Okta Inc. shares surged 12.6% in extended trading after the identity management provider reported second-quarter earnings and revenue that exceeded analyst expectations and raised its full-year outlook.
The San Francisco-based company posted adjusted earnings of $1.05 per share for the quarter ended July 31, compared with a consensus estimate of $0.97. Revenue totaled $805 million, up 11% from a year earlier and above the $793 million forecast.
Current remaining performance obligations, a key measure of future revenue, rose 14% year-over-year to $2.585 billion. Operating cash flow reached $234 million, while free cash flow was $227 million for the period.
For the third quarter, Okta guided revenue to between $813 million and $817 million, with a midpoint of $815 million, exceeding the $808.2 million consensus. Adjusted earnings per share are expected in a range of $0.92 to $0.94, compared with the $0.93 estimate.
The company raised its full-year revenue guidance to $3.216 billion to $3.226 billion, with a midpoint of $3.221 billion, up from the prior range and above the $3.2 billion consensus. Adjusted EPS is now projected at $3.90 to $3.94, topping the $3.84 forecast.
Okta attributed the results to accelerating current remaining performance obligations, strong adoption from large customers, and contributions from new products, particularly Okta Identity Governance. CFO Brett Tighe noted steady momentum in core workforce and customer identity solutions as key drivers of the top-line growth.
