Okta Inc (OKTA)
Net profit margin
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 28,000 | -355,000 | -815,000 | -848,411 | -266,332 |
| Revenue | US$ in thousands | 2,610,000 | 2,263,000 | 1,858,000 | 1,300,200 | 835,424 |
| Net profit margin | 1.07% | -15.69% | -43.86% | -65.25% | -31.88% |
January 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $28,000K ÷ $2,610,000K
= 1.07%
The net profit margin of Okta Inc. has exhibited significant fluctuations over the specified period from January 31, 2021, to January 31, 2025. Initially, the company recorded a highly negative net profit margin of -31.88% in 2021, indicating that expenses considerably exceeded revenues, a common scenario among rapidly scaling technology firms investing heavily in growth initiatives.
The margin worsened substantially in 2022, declining to -65.25%, which suggests a divergence between revenue and expenses, potentially driven by increased operational costs, investments in product development, or other strategic expenditures that outpaced revenue growth. Despite this deterioration, the company's profitability position showed improvement by 2023, with the net profit margin improving to -43.86%, indicating a reduction in the negative gap but still reflecting unprofitability.
By 2024, the margin further improved to -15.69%, approaching a break-even point and signifying a positive trend towards profitability. This progressive narrowing of losses may be attributed to enhanced revenue generation, cost management, or operational efficiencies gained over time.
Most notably, in 2025, Okta Inc. achieved a positive net profit margin of 1.07%. Although modest, this transition into positive territory marks a critical milestone, suggesting that the company has moved toward sustainable profitability. The positive net profit margin indicates that revenues now adequately cover expenses, positioning Okta Inc. more favorably for future growth and potential profitability stability.
Overall, the trajectory of Okta Inc.'s net profit margin reflects a company in a transition phase, moving from significant losses towards profitability, driven possibly by strategic investments maturing and efficiencies improving over time.
Peer comparison
Jan 31, 2025