Okta reported fiscal second-quarter results that topped Wall Street expectations, with shares climbing 20% in extended trading. The identity software provider generated revenue of $728 million, representing 11% growth compared to the prior year. Net income reached $116 million, or 65 cents per share, compared with $67 million, or 37 cents per share a year earlier.
The company attributed much of its outperformance to surging interest in securing artificial intelligence agents. During the quarter, Okta rolled out its AI Agents tool to all customers for managing and securing agents, which contributed to new products accounting for 30% of total bookings. The company also closed dozens of deals focused on AI security, including a multi-million-dollar agreement with a healthcare organization.
CEO Todd McKinnon emphasized that the agentic AI security opportunity remains nascent, with recent high-profile incidents such as the OpenAI Hugging Face hack elevating awareness among enterprises. He noted that while network security currently dominates cybersecurity investments, identity management is expected to become the primary security concern as millions of autonomous agents proliferate. Okta completed its acquisition of threat detection startup Permiso Security for roughly $200 million, with McKinnon indicating the company would pursue additional targeted acquisitions to enhance its product suite rather than pursuing large legacy company deals.
Okta raised its full-year revenue guidance to a range of $3.22 billion to $3.23 billion, up from the prior $3.19 billion to $3.21 billion range. The company also increased its adjusted earnings forecast to $3.90 to $3.94 per share. Remaining performance obligations climbed 17% year over year to $4.86 billion, while current remaining performance obligations for the next 12 months rose 14% to $2.59 billion, both exceeding analyst expectations.
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