According to a recent research report, the global Identity Access Management market is estimated to grow at a CAGR of 15% from $12.3 billion in 2020 to $24.1 billion by 2025. The pandemic conditions have accelerated the growth in the market as organizations look to accelerate their digital transformation and improve their work-from-home capabilities. Corporate identity management software company Okta (Nasdaq: OKTA) continues to benefit from this transition.

Okta’s Financials

Revenues for the first quarter grew 37% to $251 million, surging ahead of the market’s forecast of $238.31. Non-GAAP loss per share of $0.10 was significantly better than the Street’s estimated loss of $0.20 per share.

By segment, subscription services revenues increased 38% to $240 million. Professional services and the others segment revenues grew 20.6% to $10.9 million.

Among key metrics, Remaining Performance Obligations (RPO) grew 52% to $1.89 billion. Dollar-based net retention grew to 121%.

Okta expects to end fiscal 2022 with $1.215-$1.225 billion in revenues and non-GAAP net loss of $1.16-$1.13. For the second quarter, Okta forecast revenues of $295-$297 million with a net loss of $0.36-$0.35 per share. The market was looking for revenues of $259.95 million for the quarter with a net loss of $0.10 per share and revenues of $1.09 billion for the year with a net loss of $0.45 per share.

Okta’s Product Upgrades

During the quarter, Okta announced a new product called Okta Privileged Access. Okta Privileged Access unifies identity management with flexible access controls meant for critical infrastructure to help with increasing development speeds, operational agility, and Zero Trust security. It makes the management of hybrid and multi-cloud infrastructure resources simple and accessible. It also recently announced Okta Identity Governance, a new product that gives a modern, cloud-first approach to IGA. The product provides self-service identity governance and administration for all of its users in its extended enterprise with a control plane, meeting compliance requirements without sacrificing speed in both hybrid and multi-cloud environments.  

Meanwhile, Okta continues to expand its focus within the government sector. It recently announced that it had received a provisional authorization to operate at Impact Level 4 (IL4) from the United States Defense Information Systems Agency (DISA) under the Department of Defense’s Cloud Computing Security Requirements Guide. The provisional authorization will allow government agencies and their contractors to leverage Okta Identity Cloud and simplify the adoption of Okta’s identity solutions within their organizations. The receipt of the status further strengthens Okta’s commitment to the government sector. It enables digital transformation for the sector by providing a simplified user experience for workforces while enhancing security.

Its stock is currently trading at $216.44 with a market cap of $33.3 billion. It touched a 52-week high of $294.00 in February. It hit a 52-week low of $173.06 in June last year.