Jun 9, 2017

Okta CEO: IPO doesn't really help with enterprise software sales

Dan Primack, author of Pro Rata

Charles Sykes/AP Images for OKTA

Identity management company Okta on Wednesday released its first quarterly earnings since going public two months ago, beating Wall Street estimates.

Axios spoke briefly with CEO Todd McKinnon, and asked about the conventional wisdom that enterprise software companies gain a sales advantage by going public, because potential customers view vendors as more stable if they have a listed security. His reply:

"We recently had our sales managers here for a meeting and I took a quick poll to ask if the IPO had helped them in the field. A few hands went up, but it wasn't huge. I think it's helpful in terms of awareness, and saves us some time in that customers who want to see numbers no longer need to ask us, but the other reasons for going public – the cash and compensating employees – have been more meaningful for us."

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Unemployment rate falls to 13.3% in May

Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. unemployment rate fell to 13.3% in May, with 2.5 million jobs gained, the government said on Friday.

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The difficulty of calculating the real unemployment rate

Data: U.S. Department of Labor; Note: Initial traditional state claims from the weeks of May 23 and 30, continuing traditional claims from May 23. Initial PUA claims from May 16, 23, and 30, continuing PUA and other programs from May 16; Chart: Andrew Witherspoon/Axios

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Why it matters: Traditional economic reports have failed to keep up with the devastation of the coronavirus pandemic and have made it nearly impossible for researchers to determine the state of the U.S. labor market or the economy.

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Illustration: Eniola Odetunde/Axios

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