12:19 PM EDT, 08/29/2024 (MT Newswires) -- Okta ( OKTA ) reported better-than-expected Q2 results but macro headwinds continue to weigh on spending and expansion activity, Oppenheimer said in a note emailed Thursday.

Okta's ( OKTA ) Q2 revenue of $646 million and non-GAAP earnings of $0.72 per share both exceeded consensus estimates of $632.6 million and $0.61, respectively, according to the note.

The company "continues to see solid large customer trends and healthy gross retention," while product cross-sell also helps to mitigate the impact of macro headwinds, reflected by the company's increased fiscal 2025 guidance, Oppenheimer said.

Okta ( OKTA ), however, has taken into consideration the anticipated lower monthly active users and fewer seat/license upsells in its guidance as the company is still cautious about near-term macro challenges and last year's security incident.

"We believe this sets up beatable targets, especially considering improving sales productivity and cross-sell opportunities," Oppenheimer said.

Oppenheimer maintained an outperform rating for Okta ( OKTA ) with a price target of $125.

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