5. Okta Inc. (NASDAQ:OKTA)
Market Capitalization as of September 13: $12.58 billion
Number of Hedge Fund Holders: 50
Okta Inc. (NASDAQ:OKTA) is an identity and access management (IAM) company that provides cloud software to help companies manage and secure user authentication into applications, and for developers to build identity controls into applications, websites, web services, and devices. Its products are used in industries like technology, finance, healthcare, and education.
It recently launched some key additions which include Identity Threat Protection with Okta AI, which continuously detects and responds to identity threats, and Identity Security Posture Management for workforce customers. These innovations enhance security and support organizations in managing identity risks effectively.
It’s advancing its security initiatives through the Okta Secure Identity Commitment, a long-term pledge to combat identity attacks. The company made significant progress in implementing new security measures, enhancing its reputation as a trusted partner in identity security.
Okta Inc. (NASDAQ:OKTA) also released enhanced bot detection features in its customer identity cloud, reducing credential stuffing and malicious bot traffic by over 90% for major clients.
The company has a pipeline of new products and features to discuss at an identity event in Las Vegas, scheduled for October 15th to 17th.
Robust demand from large customers and efficient spending are driving record profitability and cash flow for the company despite a challenging macro environment. With a comprehensive identity platform and recent innovations, Okta Inc. (NASDAQ:OKTA) is well-positioned for growth in its industry.
Meridian Growth Fund made the following comment about Okta, Inc. (NASDAQ:OKTA) in its Q3 2023 investor letter:
“Okta, Inc. (NASDAQ:OKTA) is the largest independent identity software company, serving enterprises, small- and medium-sized businesses, universities, non-profits, and government agencies across the globe. Its solutions provide higher-level security authentication services, a business-critical function that has the attention of CEOs and IT leaders everywhere. The company’s integration with 7,000 other software vendors and system providers is a competitive advantage that enables rapid and seamless implementations. Okta’s complete product suite allows customers to deploy an enterprise-wide identity platform that serves both the workforce segment (clients’ employees) and the customer segments (clients’ customers). The stock has started to recover after falling nearly 85% from post-COVID bubble levels due to a stabilization in the overall macro environment for security services. The company has also seen a normalization in salesforce attrition which had hampered growth. The stock moved higher during the quarter when it reported higher than expected revenues and a much-improved adjusted operating margin of 11% versus -3% in the prior year quarter. Beyond its core capabilities, which are in high demand, we are also encouraged by the company’s ability to expand into product adjacencies such as privileged access management and identity governance. Due to these improving fundamentals, we added to our position in the company during the period.”
