Okta, Inc. (OKTA) reported strong second-quarter financial results, exceeding analysts’ expectations for both earnings and revenue. The company’s focus on innovation and expanding product offerings within its Workforce Identity Cloud and Customer Identity Cloud is paying off.
Okta reported earnings of 72 cents per share, beating the analyst consensus estimate of 61 cents by 18.03%. Revenue came in at $646 million, exceeding the consensus estimate by 2.06% and representing a 16.19% increase from the same period last year. This growth was driven by a 17% year-over-year increase in subscription revenue, reaching $632 million.
The company’s remaining performance obligations (RPO), a measure of subscription backlog, also showed impressive growth, increasing 16% year-over-year to $3.505 billion. Current remaining performance obligations (cRPO) grew 13% year-over-year to $1.995 billion.
“Okta is setting the standard for identity security by focusing on relentless innovation and expanding our product offerings within the Workforce Identity Cloud and Customer Identity Cloud,” said Todd McKinnon, CEO and co-founder of Okta. “We’re delivering all of this product innovation while achieving record profitability and maintaining strong cash flow. In today’s dynamic cybersecurity landscape, identity is security, and Okta is dedicated to providing our customers with modern solutions to meet their evolving needs.”
Looking ahead, Okta anticipates earnings between 57 cents and 58 cents per share for the third quarter, exceeding the 55-cent estimate. Revenue is expected to be in the range of $648 million to $650 million, surpassing the $639.13 million estimate. For fiscal year 2025, the company forecasts earnings between $2.58 and $2.63 per share, surpassing the $2.42 estimate, and revenue between $2.555 billion and $2.565 billion, exceeding the $2.54 billion estimate.
Despite the positive results, Okta’s shares fell 7.64% after-hours at the time of publication Wednesday, closing at $89.16. This decline could be attributed to various factors, including investor sentiment and market conditions.
