Okta reported Q1 revenue of $765 million and raised its full-year outlook, citing strong demand and AI-driven growth.
Okta Inc (NASDAQ:OKTA) posted first-quarter revenue of $765 million, an 11% year-over-year increase, surpassing analyst estimates of $752 million. Adjusted earnings per share reached $0.91, beating the $0.85 consensus. Subscription revenue grew 11% to $750 million, while free cash flow hit $271 million, a 35% margin.
Current remaining performance obligations rose 12% to $2.5 billion, exceeding guidance. Net revenue retention improved to 107% from 106% in the prior quarter. The company raised its full-year revenue guidance to a midpoint of $3.195 billion, up $15 million from prior estimates, and projected adjusted EPS of $3.79 to $3.87.
Shares surged 24% following the report, with analysts highlighting strong demand and an AI tailwind. Second-quarter guidance called for revenue of $790 million to $794 million and adjusted EPS of $0.95 to $0.97.