The global identity and access management market size is projected to grow at CAGR of 13.2% to $24.76 billion by 2026. Corporate identity management software company Okta (Nasdaq: OKTA) continues to expand its presence in the market through acquisitions.

Okta’s Financials

Revenues for the second quarter grew 57% to $316 million, surging ahead of the market’s forecast of $293.16. Non GAAP loss was $0.11 per share, significantly better than the Street’s estimated loss of $0.33 per share.

By segment, subscription services revenues increased 59% to $303 million. Professional services and others segment revenues grew 26.9% to $12.4 million.

Among key metrics, Remaining Performance Obligations (RPO) grew 57% to $2.24 billion.

Okta expects to end fiscal 2022 with revenues of $1.243-$1.250 billion and non-GAAP net loss of $0.77-$0.74. For the third quarter, Okta forecast revenues of $325-$327 million and a net loss of $0.25-$0.24 per share. The market was looking for revenues of $322.5 million with a net loss of $0.34 per share for the third quarter and revenues of $1.22 billion with a net loss of $1.12 per share for the year.

Okta’s atSpoke Acquisition

In August this year, Okta announced the acquisition of a small innovative company atSpoke. San Francisco-based atSpoke is an early-stage workplace operations platform, whose access request workflow capability helps augment Okta’s broader IGA strategy and vision.

Okta is currently working on a single platform for identity governance that will provide privileged access, collect audit logs for compliance, simplify setup and management, while enhancing the user experience. Customers will be able to manage end-to-end identity governance processes across applications, infrastructure and APIs at any level of scale using its extensible APIs and no-code workflows. The platform is slated to be released early next year. atSpoke’s tools are expected to integrate well into this solution.

atSpoke was founded in 2016 and had raised $28 million in two rounds of funding from Greylock and Accel. Terms of the acquisition were not disclosed. atSpoke was about to reach its go-to-market stage at the time of the acquisition.

This is Okta’s second acquisition this year. It is leveraging its earlier acquisition of Auth0 for the expansion of its developer community. Auth0 joined Okta with a base of over 13,000 paying self-service subscriptions, and over 40,000 active free subscriptions being utilized by developers on the Auth0 platform. Okta is leveraging this developer community to expand its PaaS presence. Auth0’s developer community is building custom identity tools using the Auth0 platform and helping differentiate the Auth0 platform from other offerings in the market. Recently, Auth0’s co-founders Eugenio Pace and Matias Woloski also hosted a Developer Day Event to support developers by providing access to hands-on labs and tutorials focused on the theme of building the future of identity.

Okta’s stock is currently trading at $227.83 with a market cap of $35.2 billion. It touched a 52-week high of $294.00 in February. It hit a 52-week low of $199.08 in October last year.