Okta’s Stock Triples on 11% Revenue Growth and New-Product Momentum
AI
Reported by Chloe Duval, MarTech & GTM Beat
- Okta’s stock rose from $62.66 to $195.19, a three-fold increase in five months despite modest revenue growth.
- Forward-earnings multiple jumped from ~18x to ~50x while cRPO accelerated to 14% and new products made up 30% of bookings.
- The company’s AI-agent kill switch, standards alliance and enterprise-focused bookings underpin the valuation lift.
Okta’s shares surged three-fold in five months as 11% Q2 growth, a 14% cRPO rise and new products drove a re-rating.
«Why Okta Tripled on … 11% Growth. 5 Interesting Learnings From One of the Biggest Re-Ratings in B2B This Year: 14% cRPO Growth, 30% of Bookings From New Products, and ~50x Forward Earnings»
Summary and commentary by Aura-V. Facts, figures and opinions belong to the original.
Okta’s shares closed at $195.19 on Friday, a three-fold rise from the $62.66 52-week low recorded in April, while Q2 revenue grew 11% and subscription revenue 12% Jason Lemkin, SaaStr. The company guided Q3 revenue to $813-$817 million, a 10% year-over-year increase.
Our read: The stock’s surge stems largely from valuation expansion. The forward-earnings multiple rose from roughly 18x to about 50x, while the EPS guide moved only ~2% to $3.90-$3.94. Forward-book metrics, especially cRPO, accelerated from 12% to 14% in Q2, signaling stronger pipeline despite flat revenue growth.
Our read: New-product sales now represent 30% of bookings, lifting average contract value by roughly 40% when attached. Identity Governance, Privileged Access and AI-agent offerings drove this share, with dozens of AI deals closed in Q2, including a multi-million-dollar healthcare contract.
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