Okta Inc. (NASDAQ: OKTA) reported a wider loss for the fourth quarter of 2020 due to higher costs and expenses despite a 45% surge in revenues. The bottom line was narrower than the analysts’ expectations while the top line exceeded consensus estimates. However, the company provided a weak bottom-line outlook for the first quarter and full-year 2021.
Net loss was $50.5 million compared to a loss of $30.8 million in the previous year quarter. Adjusted loss per share narrowed to $0.01 from $0.04 a year ago. Revenue grew by 45% to $167.3 million. Analysts had expected a loss of $0.05 per share on revenue of $155.85 million for the fourth quarter.
Subscription revenue surged by 46% to $158.5 million. The results reflected the growing importance of identity. Margins remained under pressure from elevated R&D expenses as the company continues to invest in the Integration Network and Identity Platform.
Looking ahead into the first quarter of 2021, the company expects revenue to grow by 37-38% to a range of $171-173 million and adjusted loss in the range of $0.24-0.23 per share. Analysts expect a loss of $0.14 per share on revenue of $166.37 million.
For fiscal 2021, the company predicts revenue to grow by 31-33% to the range of $770-780 million and adjusted loss in the range of $0.42-0.37 per share. The consensus estimates a loss of $0.27 per share on revenue of $756.28 million for the full year.
For the fourth quarter, total calculated billings jumped by 42% year-over-year to $225 million. Total customers increased by 30% to 7,950 while customers with ACV above $100,000 climbed by 41% to 1,467.
The total remaining performance obligations (RPO) soared by 66% to $1.21 billion. The current RPO, which is revenue expected to be recognized over the next 12 months, climbed by 54% to $592.3 million.
The company was benefited from the unparalleled cloud-based platform and continued execution. The company is still in the early days of a massive addressable market to modernize identity for the workforce and customers.
Separately, Okta said it has successfully implemented the Okta Identity Cloud to securely manage and streamline access to critical technology for its global workforce and customer base. In the fourth quarter of FY20, Okta grew its total customers to more than 7,950 organizations.