Okta expects strong growth as it expands its service offerings.
The cybersecurity firm said on Wednesday it expects its revenue for the year to increase by 30% by unveiling two new products, one in “privileged access management” and the other in ” governance and administration of identities ”.
Privileged Access aims to protect data from hacking within an organization, while Identity Governance and Administration has been designed to streamline how an organization decides what information users have access to on its servers. .
Adding these new tools also increases Okta’s business opportunities by more than 20%, CEO Todd McKinnon told UKTN’s Jim Cramer.
“We have a huge addressable market,” McKinnon said in a “Mad Money” interview. “As everything moves to the cloud, as businesses have to connect with their customers through digital channels, as everyone worries about security, this massive $ 80 billion TAM (Total Addressable Market) is the foundation. sustained growth over a long period. “
Okta provides security tools to authenticate users, such as password permissions, access to online networks.
In the area of privileged access management, governance and identity administration, Cramer noted that the company would enter markets dominated by CyberArk and SailPoint Technologies. Okta is also partnering with the two companies.
McKinnon suggested that the Identity Governance and Privileged Access Services market opportunity is $ 15 billion.
“There’s enough room for a lot of vendors to go after it. We’re going to look for it from a very cloud-centric approach,” he said. “We will continue to work with these partners, while doing what our customers ask us to do. This covers all of their identity use cases.”
Okta expects its total revenue to reach $ 1.09 billion in its current fiscal year. The company reported revenue of $ 835.4 million in the prior year, which ended Jan.31.
Growth has slowed steadily in recent years. Okta saw revenue growth of 42.5% in fiscal 2021, compared to 53.6% in fiscal 2019.