Okta Reports Q2 Results: EPS Beat, Sales Beat, Record Profitability

Okta, Inc. OKTA reported its second-quarter financial results after Wednesday's closing bell. Here's a look at the key figures from the quarter.  

The Details: Okta reported quarterly earnings of 72 cents per share, which beat the analyst consensus estimate of 61 cents by 18.03%. Quarterly sales came in at $646 million, which beat the consensus estimate by 2.06% and represents a 16.19% increase from the same period last year.

• Subscription revenue was $632 million, an increase of 17% year-over-year.
• Remaining performance obligations (RPO), or subscription backlog, was $3.505 billion, an increase of 16% year-over-year.
• 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.”

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Outlook: Okta sees third-quarter earnings of between 57 cents and 58 cents per share, versus the 55-cent estimate, and revenue in a range of $648 million to $650 million, versus the $639.13 million estimate.

The company expects fiscal year 2025 earnings between $2.58 and $2.63 per share, versus the $2.42 estimate, and fiscal year revenue in a range of $2.555 billion to $2.565 billion, versus the $2.54 billion estimate.

OKTA Price Action: According to Benzinga Pro, Okta shares are down 7.64% after-hours at $89.16 at the time of publication Wednesday.

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