OKTA

Okta, Inc.

Software, TMT


Presented:01/18/2024
Price:$81.22
Cap:$13.43B
Current Price:$78.65
Cap:$13.36B

Presented

Date01/18/2024
Price$81.22
Market Cap$13.43B
Ent Value$10.37B
P/E RatioN/A
Book Value$34.66
Div Yield0%
Shares O/S165.35M
Ave Daily Vol2,791,091
Short IntN/A

Current

Price$78.65
Market Cap$13.36B
Okta, Inc. engages in the provision of an identity management platform for enterprises. It operates through the United States and International geographical segments. The firm's products include single sign-on, multi-factor authentication, API access management, authentication, user management, and lifecycle management. The company was founded by Todd McKinnon and J. Frederic Kerrest in 2009 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Okta Inc (OKTA)

Highlights

The presenter is long shares of Okta Inc (OKTA), expecting recent growth headwinds to unwind, including the mismanagement of hacks and the difficult 2023 economic conditions for seat-based models. Execution challenges from the Auth0 integration are anticipated to transition into favorable conditions, supported by a more stable sales force. Despite recent security breaches, the presenter's survey work suggests this impact is manageable, especially given new product introductions that strengthen Okta's portfolio. With high gross margins and a conservative valuation at 5x revenue, Okta's growth prospects could lead to a multiple re-rating, potentially offering investors a 20% - 30% IRR. Additionally, the company's potential attractiveness to private equity firms adds strategic value and exit opportunities for investors.

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Idea Discussion

Commentor 1 - 2 weeks ago

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