SAN FRANCISCO - Okta, Inc. (NASDAQ: NASDAQ:OKTA), a leading independent identity partner, reported a solid start to fiscal 2025 with first-quarter earnings and revenue that surpassed Wall Street expectations.
Following the earnings release, Okta shares saw a modest uptick of 0.8%.
The company's adjusted earnings per share (EPS) of $0.65 exceeded analyst estimates of $0.54, while revenue for the quarter reached $617 million, outpacing the consensus estimate of $604.34 million.
Okta's revenue marked a 19% increase from the same quarter last year, driven by a 20% surge in subscription revenue. The company's current remaining performance obligations (cRPO) also grew by 15% year-over-year (YoY) to $1.949 billion, signaling strong future revenue potential. Additionally, Okta achieved record operating cash flow of $219 million and free cash flow of $214 million.
According to CEO Todd McKinnon, Okta's record non-GAAP profitability and cash flow are results of the company's continued focus on operating efficiency. He highlighted Okta's critical role in modernizing identity for today's security landscape and expressed confidence in the company's position to capitalize on the growing markets for workforce and customer identity.
Looking ahead, Okta provided guidance for the second quarter of fiscal 2025, projecting total revenue between $631 million and $633 million, representing a YoY growth of 13% to 14%. The company anticipates non-GAAP operating income between $123 million and $125 million, with a non-GAAP operating margin of 19% to 20%. Additionally, Okta forecasts non-GAAP diluted net income per share of $0.60 to $0.61, assuming a non-GAAP tax rate of 26%.
For the full fiscal year 2025, Okta expects total revenue to be in the range of $2.530 billion to $2.540 billion, reflecting a 12% YoY growth. The company also anticipates non-GAAP operating income of $490 million to $500 million and non-GAAP diluted net income per share of $2.35 to $2.40.
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