Share in Okta Inc. rose nearly 3% in late trading today after the identity and access management company reported earnings and revenue beats in its first quarter and also forecast an outlook higher than analyst expectations.

For the quarter ended April 30, Okta reported adjusted earnings per share of 65 cents, up from 22 cents in the same quarter a year ago, on revenue of $617 million, up 19% year-over-year. Both were beats, as analysts had been expecting adjusted earnings per share of 55 cents on revenue of $604.5 million.

Okta’s solid figures were driven by subscription growth, as the company’s subscription revenue rose 20%, to $603 million. The company’s customers are also sticking around, with Okta reporting a dollar-based net retention rate in the trailing-12-month period of 111%.

As of the end of April, Okta had 19,100 customers, up 150 from the previous quarter. Remaining performance obligations were $3.364 billion. Cash flow in the quarter was $214 million and the Okta ended the quarter with $2.32 billion in cash, cash equivalents and short-term investments on hand.

Recent business highlights include Okta’s Showcase event on May 9 where it unveiled new products and features for its Workforce Identity Cloud and Customer Identity Cloud. New products included identity security posture management and identity threat protection with Okta AI in WIC. CIC new features included Bot Detection, Auth Challenge and Passkeys.

“Identity is security and Okta is critical for organizations to modernize identity for today’s threat landscape,” co-founder and Chief Executive Todd McKinnon said in the company’s earnings release. “With the advancements we’ve made on Okta’s Secure Identity Commitment and our growing product pipeline, we remain well-positioned to advance our market leadership position and win more of the massive opportunity in both the workforce and customer identity markets.”

For its fiscal second quarter, Okta expects adjusted earnings per share of 60 to 61 cents on revenue of $631 million to $633 million. The revenue forecast was ahead of the $616.8 million expected by analysts. For its full year, Okta expects adjusted earnings per share of $2.35 to $2.40 on revenue of $2.53 billion to $2.54 billion.

Photo: Okta