Okta, Inc. (OKTA): ANSOFF MATRIX [Dec-2025 Updated]

You're looking for a clear-eyed view on how Okta, Inc. can keep its growth engine running, especially after delivering a strong FY2025 with $2.610 billion in revenue and a 22% non-GAAP operating margin. As someone who's mapped strategy for years, I find the Ansoff Matrix is the perfect, no-nonsense way to break down the next set of moves, showing exactly where to push for more market share, where to launch new products, or even where to look for entirely new territory. Honestly, we need to see concrete actions tied to these four quadrants-Market Penetration, Market Development, Product Development, and Diversification-to really understand the near-term risk/reward profile for Okta, Inc. below.

Okta, Inc. (OKTA) - Ansoff Matrix: Market Penetration

You're looking at the core of Okta, Inc. (OKTA)'s near-term growth plan: getting more revenue from the customers already signed up. This is about deepening the relationship, not finding new logos.

The strategy centers on aggressively cross-selling core Workforce and Customer Identity products to the existing installed base of 19,650 customers as of January 31, 2025. This base is the primary target for expansion.

A key action involves focusing sales specialization on upselling new modules like Okta Identity Governance (OIG) to the 4,800 large Annual Contract Value (ACV) accounts, which represented over 80% of total ACV as of January 31, 2025. The adoption of OIG is showing traction; as of the end of Fiscal Year 2025, Okta Identity Governance had over 1,300 customers and generated more than $100 million in Annual Contract Revenue (ACR).

To drive higher consumption of existing services and boost the dollar-based net retention rate (DBNRR), Okta, Inc. is increasing marketing spend. The company expressed confidence in its organization to go out and address the opportunity, noting an increase in Sales and Marketing expense in Q3 FY2026. The trailing twelve-month dollar-based net retention rate as of October 31, 2025, stood at 106%.

The strong balance sheet is a tool for competitive positioning. As of October 31, 2025, Okta, Inc. held $2.463 billion in cash, cash equivalents, and short-term investments, following the settlement of the remaining $510 million principal amount of the 2025 convertible notes in Q3 FY2026. This financial strength allows Okta, Inc. to offer competitive pricing against Microsoft in the core Identity and Access Management (IAM) space.

The company is also using service offerings to solidify platform stickiness. For instance, the focus on securing AI agents via new capabilities on the Okta Platform and Auth0 Platform is a major driver, with over 100 current customers already engaged, representing over $200 million in existing Annual Recurring Revenue (ARR) related to Okta Secures AI initiatives as of Q3 FY2026.

Here is a snapshot of key metrics supporting this market penetration strategy:

The go-to-market specialization supports this, with the sales organization focusing on two primary buyer personas: the enterprise buyer (CIOs/CISOs) and the developer buyer, leading to more successful conversations with both core audiences.

Okta, Inc. (OKTA) - Ansoff Matrix: Market Development

You're looking at where Okta, Inc. can push its existing identity solutions into new territories or customer segments. This is about taking what works-the core platform-and selling it to a new buyer or in a new geography. The numbers from the end of fiscal year 2025 give us a clear starting point for where the focus needs to be.

For fiscal year 2025, Okta, Inc. reported total revenue of $2.610 billion, with subscription revenue making up 97.9% of that, totaling $2.556 billion. The existing international footprint, which is the first area for development, accounted for 21% of total revenue in Q4 FY2025, amounting to $548.00 million for the full fiscal year. The goal here is to push that international share beyond that 21% mark.

Here's a look at the customer base scale as of January 31, 2025, which shows the enterprise focus:

Targeting the US public sector requires leveraging existing compliance achievements. Okta for Government High earned its FedRAMP High Authorization in March 2023, complying with over 420 baseline security controls for mission-critical information. Furthermore, Okta Workflows was authorized at the FedRAMP High level in November 2024, which helps agencies automate processes, saving customers over 130 million hours by automating manual IT processes. This authorization on core components supports the push for full compliance across the Workforce Identity suite.

For the Auth0 Customer Identity Cloud platform, the focus shifts to developer-centric regions where the market is expanding rapidly. In the Asia-Pacific Identity and Access Management market, the size was USD 4.68 billion in 2024 and is anticipated to reach USD 14.46 billion by 2033, growing at a CAGR of 13.35%. Down in Latin America, the IAM market generated USD 600.9 million in revenue in 2023 and is expected to hit USD 1,407.8 million by 2030, with a CAGR of 12.9%. The Auth0 platform, which traditionally focuses on developers who want to code, is positioned to capture this growth.

Securing non-human identities (NHIs) is a major new market development, especially with the rise of AI agents. The market opportunity for identity security addressing NHIs is projected to reach $27.5B by 2029. Current adoption shows that while 91% of organizations use AI agents, only 10% manage NHIs effectively. Okta, Inc. is positioning its AI-driven identity platform to address this gap, with specialized tools like Identity Security Posture Management (ISPM) and Okta Privileged Access.

Capturing the underserved mid-market segment means creating offerings that appeal to organizations smaller than the top-tier enterprises. While the fastest growth is seen in the largest accounts-customers with over $1 million in Annual Contract Value (ACV) grew 22% to 470 in Q4 FY25-the strategy must address the broader base. The current customer base stands at over 19,650 organizations as of January 31, 2025. Simplified, lower-cost bundles would aim to increase penetration within the segment below the 4,800 customers currently spending over $100K in ACV.

• International revenue share target: Exceed 21% of total revenue.
• US Public Sector: Leverage existing FedRAMP High authorizations for core products like Okta Workflows.
• APAC/LATAM: Tailor Auth0 for developers, targeting markets with IAM growth rates like 13.35% CAGR (APAC) and 12.9% CAGR (LATAM).
• NHIs: Address a market opportunity estimated at $27.5B by 2029 where only 10% of organizations currently manage NHIs well.
• Mid-Market: Develop entry-level bundles to grow the base beyond the 19,650 total customers.

Finance: draft 13-week cash view by Friday.

Okta, Inc. (OKTA) - Ansoff Matrix: Product Development

Drive rapid adoption of Okta Privileged Access (OPA) and Device Access within the existing customer base to increase ACV.

• Customers with more than $100,000 in Annual Contract Value (ACV) reached 5,030 as of October 31, 2025.
• Customers with more than $1 million in ACV increased 15% year over year to 495 (as of end of Q2 FY2026).
• One existing customer deal that added Okta Identity Security Posture Management, Identity Threat Protection with Okta AI, and Okta Privileged Access increased the ARR on that account north of 30%.
• Total customers reached approximately 20,000 at the end of the second quarter of fiscal 2026.

Monetize the new Identity Threat Protection (ITP) with Okta AI to capture emerging security operations budget lines.

• The Okta Secures AI / Okta for AI Agents offerings already represent over $200 million in existing Annual Recurring Revenue (ARR).
• The addition of Identity Threat Protection with Okta AI to an existing customer's product set resulted in an ARR increase of north of 30% for that account.
• Okta posted FY2025 revenue of $2.61B with a focus on AI-driven identity products.

Deepen the integration of Okta Identity Governance (OIG), which already generates over $100 million in ARR, into the core platform.

The focus on new products like OIG contributed to over 20% of Q4 fiscal 2025 bookings.

Launch new features like Cross App Access for AI Agents to secure internal, agentic AI workflows for current clients.

• Okta is pushing new features across its platforms to help customers securely adopt AI agents.
• The Auth0 for AI agents capability allows customers to build secure agents, APIs, and users across their internal app ecosystem.
• The AI-powered offerings are already driving over $200 million in existing ARR.
• The company expects fiscal 2026 total revenue growth of 11% over the fiscal 2025 figure of $2.61B.

Introduce an On-prem Connector for legacy systems like Oracle EBS to modernize existing customer IT environments.

• New products, including Okta Privileged Access and Device Access, are being delivered as part of product suites to further simplify how customers do business with Okta.
• The company is increasing sales and marketing expense, indicating confidence in addressing new opportunities across the portfolio.
• For the fourth quarter of FY2026, Okta expects total revenue growth of 10%.

Okta, Inc. (OKTA) - Ansoff Matrix: Diversification

You're looking at how Okta, Inc. (OKTA) is moving beyond its core market to capture new revenue streams, which is the essence of diversification in the Ansoff Matrix.

The company closed Fiscal Year 2025 with total revenue of $2.61 billion, marking a 15% increase year-over-year.

The subscription revenue component remains dominant, constituting approximately 98% of total revenue for the nine months ended October 31, 2025, with a subscription gross margin of 80% for the same period.

The following details Okta, Inc. (OKTA)'s diversification thrusts:

• Establish a defintely early leadership position in the nascent agentic AI identity insurance market with new security products.
• Develop a specialized Identity and Access Management (IAM) solution for the Operational Technology (OT) and Industrial IoT (IIoT) sectors.
• Acquire a niche vendor to quickly enter the adjacent Cloud Security Posture Management (CSPM) market.
• Launch a new, standalone developer platform focused entirely on securing AI-native applications and microservices globally.
• Form strategic partnerships to co-develop identity solutions for new industry verticals like healthcare or financial services compliance.

For the AI agent opportunity, CEO Todd McKinnon indicated this segment 'could exceed Okta's core total addressable market over the next five years.'

The company is already engaged with over 100 of its current customers regarding its AI security offerings, which represent over $200 million in existing Annual Recurring Revenue (ARR).

The development of capabilities like Okta for AI Agents is planned for Early Access in FY27 Q1 and General Availability in FY27.

The market context shows that only 10% of organizations report having a strategy for managing non-human identities.

The move into adjacent security markets was supported by the acquisition of Axiom Security in August 2025, which brings technology for connection to Kubernetes and databases to enhance the Privileged Access product.

This acquisition follows the completion of the Spera Security acquisition in February 2024, aimed at broadening Identity threat detection and security posture management capabilities.

The company's developer platform expansion includes Auth0 for AI agents, which allows customers to build secure agents across B2B, B2C, and internal app ecosystems.

The company ended the fiscal year with Remaining Performance Obligations (RPO) of $4.215 billion, a 25% increase year-over-year.

The dollar-based net retention rate for the fiscal year was 10%.

The company's non-GAAP operating margin for FY2025 reached 22% of total revenue, up from 14% in fiscal 2024.

The number of customers with an annual contract value above $100,000 reached 5,030 as of October 31, 2025.

Finance: draft 13-week cash view by Friday.