- Okta’s profit and sales jumped on increasing demand for its identification software to protect against hackers.
- The company boosted its full-year earnings and revenue guidance.
- Several analysts raised their price targets on the stock following the report.
Shares of Okta (OKTA) rose 13.5% on Thursday as growing cybersecurity concerns drove up demand for the company’s identification software.
The company reported fiscal 2024 second quarter earnings per share (EPS) of 31 cents, more than 40% above forecasts. Revenue increased 23% to $556 million, also better than expected. Almost all of that, $542 million, came from subscriptions, which rose 24%.
Okta’s co-founder and CEO, Todd McKinnon, indicated that both new and existing customers are seeking to simplify their infrastructure, “while increasing security by integrating identity into their most important projects.”
Okta anticipates full-year EPS of $1.17 to $1.20, up from 88 cents to 93 cents earlier. It projects sales between $2.21 billion and $2.22 billion compared to the previous estimate of $2.18 billion to $2.19 billion.
Shares of Okta jumped to their highest level since the end of May following the news.