Okta Q2 2025 Earnings Call Transcript
Earnings Highlights
- Okta reported strong revenue growth of 42% year-over-year, exceeding analyst expectations.
- Free cash flow was reported at $78 million, or 12% of total revenue, significantly exceeding the expected 5%.
- The company's acquisition of Auth0 has led to major disruptions, including to its bottom line, but there are signs pointing to an end to these issues ahead.
Analyst Commentary
The Motley Fool Stock Advisor analyst team did not include Okta in its list of the 10 best stocks for investors to buy now.
Management Commentary
David Gennarelli, Senior Vice President of Investor Relations, discussed the company's strong revenue growth and free cash flow generation.
He also acknowledged the disruptions caused by the Auth0 acquisition but expressed optimism about the future.
Q&A
During the Q&A session, analysts asked questions about the company's growth strategy, its plans for Auth0, and its competitive landscape.
Conclusion
Okta's Q2 2025 earnings call was a mixed bag. The company reported strong revenue growth and free cash flow generation, but the Auth0 acquisition has led to major disruptions.
However, there are signs pointing to an end to these issues ahead, and the company remains well-positioned to capitalize on the growing demand for identity and access management solutions.
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