Shares of Okta surged nearly 23% during the trading session on Thursday, August 27 after the firm raised its annual revenue outlook for second time.
Okta shares advanced up to 22.7% to $164.93 apiece by 7:59 pm IST.
The latest jump comes after cybersecurity company on Wednesday forecasted a revenue growth of 10% to 11% for the year. Prior to this, the revenue was estimated in the range of 9% to 10% and ahead of analysts' estimates, Bloomberg reported.
“If we're going to get to $10 billion, $20 billion and $30 billion in revenue, you have to have this kind of catalyst,” the news agency quoted Okta's Chief Executive Officer Todd McKinnon.
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In addtion to revenue outlook, shares rallied as Okta's subscription backlog came better than expected primarily due to a rise in artificial intelligence adoption. Out of the bookings, 30% were from its new products, including Okta for AI Agents, McKinnon said, noting that the product has yet to materially contribute to its current remaining performance obligations.
In the second quarter of the fiscal, revenue surged 11% to $805 million, continuing with nine years of double-digit growth. The company expects revenue to advance another 11.5% year-over-year in its third quarter, defying analyst expectations that growth would slow to single digits beginning in the second quarter. The company also raised its adjusted earnings outlook for the year.
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