Okta Inc (OKTA)

Operating profit margin

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Operating income	US$ in thousands	-74,000	-460,000	-783,000	-767,103	-204,159
Revenue	US$ in thousands	2,610,000	2,263,000	1,858,000	1,300,200	835,424
Operating profit margin		-2.84%	-20.33%	-42.14%	-59.00%	-24.44%

January 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $-74,000K ÷ $2,610,000K
= -2.84%

The operating profit margin of Okta Inc has exhibited notable fluctuations over the observed period from January 31, 2021, to January 31, 2025. At the start of this period, the operating profit margin was recorded at -24.44% in 2021, indicating the company was incurring operating losses relative to its revenues. By January 31, 2022, the operating margin had deteriorated significantly to -59.00%, signifying an increased degree of operating losses and potentially heightened challenges in managing operating expenses or generating sufficient revenue.

However, subsequent years demonstrate a trend toward improvement. As of January 31, 2023, the operating profit margin improved to -42.14%, reflecting a partial reduction in operating losses. Continuing the positive trajectory, by January 31, 2024, the margin further narrowed to -20.33%, indicating substantial progress in mitigate operating losses and moving closer to break-even.

The most recent data point, as of January 31, 2025, shows a sharp increase toward profitability, with the operating profit margin improving to -2.84%. This near-zero figure suggests that the company is approaching a breakeven point from an operating perspective, which may imply increased operational efficiency or revenue growth offsetting operating expenses more effectively. Overall, the trend indicates significant narrowing of operating losses over the four-year span, reflecting ongoing efforts to enhance operational performance and control costs, although profitability has yet to be firmly established.