Okta sees Q3 revenue of $813 mln to $817 mln, up 10% yr-over-yr.
Company expects FY27 revenue of $3.216 bln to $3.226 bln, up 10%-11% yr-over-yr.
Company says FY27 revenue guidance reflects headwind from shifting professional services to partners.
Q2 results beat estimates
U.S. identity management firm's fiscal Q2 revenue rose 11%, beating analyst expectations.
Adjusted EPS for fiscal Q2 beat consensus.
Company cites strong cash flow and growth in core and new product lines.
Shares of the company were up about 16% in extended trading.
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$805 mln
$795.04 mln (38 Analysts)
Q2 Adjusted EPS
Beat
$1.05
$0.97 (39 Analysts)
Q2 EPS
$0.65
Q2 Net Income
$116 mln
Q2 Subscription Revenue
$793 mln
Drivers behind the quarter
Core and customer identity momentum - Steady momentum from core workforce and customer identity businesses drove annual contract value acceleration, per CFO Brett Tighe.
New product contributions - Top-line growth benefited from strong contributions from new products, led by Okta Identity Governance, according to CFO Brett Tighe.
Large customer success - Success with largest customers contributed to Q2 performance, per CFO Brett Tighe.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 37 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell".
The average consensus recommendation for the it services & consulting peer group is "buy".
Wall Street's median 12-month price target for Okta, Inc. is $148.36, about 13.6% above its August 25 closing price of $130.61.
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 19 three months ago.
OKTA•
