Photo Credit: Teresa Wade from Pixabay
 

According to a recent report, the global identity access management market is expected to grow at 12.6% CAGR from 2023 to 2030. The market was estimated at $15.93 billion in 2022. Corporate identity management software company Okta (Nasdaq: OKTA) recently reported its fourth-quarter results that continued to outpace market expectations.
 

Okta’s Financials

Revenues for the fourth quarter grew 33% to $510 million, surging ahead of the market’s forecast of $489 million. Net income per share was $0.30, significantly better than the Street’s estimated earnings of $0.09 per share.

By segment, subscription services revenues increased 34% to $495 million. Professional services and the others segment revenues grew 7.1% to $15 million.

For the year, revenues grew 43% to $1.86 billion and the net loss was $0.04 per share.

Among key metrics, Remaining Performance Obligations (RPO) grew 12% to $3.01 billion.

For the first quarter, it forecast revenues of $509-$511 million and a net loss of $0.11-$0.12 per share. The market was looking for revenues of $498.95 million for the quarter and a net income of $0.01 per share. It expects to end fiscal 2023 with $2.155-$2.17 billion in revenues and non-GAAP net income of $0.74-$0.79. The market was looking for revenues of $2.14 billion and a net loss of $0.32 per share.
 

Okta’s Product Upgrade

Recently, Okta announced a partnership with Plaid that will provide the financial services ecosystem with a more secure way to accelerate its open finance initiatives and deliver seamless connectivity for millions of consumers. According to a Plaid survey with Harris Poll conducted in 2022, today 75% of consumers agree that it is important to be able to connect bank accounts with digital finance apps and services. The partnership is expected to address this growing expectation from customers. The partnership will provide integrations, education, and support to help companies in the financial services industry transfer data through OAuth and API solutions.

By doing away with the need for password exchanges between parties, the integration will reduce the reliance on credentials and therefore create better and more secure experiences for consumers. Customers will have the ability to integrate Plaid with Okta Customer Identity Cloud to streamline and secure authentication, authorization, and aggregation of shared data. Organizations are already leveraging the integration, including Project Finance, which is focused on banks and credit unions to deliver personalized digital banking experiences to customers using a built-in suite of wellness tools. Arc is their other solution which offers digital banking services for 1,000+ software startups.

Its stock is currently trading at $84.34 with a market cap of $13.6 billion. It touched a 52-week high of $161.61 in April last year. It hit a 52-week low of $44.12 in October last year.

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