Weekly News

$1.2 billion security startup Okta files for its long-awaited IPO

March 14,2017 00:05

Okta, a security startup valued at $1.2 billion, has filed registration papers for its long-awaited initial public offering, the latest in a string of tech startups looking to tap the public markets following an IPO drought. The company said on Monday ...and more »



Okta CEO Todd
McKinnon.
Okta

Okta, a security startup valued at $1.2 billion, has filed
registration papers for its long-awaited initial public offering,
the latest in a string of tech startups looking to tap the public
markets following an IPO drought. 

The company said on Monday that it plans to list shares on the
Nasdaq exchange under the ticker "OKTA," but did not disclose how
much money it plans to raise or the valuation at which it is
seeking to go public. 

Okta's S-1
filing reveals that the company hasn't earned a profit since
it was founded in 2009 and that losses are mounting.

"We have incurred significant net losses in each year since our
inception, including net losses of $59.1 million and $76.3
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," the filing said.

But the company's top line is growing at a healthy clip, with
revenue of $85.9 million in fiscal 2016, up 109% from 2015. "For
the nine months ended October 31, 2015 and 2016, our revenue was
$58.8 million and $111.5 million, respectively, representing a
90% growth rate," Okta said in its filing.

Rumors of this IPO have swirled since mid-2016, when the company

denied reports that it was looking for a buyer, implying it
was preparing for an IPO.

The tech IPO market in 2016 was one of the slowest in years.

But the recent
IPO of Snap, a consumer internet tech company, is raising
hopes that the market is coming back.

While Snap may have been the most-watched IPO of the year so far,
lots of eyes are going to be on Okta. As a well-funded, popular
startup that enjoys partnerships with the likes of Microsoft,
Google Cloud, and Amazon Web Services, Okta will see its success
or failure in the public markets scrutinized as even more tech
companies
prepare their own IPOs.

In fact, Okta is one of two tech companies to file for IPO on
Monday; the other was New
York-based Yext.

The underwriters for Okta's offering are Goldman Sachs, JPMorgan,
and Allen & Company.

In its eight-year lifetime, Okta has raised $228 million from a
who's who of Silicon Valley venture-capital firms, including
Andreessen Horowitz, Khosla Ventures, Greylock Partners, and
Sequoia Capital.

Visit Markets Insider for constantly updated market quotes for individual stocks, ETFs, indices, commodities and currencies traded around the world. Go Now!

SEE ALSO: 11-year-old software company Yext finally filed to go public, 2 years behind schedule

business cards business business casual business insider business letter format business plan business casual for women business plan template business for sale business administration

Share this article

Related videos

Affordable, not cheap: 8 best low-cost Android smartphones (2016)
Affordable, not cheap: 8 best low-cost Android ...

DON'T MISS THIS STORIES