Okta’s stock gained approximately 19% in extended trading following better-than-expected fiscal second-quarter results. The identity software provider reported revenue growth of 11% to reach $728 million compared to the prior year period. Net income climbed to $116 million, or 65 cents per share, up from $67 million, or 37 cents per share in the year-ago quarter.
The company attributed strong performance partly to increased customer demand for identity security solutions amid rising concerns about artificial intelligence-related threats. Okta made its Okta for AI Agents tool available to all customers during the quarter, with new products accounting for 30% of total bookings. The firm closed multiple artificial intelligence-related deals, including a transaction worth several million dollars with a healthcare organization.
Executive leadership characterized the market opportunity in agentic artificial intelligence security as still in early stages. CEO Todd McKinnon noted that recent incidents, such as the OpenAI Hugging Face security breach, are generating increased interest from potential customers. McKinnon stated that identity management will likely become the most significant cybersecurity category over the next five to ten years as artificial intelligence agents proliferate.
Okta completed its acquisition of threat detection startup Permiso Security, valued at approximately $200 million. The company signaled plans to pursue additional smaller acquisitions that integrate with existing products rather than large legacy company purchases.
The company raised full-year financial guidance, now projecting revenue between $3.22 billion and $3.23 billion, compared to previous expectations of roughly $3.19 billion to $3.21 billion. Adjusted earnings guidance was raised to a range of $3.90 to $3.94 per share. Remaining performance obligations climbed 17% year over year to $4.86 billion, exceeding analyst expectations of $4.70 billion.
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