Okta’s quarterly figures were more positive than expected. In addition, Israeli company Axiom Security is being acquired for $100 million.
Okta’s revenue rose to $728 million, 13 percent more than the same period a year ago. This was also higher than the $711.8 million predicted by analysts. According to CEO Todd McKinnon, the improvement can be explained by “the adoption of new products, the public sector, Auth0, and cash flow.”
McKinnon told CNBC that the results speak for themselves. Although some government agencies have modified or postponed contracts, retention has been good here too, according to CFO Brett Tighe.
IAM needs PAM
Axiom Security, founded in 2021, immediately sounds like a logical extension of Okta’s existing identity security platform. The startup specializes in Privileged Access Management (PAM) and promises to bring customers to the intended least-privileged state of affairs in which no employee has more access than necessary. What’s more, sensitive access can be provided temporarily via a just-in-time tool.
Axiom’s solution works for secure access to the public cloud, SaaS, databases, Kubernetes, and servers. Its customer base already includes Navan, the business travel platform also used by Okta.
Looking ahead
The argument for purchasing additional services from Okta beyond secure logins is the same as for Axiom: most cyber threats arise from identity issues. In short, this is a logical step for Okta, which hopes to complete it in September. Axiom’s offering will be integrated into Okta’s existing Privileged Access platform.
We expect more to be announced during the annual Oktane conference at the end of September. For the coming quarter, Okta expects to generate between $2.875 billion and $2.885 billion in revenue, an increase from its previous forecast.
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