Okta Inc.: Higher Share Prices are the way to go
Okta Incorporated, another tech unicorn about to make its way to trading floors, had its stock price range raised to a higher level of $15 – $17 a share over this week. In its previous statements concerning the issuance, the company had set the price range for the release at $13 – $15 per unit of the common stock. The firm plans to go public on Friday, 7th April under the New York Securities Exchange. As a result of the increment, the enterprise would raise proceeds totaling to 14 percent more than in its initial setting of terms assuming shares are sold at the range’s midpoint.
The San Francisco-based company deals with the provision of security services over the cloud to its clientele. Through an array of tools the firm oversees, business owners can monitor and restrict the access employees have to various applications within their virtual workspaces. As such, employers can control what applications personnel have access to at a given time and keep tabs on the devices the employees use while working with company data. Okta is centered on providing these services and the accompanying data in formats that are easy to understand thereby lessening the difficulty in user experience.
Some of the products Okta offers include Universal Directory, Single-Sign on, Mobility management, Multi-Factor Authentication and Lifecycle management. Currently, Okta has over 3000 clients and over two million people use the company’s services on a day to day basis. Its quality of services has enabled it to achieve popularity across the globe and become a leader in the field of Identity Access as a Service, commonly abbreviated as IDaaS. Spotting a range of famous clientele, some of its customers include Google Cloud, Microsoft, 20th Century Fox, Adobe, LinkedIn, MGM Resorts, Pitney Bowes, Twilio, Amazon Web Services and Net Suite.
Underwriters in charge of this company’s release include Goldman, Sachs & Co., J.P. Morgan, Allen & Company, Pacific Crest, Canaccord Genuity and JMP Securities. This tech unicorn plans to sell a total of 11 million shares over the price range, thereby targeting a revenue of $176 million. It was established in 2009 and currently employs 843 people in its provision of services. The company plans to trade under the ticker “OKTA” following its release.
Okta’s most recent valuation was in September 2015, when it released reports showing its value was marked at $1.2 billion. It mainly gets its revenue from subscription fees that on average lie around a two-year period. These charges are billed a year in advance and cater for Okta’s services, technical support, and platform supervision.
The company’s revenue has significantly increased over the years. In 2015, Okta raised $41 million. This figure rose to $85.9 million in 2016 and further on has grown to $160.3 million for the fiscal year 2017. As such, the firm has shown strong growth in revenue year over year. Most recently, the rise in revenue was by 86.6 percent. Gross profits have also increased from 58.06 percent last year to 65 percent in 2017.
Despite Okta participating in a highly-competitive environment, it has found a suitable position in its provision of services. As such, the company has attracted a loyal customer base and this, combined with increasing revenues and gross margins, are reliable indicators towards the company’s success.