Okta, Inc. reported significant financial improvements in its latest 10-Q filing for the quarter ending July 31, 2024. The company achieved total revenue of $646 million for the three months, marking an increase of 16% from $556 million in the same period of the previous year. Subscription revenue, which constitutes the majority of Okta's income, rose to $632 million, up from $542 million, driven by an increase in users and additional product sales to existing customers.

For the six months ended July 31, 2024, total revenue reached $1,263 million, a substantial increase from $1,074 million in the prior year. Subscription revenue for this period also grew to $1,235 million, compared to $1,045 million in the previous year. Gross profit for the quarter was $491 million, reflecting a 20% increase from $407 million, while gross profit for the six months was $960 million, up from $783 million.

Operating expenses decreased to $510 million for the quarter, down from $569 million, and to $1,026 million for the six months, compared to $1,105 million in the prior year. This reduction in expenses contributed to a net income of $29 million for the quarter, a significant turnaround from a net loss of $111 million in the same quarter of 2023. For the six months, the net loss improved to $11 million from a loss of $230 million.

Okta's balance sheet showed total assets of $9,067 million as of July 31, 2024, up from $8,989 million at the end of January 2024. Cash and cash equivalents increased to $515 million, compared to $334 million at the beginning of the year. The company also reported a decrease in accounts receivable, which fell to $377 million from $559 million.

Strategically, Okta completed the acquisition of Spera, an identity security platform, on February 1, 2024, for $58 million in cash. This acquisition is expected to enhance Okta's service offerings. Additionally, the company implemented a restructuring plan in Q4 of fiscal 2024, resulting in a workforce reduction of approximately 400 employees, aimed at improving operational efficiencies.

The company continues to face challenges, including the impact of recent cybersecurity incidents and broader economic conditions, which may affect future performance. However, Okta's Dollar-Based Net Retention Rate stood at 110%, indicating strong revenue growth from existing customers.