Shares of Okta (NASDAQ: OKTA) are surging after reporting stronger-than-expected second-quarter financial results and raised its outlook for the full fiscal year, with artificial intelligence (AI) emerging as an increasingly important source of demand.
Shares of the of identity security company jumped more than 19% in extended trading Wednesday, climbing above $160 after closing the regular session at $134.42.
For its fiscal second quarter, ended July 31, Okta reported revenue of $805 million, an increase of 11% from the same period a year earlier. Subscription revenue rose 12% to $793 million.
The company posted GAAP net income of $116 million, or 65 cents per diluted share, up from $67 million, or 37 cents per share, in the year-ago quarter. On an adjusted basis, Okta earned $1.05 per share, compared with 91 cents a year earlier.
Okta’s subscription backlog, measured as remaining performance obligations (RPO), increased 17% to $4.86 billion. Current remaining performance obligations (cPRO), revenue expected to be recognized during the next 12 months, rose 14% to $2.59 billion.
