Okta Shares Plunge after $6.5 Billion Deal to Acquire its Rival Auth0, CEO Defends the Move

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McKinnon argued Okta is pre-built, pre-configured solutions-focused. Meanwhile, Auth0 is purpose-built app developers-focused.

Auth0 is “a product that’s much more flexible and extensible and does exactly down to the bit and bite what the developer needs to do. And that’s why the two solutions together are so compelling,” McKinnon said. “They give customers great choice, flexibility, great value and really solidify that $25 billion [total addressable market].”

Okta’s shares plummeted 4.56% to $215.96 Friday. Its fourth-quarter revenue increased by 40% in 12 months period to reach $234.7 million. Meanwhile, the net loss had hit $75.8 million compared to a $50.5 million loss in the year-ago quarter.

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