Okta Activity Analysis

Part
01
of five
Part
01

Okta Activity Analysis - 2015

The top 12 logins for all startup companies and platforms according to the 2015 Okta Businesses at Work report include Box Inc., DropBox, JIRA (Atlassian), Yammer, Slack, PagerDuty, New Relic, SmartSheet, Trello, Marketo, Prezi, and Pingdom.

2015 TOP STARTUP COMPANIES AND VALUATIONS

  • Box — $2.29 billion (synthesized from Sources 1 & 2)
  • DropBox — $10 billion (synthesized from Sources 1 & 5)
  • JIRA (Atlassian) — $3 billion (synthesized from Sources 1 & 3)
  • Yammer — $1.2 billion (synthesized from Sources 1 & 13)
  • Slack — $2.8 billion — (synthesized from Sources 1 & 4)
  • PagerDuty
  • New Relic — $0.9 million (synthesized from Sources 1 & 6)
  • SmartSheet — $75-80 million (synthesized from Sources 1 & 12)
  • Trello
  • Marketo
  • Prezi
  • Pingdom — $63.7 million (synthesized from Sources 1 & 8)

USEFUL INFORMATION

Research Strategy:

Our first strategy was to search for information pertaining to the ending year value of start up companies using business news sources such as Yahoo! Finance, Business Insider and Venture Beat. We were unable to find the specific (2015) information for some companies such as PagerDuty, Trello, Marketo, and Prezi.

Our second approach was to look for the individual companies' websites to gather this information, but we found that no information was available there as well. We expanded our reach to the press releases from these companies, but we were unsuccessful.

Thirdly, we checked the annual reports for these companies but realized that the information was either missing or there were no annual reports. These companies are private companies and may not have this information publicly available to maintain a competitive edge.

We also used Crunchbase to gather information about the companies and to provide useful information for those that did not have their valuation publicly available. To provide the required details for startup companies and platforms according to the 2015 Okta Businesses at Work report, we used sources such as Forbes, Business Insider, Venture Beat, Crunchbase, financial reports and annual reports.
Part
02
of five
Part
02

Okta Activity Analysis - 2016

Some of the top 12 logins for all startup companies and platforms, according to the Business at Work 2016 report, include Box Inc., Dropbox, and Slack. The requested information is provided in the attached spreadsheet, "2016" tab.

1. Box Inc.

2. Dropbox

3. Slack

4. JIRA (Atlassian)

5. Workday

6. WebEx (Cisco)

7. GitHub

8. Tableau

9. New Relic

10. LucidChart

11. Trello

12. HipChat

Part
03
of five
Part
03

Okta Activity Analysis - 2017

In finding the top logins for startup companies and platforms according to the 2017 Okta Businesses at Work report, there were only four companies that qualified: Slack, Dropbox, DocuSign, and GitHub. These companies were derived from the "most popular apps" graph in the report. Since Okta provides login services for businesses to apps and services, the most popular ones would be the top logins for startup companies and platforms. The information was placed in this spreadsheet.

STARTUPS

RESEARCH STRATEGY

Okta's software is used by companies to log into many other apps and services. This is why we decided to use the graph showing the most popular apps used by Okta customers. Excluding well-known companies such as Microsoft, Twitter, Salesforce, Adobe, and ADP, as well as products from larger companies like JIRA that's produced by Atlassian and Creative Cloud by Adobe, we had to find out if these companies were truly startups by the end of 2017: Box, Concur, Slack, Zendesk, Dropbox, Meraki, Linkedin, DocuSign, ServiceNow, GoToMeeting, GitHub, Workday, and NetSuite. We decided that based on the definition we should only use young and fast-growing companies that didn't have an exit at the end of 2017 by way of IPO or acquisition. We decided on the following:
Part
04
of five
Part
04

Okta Activity Analysis - 2018

The only 2 companies that qualified as start-ups in the list of top logins were ZScaler and Slack.

Findings:

#1 Login for StartUp Company: Zscaler

Startup Company/Platform (In order of appearance on Okta report) : ZScaler

#2 Login for StartUp Company: Slack


Research Strategy:

The Okla Business at Work report for the year 2018 did not provide any lists of top logins for all startup companies and platforms. However, on page 6 of 24, the report mentioned that the list of the most popular apps based on the number of monthly active users (on page 7 of 24) was prepared considering "users who have logged into an app, via Okta, at least one time in the past 30 days"

Therefore, the list of Most Popular Apps (Number of Monthly Active Uniques) was considered as the list of Top Logins as each unique user was equal to a login.

The companies in the list were as follows (following the research criteria, only those companies that launched their IPO after the report was published in January 2018 were considered. Details of inclusion for each company are as follows):
  • Microsoft Office 365 : Following the RC, Microsoft was not considered for inclusion.
  • Workday : Following the RC, Microsoft was not considered for inclusion.
  • ServiceNow : IPO of ServiceNow was launched in 2012 (much before 2018). Therefore, it was not considered for inclusion.
  • Salesforce : Salesforce went public way back in 2004 and therefore was not considered for inclusion.
  • G Suite : A product of Google, which launched its IPO in 2004. Therefore, GSuite was not considered for inclusion.
  • Box : Box's IPO was launched in 2015. Therefore, the company was not considered for inclusion.
  • Concur : Concur was acquired by the public company SAP in 2014, and therefore it was not considered for inclusion.
  • SuccessFactors : Success Factor was acquired by public company SAP in 2011 and was therefore not considered for inclusion.
  • Jive : IPO was launched way back in 2011 and therefore the company was not considered for inclusion.
  • WebEx : WebEx was acquired by public company CISCO in 2007 and therefore was not considered for inclusion.
  • Z Scaler's IPO was launched in 16th March 2018.
--Z Scaler was considered for inclusion
--Zscaler valuation calculation, according to Yahoo Finance:
Closing price of Stock on December 28, 2018 : USD 39.80
Outstanding stocks on December 28, 2018 : 817,400
Total Valuation for the end of 2018 : 817,400*USD 39.80 = $32,532,520
  • Sharepoint : A Microsoft product, hence not considered for inclusion following the RC.
  • Slack : Slack went for an IPO on 20th June, according to Investopedia. Therefore, the company was considered for inclusion.
  • Confluence : A product from the Atlassian group which went public in 2015 and therefore was not considered for inclusion.
  • Cornerstone ONDemand launched its IPO in 2011 and therefore was not considered for inclusion.
Conclusion : Therefore, only 2 companies that qualified as a start-up in the list of top logins were ZScaler and Slack.
Part
05
of five
Part
05

Okta Activity Analysis - 2019

The only startup company in the top apps list based on the number of "monthly active unique users" in the 2019 Okta report is Slack. The remaining are established companies that have past IPOs prior to the release of the 2019 version of the report. The required data is indicated in the 2019 tab of the linked spreadsheet.

FINDINGS

  • Slack is the only startup company in the top apps list based on the number of "monthly active unique users" in the 2019 Okta report.
  • As per the search strategy below, the ranked list under the "monthly active unique users" in the 2019 Okta report section should reflect the apps with multiple logins from these users.
  • Slack debuts its IPO in June 2019. This is several months after the Okta report finished its gathering phase, making it a startup company.
  • Slack valuation for 2019 is $23 billion.

ESTABLISHED COMPANIES oN THE LIST

  • The other companies in the list of the top apps with the most "number of monthly active unique users" are established companies already as their IPOs occurred prior to the data gathering period of this report.
  • These established companies are then excluded from the response in the linked spreadsheet as they did not meet the criteria.

The following are the details on why these companies were excluded:
The following are the IPO dates of the other established companies in the list:
  • ServiceNow's IPO happened in 2012.
  • Salesforce's IPO happened in 2004.
  • Google, the company owning GSuite has its IPO debut last 2004.
  • Box's IPO happened in 2015.
  • Cornerstone on Demand was launched to the public last 2011.
  • Zscaler's IPO debuted on March 16, 2018. This is before the 2019 data gathering period of Okta's report, which made Zscaler already an established company at that time.
  • Cisco, an established public company bought Webex into its organization in 2007.
  • Jive went public last 2011.
  • Confluence is from the Atlassian group. The company's IPO debuted last 2015.

RESEARCH STRATEGY

We started our research by analyzing the given Okta - Businesses at Work 2019 report to determine the apps from startup companies that got at least ten logins. Based on what we found in the report, there was no mention of the top apps that got at least ten logins. The closest we can find that can potentially yield a close answer is the section in the report that indicates the list of the most popular apps based on the number of monthly active users. Since this is the only specified source for this, we further checked if we can use the "number of monthly active users' data" to triangulate for the top apps that got at least ten logins. As per the methodology stated in the report, the number of monthly active users was determined by taking into account those users who have signed-in to the app through Okta at least once in the past month. Given this, we have inferred that this should produce several logins. We concluded that the apps under this section in the report could represent the top apps that got at least ten logins.
We then checked the top apps by the "number of monthly active unique users" and found the following companies in this order: Microsoft Office 365, Workday, ServiceNow, Salesforce, GSuite, Box, SAP Concur, SAP Success Factors, Cornerstone on Demand, Zscaler, Cisco Webex, Slack, Sharepoint, Jive, and Confluence.
We then checked if these apps are established already or are not in IPO mode yet before January 2019, the date when the data gathering exercise for the report was completed. Some outdated sources were used to obtain the past IPO dates of some companies on the list. Based on this, the only app on the list that can be considered as a startup since it is not on IPO-mode yet before January 2019 is Slack. The company just had its IPO in June 2019. This is then reflected in the findings section above.
Sources
Sources

From Part 04
Quotes
  • "This year, we’re also analyzing most popular apps based on the number of monthly active users (defined as users who have logged into an app, via Okta, at least one time in the past 30 days). "
Quotes
  • "June 28 (Reuters) - IT software company ServiceNow priced its initial public offering on Thursday above its expected range at $18, an underwriter said. The San Diego, California-based firm raised $209.7 million in the first major tech IPO since Facebook Inc went public in May. The company priced 11.65 million shares as planned. It had intended to price at a range of $15 to $17."
Quotes
  • "Earlier this year, Warren Buffett and Charlie Munger told Berkshire Hathaway investors that passing on Google stock shortly after its initial public offering on August 19, 2004 was a mistake. According to Buffett, Google’s founders approached Berkshire with a investment prospectus, but, he admitted, “I blew it.”"
Quotes
  • "SAP SE (NYSE: SAP) and Concur Technologies, Inc. (NSDQ: CNQR) today announced that SAP’s subsidiary, SAP America, Inc., has entered into an agreement to acquire Concur. With more than 23,000 customers, 4,200 employees and 25 million active users in over 150 countries, Concur is the leader in the multi-billion market for travel and expense (T&E) management software. "
Quotes
  • "SAP has announced plans to acquire cloud-based business software provider SuccessFactors for $40 per share, a 52 percent premium over the company’s closing price of $26.25 on December 2. The deal is worth $3.4 billion."
Quotes
  • "Enterprise social networking company Jive Software priced shares of its initial public offering at $12 a share and sold them to raise $161.3 million on Monday. "
Quotes
  • "The enterprise cloud services company started trading this morning as ZS on Nasdaq at a price of $27.50/share, a pop of 71.9 percent on its opening price, and its stock today reached a peak of $33.37."
Quotes
  • "SharePoint is an enterprise information portal, from Microsoft, that can be configured to run Intranet, Extranet and Internet sites."
Quotes
  • "Slack Technologies Inc., a provider of cloud-based tools and services that facilitate workplace collaboration, will go public this week."
Quotes
  • "Slack, the very popular work chat app, has raised $427 million in venture capital, at a valuation of "more than $7.1 billion"
Quotes
  • "Atlassian today announced the pricing of its public offering of 22,000,000 Class A ordinary shares at a price of $21 per share. The shares are expected to begin trading on the NASDAQ Global Select Market on December 10, 2015 under the symbol “TEAM""