Okta reported earnings of 91 cents per share, surpassing Wall Street's expectation of 85 cents, alongside revenue of $765 million, exceeding the anticipated $752 million. This marks an 11% year-over-year revenue growth, with net income increasing to $74 million from $62 million a year ago.
CEO Todd McKinnon emphasized that while the current demand for identity tools is influenced by the rise of agentic AI, it does not yet constitute a majority of their revenue. He noted that companies are beginning to strategize on deploying AI at scale, which is expected to benefit Okta in the long term.
The increasing prevalence of AI agents has heightened the need for security tools to protect against cyber threats, particularly as concerns grow over potential vulnerabilities in AI models. Okta is responding by allocating more resources to develop security solutions tailored for AI applications.
The company's guidance for the upcoming quarter aligns closely with market expectations, forecasting revenue between $790 million and $794 million, compared to the $791 million consensus. Additionally, Okta's subscription backlog exceeded estimates, indicating strong future revenue potential