*UKHotViewsExtra* Okta FY23: Identity security remains a priority for organisations

Identity security provider Okta reported strong growth to close out FY23, but forecasts growth to almost halve next year as attracting new customers is expected to become more challenging.

In Q4 FY23 Total revenue was $510m, an increase of 33% yoy. Subscription revenue was $495m, an increase of 34% yoy. For the full FY23 total revenue was $1.86bn, an increase of 43% yoy, with international revenue (which includes the UK) growing 32% yoy and representing 21% of total revenue. Management has focused on improved profitability and increasing cash flow to navigate the evolving macroeconomic environment.

The company reported that similar to Q3 it did not experience a meaningful change in sales cycles or close rates. However, customers are requesting shorter-term contract links as they become more conservative with their long-term commitments. In Q4 Okta added 550 new customers bringing the total customer base to 17,600, representing growth of 17%. New customer growth is an area where it expects to see further challenges, however the business has seen continued strength with upsell and cross-sell business with existing customers.

Forward projections expect total revenue of $509-511m in Q1 FY24, representing a growth rate of 23% yoy. For the full year FY25, the company expects total revenue of $2.155bn to $2.170bn, representing a growth rate of 16% to 17% yoy, a significant slowdown in growth compared to the past few years.

TechMarketView subscribers - including UKHotViews Premium subscribers - can access our analysis of the latest set of results in the UKHotViewsExtra article Okta FY23: Identity security remains a priority for organisations

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Posted by: Simon Baxter at 10:28

Tags: cybersecurity  

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