Okta sees great growth ahead as it expands its service offerings.
The cybersecurity company said on Wednesday it expects revenue for the financial year to grow by 30% as it launches two new products, one in ‘privileged access management’ and another in ‘identity management and administration’.
Privileged access wants to protect data from being hacked within an organization, while identity management and administration is designed to streamline how an organization decides what information users have access to on its servers.
The addition of these new instruments also increases Okta’s business opportunity by more than 20%, CEO Todd McKinnon told CNBC’s Jim Cramer.
“We have a massive addressable market,” McKinnon said in a “Mad Money” interview. “As everything moves to the cloud, as companies have to connect with their customers via digital channels, as everyone is concerned about safety, this massive $ 80 billion (TAM) market is the foundation for sustained growth during a long period.
Okta provides security tools to authenticate users, such as password permissions and access to online networks.
In terms of privileged access management and identity management and administration, Cramer noted that the company will dominate the markets through CyberArk and SailPoint Technologies. Okta also works with both companies.
McKinnon suggested that the market opportunity for identity control and privileged access services is $ 15 billion.
“There is enough room for many vendors to follow it. We follow it from a very cloud-oriented approach,” he said. “We will continue to work with these partners, and at the same time do what our customers ask. These are all cases of identity use.”
Okta forecasts that total revenue in the current financial year will amount to $ 1.09 billion. The company reported $ 835.4 million in revenue in the previous fiscal year, which ended Jan. 31.
Growth has been gradually declining over the past few years. Octa achieved a revenue growth of 42.5% in fiscal 2021, from 53.6% in fiscal 2019.