Okta Inc (OKTA)
Pretax margin
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 136,000 | 46,000 | -29,000 | -128,000 | -244,000 | -337,000 | -441,722 | -572,891 | -675,147 | -801,000 | -887,964 | -903,439 | -981,327 | -849,696 | -689,049 | -540,960 | -317,349 | -266,191 | -240,758 | -231,349 |
| Revenue (ttm) | US$ in thousands | 2,681,000 | 2,610,000 | 2,533,000 | 2,452,000 | 2,362,000 | 2,263,000 | 2,168,208 | 2,065,250 | 1,961,057 | 1,858,000 | 1,730,807 | 1,600,445 | 1,464,138 | 1,300,201 | 1,151,926 | 1,018,625 | 903,571 | 835,424 | 768,011 | 703,669 |
| Pretax margin | 5.07% | 1.76% | -1.14% | -5.22% | -10.33% | -14.89% | -20.37% | -27.74% | -34.43% | -43.11% | -51.30% | -56.45% | -67.02% | -65.35% | -59.82% | -53.11% | -35.12% | -31.86% | -31.35% | -32.88% |
April 30, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $136,000K ÷ $2,681,000K
= 5.07%
The analysis of Okta Inc.'s pretax margin over the specified period reveals a significant internal trend towards improved profitability. From July 31, 2020, to October 31, 2023, the company's pretax margin remained consistently negative, indicating ongoing losses before tax expenses. The margins showed notable volatility within this period, with the most severe negative point occurring around April 30, 2022, at -67.02%, and a peak of deterioration noted between July 2021 and October 2022, where margins declined from -53.11% to -51.30%. This trend suggests that during this timeframe, the company faced escalating challenges impacting its profitability, reflecting high operating costs or other expenses that outpaced revenue growth.
Starting in late 2023, a clear positive shift emerged. The pretax margin improved steadily from -20.37% on October 31, 2023, to near breakeven in early 2025. Specifically, by January 31, 2025, the pretax margin turned positive at 1.76%, and continued to advance to 5.07% by April 30, 2025. This progressive reversal from negative to positive margins indicates a substantial turnaround in the company’s financial performance, potentially driven by increased operating efficiencies, revenue growth, or cost management efforts.
Overall, the trend demonstrates a period of deep losses for Okta Inc. in the earlier years, followed by a noteworthy recovery trajectory, culminating in positive pretax margins by early 2025, reflecting an increasingly profitable operational model.
Peer comparison
Apr 30, 2025