According to Stratistics MRC, the Global Identity & Access Management market is estimated to grow 15% annually from $7.94 billion in 2016 to $20.87 billion by 2022. Earlier this year, Identity and Access Management services provider Okta (Nasdaq:OKTA) went public. The listing of the San Francisco-based company appears to be doing well so far.
Okta’s Financials
Okta’s identity management solution gets rid of duplicative credentials and disparate authentication policies to help organizations simplify and scale their IT infrastructures more efficiently. Its Identity Cloud offering allows customers to securely connect people to technology, anywhere, anytime and from any device. It recently reported its quarterly results – the first since it went public.
For the first quarter of the year, Okta’s revenues grew 67% over the year to $53 million, ahead of the market’s estimates of $48 million. Net loss of $0.50 per share was also better than the Street’s estimate of $0.61 loss per share.
By segment, subscription revenues grew 75% to $48.4 million and Professional services and other revenues grew 10% to $4.65 million. Geographically, 86% of its revenues for the quarter came from the US customers. Europe, Middle-East, and Africa contributed to the remaining 14% revenues.
Billings for the quarter grew 75% to $59.9 million, driven by large user expansions in enterprise sales. The Street had forecast billings of $48.8 million for the quarter. It ended the quarter with 3,350 customers.
During the quarter, research and development expenses grew nearly 50% from $8.1 million a year ago to $12.1 million.
For the current quarter, Okta forecast revenues of $55-$56 million and a net loss of $0.25-$0.26 per share. The Street had forecast revenues of $54 million and a loss of $0.26 per share. For the full year, Okta forecast revenues of $233-$236 million and a net loss of $1.11-$1.15, compared with the market estimate of revenues of $227 million and a net loss of $1.18 per share.
