View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Cloud
March 14, 2017updated 05 Jul 2022 9:37am

Okta IPO: Security start-up targets $100m funding

Okta requests a raise of $100m in light of SEC filing.

By Hannah Williams

Identity Management software start-up, Okta has publicly filed a registration statement with the US Securities and Exchange Commission (SEC).

Okta originally specialised in Identity management software, but has since expanded into security, mobile device management and two-factor authentication.

The company is the latest in a long line of technology start-ups looking to tap into the public markets following an IPO drought, following in the footsteps of Snap, Cloudera and Mulesoft.

Okta is looking to raise up to $100 million as part of the SEC filing. Okta also aims to list its Class A common stock on the NASDAQ Global Select Market.

Prior to this, Okta’s financials have shown wide losses of up to $22 million in Q3 2016 but hasn’t been recorded with a noticeable increase since then.

Read more: Misys mulls New York IPO after sinking London float

However, the filing reveals that the company has not earned a profit since it was founded in 2009 and its losses are likely to be mounting, according to the SEC filing.

The filing said: “We have incurred significant net losses in each year since our inception, including net losses of $59.1 million in fiscal 2015 and 2016, respectively, and $54.9 million and $65.3 million for the nine months ended October 31, 2015 and 2016 respectively.”

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Okta is rumoured to have been an IPO candidate for a while, but may have put off filing an IPO due to the lack of activity in the IPO market in 2016.

Also, being a company that has enjoyed significant partnerships with Microsoft, Google and Amazon Web Services, its success or failure could be seen across the market, while its own performance is somewhat reliant upon the performance of others like AWS.

“A prolonged AWS service disruption affecting our platform for any of the foregoing reason could damage our reputation with current and potential customers, expose us to liability, cause us to lose customers or otherwise harm our business,” Okta said in the filing.

Topics in this article : , , , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU