Okta expects annual sales to increase by 30% due to the addition of new products

Okta sees significant growth ahead as it expands its service offering.

The cybersecurity firm said on Wednesday that it expects revenue to grow by 30% for the fiscal year as it unveiled two new products, one for “privileged access management” and one for “identity management and administration.”

Privileged access is designed to protect data from hacking within an organization, while identity management and management is designed to streamline how an organization decides what information users can access on its servers.

The addition of these new tools also increases Okta’s business opportunities by more than 20%, CEO Todd McKinnon told CNBC’s Jim Cramer.

“We have a huge addressable market,” McKinnon said in a “Mad Money” interview. “With everything moving to the cloud, as companies need to connect with their customers through digital channels and because everyone is concerned about security, this massive $ 80 billion TAM (total addressable market) is the foundation for continued growth over a long period of time. period of time.”

Okta provides security tools to authenticate users such as password authorizations, access to online networks.

In terms of privileged access management and identity management and administration, Cramer noted that the company will enter markets dominated by CyberArk and SailPoint Technologies. Okta also works with both companies.

McKinnon suggested that the market opportunity for identity management and privileged access services is as high as $ 15 billion.

“There’s plenty of room for many vendors to go after it. We’re going after it from a very cloud-centric approach,” he said. “We will continue to work with these partners, while doing what our customers ask us to do. That’s covering all of their identity use cases.”

Okta expects total revenues to reach $ 1.09 billion in the current fiscal year. The company reported $ 835.4 million in revenue for the previous fiscal year, which ended January 31.

Growth has slowed steadily in recent years. Okta posted sales growth of 42.5% in fiscal year 2021, compared to 53.6% in fiscal year 2019.