Okta (NASDAQ:OKTA), a leading identity security company, has reported a significant increase in its financial performance for the second quarter of fiscal year 2025, showcasing a 16% rise in revenue to $646 million.
This growth marks a record profitability for the company in its recent fiscal period.
The company announced a GAAP net income of $29 million, a notable improvement from a loss of $111 million in the same quarter last year.
During the quarter, the company's GAAP operating loss narrowed significantly to $19 million, or 3% of total revenue, compared to a loss of $162 million, or 29% of total revenue, in the prior year.
Subscription revenue, a critical metric for the company's business model, climbed 17%, further bolstering Okta's financial health.
Additionally, the company's current remaining performance obligation, which measures future revenue expected to be recognized, increased by 13% to $1.995 billion.
Okta also reported robust cash flow figures, with operating cash flow reaching $86 million and free cash flow totaling $78 million for the quarter ending July 31, 2024.
Looking ahead to the third quarter of fiscal 2025, Okta forecasts total revenue to be between $648 million and $650 million, representing an 11% year-over-year growth.