Online security is a big problem. Consider this:
There is an attack every 39 seconds on average on the web
Hackers steal 75 records every second
Hackers create 300,000 new pieces of malware daily
On average, 30,000 new websites are hacked every day
Those are some pretty sobering statistics. Consequently, it’s no surprise that the global cybersecurity industry market is 3
predicted to grow at a CAGR of 10.1%, and reach $400 billion by 2026.
According to research firm Grand view, the global digital transformation market size was valued at $284.38 billion last year, and is forecasted to grow at a CAGR of 22.5% from 2020 to 2027.
The total addressable market in identity solutions space—where our Spotlight Stock operates, is sliced into two factions: Workforce Identity (around $30 billion) and customer identity ($25 billion). And Okta is an integral part of that space, making identity-management software used to log in to various systems. It has grown its customer base to more than 6,500 companies, of which some 1,600 customers have an annual contract value of $100,000. And half of those were new customers.
The company says it has four primary growth drivers: 1) Innovation in platform and network; 2) Landing & expanding in large enterprise; 3) Growing Partner Channel; and 4) Making investments in international expansion.
You can see that the company is on the right track, revenue-wise, with sales expected to more than double from first quarter 2019 to first quarter 2021.
Okta’s first quarter revenue beat analysts’ estimates by 6.3%. It soared by 46%, to $182.9 million, as a result of a 48.3% jump in subscription revenues. And Okta is flush with cash, generating $30 million, a record level of free cash flow, during the quarter.
And the future looks rosy for Okta. Management is estimating full-year fiscal 2021 revenue to be between $770 million, representing 31% to 33% year-over-year growth.
Okta was already on a tear, and then COVID-19 boosted its potential by the rapid increase in remote workers, most of whom have very minimal security in place in their homes. And with hackers growing faster than solutions, we can look for exponential demand for cloud-based and AI security improvements, which puts Okta in the right spot, at the right time.