Skip to content

Security · public

How Okta went to market

Okta sold cloud single sign-on to IT buyers through field, inside and channel sales, then expanded by users and products while a network of pre-built integrations made each customer more valuable to the next. Net retention at or above 120% carried it through the IPO; Auth0 added a developer motion, and AI agents are the newest expansion bet.

Buyer:
Developers, Mid-market, Enterprise
Contract size:
Mixed
Checked:
October 18, 2026
The motion at a glance · The land, connect, and expand loop
  1. Sales lands workforce identity

    Field, inside and channel sales win an IT buyer, often with a limited first deployment.[1]

  2. Pre-built integrations connect apps

    The customer connects its apps through integrations Okta has already built for everyone.[1]

  3. Expand users and products

    Okta adds users and sells more products, often within the first contract.[1]

  4. Cross-sell customer identity

    Success in workforce identity leads to customer identity deals, or the reverse.[7]

  5. Customers tell stories at Oktane

    Customer success stories and the Oktane conference are the centerpiece of marketing.[1]

  6. New customers grow the network

    Each new customer adds apps to the integration network, which helps win the next customer.[1]

Back to step 1, and round again

01The phases

PrimarySupportingTried, then dropped

  1. 2009 to 2013

    Cloud SSO and enterprise sales from day one

    Okta was founded in 2009 and launched its first product, Single Sign-On, in 2010, with Universal Directory and provisioning following in 2013. Todd McKinnon describes years as a lonely category creator before the market turned.

    • Sales-led

      Okta sold to IT buyers through field and inside sales, with cloud Single Sign-On for employees as the first product. McKinnon names go-to-market as the area he knew least.[1],[15]

    • Category creation

      The S-1 says Okta "pioneered identity in the cloud" with a "category defining platform". McKinnon describes the early years as being a lonely category creator, and says the marketing people thought was bad suddenly worked once the category flipped.[1],[15]

    • Partner channel

      Pre-built integrations with cloud apps, the Okta Application Network, were built in parallel with the product, so every new app integration became available to every customer.[1]

  2. 2014 to 2017

    Platform, land and expand, and the IPO

    Okta added Mobility Management and open APIs in 2014, Adaptive MFA in 2015, and Lifecycle Management and API Access Management in 2016. By the 2017 S-1 it sold six products to more than 2,900 customers.

    • Land and expand

      After the first sale, Okta adds users and sells more products, often within the term of the first contract. Large enterprises often start with a limited deployment before going broader.[1]

    • Sales-led

      The sales team is divided by geography, customer size, use case and industry vertical. Sales and marketing spend was 120% of revenue in FY2015 and 91% in FY2016.[1]

    • Partner channel

      Nearly all leading cloud application providers are customers or partners, and many co-sell Okta or build it into their products. Okta also sells through channel partners, and the S-1 calls its investment in partnerships a force multiplier.[1]

    • Owned events

      Customer stories are the centerpiece of Okta's marketing, and its annual customer conference, Oktane, drew over 1,600 registrations in 2016.[1]

    • Inbound content

      Okta publishes a Businesses @ Work report analysing software usage trends from the daily interactions between users and applications on its own platform.[1]

    • Developer-led

      Okta opened its APIs in 2014 so organisations could build customer, supplier and partner apps on it, and the S-1 says it must convince developers to build external portals on the platform. This sat next to workforce identity as a secondary use case.[1]

  3. 2017 to 2021

    Public scale-up of the workforce engine

    After the April 2017 IPO, revenue grew from $260.0M in FY2018 to $835.4M in FY2021, and the integration network passed 7,000 integrations, all before the Auth0 deal closed.

    • Sales-led

      Customers above $100K in annual contract value rose from 691 at January 2018 to 1,950 at January 2021. The FY2021 10-K names land and expand with a focus on customer size and key verticals, including highly regulated sectors.[2],[3]

    • Land and expand

      The FY2018 10-K says dollar-based retention consistently exceeded 120%, driven by more users and up-selling products. It was 121%, 119% and 120% in the trailing periods reported in the FY2021 10-K.[2],[3]

    • Partner channel

      The renamed Okta Integration Network grew from over 5,500 integrations in the FY2018 10-K to over 7,000 in the FY2021 10-K, which calls it an extensive partner ecosystem.[2],[3]

    • Owned events

      Oktane continued, Okta Showcase was added for product and feature announcements, and Oktane20 moved to a virtual-only conference in the spring of 2020.[3]

  4. 2021 to 2024

    Auth0, two clouds, and security incidents

    Okta closed the Auth0 acquisition on May 3, 2021 and kept it as an independent business unit. Two incidents followed, in January 2022 at a third-party provider and in October 2023 in its support system.

    • Developer-led

      Okta bought Auth0, a developer-centric identity platform, in a stock deal valued at about $6.5B. The 10-K frames Auth0 as the customizable option for developers, next to Okta's own low-code customer identity.[8],[4]

    • Land and expand

      Expansion now includes moving from workforce identity into customer identity. Dollar-based net retention peaked at 124% in FY2022.[4]

    • Sales-led

      Customer counts still exclude customers on self-service arrangements only, and customers above $100K in annual contract value grew from 1,950 to 3,930 between FY2021 and FY2023.[5]

    • Brand narrative

      The 10-K says the two incidents harmed Okta's reputation, customer relations and financial results. Okta published a root cause for the October 2023 breach, which touched 134 customers, and McKinnon launched the Okta Secure Identity Commitment in February 2024.[6],[11],[10]

  5. 2024 to now

    Specialized sales, profitability and AI agents

    Okta turned GAAP profitable in FY2025, split its sellers by buying center at the start of FY2026, and began positioning its platforms as the identity control plane for AI agents, while net retention slowed to 106%.

    • Sales-led

      Okta sellers cover IT and security buyers, including Okta Customer Identity, while Auth0 sellers focus on developers, with a hunter-farmer model in some regions. The stated strategy is to drive growth with large customers.[7]

    • Product-led

      Developers can sign up for free trials, free plans or paid developer plans of the Auth0 Platform, which may move to paid enterprise plans.[7]

    • Land and expand

      Cross-sell runs from workforce to customer identity or the reverse, and new products led by Okta Identity Governance add growth. Net retention fell to 106% in FY2026, and the 10-K warns that customer workforce cuts can reduce revenue.[7],[9]

    • Partner channel

      Okta chose to accelerate the shift of professional services to partners, at a cost of about one point of revenue growth. The integration network now lists 8,000+ integrations.[9],[12]

    • Category creation

      The 10-K sees a long-term opportunity to serve as an independent control plane for non-human identities and AI agents, and the Businesses at Work 2026 report is framed around agentic AI readiness.[7],[9],[13]

    • Owned events

      Oktane remains a centerpiece of marketing, with customer stories, product announcements and labs, plus Oktane on the Road city events. The next Oktane is set for September 28 to 30, 2027 in Las Vegas.[7],[14]

02The numbers

Revenue by fiscal year
$0$1B$2B$3BFY2016: $85.9M$85.9MFY2016FY2018: $260M$260MFY2018FY2020: $586.1M$586.1MFY2020FY2021: $835.4M$835.4MFY2021FY2022: $1.3B$1.3BFY2022FY2023: $1.86B$1.86BFY2023FY2024: $2.26B$2.26BFY2024FY2026: $2.92B$2.92BFY2026
Fiscal years end January 31. Snapshots from filings, not consecutive years (FY2017, FY2019 and FY2025 are omitted).[1],[2],[3],[5],[7]
Show the data
FY2016$85.9MFrom a filing
FY2018$260MFrom a filing
FY2020$586.1MFrom a filing
FY2021$835.4MFrom a filing
FY2022$1.3BFrom a filing
FY2023$1.86BFrom a filing
FY2024$2.26BFrom a filing
FY2026$2.92BFrom a filing
Customers above $100K annual contract value
02K4K6KFY2015: 140140FY2015FY2017: 443443FY2017FY2019: 1K1KFY2019FY2021: 1.9K1.9KFY2021FY2022: 3.1K3.1KFY2022FY2023: 3.9K3.9KFY2023FY2024: 4.5K4.5KFY2024FY2026: 5.1K5.1KFY2026
Snapshots from filings, not consecutive years. The jump from FY2021 to FY2022 includes the Auth0 acquisition, closed May 2021.[1],[3],[5],[7]
Show the data
FY2015140From a filing
FY2017443From a filing
FY20191KFrom a filing
FY20211.9KFrom a filing
FY20223.1KFrom a filing
FY20233.9KFrom a filing
FY20244.5KFrom a filing
FY20265.1KFrom a filing
MetricValueAs ofBasis
Revenue, fiscal 2016$85.9M, up 109%[1]January 31, 2016From a filing
Sales and marketing as a share of revenue, fiscal 2015 and 2016120%, 91%[1]January 31, 2016From a filing
Contribution margin of the 2015 customer cohort, years one to three(92)%, 52%, 64%[1]January 31, 2017From a filing
Dollar-based retention rate, fiscal 2015 and 2016129%, 120%[1]January 31, 2016From a filing
Auth0 acquisition, announced valueAbout $6.5B in stock[8]March 3, 2021From a filing
Dollar-based net retention rate, fiscal 2022124%[4]January 31, 2022From a filing
Dollar-based net retention rate, fiscal 2024 to 2026111%, 107%, 106%[7]January 31, 2026From a filing
Revenue, fiscal 2026$2,919M, up 12%[7]January 31, 2026From a filing
Net income, fiscal 2025 and 2026$28M, $235M[7]January 31, 2026From a filing
Sales and marketing as a share of revenue, fiscal 2024 to 202646%, 37%, 35%[7]January 31, 2026From a filing
Customers, fiscal 2026More than 20,000, including 5,100 above $100K ACV[7]January 31, 2026From a filing
Integrations in the Okta Integration NetworkOver 7,000[7]January 31, 2026From a filing
Revenue from outside the United States, fiscal 202620%[7]January 31, 2026From a filing
Revenue and subscription backlog (RPO), Q2 fiscal 2027$805M revenue, up 11%; RPO $4.858B, up 17%[9]July 31, 2026From a filing

“Reported” figures come from trade press, not the company, and are shown with their date.

03Myth checks

  • “Okta is only single sign-on.”

    Not supported

    Single Sign-On was the first product, in 2010, but the 2017 S-1 already described six products and cross-selling as core to the model. The FY2026 10-K lists identity governance, privileged access and the Auth0 platform among others, and the Q2 FY2027 release credits new products led by Okta Identity Governance with part of the growth.[1],[7],[9]

  • “The Auth0 deal made Okta developer-led.”

    Partly true

    Auth0 added a real developer motion: a developer-centric product, free and paid developer plans, and since FY2026 its own sellers. But Auth0 ran as an independent unit, customer counts still exclude self-service-only accounts, the FY2026 strategy is growth with large customers through land and expand, and Okta sellers own IT and security buyers. Developers were also a target from the 2014 API opening. The deal added a developer entry point inside a sales-led company.[8],[4],[7],[1]

  • “The 2022 and 2023 breaches broke Okta's business.”

    Partly true

    Okta's own 10-K says the January 2022 and October 2023 incidents harmed its reputation and customer relations and hurt financial results, and net retention fell from 120% in FY2023 to 106% in FY2026, though the filings do not tie that decline to the incidents alone. The business did not break: revenue grew from $1,858M in FY2023 to $2,919M in FY2026, Okta turned GAAP profitable in FY2025, and the response came with product changes such as required MFA for admin consoles and admin session binding.[6],[7],[10],[11]

On the record

  • “One day it will flip. You’ll go from a lonely category creator to owning the whole thing.”

    Todd McKinnon, Co-founder and CEO, Okta[15]

    Section "When you're going through hell, keep going"

  • “Once a sale is made, we leverage our land-and-expand sales model to generate incremental revenue, often within the term of the initial agreement”

    Okta, S-1 registration statement[1]

    Business, Sales and Marketing section, p. 106

  • “With the Okta Secure Identity Commitment, the goal is not perfection.”

    Todd McKinnon, Co-founder and CEO, Okta[10]

    Email to employees, paragraph after "Considering the sheer volume and intensity of threats we face"

04What other companies can take from it

05 · GTM Now

What changes in the AI era, and what to do now

Analysis by Deepak Gupta. This is opinion built on the sourced record above, not part of it.[7],[13]

Still works

  • Pre-built integrations sold through enterprise sales and partners. AI agents need access to the same apps, and Okta's 10-K describes Cross App Access, a standards-based protocol to govern AI agents and app-to-app connections.

Breaks

  • Pricing on human identities, if AI slows customer headcount growth. The FY2026 10-K already names workforce reduction as a revenue risk, with net retention at 106%.

What replaces it

  • Identity for non-human identities and AI agents, which is Okta's filed bet through Okta for AI Agents and Auth0 for AI Agents, with its research report reframed around agent readiness.
  • Analysis: the expansion unit may shift from employees to agents and machine credentials, and an owned research report is a way to claim that category early. The sources do not say whether agent identities are priced separately.

Apply it now

If you are

A Series A to C B2B security or IT infrastructure company selling to IT and security buyers at $25K to $250K ACV, where the product connects to many third-party apps

  1. Build and publish a catalog of pre-built integrations for the apps your target buyers already own, and count it as product, not services.
  2. Recruit the platform vendors you integrate with into co-selling and co-marketing, starting with the largest one your buyers already use.
  3. Price on a unit that grows with the customer (users, identities, agents) and plan a second product for the same buyer before year two.
  4. Run one owned customer event and one annual research report from your own usage data, built on customer stories.

You will know it works when: Net dollar retention (Okta's filed figures were 120% to 129% in its early years) and the count of customers above $100K ACV.

Based on Okta's Cloud SSO and enterprise sales from day one, Platform, land and expand, and the IPO, Platform, land and expand, and the IPO, Platform, land and expand, and the IPO, Platform, land and expand, and the IPO

If you are

A later-stage enterprise vendor adding a developer or self-service product line, or recovering from a security incident

  1. Give the developer product its own self-service path (free plan, paid developer plan) and its own sellers, instead of routing developers through enterprise sales.
  2. Report self-service and enterprise customers separately, as Okta does by excluding self-service-only accounts from its customer count.
  3. After an incident, publish a dated root cause with completed remediation steps, and ship at least one control customers can turn on.
  4. Turn the response into a long-term, named program with product, customer, industry and internal pillars.

You will know it works when: Self-service to enterprise conversions per quarter, and net retention plus growth in $100K-plus customers in the four quarters after an incident.

Based on Okta's Specialized sales, profitability and AI agents, Specialized sales, profitability and AI agents, Auth0, two clouds, and security incidents

Motions in this record

Share the visuals

Every card is drawn from the sourced record above and sized 1080 by 1350 for LinkedIn and X. Free to share with a link back to this page.

Sources

  1. [1]SEC filingOkta, Inc. Form S-1 Registration Statement (March 13, 2017)
  2. [2]SEC filingForm 10-K, fiscal year ended January 31, 2018 (March 12, 2018)
  3. [3]SEC filingForm 10-K, fiscal year ended January 31, 2021 (March 4, 2021)
  4. [4]SEC filingForm 10-K, fiscal year ended January 31, 2022 (March 7, 2022)
  5. [5]SEC filingForm 10-K, fiscal year ended January 31, 2023 (March 3, 2023)
  6. [6]SEC filingForm 10-K, fiscal year ended January 31, 2024 (March 1, 2024)
  7. [7]SEC filingForm 10-K, fiscal year ended January 31, 2026 (March 5, 2026)
  8. [8]SEC filingOkta Signs Definitive Agreement to Acquire Auth0 to Provide Customer Identity for the Internet (8-K exhibit) (March 3, 2021)
  9. [9]EarningsOkta Announces Second Quarter Fiscal Year 2027 Financial Results (8-K exhibit) (August 26, 2026)
  10. [10]CompanyIntroducing the Okta Secure Identity Commitment (Todd McKinnon email to employees) (February 28, 2024)
  11. [11]CompanyUnauthorized Access to Okta's Support Case Management System: Root Cause and Remediation (David Bradbury) (November 3, 2023)
  12. [12]CompanyOkta Integration Network (October 18, 2026)
  13. [13]CompanyBusinesses at Work Report 2026 (2026)
  14. [14]CompanyOktane: The Future of Identity, from AI to Human (October 18, 2026)
  15. [15]Founder interviewOkta CEO Todd McKinnon on powering through your darkest days until, finally, the category is born (Bessemer Venture Partners) (Todd McKinnon, August 26, 2021, at sections "When you're going through hell, keep going" and "Accept advice, but have your own backbone and vision")

Every phase, motion, and myth verdict cites a filing, the company's own pages, or a founder speaking on the record. See the methodology.