Like we warned nine months ago, Okta (OKTA), an identification management platform, pulled forward tens of millions of dollars in calculated billings by changing the timing of its customer invoicing practices. Payment is now due Okta the moment a customer signs a contract rather than the date the contract commences. Likewise, subsequent annual subscription payments are now due on the anniversary date, earlier than past practice.

In its latest 10-K, Okta revealed calculated billions grew 76% in the year ending January 31, 2022, up from 39% the year prior. The company credited the 94.8% growth to billing customers earlier than it has historically:

“Absent the impact of the billings process changes, Calculated Billings would have grown 60% year-over-year in the year ended January 31, 2022.”

We calculate the change added $156.69 million to Okta’s year-end billings tally.

To its credit, Okta has been transparent about the change and warned investors to expect its billings growth rate to trend down over time.