Okta vs Rapid7: Revenue, Profit and Business Model
Okta had $2.9B of annual revenue in FY2026 and $235M of net income. Rapid7 had $835M of annual revenue in FY2024 and a net loss of $98M.
Latest financial snapshot
Financial summary
Okta
Okta crossed into GAAP profitability in fiscal 2025 ($28 million net income on $2.610 billion revenue) and expanded it in fiscal 2026: revenue rose 12% to $2.919 billion, GAAP operating income reached $149 million, net income $235 million and free cash flow $863 million (30% margin). Momentum continued in fiscal 2027. Q2 FY2027 (ended July 31, 2026) revenue grew 11% to $805 million, GAAP net income was $116 million, free cash flow $227 million, and remaining performance obligations rose 17% to $4.858 billion. Okta held $2.299 billion of cash and short-term investments after repaying the last $350 million of its 2026 convertible notes in cash, and it has been buying back stock. Okta, Inc. is a massive American cloud-based identity and access management company, commanding a market valuation typically exceeding $15 billion.
Rapid7
Rapid7's financial profile illustrates steady cloud subscription growth, disciplined operational expense containment, and strong free cash flow generation. In fiscal year 2024, Rapid7 delivered consolidated net revenue of $777.0 million, representing a 14% year-over-year increase compared to $685.1 million in FY2023. Annualized Recurring Revenue (ARR) expanded to $796 million, propelled by double-digit expansion in Managed Detection and Response (MDR) and Cloud SIEM/XDR bookings. GAAP gross margin stood at 70%, while Non-GAAP gross margin reached 74%, benefiting from cloud infrastructure efficiencies on Amazon Web Services. Non-GAAP operating income surged to $95 million, reflecting successful margin optimization and corporate restructuring initiatives. The company generated over $90 million in free cash flow. Rapid7 maintains a solid balance sheet with approximately $415 million in cash, cash equivalents, and marketable securities, ensuring strong financial resilience and self-funded growth.
Revenue and profit by year
Okta
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $2.9B | $235M | 8.1% | +11.8% | Source |
| FY2025 | $2.6B | $28M | 1.1% | +15.3% | Source |
| FY2024 | $2.3B | -$355M | -15.7% | +21.8% | Source |
| FY2023 | $1.9B | -$815M | -43.9% | +42.9% | Source |
| FY2022 | $1.3B | -$848M | -65.2% | +55.7% | Source |
| FY2021 | $835M | -$266M | -31.9% | +42.5% | Source |
| FY2020 | $586.1M | -$208.9M | -35.6% | +46.8% | Source |
| FY2019 | $399.3M | -$125.5M | -31.4% | +55.6% | Source |
| FY2018 | $256.5M | -$109.8M | -42.8% | +59.5% | Source |
| FY2017 | $160.8M | -$75.1M | -46.7% | — | Source |
Rapid7
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $835M | -$98M | -11.7% | +7.4% | Source |
| FY2023 | $777.6M | -$132.4M | -17.0% | +13.5% | Source |
| FY2022 | $685.1M | -$123.5M | -18.0% | +28.0% | Source |
| FY2021 | $535.4M | -$144.3M | -27.0% | +30.1% | Source |
| FY2020 | $411.5M | -$99.6M | -24.2% | +25.9% | Source |
| FY2019 | $326.9M | -$61.9M | -18.9% | +33.9% | Source |
| FY2018 | $244.1M | -$51.6M | -21.1% | +21.5% | Source |
| FY2017 | $200.9M | -$57.1M | -28.4% | +27.6% | Source |
| FY2016 | $157.4M | -$33.9M | -21.5% | +42.6% | Source |
| FY2015 | $110.4M | -$45.3M | -41.0% | — | Source |
Where the revenue comes from
Okta
- Subscription~98%
$2.855 billion of fiscal 2026 revenue from workforce and customer identity subscriptions.
- Professional services and other~2%
About $64 million in fiscal 2026; Okta is shifting this work to partners.
Rapid7
- Managed Detection & Response (MDR & InsightIDR)46.0%
24/7 managed security operations center (SOC), cloud SIEM, user entity behavior analytics (UEBA), and incident response.
- Vulnerability Risk Management (InsightVM)34.0%
Continuous network asset scanning, vulnerability remediation prioritization, and live endpoint agents.
- Cloud Security & Application Testing (InsightCloudSec & InsightAppSec)12.0%
Multi-cloud security posture management, container compliance, and dynamic application security testing (DAST).
- Professional Security Advisory & Incident Response8.0%
Elite penetration testing, Metasploit Pro commercial tools, and emergency breach forensics.
Business model and strategy
Okta
How it makes money
Okta makes money by selling term subscriptions to its cloud identity services. Workforce identity products such as Single Sign-On, Adaptive MFA, Universal Directory, Lifecycle Management, Okta Identity Governance and Privileged Access are generally priced per user per month and sold on annual or multi-year contracts.
Growth strategy
Okta's growth strategy has three parts: sell newer products (Okta Identity Governance, Privileged Access, Identity Threat Protection, Identity Security Posture Management) into its existing base; move up-market, where customers above $1 million in ACV grew more than 20% to over 600 by mid-2026;
Competitive advantage
Okta's main advantage is neutrality. It does not sell a cloud, an operating system or a productivity suite, so customers running AWS, Google Cloud, Microsoft and hundreds of SaaS tools can use one identity layer without favouring a single vendor. The Okta Integration Network offers more than 7,000 pre-built integrations, and identity systems are costly to replace once wired into HR, IT and security workflows.
Rapid7
How it makes money
Rapid7 operates an enterprise Software-as-a-Service (SaaS) subscription and managed services business model with strong recurring revenue and high customer lifetime value: (1) Insight Platform SaaS Subscriptions (~80% of revenue), billed annually on a per-asset, per-user, or data-ingestion basis across InsightVM (vulnerability management), InsightIDR (cloud SIEM/XDR), InsightCloudSec (cloud security), and InsightConn…
Growth strategy
Under CEO Corey Thomas, Rapid7 is executing a four-pillar growth strategy: (1) Expanding MDR Market Leadership: Scaling Managed Detection and Response services to mid-sized enterprises facing severe cybersecurity talent shortages, delivering enterprise-grade 24/7 SOC protection at a fraction of internal build costs;
Competitive advantage
Rapid7's foundational competitive moat combines deep attacker-centric threat intelligence with integrated human-in-the-loop security operations.
Questions about Okta vs Rapid7
Which company has higher revenue — Okta, Inc. or Rapid7?
Okta, Inc. had $2.9B (FY2026), while Rapid7 had $835.0M (FY2024). By latest annual revenue, Okta, Inc. is the larger business, with Rapid7 showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Okta, Inc. vs Rapid7?
Okta, Inc.'s market capitalisation stands at $33.0B, while Rapid7's is $2.5B. Okta, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Rapid7.
How does revenue per employee compare for Okta, Inc. and Rapid7?
Okta, Inc. has $459k / employee in revenue per employee, while Rapid7 has $363k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Okta, Inc. and Rapid7 make money?
Okta, Inc. and Rapid7 generate revenue in fundamentally different ways. Okta, Inc.: Okta makes money by selling term subscriptions to its cloud identity services. Rapid7: Rapid7 operates an enterprise Software-as-a-Service (SaaS) subscription and managed services business model with strong recurring revenue and high customer lifetime value: (1) Insight Platform SaaS Subscriptions (~80% of revenue), billed annually on a per-asset, per-user, or data-ingestion basis across InsightVM (vulnerability management), InsightIDR (cloud SIEM/XDR), InsightCloudSec (cloud security), and InsightConnect (SOAR automation); (2) Managed Detection and Response (MDR) Services (~15% of revenue), providing 24/7/365 managed threat monitoring, human-led threat hunting, and automated incident response delivered by Rapid7's elite global Security Operations Centers; and (3) Professional Security Services & Metasploit Pro (~5% of revenue), encompassing adversary emulation, red-teaming penetration testing consulting, and commercial Metasploit software licensing.
Which company is valued higher relative to revenue — Okta, Inc. or Rapid7?
On a price-to-sales (P/S) basis, Okta, Inc. trades at 11.3x P/S and Rapid7 at 3.0x P/S. Okta, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Rapid7. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Okta, Inc. bigger than Rapid7?
By last reported revenue, Okta, Inc. ($2.9B (FY2026)) is the larger company compared to Rapid7 ($835.0M (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Okta vs Rapid7 overview