Okta Earnings Top Estimates as Management Cites Better IT Spending

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The identity-management software company raised its financial forecasts for the full year, but the CEO said the firm is cautious about the short-term outlook.

Okta, the identity-management software company, reported better-than-expected financial results and said it saw signs of stabilization in spending on information technology.

For the fiscal second quarter, ended July 31, Okta posted revenue of $556 million, up 23% from a year ago, well above both the Street consensus of $535 million and the company’s guidance range of $533 million to $535 million. Current remaining performance obligations were $1.77 billion, up 18%, and ahead of the company’s target range of $1.71 billion to $1.72 billion. Free cash flow was $49 million, compared with a loss of $24 million a year earlier.

For the January 2024 fiscal year, Okta now sees revenue ranging from $2.207 billion to $2.215 billion, with non-GAAP profits of $1.17 to $1.20 a share. Its previous guidance had called for revenue of $2.175 billion to $2.185 billion, with adjusted profits of 88 to 93 cents. The Street consensus for the year has been for $2.19 billion in revenue and adjusted profits of 91 cents a share.

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