Okta is seeing a big increase as it expands its service offering.
The cybersecurity company said on Wednesday that it expects revenue for the fiscal year to increase by 30% as it unveiled two new products, one in “privileged access management” and another in “governance and identity management.”
Privileged access seeks to protect data against piracy within an organization, while identity governance and management has been designed to simplify how an organization decides what information users have access to on its servers.
The addition of these new tools also increases Okta’s business opportunity by more than 20%, CEO Todd McKinnon told CNBC’s Jim Cramer.
“We have a massive addressable market,” McKinnon said in a Mad Money interview. “As everything moves into the cloud, as companies need to connect with their customers through digital channels, as everyone is concerned about security, this massive $ 80 billion TAM (total addressable market) is the foundation for sustained growth for a long period of time.
Okta provides security tools for user authentication, such as authorizing passwords, accessing online networks.
Regarding privileged access management and identity governance, Cramer noted that the company will enter markets dominated by CyberArk and SailPoint Technologies. Okta also works with both companies.
McKinnon suggested that governance of identity and the market for privileged access services amount to $ 15 billion.
“There is enough space for many providers to track it. We are tracking it from a very cloud-focused approach,” he said. “We will continue to work with these partners as we do what our customers ask us to do. This is to cover all cases of their identity.”
Okta expects total revenues to reach $ 1.09 billion in the current fiscal year. The company reported revenue of $ 835.4 million in the previous fiscal year, which ended Jan. 31.
Growth has slowed steadily in recent years. Okta recorded an increase in revenues of 42.5% in fiscal year 2021, down from 53.6% in fiscal year 2019.