Cloud provider Okta maintains double-digit sales growth
The provider of cloud identification solutions Okta Inc. (OKTA), has published a report for the third quarter of 2022. The company maintains high double-digit sales growth rates and reports the first successful cross-sales of the recently acquired Auth0 access control business.
In the quarter ended October 31, Okta’s revenue grew by 61% year-on-year to $351 million. The remaining performance obligations (RPO) increased by 49% to $2.35 billion. The loss increased due to the acquisition of Auth0 and amounted to $221 million, or $1.44 per share.
The stock of cash and equivalents amounted to $2.48 billion. Of the total revenue, $46 million by the Auth0 business. Without taking it into account, Okta’s revenue growth was 40%. Okta confirmed the October assumptions about the merger’s synergy with Auth0 and announced the first cross-sales that united the audiences of both companies.
At the same time, the sales potential is tremendous since many organizations are moving to the “identification in the first place” model; that is, they make mandatory access control tools based on modern technologies for identifying employees and customers. As a result, the combined company’s total addressable market is more than $80 billion.
Okta’s business is moving forward thanks to three leading trends in the IT market: migration to the cloud, hybrid IT systems, and zero-trust information infrastructure. In the fourth quarter, Okta expects revenue to increase by 53% to $358 million, adjusted operating loss of $35 million, and net loss per share of $0.25.
For the full year, Okta forecasts revenue growth of 5.3% on average in the range of $1.275-$1.277 billion and a loss of $0.53-$0.52 per share. At the auction on December 2, OKTA stock was worth $221.18. The market capitalization was $37.58 billion.
