Okta Accelerates Growth with Record Profits and Innovation
Okta, the leading provider of identity and access management solutions, has announced its strongest Q4 results in FY '25, driven by accelerating revenue performance, record profitability, and free cash flow. The company's growing portfolio of new products is starting to make an impact, with over 20% of Q4 bookings coming from innovative offerings such as Okta Identity Governance, Privileged Access, Device Access, Fine Grained Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI.
According to Todd McKinnon, Chief Executive Officer and Co-Founder, the company's priorities to transform Okta into one of the most secure companies in the world and reignite growth through prioritizing its partner ecosystem, turning up the dial on product innovation, and increasing go-to-market specialization have paid off. 'We've made incredible progress on our top priority - becoming a trusted and leading voice for security best practices,' said McKinnon.
Okta's relentless focus on product innovation has resonated with customers, with over 20% of Q4 bookings coming from new products. One standout success is Okta Identity Governance (OIG), which has seen remarkable adoption since its launch two years ago. The company now has over 1,300 customers contributing over $100 million in annual contract value to OIG alone.
The success of OIG and other governance-related business, including Okta Lifecycle Management and Okta Workflows, totals over $400 million in combined revenue. McKinnon noted that customers who adopt more products have the highest retention rates, making these innovative offerings crucial for long-term business growth.
With a focus on securing identity in an increasingly complex digital landscape, Okta is poised to capitalize on the massive market opportunity ahead. 'To get security right, organizations need to get identity right,' emphasized McKinnon. As cloud adoption continues to rise, machine identities and AI agents become more prevalent, making secure identity management more critical than ever.
Looking forward, Okta will continue to prioritize product innovation in FY '26, building on its momentum from Q4 and setting the stage for continued growth and success.
