Todd McKinnon, CEO of Okta, was interviewed by Bloomberg Television in London on April 11, 2025.
Chris J. Ratcliffe | Bloomberg | Getty Images
Okta shares jumped 20% in after‑hours trading after the identity‑management firm beat Wall Street’s fiscal second‑quarter expectations.
Key results versus LSEG estimates:
- Earnings per share: $1.05 adjusted vs. 97 cents expected
- Revenue: $805 million vs. $795 million expected
Revenue increased 11% year‑over‑year to $805 million, and net income climbed to $116 million, or $0.65 per share, from $67 million, or $0.37 per share a year ago.
Okta launched its Okta for AI Agents platform, making it available to all customers during the quarter. New offerings accounted for 30% of total bookings, and the company secured dozens of AI‑related contracts, including a multi‑million‑dollar agreement with a healthcare provider.
The rapid adoption of agentic AI, coupled with increasingly sophisticated attacks launched by autonomous agents, is driving enterprise demand for advanced identity‑management solutions.
CEO Todd McKinnon told CNBC the agentic AI security market is still “very early” and that recent breaches such as the OpenAI‑Hugging Face incident are merely “catalyzing interest.”
“Network security remains the largest cyber category today, but looking five to ten years ahead, as millions of AI agents operate, identity will dominate,” McKinnon remarked. “We are not spreading ourselves too thinly across other categories; we believe this focus will pay off.”
In response to the intensifying AI threat landscape, cybersecurity firms have embarked on a wave of acquisitions to expand their capabilities, lifting peers such as CrowdStrike and Palo Alto Networks to record highs. Okta’s own shares are up roughly 55% year to date.
Okta announced the acquisition of threat‑detection startup Permiso Security for about $200 million on Wednesday. CEO Todd McKinnon indicated the company will continue pursuing smaller, complementary acquisitions, saying, “We’ll see more tuck‑in deals, not large legacy purchases just for scale.”
Remaining performance obligations, which represent subscription backlog, increased 17% annually to $4.86 billion, exceeding the $4.70 billion consensus estimate from StreetAccount. The portion of backlog expected to be recognized within the next 12 months rose 14% to $2.59 billion.
Okta raised its full‑year revenue outlook to a $3.22‑$3.23 billion range, up from the previous $3.19‑$3.21 billion guidance and above the $3.20 billion LSEG consensus. Adjusted earnings are projected at $3.90‑$3.94 per share, compared with the $3.84 per‑share estimate from Wall Street.
Chart displaying OKTA’s recent stock performance.
