Where Will Okta Be in 5 Years?
A few operating stumbles in 2022 have convinced Wall Street to focus largely on Okta's (NASDAQ: OKTA) short-term prospects. The digital identity management provider is in the middle of a rough patch due to slowing growth in a few of its niches. The impact of that slowdown has been compounded by the challenges the company faces integrating a huge acquisition it closed in May 2021. As a result, it looks like Okta's margins will tighten in the near term.
These issues, and the stock price slump they have led to, may have created a great opportunity for investors to pick up Okta shares -- assuming the business can regain the positive momentum it had as recently as late last year. So let's consider where Okta might be headed over the next five years.
Okta is likely to have a much bigger sales footprint in a few years. Sure, its $6.5 billion Auth0 acquisition has created a few headaches in areas like marketing, sales, and branding. "Integrations are always difficult," CEO Todd McKinnon said back in late August when he explained why Okta had underperformed management's fiscal 2023 second-quarter sales targets. But the purchase still puts Okta in a leading position in major cybersecurity and identity management niches. Its sales are on pace to rise by about 40% this fiscal year to $1.8 billion.
Source Fool.com
