Okta sees great growth ahead as it expands its service offering.
The cybersecurity company said on Wednesday that it expects revenue for the fiscal year to grow by 30% by introducing two new products, one in “privileged access management” and another in “governance and identity management.” .
Privileged access seeks to protect data against an organization’s hacking, while identity governance and administration were designed to streamline the way an organization decides what information users have access to its servers.
The addition of these new tools will also increase Okta’s business opportunity by more than 20%, CEO Todd McKinnon told CNBC’s Jim Cramer.
“We have a massive airship market,” McKinnon said in an interview with “Mad Money”. “As everything moves towards the cloud, as companies need to connect with their customers through digital channels, as everyone is concerned about security, this huge TAM (total addressable market) of 80 billion dollars is the basis of sustained growth over a long period of time. “
Okta provides security tools to authenticate users, such as password authorizations, to access online networks.
In terms of privileged access management and identity management, Cramer noted that the company will enter markets dominated by CyberArk and SailPoint Technologies. Okta also partners with both companies.
McKinnon suggested that identity governance and the privileged access services market opportunity total $ 15 billion.
“There’s enough space for a lot of marketers to follow it. We’ll follow it from a very cloud-focused approach,” he said. “We will continue to work with these partners, while at the same time doing what our clients ask us to do. This covers all cases of use of their identity.”
Okta expects total revenue to reach $ 1.09 billion in its current fiscal year. The company reported revenue of $ 835.4 million the previous year, which ended Jan. 31.
Growth has slowed steadily in recent years. Okta recorded revenue growth of 42.5% in fiscal 2021, up from 53.6% in 2019.