Investment Thesis for OKTA

Okta: Identity is the New Perimeter

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products and services, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access applications in the cloud or on-premise from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, Web applications, and data; Lifecycle Management that enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; Access Gateway that enables organizations to extend the Okta Identity Cloud from the cloud to their existing on-premise applications; and Advanced Server Access to secure cloud infrastructure. It also provides Auth0 products, including Universal Login that allows customers to provide login experience across different applications and devices; Attack Protection, a suite of security capabilities that protect from malicious traffics; Adaptive Multi-Factor Authentication that minimizes friction to end users; Passwordless authentication enables users to login without a password and supports in various login methods; Machine to Machine provides standards-based authentication and authorization; private Cloud that allows customers to run a dedicated cloud instance of Auth0; and Organizations that enables customers to independent configurations, login experiences, and security options. It offers customer support, training, and professional services. It sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

The Thesis

In a Zero Trust world, firewalls don't matter; Identity matters. You are either who you say you are, or you are a threat.

Okta is the leading independent provider of Identity Access Management (IAM). The thesis relies on the "Switzerland Strategy": Enterprises want a neutral identity provider that works with AWS, Google, and Microsoft, rather than being locked into Microsoft's ecosystem.

Product Deep Dive: Workforce vs. Customer

Okta has two distinct businesses.

1. Workforce Identity (The Core)

The Product: Single Sign-On (SSO) and Multi-Factor Authentication (MFA) for employees.
Use Case: Log in once to Okta, get access to Zoom, Slack, Salesforce, and Workday without typing passwords again.
The Value: Security (no reused passwords) + Productivity (IT helpdesk saves time on password resets).

2. Customer Identity (CIAM)

The Product: Auth0 (acquired).
Use Case: Embedding login functionality into your app. If you build a consumer app, you use Okta/Auth0 to handle "Log in with Google" or password recovery.
The Value: Developers don't want to build authentication security; they want to build features.

The Business Model

Seat-Based: Workforce is priced per employee.
MAU-Based: Customer Identity is priced per Monthly Active User.
Competition: The biggest threat is Microsoft (Entra ID), which bundles identity for free with Office 365. Okta must win by being and .

Okta: Identity is the New Perimeter

The Thesis

Product Deep Dive: Workforce vs. Customer

1. Workforce Identity (The Core)

2. Customer Identity (CIAM)

The Business Model

Risks

Conclusion

OKTA Valuation Model

OKTA report

OKTA report

INVESTMENT PRIMER

Okta: Identity is the New Perimeter