Mission Statement, Vision, & Core Values (2024) of Okta, Inc. (OKTA).

An Overview of Okta, Inc. (OKTA)

General Summary of Okta, Inc. (OKTA)

Okta, Inc. was founded in 2009 and is headquartered in San Francisco, California. The company specializes in identity and access management software, providing solutions that enable organizations to securely connect their employees, customers, and partners to the applications and services they need. Okta’s primary offerings include single sign-on (SSO), multi-factor authentication (MFA), lifecycle management, and API access management. As of 2024, Okta serves over 19,300 customers globally, including significant enterprise clients across various industries. The company’s total revenue for the six months ended July 31, 2024, reached $1,263 million, marking an 18% increase compared to the same period in the previous year.

Company's Financial Performance in the Latest Financial Reports

In its latest financial report for the three months ended July 31, 2024, Okta reported total revenue of $646 million, a 16% increase from $556 million in the same quarter of 2023. Subscription revenue accounted for 98% of total revenue, amounting to $632 million for the quarter, up 17% from the previous year. For the six months ended July 31, 2024, the subscription revenue was $1,235 million, an 18% increase from $1,045 million in the prior year.

Okta achieved a gross profit of $491 million for the quarter, representing a gross margin of 76%, improved from 73% year-over-year. The company recorded a net income of $29 million for the three months ended July 31, 2024, compared to a net loss of $111 million in the same quarter of the previous year.

The company’s operating expenses for the three months totaled $510 million, down from $569 million a year earlier. Notably, research and development expenses were $164 million, a decrease of 5% year-over-year, while sales and marketing expenses were $238 million, down 9%.

Introduction to Okta as a Leader in the Industry

Okta is recognized as a leader in the identity and access management sector, providing essential services that enhance security and streamline user experiences for organizations worldwide. The company’s innovative approach to identity solutions has positioned it strongly in the market, with a Dollar-Based Net Retention Rate of 110% as of July 31, 2024, indicating robust customer satisfaction and expansion.

As organizations increasingly adopt cloud technologies, Okta's comprehensive suite of services addresses the growing demand for secure and efficient identity management solutions. The company continues to expand its product offerings and customer base, solidifying its role as a critical player in the industry. For further insights into Okta's business strategies and future prospects, additional details can be found below.

Mission Statement of Okta, Inc. (OKTA)

Mission Statement of Okta, Inc. (OKTA)

Okta, Inc.'s mission statement is focused on providing a secure identity management platform that enables organizations to securely connect people to technology. The mission emphasizes the importance of identity as a key component in achieving security and efficiency in business operations. This mission guides the company's long-term goals and strategic initiatives, aiming to empower organizations to embrace digital transformation with confidence.

Core Component 1: Secure Identity Management

At the heart of Okta's mission is the commitment to secure identity management. This component reflects the company's dedication to safeguarding user identities and ensuring secure access to applications and data. As of July 31, 2024, Okta reported having over 19,300 customers, with 4,620 customers having an annual contract value (ACV) exceeding $100,000. This growing customer base underscores the trust organizations place in Okta's identity management solutions.

Core Component 2: Empowering Organizations

Okta's mission encompasses empowering organizations to harness technology effectively. By providing seamless access to various applications and services, Okta enables companies to enhance productivity and operational efficiency. For the six months ended July 31, 2024, Okta reported a total revenue of $1,263 million, marking an 18% increase from the previous year. This growth reflects how Okta's solutions help organizations optimize their technology investments and drive business outcomes.

Core Component 3: Emphasizing Trust and Security

The final component of Okta's mission is the emphasis on trust and security in the digital landscape. With cyber threats becoming increasingly sophisticated, Okta prioritizes security to protect user identities and sensitive information. The company's Dollar-Based Net Retention Rate was reported at 110% for the trailing twelve months ended July 31, 2024, indicating a strong ability to retain and expand revenue among existing customers. This metric highlights the value customers find in Okta's security offerings, reinforcing the company's commitment to building trust through robust identity solutions.

Vision Statement of Okta, Inc. (OKTA)

Vision Statement Overview

As of 2024, Okta, Inc.'s vision statement encapsulates its commitment to providing secure identity solutions for organizations worldwide, empowering them to manage their digital identities effectively. The company aims to be the leading provider of identity solutions that enable seamless and secure access to applications and data.

Empowering Organizations

Okta’s vision emphasizes the importance of empowering organizations through enhanced security measures. The goal is to provide a platform that not only secures user identities but also simplifies the user experience. This dual focus on security and usability is pivotal in a landscape where cyber threats are increasingly sophisticated.

Innovation in Identity Management

Innovation is a cornerstone of Okta’s vision. The company continuously develops its platform to incorporate advanced technologies such as machine learning and artificial intelligence. These innovations are designed to improve identity verification processes and enhance user experience. As of July 31, 2024, Okta reported a gross profit of $960 million, reflecting a 23% increase from $783 million in the previous year.

Market Expansion and Customer Base Growth

Okta envisions expanding its market presence globally. The company reported a customer base of over 19,300 as of July 31, 2024, up from 18,400 the previous year. This growth is indicative of Okta’s successful strategy to attract and retain customers across various sectors, including large enterprises with significant annual contract values.

Commitment to Security and Compliance

Security and compliance are integral components of Okta's vision. The company aims to provide solutions that meet regulatory standards and protect customer data. As of July 31, 2024, Okta’s Dollar-Based Net Retention Rate stood at 110%, indicating strong customer loyalty and satisfaction. This metric reflects the company’s ability to maintain and expand relationships with existing customers through effective security solutions.

Sustainable Growth and Financial Health

Financial health is critical to Okta’s vision for sustainable growth. In the second quarter of 2024, Okta reported a net income of $29 million, a significant improvement from a net loss of $111 million in the same quarter of the previous year. This turnaround highlights the effectiveness of Okta's strategic initiatives aimed at optimizing operational efficiencies and expanding revenue streams.

Future Aspirations

Looking ahead, Okta aspires to lead the identity management industry by enhancing its technology and expanding its services. The focus will remain on building robust security frameworks while ensuring that customer experience is at the forefront of its offerings. The company continues to explore strategic investments and acquisitions to complement its growth trajectory, with a cash position of $522 million as of July 31, 2024.

Core Values of Okta, Inc. (OKTA)

Customer-Centricity

Okta, Inc. prioritizes a customer-centric approach, emphasizing the importance of understanding and meeting customer needs.

• As of July 31, 2024, Okta has over 19,300 customers, an increase from 18,400 in the previous year.
• Customers with an annual contract value (ACV) above $100,000 rose to 4,620 from 4,205 year-over-year.
• The company achieved a dollar-based net retention rate of 110% for the trailing twelve months, indicating strong customer loyalty and expansion opportunities.

Innovation

Innovation is a core value for Okta, driving the development of advanced identity solutions.

• Research and development expenditures totaled $164 million for the three months ended July 31, 2024, constituting 25% of total revenue.
• Investment in R&D for the six months ended July 31, 2024, was $327 million, also 25% of total revenue.
• In February 2024, Okta acquired Spera, an identity security platform provider, for $58 million to enhance its security capabilities.

Integrity

Integrity is fundamental to Okta's operations, fostering trust with customers and stakeholders.

• Okta maintains a full valuation allowance on its deferred tax assets in the U.S. as of July 31, 2024, reflecting a conservative approach to financial reporting.
• The company’s net loss for the three months ended July 31, 2024, was $29 million, showcasing transparency in its financial performance and challenges faced in the macroeconomic environment.

Collaboration

Collaboration within teams and across the organization is key to Okta’s success.

• Sales and marketing expenses for the three months ended July 31, 2024, were $238 million, or 37% of total revenue, highlighting investment in collaborative efforts to drive growth.
• General and administrative expenses were $108 million for the same period, emphasizing operational collaboration across departments.

Diversity and Inclusion

Okta is committed to fostering a diverse and inclusive workplace.

• The company reported a charitable contribution increase to $6 million for the three months ended July 31, 2024.
• Okta's diversity and inclusion initiatives are reflected in its hiring practices and workplace culture, although specific metrics are not disclosed in financial reports.