![]() ![]() Okta currently has around 18,000 customers though, so it is early days. In the past 6 months, hundreds of organizations have purchased OIG, which Okta believes is validation of its integrated cloud-based approach to identity. Okta Identity Governance has been on the market for some time now and Okta is reportedly pleased with its adoption. A large part of this involves the introduction of Identity Governance and Privileged Access Management solutions, which have been lacking in the past. With some of these issues now behind Okta, focus is likely to shift back to the strength of the company’s product portfolio and the long-term identity cloud vision. The number of fully ramped sales people is also approaching more normal levels, which is contributing to an improvement in productivity, and the number of sales reps closing Customer Identity Cloud deals is increasing. Some of this may just be related to the weak labor market for enterprise software sales though. Attrition in Okta’s go-to-market team is now at its lowest level in 2 years. Okta's Auth0 integration problems, and issues with the sales force, appear to be improving. Given the nature of Okta's products it is unlikely that customers will base purchase decisions primarily on price.įigure 1: "Okta Pricing" Search Interest (source: Created by author using data from Google Trends and Okta) Okta Okta's management team has stated that wins have remained strong though, with consistent unit pricing. There have also been suggestions that as a premium product Okta has been facing pricing pressure. Deal sizes are also smaller on average and customers are requesting shorter contracts. ![]() This appears to be manifesting primarily in the acquisition of new customers, as growth is currently weighted towards upsells versus new business. This weakness is broad-based, with the business facing difficulties across regions and SMB and enterprise customers. Okta has noted that the macro environment remains challenging, and deteriorated further between Q4 and Q1. ![]() The macro environment continues to weigh on the company's performance, but the introduction of IGA and PAM solutions should support growth and the company's competitive position. These problems appear to be resolved, although the success of the acquisition is unclear. The stock has had a difficult time over the past few years though, due to sales force issues that were largely driven by the integration of Auth0. Okta ( NASDAQ: OKTA) is a leading supplier of identity and access solutions for the cloud. ![]()
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