Photo Credit: Teresa Wade from Pixabay

According to a recent report, the global identity and access management (IAM) market gained $15.93 billion in 2022 and is projected to grow at 13% CAGR from $15.93 billion in 2022 to 2030. Recently, Okta (OKTA) reported its second quarter results that outpaced market expectations.

Okta’s Financials

Revenues for the first quarter grew 25% to $518 million, ahead of the market’s forecast of $510.58. Net income per share was $0.22, significantly better than the Street’s estimated EPS of $0.12.

By segment, subscription services revenues increased 26% to $503 million. Professional services and other segment revenues fell 12% to $15 million. Among key metrics, Remaining Performance Obligations (RPO) grew 20% to $1.7 billion.

For the second quarter, it forecast revenues of $533-$535 million and a net income of $0.21-$0.22 per share. The market was looking for revenues of $526.27 million and a net income of $0.16 per share. It expects to end fiscal 2024 with $2.175-$2.185 billion in revenues and non-GAAP net income of $0.88-$0.93. The market was looking for revenues of revenues of $2.17 billion and a net income of $0.76 per share.

Okta’s Plaid Partnership and Product Upgrades

Recently, Okta announced its partnership with Plaid, which will help thousands of banks and financial institutions adopt OAuth and APIs for exchanging data with third parties. The partnership will provide the financial services ecosystem with a more secure way to accelerate open finance initiatives and deliver seamless connectivity.

Customers will have the ability to integrate Plaid with Okta's Customer Identity Cloud, allowing them to streamline and secure authentication, authorization, and aggregation of shared data. Several organizations, such as Project Finance, which work with banks and credit unions are leveraging the integration to deliver personalized digital banking experiences to customers.

Okta continues to upgrade its product offerings, and it recently announced the launch of Okta Device Access, a product that enables organizations to extend Okta’s IAM capabilities to corporate devices for a hybrid workforce. Device Access will be offered as part of Okta’s Workforce Identity Cloud and will help deliver stronger authentication to unlock a device, thus enabling organizations in achieving zero trust while simplifying the login experience for employees.

Okta is focused on moving the industry beyond traditional multi-factor authentication to enable phishing resistance and password-less capabilities. Device Access will help Okta get a step closer to that goal.

Earlier this year, Okta also announced that it had received the FedRAMP High identity authorization. Post the authorization, Okta will be able to provide federal agencies with security and privacy assurance, protecting sensitive data while enhancing user experience. Okta now has more than 200 authorizations in the FedRAMP Marketplace and is able to provide Identity-as-a-Service (IDaaS) solutions to federal agencies.

Its stock was recently seen trading at $69.35 with a market cap of $11.3 billion. It touched a 52-week high of $110.94 in August last year. It also hit a 52-week low of $44.12 in October last year.

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