Okta, the Identity and Access Management (IAM) software provider, has filed to go public. In a document that the company filed with the SEC (Securities & Exchange Commission) on March 13, 2017 (Monday), the firm claims almost 3,000 business clients, including LinkedIn, Adobe, 20th Century Fox, and Mass Mutual. However, what’s more crucial is that its IAM services function with third party apps from several vendors including Microsoft, Google, ServiceNow, NetSuite, and WorkDay.
After a lot of hand-wringing with regards to whether 2017 would steer clear of the IPO drought fate of last year, the market has seen 3 IPOs within a short span of just 45 days. After Yext’s IPO filing, it’s Okta, which is seeking to raise up to hundred million dollars as of the SEC filing.
IDC’s research director (data security practice), Robert Westervelt said – “Okta is known for a broad technology partner ecosystem and that’s what organizations are looking for especially when they shop for security software.”
In fact, most firms of any size now depend on a range of cloud products, which are familiar in industry jargon as SaaS (Software as a Service) offerings since they are provided over the internet.
Similar to most of the latest tech IPOs, this enterprise software firm is losing money. It lost around 65 million dollars in the 9 months that ended on October 31, 2016, which is a small hike from the comparable losses of 2015 period (55 million dollars). However, there was a twofold increase in its revenue between the 9 month periods of 2015 and 2016, increasing to 112 million dollars from 59 million dollars. The revenue reports were posted this way since Okta’s financial year ends on January 31, which means it’s yet to post its quarterly reports for the quarter than ended on January 31, 2017.
The IAM services company has raised over 228 million dollars from some of the highest profile VCs of the Silicon Valley, including Andreessen Horowitz in addition to Greylock and Sequoia. As per the filing, 21.2% of the firm is owned by Sequoia, whereas Andreessen Horowitz and Greylock own 19.6% and 16.9% respectively. Todd McKinnon, the Chief Executive Officer and co-founder of Okta owns 10.3%, while Frederic Kerres, co-founder owns 6.2%.
The firm has been rumored to be a candidate for IPO filing for quite some time. Based on rumors, Okta’s filing was expected to happen last year, though 2016 did not seem to be a great year for IPO filings. The present IPO filing indicates that the IPO window is open for comparatively small, but quickly growing enterprise software firms.