How Does Okta Make its Money?
Okta is the leading independent identity and access management (IAM) platform, providing cloud-based solutions that help organizations securely manage who can access their applications, data, and IT infrastructure. The company’s Workforce Identity platform manages employee access (single sign-on, multi-factor authentication, lifecycle management), while its Customer Identity platform (Auth0, acquired for $6.5 billion in 2021) helps developers embed secure login and identity features into consumer-facing applications. As cybersecurity threats escalate and organizations adopt zero-trust security frameworks — where identity verification is required for every access attempt — Okta sits at the foundational layer of modern enterprise security. The company serves over 19,000 customers including JetBlue, Nordstrom, T-Mobile, and the US government.
Okta (OKTA) Business Model
Okta operates in the technology sector. Below is a summary of Okta’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Okta’s 2024 fiscal year filings with the SEC.
Okta Competitors
Okta’s key competitors and comparable public companies in the technology sector include CrowdStrike, Palo Alto Networks, Fortinet, and Microsoft. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Okta stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Workforce Identity Cloud (SSO, MFA, Governance) | $1,700 | $1,550 | +9.7% |
| Customer Identity Cloud (Auth0) | $700 | $600 | +16.7% |
| Professional Services | $100 | $90 | +11.1% |
| Total Revenue | $2,600 | $2,400 | +8.3% |
Workforce Identity Cloud (SSO, MFA, Governance) — 65% of Revenue
Customer Identity Cloud (Auth0) — 27% of Revenue
Professional Services — 4% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $2,600 | $2,400 |
| Cost of Revenue | $650 | $620 |
| Gross Profit | $1,950 | $1,780 |
| Operating Expenses | $1,700 | $1,750 |
| Operating Income | $250 | $30 |
| Net Income | $300 | $50 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 75.0%
- Operating Margin: 9.6%
- Revenue Growth: 8.3%
Is Okta Profitable?
Yes, Okta is profitable. The company reported net income of $300 on total revenue of $2,600. With an operating margin of 9.6%, Okta demonstrates solid profitability for the technology sector. The gross margin of 75.0% reflects Okta’s pricing power and cost structure.
What to Watch
- Identity Governance and Administration (IGA) product adoption post-launch
- Auth0 Customer Identity growth and developer adoption metrics
- Recovery from past security breaches that shook customer and investor confidence
- AI-powered identity threat detection and response capabilities
Okta (OKTA) Financial Summary
Okta (OKTA) is a technology company that generated $2,600 in total revenue in fiscal year 2024. Revenue grew 8.3% year-over-year. The company earned $300 in net income, making it profitable. For a deeper look at Okta’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.