Todd McKinnon, chief executive officer of Okta Inc., speaks to Bloomberg TV in London, England, on Friday, April 11, 2025.
Chris J. Ratcliffe | Bloomberg | Getty Images
Octa It beat Wall Street’s fourth-quarter forecasts after the bell on Wednesday, as the identity management provider capitalized on demand to secure artificial intelligence agents.
The stock price rose 3%.
Here’s how the company performed against LSEG’s estimates:
Earnings per share: 90 cents adjusted, 85 cents expected; Revenue: $761 million, $749 million expected.
Revenue for the period increased 11% year over year. The company reported net income of $63 million, or 35 cents per share, compared to $23 million, or 13 cents per share, a year ago.
Okta’s first-quarter outlook was below analysts’ expectations. The company expects sales of $749 million to $753 million and adjusted earnings of 84 cents to 86 cents per share. Analysts had expected revenue of $755 million and EPS of 87 cents.
Management cited market conditions as a factor in its “cautious approach” to forecasts. The company used the same language in its financial outlook for the previous quarter.
Okta said it is benefiting from the proliferation of agents and the security needs that come with it.
At the same time, cybersecurity is under pressure from the proliferation of new AI tools. The sector sold off last month after Anthropic’s new security tools sparked widespread panic in the market. Okta stock is down 17% since the beginning of the year.
CEO Todd McKinnon told CNBC that agent AI and vendor-built solutions are a huge opportunity, and reiterated his confidence in Okta’s ability to win the growing identity market.
“You have to have trust and you have to have a reputation for being able to deliver this safely,” he said. “Over the years, we have built a reputation as part of the security infrastructure.”
The company’s remaining performance obligations, which are subscription balances, increased 15% year over year to $4.83 billion. This also exceeded street estimates of $4.62 billion.
For the full year, Okta expects revenue of $3.17 billion to $3.19 billion, compared to analysts’ expectations of $3.17 billion.
