OKTA Stock Gains Further
Our personal and work lives are so intertwined today that it’s hard to say where one ends and the other begins.
This is because we are mostly online and have the means to access not only our personal apps but our work-related ones as well. This is convenient, but also a big security threat for organizations that have to deal with the rising threat of data breaches almost every day.
This is why the platform provided by Okta Inc (NASDAQ:OKTA) has become a kind of lifeline for businesses. Okta offers the best in identity systems and is the leading independent provider of identity systems for enterprises.
Simply speaking, organizations don’t have to worry about security threats if the users are signing into their web applications through Okta’s security cloud, called the “Okta Identity Cloud.”
The Okta Identity Cloud is the leading platform that enables its customers to securely connect people to technology, anywhere, anytime, and from any device. Employees sign into its platform to seamlessly access the applications they need to do their important tasks.
OKTA stock continues to gain on strong business as the demand for its services continues to grow.
According to a research report by Grand View Research, Inc., the global identity and access management market size is expected to reach $22.68 billion by 2025. (Source: “IAM Market Size Worth $22.68 Billion by 2025, CAGR: 12.7%,” Grand View Research Inc, last accessed January 9, 2018.)
The report further mentions that cloud services and mobile devices are being adopted quickly but insider threats are also on the rise. This has led to organizations spending more on IT security, which is driving the market growth.
This means more market share for Okta in the coming years. The company is well positioned to gain from these trends as organizations move their business to the cloud in order to decrease costs and enhance efficiency.
As the number of mobile devices goes up, applications in the cloud are being accessed from a multitude of devices. This is quite convenient, but organizations need to make sure that this does not compromise their networks and other assets.
Okta is solving this major problem and OKTA stock has been gaining consistently as a result. The business has shown impressive growth and the following table shows how the sales have improved over the last four quarters.
(Source: “Quarterly Reports,” Okta Inc, last accessed January 9, 2019.)
The company posted strong results for the third quarter last month. The revenue was $105.6 million, an increase of 58% year-over-year.
The cash flow was positive for the quarter. The company saw 55% growth in customers with over $100,000 annual recurring revenue, representing a record 100 net new adds in a quarter. (Source: “Okta Announces Record Third Quarter Fiscal 2019 Financial Results,” Okta Inc, December 5, 2018.)
There is a big market opportunity for the company as organizations focus on strengthening their identity solutions while moving their businesses to the cloud.
This means more upside for Okta stock, which has already gone up by almost 160% over the last one year. It has gained about 36% since we covered it in Profit Confidential in May 2018. Given the recent performance, Okta stock is likely to post more double-digit upside in the coming years.
Chart courtesy of StockCharts.com
As companies modernize and keep spending on security, Okta’s business should continue to gain traction. Identity systems are becoming vital, and organizations in every major industry are turning to Okta for its leadership.
Okta is focused on increasing its share of IT security spending and taking an early lead in the customer identity market. This bodes well for Okta stock.
The Okta Identity Cloud helps organizations effectively utilize the power of cloud and mobile technologies by securing users and connecting them with the applications they need to work on.
People use Okta to securely access a wide range of cloud applications, web sites, mobile applications, and services from different types of devices.
As digital security remains a topmost priority, Okta’s business will likely see more upside in the coming years and OKTA stock will likely gain.