Okta Reports Strong Growth in Subscription Backlog and Revenue
Okta reported fiscal second-quarter results that showed growth across key metrics. Revenue increased by 11% year-over-year to $805 million, while non-GAAP diluted earnings rose 15%. More notably, remaining performance obligations (RPO), a measure of future revenue commitments, grew 17% to $4.858 billion—faster than recognized revenue growth. Current RPO, expected to be recognized within the next year, increased by 14%, indicating stronger near-term demand. New product bookings also rose from 25% in Q1 to 30% of total bookings, with Okta Identity Governance being a major contributor. The company is seeing higher average contract values when new products are included and has expanded into AI agent-related offerings. Despite these positive signs, caution remains due to guidance for slower cRPO growth in the next quarter compared to Q2. However, Okta raised its full-year revenue outlook and free cash flow forecast.
Tickers: $OKTA
Topics: bookings_recovery remaining_performance_obligations revenue_growth