Okta Reports Strong Q2 Performance Driven by New Products and Enterprise Growth
Okta's second-quarter performance was driven by broad demand across its identity platforms, with new products accounting for about 30% of bookings. The company reported a significant increase in annual contract value (ACV), particularly from deals including newer offerings like Okta Identity Governance. CEO Todd McKinnon noted that AI adoption is influencing conversations around identity modernization and security. While the company has launched several AI-related products, management expects revenue from these initiatives to remain immaterial until fiscal 2028 at the earliest. The quarter also saw strong partner involvement, with channel partners playing a key role in large deals. Okta maintained disciplined capital allocation by repurchasing $125 million of shares and eliminating convertible debt. It ended Q2 with approximately $2.3 billion in cash and provided full-year guidance for 10%–11% revenue growth, along with strong non-GAAP operating and free-cash-flow margins.
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