Okta Inc.
OKTABusiness Overview
ticker: OKTA step: 01 generated: 2026-05-13 source: quick-research
Okta, Inc. (OKTA) — Business Overview
Business Description
Okta is the leading independent identity and access management (IAM) platform, providing cloud-native Single Sign-On (SSO), Multi-Factor Authentication (MFA), and Customer Identity and Access Management (CIAM) to over 19,000 customers — including 80% of the Fortune 500. Okta serves as the "identity layer" for enterprise security: every employee, contractor, partner, or AI agent accessing any application is authenticated and authorized through Okta. FY2025 revenue was $2.61B (+15% YoY), reaching first full-year GAAP profitability ($28M net income). The AI agent identity opportunity — securing non-human software agents accessing enterprise systems — has re-ignited the bull case following the April 2026 launch of Auth0 for AI Agents.
Revenue Model
Subscription-based SaaS (~97% of revenue). Customers pay per-seat (workforce identity: SSO, MFA, Lifecycle Management) or per-monthly-active-user (customer identity: Auth0). Products are modular — customers add Okta Identity Governance, Privileged Access, Device Trust, and AI security as incremental modules. New products (Governance, Privileged Access, AI) represent ~30% of Q4 FY2026 bookings and increase average contract value by ~40% when included in a deal. Net revenue retention is the key expansion metric.
Products & Services
- Workforce Identity Cloud — SSO, MFA, Lifecycle Management, Universal Directory for employees/contractors
- Customer Identity Cloud (Auth0) — developer-first CIAM for securing customer-facing apps
- Okta Identity Governance — access certifications, policy enforcement, separation of duties
- Privileged Access — Privileged Access Management (PAM) for high-risk admin accounts
- Auth0 for AI Agents — launched April 30, 2026; identity layer for autonomous AI agents/bots
- Device Trust — zero-trust device posture verification
- Okta AI — AI-driven threat detection, policy recommendations, anomaly detection
Customer Base & Go-to-Market
Okta serves enterprises primarily, with a strong mid-market presence via Auth0 (developer-led). Customer count: 19,000+ as of Q4 FY2024; $100K+ ARR customers growing faster than overall base. Direct sales + reseller/channel partner motion. Geographic mix: ~70% Americas, ~30% international. Auth0 (acquired for $6.5B in 2021) handles developer-led, bottom-up CIAM adoption.
Competitive Position
Okta holds ~41% market share in IAM, making it the leading pure-play identity platform. Primary competition: Microsoft Entra ID (bundled with Microsoft 365 — the main incumbent threat), CyberArk (PAM), Ping Identity, SailPoint (governance), and newer AI-native identity entrants. Okta's independence from cloud providers (AWS, Azure, Google) is a key differentiator for enterprises that want a vendor-neutral identity layer. AI agent identity (securing software bots/agents) is an emerging TAM expansion that no incumbent dominates — Okta's April 2026 Auth0 for AI Agents launch gives it a first-mover advantage.
Key Facts
- Founded: 2009
- Headquarters: San Francisco, California
- Employees: ~6,200
- Exchange: NASDAQ
- Sector / Industry: Technology / Software — Infrastructure
- Market Cap: ~$13B (at ~$68/share)
Financial Snapshot
ticker: OKTA step: 04 generated: 2026-05-13 source: quick-research
Okta, Inc. (OKTA) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $1.30B | $1.86B | $2.26B | +21.8% |
| Non-GAAP Op. Margin | ~-10% | ~1% | ~13% | |
| GAAP Net Income | ~-$815M | ~-$1.0B | ~-$356M | improving |
| Non-GAAP EPS | ~$0.04 | ~$1.31 | ~$2.24 |
FY2025: Revenue $2.61B (+15.3%); first full-year GAAP net income ($28M); Non-GAAP EPS ~$3.26. Q3 FY2026: Revenue $742M (+11.6%) — above estimates; adj. EPS $0.82 (+22% YoY).
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$0.5B |
| Free Cash Flow | ~$0.4B |
| Capital Expenditures | ~$0.1B |
| Cash & Equivalents | ~$2.5B |
| Total Debt | ~$1.5B (convertible notes) |
FY2026: FCF margin reached 26% — strong conversion. Cash + short-term investments ~$2.5B against ~$1.5B convertible notes. Stock-based compensation remains elevated (~20%+ of revenue), suppressing GAAP earnings.
Key Ratios (approximate)
- P/E: ~18x (non-GAAP FY2026E) | EV/EBITDA: ~20x | FCF Yield: ~4%
- Revenue Growth: 11–15% | Non-GAAP Operating Margin: ~16–18%
Growth Profile
Okta's revenue growth decelerated from 55% (FY2022) through a breach-impacted period (FY2024: +22%) to ~11–15% currently. The financial profile is improving rapidly: FY2025 delivered first GAAP profitability, non-GAAP margins are expanding, and FCF reached 26% margin. The stock fell 20% in early 2026 before recovering 16.9% on AI agent identity catalysts. At ~4.7x FY2026 revenue multiple — well below SaaS peers at 8–10x — Okta screens as undervalued if double-digit growth is sustainable.
Forward Estimates
- FY2026 consensus: Revenue ~$2.95B (+13%); Non-GAAP EPS ~$3.50
- FY2027: Revenue ~$3.30B (+12%); EPS re-rating potential if AI agent revenues materialize
- New products (Governance, Privileged Access, AI): ~30% of Q4 bookings; +40% ACV uplift
- Analyst mean PT: ~$101 (+49% from ~$68); 25 Strong Buy / 12 Hold / 2 Sell
- Auth0 for AI Agents (Apr 30, 2026): potential TAM expansion into multi-trillion-dollar AI agent market
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $OKTA.