Okta Files For IPO
Okta has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were listed in the filing but the offering is valued up to $100 million, though this number is usually just a placeholder. The company intends to list its shares on the Nasdaq under the symbol OKTA.
The underwriters for the offering are Goldman Sachs, JPMorgan, Allen, Pacific Crest, Canaccord Genuity and JMP Securities.
This company is the leading independent provider of identity for the enterprise. Okta pioneered identity in the cloud. The Okta Identity Cloud is a category defining platform that enables customers to securely connect people to technology, anywhere, anytime and from any device.
Every business day, over 2 million people use Okta to access a wide range of cloud applications, websites, mobile applications and services from a multitude of devices. Workforces sign into the platform to access the applications they need to do their most important work. Organizations also use the platform to provide their customers with more modern experiences online and to connect with partners to streamline their operations.
Also, developers leverage the platform to securely embed identity into their software. As Okta adds new customers, users, developers and applications to the platform, its business, customers and users benefit from powerful network effects that increase the value and security of the Okta Identity Cloud.
In the filing Okta detailed:
Given the growth trends in the number of applications and cloud adoption, identity is quickly becoming the most critical layer of an organization’s security. As the corporate perimeter has dissolved, identity has become the most reliable way to manage user access, adopt cloud and mobile technologies and protect digital assets. Our approach to identity eliminates duplicative, sprawling credentials and disparate authentication policies, allowing our customers to simplify and scale their IT infrastructures more efficiently as the number of users, devices, clouds and other technologies in their ecosystem grows.
Revenue grew from $41.0 million in fiscal 2015 to $85.9 million in fiscal 2016, an increase of 109%. For the nine months ended in October 2015 and 2016, revenue was $58.8 million and $111.5 million, respectively, an increase of 90%. Okta incurred net losses of $59.1 million and $76.3 million in fiscal 2015 and 2016, respectively. For the nine months ended October 2015 and 2016, the company incurred net losses of $54.9 million and $65.3 million, respectively.
The company intends to use the proceeds from this offering for working capital, for other general corporate purposes and to fund growth strategies, including continued investments in its business, expanding international footprint and growing demand for its external use case.