09:43 AM EDT, 05/30/2024 (MT Newswires) -- Okta ( OKTA ) posted another "good quarter" with strong bookings momentum, a good billings number, and better-than-expected revenue but the beat was a bit lighter than in previous few quarters, Wedbush said in a note Thursday.

Investors were hoping for roughly $623 million to $624 million in revenue but strong bookings and billings figures "should alleviate any concern," analysts led by Daniel Ives wrote.

Okta ( OKTA ) posted Q1 revenue of $617 million, up from $518 million a year earlier and above the Capital IQ consensus of $604.5 million.

The company reported roughly 15% growth in current remaining performance obligations, or cRPO, and if it can post about 14% growth in fiscal Q2, "it inspires confidence that OKTA ( OKTA ) might be able to sustain a ~14% - 15% revenue growth in FY26E too, which is quite a bit above the ~12% the Street is modeling today," Wedbush said.

"We don't believe that the cRPO metric is a great metric to assess the operational performance of a quarter due to the

various factors that impact it, but we do believe that it is a decent leading indicator of revenue growth going forward," the note said.

Wedbush expects Okta ( OKTA ) to report fiscal Q2 earnings of $0.61 per share and revenue of $632.2 million.

Okta ( OKTA ) has an outperform rating and a $130 price target from Wedbush.

Shares of the company were about 2% lower in early trading on Thursday.

Price: 101.30, Change: +4.94, Percent Change: +5.13