Okta Inc
NASDAQ:OKTA
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Okta Inc
NASDAQ:OKTA
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Okta Inc
Okta sells identity software that helps companies control who can log in to their systems and what each person can access. Its main products handle single sign-on, multi-factor authentication, user directories, and access management for employees, contractors, and customers. In simple terms, Okta sits at the front door of digital work, checking identities before people reach apps, data, or internal tools. Its customers are businesses, governments, schools, and other organizations that need secure access for many users across cloud apps and internal systems. Okta usually makes money by selling subscriptions to its software and related support services, rather than by selling hardware or one-time licenses. That gives it a recurring revenue model tied to how many users and applications a customer wants to protect. What makes Okta’s business different is that identity is a core control point in modern IT. Companies rely on Okta to connect many separate applications into one sign-in layer and to enforce security rules across them. As more work moves to cloud software and remote access, identity management becomes less of a back-office feature and more of a central security system.
Okta sells identity software that helps companies control who can log in to their systems and what each person can access. Its main products handle single sign-on, multi-factor authentication, user directories, and access management for employees, contractors, and customers. In simple terms, Okta sits at the front door of digital work, checking identities before people reach apps, data, or internal tools.
Its customers are businesses, governments, schools, and other organizations that need secure access for many users across cloud apps and internal systems. Okta usually makes money by selling subscriptions to its software and related support services, rather than by selling hardware or one-time licenses. That gives it a recurring revenue model tied to how many users and applications a customer wants to protect.
What makes Okta’s business different is that identity is a core control point in modern IT. Companies rely on Okta to connect many separate applications into one sign-in layer and to enforce security rules across them. As more work moves to cloud software and remote access, identity management becomes less of a back-office feature and more of a central security system.
New products: Newer products (including AI agent offerings) made up approximately 30% of Q4 bookings and when included in deals produced roughly a 40% average contract uplift.
AI priority: Okta positioned identity as the foundational control plane for securing AI agents; early Auth0 for AI Agents and Okta for AI Agents deals were closed and management expects meaningful long‑term upside.
Large deals & partners: Q4 closed a record nearly $1.3 billion of total contract value; channel partners (including GSIs and AWS Marketplace) played a major role in top deals.
Financials & balance sheet: Ended Q4 with over $2.5 billion in cash and equivalents; announced a $1 billion repurchase program and bought back 875,000 shares for $79 million so far.
Guidance: FY '27 revenue growth guide of 9% (Q1 guide also 9%); Q1 current RPO growth guide 10%; non‑GAAP operating margin guide Q1: 23–24%, FY: 25–26%; free cash flow margin Q1: 33–35%, FY: 27–28%.
Model & priorities: Management reiterated priorities for FY '27: secure AI, land and expand with large customers, and win in federal/regulated verticals.
Retention & growth drivers: Gross retention remains healthy; management expects upsell and new business (plus added sales capacity) to drive faster top‑line growth over FY '27 and beyond.
