Okta Inc (NASDAQ:OKTA) stock fell 13.82% (As on May 28, 11:21:47 AM UTC-4, Source: Google Finance) after the company’s full-year revenue guidance came in slightly shy of estimates and the growth in key performance metrics cooled off. The company, however, reported quarterly top and bottom-line beats. The remaining performance obligations (RPO) climbed 21% YoY to $4.084 billion, slowing from the 25% growth in the previous quarter. Current RPO (cRPO), which represents subscription backlog expected to be recognized over the next 12 months, totaled $2.227 billion, up 14% compared to the first quarter of fiscal 2025. The company ended the quarter with a cash position of $2.725 billion. Non-GAAP net income was $158 million, compared to non-GAAP net income of $117 million in the first quarter of fiscal 2025. Net cash provided by operations was $241 million, or 35% of total revenue, compared to net cash provided by operations of $219 million, or 36% of total revenue, in the first quarter of fiscal 2025. Free cash flow was $238 million, or 35% of total revenue, compared to $214 million, or 35% of total revenue, in the first quarter of fiscal 2025.

OKTA in the first quarter of FY26 has reported the adjusted earnings per share of 86 cents, beating the analysts’ estimates for the adjusted earnings per share of 77 cents. The company had reported the adjusted revenue growth of 12 percent to $688 million in the first quarter of FY26, beating the analysts’ estimates for revenue of $680.08 billion. Subscription revenue was $673 million, an increase of 12% year-over-year. Non-GAAP operating income was $184 million, or 27% of total revenue, compared to a non-GAAP operating income of $133 million, or 22% of total revenue, in the first quarter of fiscal 2025.

For the second quarter of fiscal 2026, the company expects revenue to be in the range of $710 million to $712 million, marking a further slowdown in the YoY growth to 10%. However, it exceeded the consensus estimate of $708.83 billion. It expects adjusted EPS of $0.83-$0.84 (consensus $0.79). Q2 Current RPO is expected to be of $2.200 billion to $2.205 billion, representing a growth rate of 10% to 11% year-over-year and Non-GAAP operating income of $183 million to $185 million, which yields a non-GAAP operating margin of 26%.

Okta maintained its fiscal year revenue guidance at $2.850 billion-$2.860 billion, trailing the $2.862 billion consensus estimate. However, it raised the adjusted EPS guidance to $3.23-$3.28 from $3.15-$3.20, above the consensus estimate of $3.20.