Okta Inc. (NASDAQ: OKTA) has completed its largest acquisition as of May 21. Okta Inc. acquired the Auth0 authorization platform for $ 6.5 billion. Investors were concerned that Okta’s growth could slow down and its return on equity could decline. Fortunately, the first-quarter report alleviated a great deal of these concerns.
Okta’s RPO (reflects the financial potential of selling goods and services by subscription) improved by 52 % in the past quarter. It increased the number of clients by 650 in the quarter, and it now has a total client base of 2000 large corporations (contracts over $100 thousand). Sales of Okta grew 37 % YoY to $ 251 million, far exceeding Wall Street expectations. During the early stages of the COVID-19 crisis, when the demand for cloud computing technology increased rapidly, the company registered higher sales growth (+ 43 %).
Okta Inc. (NASDAQ: OKTA) identity solution was sold to a Fortune 10 customer in 2021, showing that momentum has not been lost. With the purchase of Auth0, Okta can offer Adaptive Multifactor Authentication, which allows organizations to create customized access policies to reduce the risk of corporate security breaches. These technologies are in demand in many industries, including healthcare, which has traditionally introduced new technology later than others. As part of its IT modernization program, Australian healthcare provider Western Health chose the Okta ecosystem to protect data, secure identity, and manage access to its systems in the previous quarter.
Consequently, Okta maintains its positive momentum, and the large acquisition will slightly slow its financial performance. In addition, Okta can receive a surge of customers in the long run due to its expanded services portfolio.
At last check-in current trading, Okta Inc. (NASDAQ: OKTA) shares were up 0.02% at $222.44. The company’s share price closed at $222.40 previous session. During the day, the company’s shares ranged from $219.33 to $225.85. It exchanged 2.99 million shares, an increase over its average daily volume of 1.96 million over the past 50 days, and its volume year-to-date of 1.81 million. The company’s stock has gained 13.73% over the past 12 months and has dropped -6.66% in the last week. The stock has experienced a total loss of -6.41% over the last six months. Over the last three months, the share price dived by -17.56%. During this year, there has been a -12.51% loss in the stock.