Billion Dollar Unicorns: Okta Faces Tougher Competition From Cisco

According to a Tech Navio report published earlier this year, the global identity and access management (IAM) market is estimated to grow 13% annually over the next four years. The growth will be driven by the continuing adoption of Bring Your Own Devices (BYOD) in the workplace.

The Americas were the biggest market for the industry and accounted for 41% of the share. However, as growth picks up in EMEA and the rest of the world, America’s market share is estimated to reduce 4% during the forecast period. Here is an interesting infographic from the report.

Okta’s Financials

Billion Dollar Unicorn Okta, recently reported its second quarter results that surpassed market expectations. Revenues for the quarter increased 57% to $94.6 million, ahead of the market’s forecast of $84.7 million. It ended the quarter with a non GAAP net loss of $0.15 per share, compared with the Street’s forecast of a loss of $0.20 per share.

By segment, revenues from Subscription Services increased 59% over the year to $87.9 million and Professional Services grew 36% to $6.7 million.

For the current quarter, Okta forecast revenues of $96-$97 million with a net loss of $0.12-$0.11 per share. It expects to end the year with $372-$375 million in revenues and non-GAAP net loss per share of $0.48-$0.46. The Street was looking for revenues of $356.5 million and a net loss of $0.56 per share for the year.

Identity & Access Management Acquisitions 

Earlier last quarter, Okta announced the acquisition of zero trust security firm ScaleFT for an undisclosed sum. ScaleFT was founded in 2015 by Jason Luce and Paul Querna. It provides an access management platform that enables secure remote access without a VPN. Its product was inspired by Google’s security system BeyondCorp. While traditional security products focus on protecting the network, ScaleFT’s product focuses on protecting devices and context. It essentially doesn’t trust anyone – not even those within the firewall.

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