Citizens Financial Group raised its price target on Okta Inc. to $180 from $170 while maintaining a Market Outperform rating, following the identity and access management company’s fiscal second-quarter results that exceeded expectations.
Okta reported non-GAAP diluted earnings per share of $1.05, topping the consensus estimate of $0.97. Total revenue reached $805.0 million, an 11% increase year-over-year and above the $792.8 million forecast. The company also reported a non-GAAP operating margin of 28.1%, compared with the 26.0% consensus, and a gross margin of 77%.
Okta’s co-founder and CEO Todd McKinnon said the quarter was strong across most metrics, noting that bookings set a record for the second quarter and represented the highest quarterly figure outside of the fourth quarter. The company raised its revenue guidance for the current quarter and the full fiscal year.
Okta’s stock has gained approximately 88% year-to-date, outpacing the Russell 3000’s 12% appreciation. Shares rose roughly 21% in after-hours trading following the results. The performance was attributed to increased demand in Okta’s core business and growth in new artificial intelligence-focused products.
