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.