Okta names Eric Kelleher as new President and COO

SAN FRANCISCO - Okta, Inc. (NASDAQ:OKTA), a prominent provider of identity management solutions with a market capitalization of $16.6 billion and impressive gross profit margins of 76%, has announced the promotion of Eric Kelleher to President and Chief Operating Officer (COO). According to InvestingPro data, the company has shown strong momentum with a 23.1% return year-to-date. Kelleher, who has been with the company since 2016, will oversee various teams including Marketing, Customer First, Company Operations, and others, aiming to enhance operational efficiency and drive growth.

Eugenio Pace, the current President of Business Operations, is set to retire at the end of March 2025, marking the end of a tenure that followed Okta’s acquisition of Auth0. Pace’s leadership has been instrumental in the company’s development over the past years.

Kelleher’s new role will include the formation of an Office of the COO, which will focus on the Okta Secure Identity Commitment and maintaining Okta’s status as a leader in identity security. His previous role as President of Customer Experience & Communications saw him contribute significantly to the company’s growth and brand loyalty.

Todd McKinnon, CEO and co-founder of Okta, expressed confidence in Kelleher’s ability to drive customer satisfaction and operational focus. Kelleher himself acknowledged the importance of operational rigor and customer value as Okta continues to expand its global customer base, which currently exceeds 19,450.

With a background that includes over 25 years of experience in customer service and SaaS companies such as Salesforce (NYSE:CRM) and LinkedIn, Kelleher has been a key player in Okta’s revenue growth from $150 million to over $2 billion. He holds a Bachelor’s degree in Computer Science and Economics from Georgetown University and a Master’s in Computer Science from Stanford. Investors anticipating Okta’s next moves can access comprehensive analysis through InvestingPro, which offers detailed insights ahead of the company’s upcoming earnings report on March 3, 2025.

This leadership change is based on a press release statement and is a strategic move for Okta as the company continues to secure identities for a wide range of clients worldwide.

In other recent news, Okta, Inc. has been a focal point of several analyst firms’ attention. Jefferies has maintained a Hold rating on Okta with a price target of $90, following the technology company’s decision to reduce its workforce by approximately 3%. Despite the reductions, Okta has reaffirmed its financial guidance for the fourth quarter and the full fiscal year of 2025, indicating confidence in its strategic direction.

Simultaneously, Okta’s stock has been upgraded from Sector Weight to Overweight by KeyBanc Capital Markets, with a new price target set at $115. The upgrade is based on the growing importance of identity security, a sector where Okta is seen to have a strong lead.

Baird has also shown a positive outlook for Okta, raising its price target to $115 and retaining an Outperform rating. The firm points to Okta’s conservative preliminary guidance for FY26 and potential for substantial growth as key factors.

Meanwhile, Bernstein revised its price target for Okta from $129 to $124, but continues to hold an Outperform rating. The firm’s analysis indicates substantial upside potential for Okta’s shares, even in a downside scenario.

These recent developments highlight the shifting landscape for Okta as it navigates strategic changes and market assessments.

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