Okta Raises Annual Guidance After Strong Q2 Results

Investing.com — Okta lifted its annual guidance after reporting better-than-expected results on Wednesday, driven by a slew of new business wins that strengthened its order backlog.

Okta Inc (NASDAQ: OKTA) saw an increase of over 4% in after-hours trading following the announcement.

The company reported Q2 adjusted earnings of $0.72 per share on revenue of $646 million, surpassing Wall Street estimates of $0.61 on revenue of $632.6 million.

The current remaining performance obligation (cRPO), a crucial metric indicating the subscription backlog expected to be recognized in the next 12 months, stood at $1.995 billion, reflecting a 13% rise compared to the second quarter of fiscal 2024.

Looking ahead to Q3, the company guided for adjusted EPS between $0.57 and $0.58 on revenue of $648 million to $650 million, compared to analyst estimates.

For fiscal 2024, the new expectations for adjusted EPS are between $2.58 and $2.63, up from a previous range of $2.35 to $2.40. Revenue estimates have also increased to $2.555 billion to $2.565 billion, from an earlier range of $2.53 billion to $2.54 billion.