OKTA: Q2 numbers at a glance

Investment Analysis Clubs Saul’s Investing Discussions
1 
Revenue (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2017	31,787	37,436	42,283	44,011	155,517	
2018	52,325	60,259	66,911	77,052	256,547	64.96%
2019	83,621	94,586	105,576	115,471	399,254	55.63%
2020	125,223	140,480			
YOY %	49.75%	48.52%				
						
Adj Gross Profit (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2017	20,121	24,462	29,109	34,135	107,827	
2018	36,021	42,371	48,188	56,953	183,533	70.21%
2019	61,932	69,342	80,013	88,198	299,485	63.18%
2020	94,832	108,469			
YOY %	53.12%	56.43%				
						
Gross margin percent (Non-GAAP)						
	Q1	Q2	Q3	Q4	Year	
2017	63.30%	65.34%	68.84%	77.56%	69.33%	
2018	68.84%	70.31%	72.02%	73.92%	71.54%	
2019	74.06%	73.31%	75.79%	76.38%	75.01%	
2020	75.73%	77.21%	
						
						
Adj Operating Profit (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2018	-18,529	-14,207	-19,353	-9,145	-61,234	
2019	-10,843	-19,200	-6,488	-4,931	-41,462	-32.29%
2020	-24,885	-9,906			
						
						
Operating Profit % of Revenue (Non-GAAP)						
	Q1	Q2	Q3	Q4	Year	
2018	-35.41%	-23.58%	-28.92%	-11.87%	-23.87%	
2019	-12.97%	-20.30%	-6.15%	-4.27%	-10.38%	
2020	-19.87%	-7.05%	
						
						
Adj Net Profit (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2018	-18,796	-14,054	-17,904	-8,477	-59,231	
2019	-9,446	-16,423	-3,922	-4,352	-34,143	-42.36%
2020	-21,363	-5,510			
						
						
Net Profit % of Revenue (Non-GAAP)						
	Q1	Q2	Q3	Q4	Year	
2018	-35.92%	-23.32%	-26.76%	-11.00%	-23.09%	
2019	-11.30%	-17.36%	-3.71%	-3.77%	-8.55%	
2020	-17.06%	-3.92%		
						
						
Adj EPS (USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2018	-0.47	-0.15	-0.19	-0.08	-0.89	
2019	-0.09	-0.15	-0.04	-0.04	-0.32	-64.04%
2020	-0.19	-0.05			
						
						
Opr Cash Flow (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2018	-9,686	-6,238	-9,471	155	-25,240	
2019	3,972	-5,343	6,439	10,104	15,172	-160.11%
2020	21,262	-1,134			
						
						
Free Cash Flow (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2018	-13,342	-10,481	-11,214	-2,184	-37,221	
2019	-1,556	-11,330	1,372	4,764	-6,750	-81.87%
2020	13,183	-4,302			
						
						
Total customers						
	Q1	Q2	Q3	Q4	YOY	
2018	3,350	3,650	3,950	4,350		
2019	4,700	5,150	5,600	6,100	40.23%	
2020	6,550	7,000				
YOY %	39.36%	35.92%				
						
						
Customers (ACV > $100k)						
	Q1	Q2	Q3	Q4	YOY	
2018	493	539	603	691		
2019	747	837	937	1,038	50.22%	
2020	1,142	1,222				
YOY %	52.88%	46.00%				
						
						
Dollar-based net expansion rate						
	Q1	Q2	Q3	Q4		
2018	123%	123%	123%	121%		
2019	121%	121%	120%	120%		
2020	119%	118%

🆁🅶🅱
I’ve been kicked by the wind, robbed by the sleet
Had my head stoved in, but I’m still on my feet

35 Likes
2

Summarizing Muji’s excellent post of the numbers and emphasizing what I think is important (in bold), the only real issues I see are the gently slowing revenue and customer growth rate (that are probably related). I’m not concerned, but I’ll watch these numbers. I added some shares to an IRA.

Revenue (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2018						**64.96%**
2019						**55.63%**
2020	125,223	140,480			
YOY %	**49.75%	48.52%**	
						
Adj Gross Profit (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2018						**70.21%**
2019						**63.18%**
2020	94,832	108,469			
YOY %	**53.12%	56.43%**		
						
Gross margin percent (Non-GAAP)						
	Q1	Q2	Q3	Q4	Year	
2017	63.30%	65.34%	68.84%	77.56%	69.33%	
2018	68.84%	70.31%	72.02%	73.92%	71.54%	
2019	74.06%	73.31%	75.79%	76.38%	75.01%	
2020	**75.73%	77.21%**
						
Total customers						
	Q1	Q2	Q3	Q4	YOY	
2019					**40.23%**
2020	6,550	7,000				
YOY %	**39.36%	35.92%**					
						
Customers (ACV > $100k)						
	Q1	Q2	Q3	Q4	YOY	
2019					**50.22%**
2020	1,142	1,222				
YOY %	**52.88%	46.00%**						
						
Dollar-based net expansion rate						
	Q1	Q2	Q3	Q4		
2018	123%	123%	123%	121%		
2019	121%	121%	120%	120%		
2020	**119%	118%**

Enjoy,
Brian

27 Likes
3

RGB, Thank you so much for this. I have been following Saul’s Board in-depth for a little over two weeks. I have been with TMF for 8 years and benefited greatly from it. Saul’s approach has shown me the money approach and has opened my eyes to the huge benefit (requirement)of doing this.

This is the first post I have seen in this time with a full financial quarterly review. Saul in the knowledgebase has explained how to review patterns but this provides the full picture which provides an expansive and quick assessment review. (The drop this quarter in free cash flow drew the negative press, but the full picture provides some context and this just becomes a question; (“CAC” Cost of acquiring Customer? the issue? etc. etc.)

This financial detail with an explanation of how it was compiled would be a great addition to the Knowledge Base in Additional Information section provided in Saul’s info repository.

So I have not just been reading the board but changing from my previous approach of 25+ positions to half that many.

Another Saul rec is to daily register individual stock performance on squared paper. I have not yet started this, but I will this weekend.

Any recs you have for tracking your portfolio with daily activities?

Your post has been a great encouragement. Thank you

3 Likes