Okta surpasses USD $1 billion in AWS Marketplace sales

Okta has reported exceeding USD $1 billion in sales through the Amazon Web Services (AWS) Marketplace, coinciding with their latest financial results that show a 13% year-over-year revenue increase in the fourth quarter, reaching USD $682 million.

The AWS Marketplace serves as a digital catalogue filled with thousands of software listings from independent vendors, facilitating the process of discovering, acquiring, and deploying such software within the AWS ecosystem. Todd McKinnon, CEO and Co-Founder of Okta, stated, "When Okta set out to redefine Identity in the cloud, we turned to AWS to build the foundation—and the results have been game-changing. Reaching $1 billion in AWS Marketplace sales marks a milestone in our collaboration. Together, we're accelerating secure identity adoption worldwide."

Okta's fourth-quarter results demonstrate significant progress in their profitability, with a Generally Accepted Accounting Principles (GAAP) net income of USD $23 million. The company's free cash flow also attained a historic level of USD $284 million, which bolsters Okta's financial standing as it continues to broaden its foothold in the enterprise security sector.

The major contributor to Okta's total earnings, its subscription revenue, climbed by 13% to USD $670 million, indicating continued strong demand for the company's identity and access management solutions. This financial milestone underscores Okta's strengthening role in the domain of cloud security. Since the introduction of its services to the AWS Marketplace in December 2020, Okta has experienced a rise in adoption, largely attributable to an increasing emphasis among enterprises on secure identity solutions to protect their digital landscapes.

The partnership with AWS has been further reinforced by a new Strategic Collaboration Agreement aimed at globally accelerating the uptake of Okta's technology and augmenting AI-driven security innovations. The agreement includes objectives such as enhancing disaster recovery in crucial markets, improving the scalability of identity platforms, and obtaining additional compliance certifications, particularly to benefit government and public sector clients. Moreover, Okta and AWS will partake in customer education through demand-generation campaigns, events, and field enablement initiatives.

Advancing artificial intelligence (AI) capabilities is another focal point of the collaboration. Through Okta AI, the company incorporates AI into its products to assist organisations in creating improved experiences and defending against cyber threats. AWS plays a crucial role in these AI integrations, notably within Okta's Auth0 platform for customer identity, which leverages Amazon Bedrock for resources such as the Tenent Security Manager with Okta AI and Guide with Okta AI. Furthermore, Okta stands as a preferred Identity Provider (IDP) for Amazon Q, Amazon's generative AI-powered assistant tailored for developers and businesses.

This emphasis on AI-driven security aligns with broader industry developments. Canalys forecasts indicate that enterprise software sales via hyperscaler cloud marketplaces like AWS could escalate to USD $85 billion by 2028, reflecting sustained growth potential for companies like Okta.

Entering the new fiscal year, Okta's strategic focal points include advancing security innovations across its Okta and Auth0 platforms, endorsing its Secure Identity Commitment initiative, and fostering deeper partnerships within the enterprise sector. McKinnon added, "In a rapidly evolving IT and security landscape, organisations are turning to Okta as their identity partner for our ability to deliver the broadest array of modern identity security with the flexibility to meet their demands."

Okta has also announced the completion of an independent security evaluation conducted by CyberCX, an IRAP-accredited assessor, for its Identity platforms Auth0 and Okta. This evaluation ensures compliance with the requirements for the Australian Government's PROTECTED classification level under the Information Security Registered Assessors Program (IRAP). The classification aligns with data that could pose risks to national interests, organisations, or individuals if disclosed.