Okta pops 20% after topping estimates as AI threat spikes demand for identity security
New products accounted for 30% of total bookings and Okta said it closed dozens of AI deals during the period
TL;DR
- Okta's stock price increased by 20% in extended trading following better-than-expected fiscal second-quarter results.
- The company surpassed Wall Street's estimates for both earnings per share and revenue.
- Revenue increased by 11% year-over-year, reaching $805 million.
- New products contributed 30% to total bookings, with Okta closing numerous AI deals, including a multi-million dollar contract with a healthcare company.
- The rise of agentic AI and related cyber threats is increasing the demand for identity management and security tools.
- Okta completed the acquisition of threat detection startup Permiso Security for approximately $200 million and plans further strategic "tuck-in" acquisitions.
- The company raised its full-year revenue and adjusted earnings guidance.