Enterprise software maker Okta, which specializes in identity management services for tracking employees, filed for an initial public offering this week on the NASDAQ.
Okta has a private valuation of over $1 billion, making it a startup “unicorn” that is generating buzz among investors. Founded in 2009, company makes cloud-based tracking tools that allow employers to see and control which employees are accessing a range of online services.
The company’s Okta Identity Cloud allows companies to ensure that only authorized employees can access sensitive data and corporate applications. Through a filing with the U.S. Securities and Exchange commission, Okta revealed it plans to trade under the ticker “OKTA.”
Market observers see it as a potential tipping point for Software-as-a-Service providers, which historically have not been embraced by investors on Wall Street. But more specifically, Okta offers what is known as Identity and Access Management as a Service, or IDaaS.
As of October 31, Okta had more than 2,900 customers, including Adobe, LinkedIn, 20th Century Fox, and Pitney Bowes. Partners include Amazon Web Services, Google Cloud, Microsoft, and SAP, with more than 5,000 total integrations with cloud, mobile and web apps.
As part of their SEC filing, Okta revealed that its revenue grew from $41 million in fiscal 2015 to $85.9 million in fiscal 2016, surging 109 percent.
Still, its costs are growing too: Okta saw net losses of $54.9 million 2015, but those grew to $65.3 million in 2016.
Okta’s filing boasts that its customers “achieve fast time to value, lower costs, and increased efficiency while improving compliance and providing security.” It offers multiple products on a unified platform available through the cloud and integrations.
Because the platform is neutral, customers can integrate with a number of common apps and services used in business and sales. The Okta layer offers identity in the cloud, and aims to shift companies away from what they call “legacy identity management.”