Cloud Stocks: Okta Targets $25B Customer Identity Market With Acquisition


According to a recent Fortune Business Insights report, the global identity access management (IAM) market is estimated to grow to $24.76 billion by 2026 at a CAGR of over 13%. Corporate identity management services provider Okta (Nasdaq: OKTA) recently announced its quarterly results that surpassed market expectations. Okta also recently made its biggest acquisition, as it strives to make bigger inroads within the customer identity access management (CIAM) market.

Okta’s Financials

Revenues for the fourth quarter grew 40.3% to $234.7 million, surging ahead of the market’s forecast by 5.8%. EPS was $0.06, significantly better than the Street’s estimated loss of $0.01 per share.

By segment, subscription services revenues increased 42.2% to $225.4 million. Professional Services and Other segment revenues grew 6% to $9.3 million.

For the full fiscal year 2021, revenues grew 43% to $835 million and EPS was $0.11.

Among key metrics, Remaining Performance Obligations (RPO) grew 49% to $1.8 billion. Dollar-based net retention grew to 121%.

Okta expects to end fiscal 2022 with $1.08-$1.09 billion in revenues and non-GAAP net loss of $0.44-$0.49. For the first quarter, Okta forecast revenues of $237-$239 million with a net loss of $0.20-$0.21 per share. The market was looking for revenues of $238.43 million for the first quarter with a net loss of $0.20 per share and revenues of $1.09 billion for the year with a net loss of $0.45 per share.

Okta’s Acquisition

Recently, Okta announced the acquisition of Bellevue-based cloud identity startup Auth0 for $6.5 billion. Founded in 2013 by Eugenio Pace and Matias Woloski, Auth0 addresses complex and large-scale identity use cases for global enterprises with its easy-to-integrate platform. The acquisition will allow both companies to address identity use cases and will accelerate the shared vision of the safe use of technology. Okta will leverage the acquisition to accelerate its growth in the identity market and offer organizations a wider range of identity solutions. Auth0 will continue to remain as an independent business inside Okta, and over time, they will be supported, invested, and integrated.

1 2
View single page >> |

Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.