Okta to acquire integration platform Azuqua
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Okta on Thursday announced its plans to acquire Azuqua, which offers a a no-code, integration platform to automate workflows. The $52.5 million deal represents Okta's largest acquisition to date and is expected to close during Okta's first fiscal quarter.
Okta, an identity management firm, plans to use Azuqua to improve its Lifecycle Management product, which helps companies provision and deprovision apps and services for new and departing employees. Azuqua's prebuilt connectors and logic will expand what our customers can do with Okta's Lifecycle Management product.
Okta stresses that it's a neutral, independent platform that can ensure all apps in an organization are tightly integrated. "Identity is the unifying component that can make all of these technologies interact seamlessly and securely. Identity will power the next wave of movement to best-in-breed technology," Okta's COO and co-founder Frederic Kerrest said in a statement.
Okta on Thursday also published its fourth quarter results, beating market expectations and highlighting major enterprise customers like the cash management firm Brink's and Hitachi.
The identity management firm posted a non-GAAP net loss was $4.4 million, or 4 cents per share. Fourth quarter revenue totaled $115 million, growing 50 percent year-over-year.
Analysts were expecting a net loss of 8 cents per share on revenue of $107.95 million.
Subscription revenue for the quarter was $108.5 million, an increase of 53 percent year-over-year. Free cash flow was positive $4.8 million, or 4.1 percent of total revenue.
Okta ended the quarter with more than 6,100 customers. It landed new or expanded deployments in Q4 with Australia Post, Cengage, Peet's Coffee, Phillips 66, Texas Workforce Commission, Tyson, and Qdoba.
For the full year, Okta's non-GAAP net loss was $34.1 million, or 32 cents per share. Total revenue was $399.3 million, an increase of 56 percent year-over-year. Subscription revenue was $370.9 million, an increase of 57 percent year-over-year.
"Large customers are increasingly turning to Okta as the identity standard for both their workforce and customers," CEO Todd McKinnon said in a statement. "The Okta Identity Cloud is uniquely positioned to both help organizations realize their digital transformation initiatives and adopt a Zero Trust security posture. We are seeing Okta's early platform investments paying off and we'll continue to make investments there and in the Okta Integration Network to capture the immense opportunity ahead."
Okta sees its international business as a long-term growth driver. Currently, about 16 percent of Okta's business is international, and it's growing at a rate of about 56 percent. It's expanding in part with the help of partners -- Hitachi, for instance, just few months ago became Okta's first authorized reseller in Japan. Okta has more than 90 employees in London and around 60 to 70 seats in Sydney, Australia. The company expanded its presence in continental Europe last year with a new office in Paris.
For the first quarter of fiscal 2020, the company currently expects a non-GAAP net loss per share of 22 cents to 21 cents and total revenue between $116 million and $117 million. For the full year fiscal 2020, Okta expects a non-GAAP net loss per share of 53 cents to 48 cents on total revenue of $530 to $535 million.