significantly greater financial, technical, sales and marketing, distribution, customer support or other resources” · word for word

Macroeconomic pressure on IT spending

“Adverse general economic, market and industry conditions and reductions in workforce identity and customer identity spending have, in the past and may, in the future, reduce demand for our solutions” · word for word

Prudent guidance reflects cautious market conditions; revenue growth decelerating to 9% in FY2027.

“FY2027 revenue guidance 9% YoY growth vs 12% in FY2026; one percentage point impact from macro conditions.”

No material risk; routine board refresh.

“Resignation not due to disagreement; no operational impact.”

Cybersecurity incident recurrence

“In the past, we have experienced cybersecurity incidents that allowed unauthorized access to our systems or data or our customers’ data, harmed our reputation, created additional liability and adversely impacted our financial results.” · word for word

Macroeconomic demand pressure

“Adverse general economic, market and industry conditions and reductions in workforce identity and customer identity spending have, in the past and may, in the future, reduce demand for our solutions, which could harm our revenue, results of operations and cash flows.” · word for word

Customer retention risk

“Our business depends on our ability to retain existing customers, and our revenues and results of operations could be adversely impacted if they do not renew their subscriptions or purchase additional licenses or subscriptions with us.” · word for word

Competitive pressure from Microsoft

“Our principal competitor is Microsoft.” · word for word

Revenue growth deceleration; Q4 guidance implies 10% YoY growth vs 12% in Q3.

“Q4 revenue guidance $748-750M, representing 10% year-over-year growth.”

cRPO growth slowing; Q4 guidance implies 9% YoY vs 13% in Q3.

“Q4 cRPO guidance $2.445-2.450B, representing 9% year-over-year growth.”