By Connor Hart

Okta swung to a profit and logged higher revenue in its fiscal first quarter, boosted by organizations continuing to rely on the platform to solve identity security.

The identity and access-management company posted a profit of $62 million, or 35 cents a share, for its three months ended April 30, compared with a net loss of $40 million, or 24 cents a share, a year earlier.

Adjusted per-share earnings came in at 86 cents a share, topping the 77 cents a share that analysts polled by FactSet expected.

Revenue increased 11% to $688 million. Analysts modeled sales of $680.3 million.

Remaining performance obligations, which represents subscription backlog, increased 21% from last year. Current remaining performance obligation, or subscription backlog that is expected to be realized over the next 12 months, rose 14%.

Chief Executive Todd McKinnon said the company had a solid quarter, fueled by organizations continuing to turn to Okta to solve identity security across their workforces, customers and artificial-intelligence use cases.

The company said it will continue taking a prudent approach to guidance, factoring in its go-to-market specialization that launched during the recent quarter, as well as potential risks related to economic uncertainty expected for the remainder of the year.

For the current quarter, Okta guided for adjusted per-share earnings of 83 cents to 84 cents on revenue of $710 million to $712 million. Analysts are looking for adjusted earnings of 79 cents a share on revenue of $708.8 million.

For the year, the company now expects adjusted per-share earnings of $3.23 to $3.28, up from a prior view of $3.15 to $3.20 and compared with analyst projections of $3.20. Okta backed its revenue outlook of $2.85 billion to $2.86 billion, in line with analyst expectations.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 27, 2025 16:37 ET (20:37 GMT)

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