Okta Expects 30% Annual Growth to 2024, Boosted by New Markets

Okta Inc., an identity-verification software maker whose business got a dramatic boost from the shift to remote work during the pandemic, projected sales will grow 30% in each of the next three years.

Revenue at the end of fiscal 2024 will be close to an annualized $2 billion, or about $500 million for the fourth quarter that year, Chief Executive Officer Todd McKinnon said in an interview. The company, which last month agreed to buy Auth0 for about $6.5 billion, is interested in additional acquisitions, McKinnon said, but will achieve that growth rate without any more deals. 

Demand for the software maker’s products, which help workers access corporate systems and consumers authenticate their identity online, has increased as more employees logged on from home during the past year. For the 12 months through March 1, Okta was used more than 52 billion times to log into an app or website, almost 200% growth from the same period a year earlier.

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Todd McKinnon

Photographer: Michael Short/Bloomberg

The company’s shares more than doubled last year, making McKinnon a billionaire on paper. But since hitting a record high on Feb. 12, the stock has declined 22% through Tuesday’s close with investors leery that the company may not be able to maintain its momentum.

McKinnon said some investors were disappointed in the fiscal year 2022 forecast and thought the company paid too much for Auth0. He doesn’t agree with either concern. Okta last month said annual revenue would be as much as $1.09 billion while its adjusted loss would be 44 cents to 49 cents a share.