Okta reported fiscal second-quarter results that exceeded Wall Street expectations, driving a 20% surge in share price during extended trading. The company generated revenue of $728 million a year ago, with the quarter showing an 11% increase from that prior-year figure. Net income reached $116 million, or 65 cents per share, compared to $67 million, or 37 cents per share in the same period a year prior.
The identity software provider attributed part of its performance to growing demand for artificial intelligence-related security capabilities. During the quarter, Okta made its AI Agents tool broadly available to all customers, enabling management and security of autonomous agents. New products accounted for 30% of total bookings, and the company reported closing dozens of deals related to AI, including a multi-million-dollar engagement with a healthcare organization. CEO Todd McKinnon indicated that the market opportunity in agentic AI security remains at an early stage, with recent cybersecurity incidents amplifying customer interest.
Okta’s subscription backlog metrics showed robust growth. Total remaining performance obligations reached $4.86 billion, up 17% year over year and surpassing the $4.70 billion analyst estimate. Current remaining performance obligations, representing subscription backlog expected to be recognized within 12 months, rose 14% to $2.59 billion.
The company also completed its acquisition of threat detection startup Permiso Security, valued at roughly $200 million. McKinnon stated the company intends to pursue smaller, strategic acquisitions that integrate with existing products rather than large-scale purchases.
Okta raised its full-year guidance, now expecting revenue between $3.22 billion and $3.23 billion, with adjusted earnings projected between $3.90 and $3.94 per share. The stock has increased 55% this year amid broader gains across the cybersecurity sector.
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