Okta reported fiscal second-quarter results that exceeded Wall Street expectations, with shares rising 20% in extended trading. Revenue reached levels representing 11% growth compared to the prior year period of $728 million, while net income totaled $116 million, or 65 cents per share, compared to $67 million, or 37 cents per share in the year-ago quarter.
The company’s performance was bolstered by growing demand for AI security tools. During the quarter, Okta made its Okta for AI Agents tool available to all customers, with new products accounting for 30% of total bookings. The company reported closing dozens of deals focused on AI, including a multi-million-dollar contract with a healthcare organization. CEO Todd McKinnon highlighted the emerging opportunity in securing artificial intelligence agents, noting that recent security incidents are spurring customer interest in identity management solutions.
Okta completed its acquisition of threat detection startup Permiso Security, valued at approximately $200 million. McKinnon indicated the company plans to pursue additional smaller acquisitions that enhance its existing product portfolio rather than larger legacy company purchases. Industry competitors including CrowdStrike and Palo Alto Networks have also pursued aggressive acquisition strategies to expand capabilities amid evolving cybersecurity threats.
The company’s subscription backlog metrics showed substantial growth. Remaining performance obligations climbed 17% year over year to $4.86 billion, surpassing analyst expectations of $4.70 billion. Current remaining performance obligations due within 12 months rose 14% to $2.59 billion.
Okta raised its full-year guidance, now projecting revenue between $3.22 billion and $3.23 billion, compared to prior guidance of $3.19 billion to $3.21 billion. Adjusted earnings guidance was set at $3.90 to $3.94 per share, exceeding Wall Street’s $3.84 estimate. Okta shares have appreciated 55% since the beginning of the year.
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