Okta Is a Leader in Identity Security

We believe Okta is poised for success as a leader in the identity and access management, or IAM, space. Okta’s platform weaves together the firm’s workforce and customer offerings, which stands to grow in importance as enterprises increasingly adopt zero-trust security architectures, migrate to the cloud, and grapple with a rapidly expanding identity perimeter that now encompasses AI agents and non-human identities. However, we assign Okta with a no-moat rating as we don’t foresee excess returns on capital in the next few years. Still, we believe the firm’s platform, impressive number of integrations, and a broad range of SKUs have allowed the business to be on the cusp of generating high customer switching costs and a network effect.