Larger companies, bigger deals and longer contracts
San Francisco-based identity management enterprise Okta continues to surge, with total revenue increasing by 49 percent year-over-year to $140.5 million (£115 million).
The company also saw sustained growth in its subscription revenue, which hit $132 million (£108 million); representing year-on-year growth of 51 percent.
The firm added 450 customers in the second quarter bringing its total count to 7,000, it said in an earnings report this week.
Rapidly growing Okta develops a range of tools to help workers access a range of applications and services securely and simply, amid a rise in the use of cloud-based tools, often accessed remotely by geographically diverse teams.
The company offers a secure, single sign-on for end users, giving them one place to access cloud applications they need, along with end-user management tools that are integrated with Active Directory (AD), including user provision.
Okta Earnings: Contract Sizes Continuing to Grow
Speaking to investors the firm noted that the deals they are doing are getting larger and the average contract lengths are getting longer. Co-founder and COO Frederic Kerrest saying on a conference call that the average size of contracts has doubled this quarter.
The company’s new signs ups include American Century Investments, a global asset manager, which selected Okta’s customer identity products to provide secure registration and login for over 600,000 customers.
Bill Losch the firms CFO noted in an investor call that: “The 25 largest contracts we booked this quarter were double what we booked last quarter.”
The firm has stated that one of its biggest wins this quarter is an unnamed Fortune 50 company that wanted to replace its existing identity system with a cloud-based identity solution that would support a hybrid environment.
Todd McKinnon told investors that: “It was one of our largest contracts ever, and covers Okta workforce products for over 400,000 global employees and contractors with secure access to hundreds of cloud, and on-prem application, as well as Okta customer identity to improve access to its partner portal.”
Bill Losch told investors that they are: “Uniquely positioned to capitalize on the tailwinds and extend our leadership in the market.
“We’ve achieved great progress over the past several years, and we believe we’re just getting started. The investments we’re making today will help propel our future growth and solidify Okta’s position as the standard.”