Products

• Workforce Identity
  • Login for employees
• Customer Identity
  • Login for customer accounts
• 7000 integrations
• Auth0 (acquired May 2021)

Business Model

• Revenue (Q2): 316M (+57% YoY)
  • Subscription 303M (+59% YoY)
    • 96% of revenue
  • Auth0: 38M
  • Workforce Identity (64% of ACV)
  • Customer Identity (36 % of ACV)

Core Metrics

• Revenue 2021: $1.25B (+57% YoY)
  • Projected 2026 Revenue: $4B
• 13k customers
  • Customers > $100k ACV: 2.6k (+55% YoY)
• Auth0 Customers: 1650
  • Customers > $100k ACV: 375
• 124% Net dollar retention
• 4b

Analysis

Okta is a pretty boring product as an enterprise identity management system but it has great numbers as a SaaS company. Identity management is also pretty sticky since it would be a huge pain for customers to migrate to another identity provider.

Okta grew it’s revenue by 57% over last year which is quite impressive since it grew 44% the year before that. With expected revenue of 1.2B, Okta trades at revenue multiple of 31x which isn’t too crazy. With 2600 customers already paying 100K+, Okta has a huge funnel to upsell more product. Their bold projection of 4B revenue in 2026 (35% YoY) may actually be too conservative. Currently, ServiceNow has around 5B of revenue with 31% YoY growth at a valuation $130B (28x multiple). Using similar numbers, we can see Okta become a $100-120B company in 4 years (3x upside).