Okta Inc. shares rose more than 10% in early trading on Wednesday after the cybersecurity company reported quarterly earnings and guidance that exceeded analyst expectations.
The San Francisco-based firm posted adjusted earnings of $1.12 per share for the three months ended July 31, compared with a forecast of $0.95 per share from Refinitiv-compiled analyst estimates. Revenue increased 16% year-over-year to $564.1 million, also surpassing the $545.3 million consensus estimate.
Okta raised its full-year revenue guidance to a range of $2.25 billion to $2.27 billion, up from its prior outlook of $2.20 billion to $2.24 billion. The company also narrowed its adjusted profit forecast for the year, now expecting earnings of $3.80 to $3.90 per share, compared with its previous range of $3.60 to $3.90.
Analysts attributed the stock’s rally to Okta’s ability to maintain growth despite a challenging macroeconomic environment, as well as its expanding customer base in cloud security. The company’s shares have gained roughly 25% over the past month, outpacing the broader tech sector.
Okta’s Chief Executive Officer Todd McKinnon highlighted the company’s resilience, stating that demand for identity and access management solutions remains strong amid increasing cybersecurity threats. The firm’s annual recurring revenue surpassed $1 billion for the first time, reaching $1.04 billion, up 18% year-over-year.
The company’s outlook reflects confidence in its ability to sustain momentum, particularly in its Workforce Identity Cloud segment, which accounts for the majority of its revenue. Okta’s guidance assumes continued adoption of its platform by enterprises prioritizing secure remote access and multi-factor authentication solutions.
Shares of Okta were trading at $145.20 in premarket activity, up 10.8% from Tuesday’s close.
