Okta authorizes $1 billion share buyback program

Okta Inc. (NASDAQ: OKTA) announced that its board of directors approved a share repurchase program authorizing the purchase of up to $1 billion of its Class A Common Stock, effective immediately.

The identity management company plans to fund the repurchases through existing cash balances and cash flow from operations. The program allows Okta to buy back shares in the open market, through privately negotiated transactions, or other methods, with timing and amounts determined at the company's discretion based on market conditions and corporate needs.

Open market repurchases will comply with federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934. Okta may also enter into Rule 10b5-1 plans to facilitate share purchases under this authorization.

The program has no fixed expiration date and does not require Okta to purchase any specific amount of stock. The board retains the authority to modify, suspend, or terminate the program at any time.

According to the press release, the repurchase program reflects the company's confidence in its business and long-term opportunities, as well as its view that shares are undervalued. The company cited its scale, balance sheet, and ability to generate free cash flow as factors enabling capital returns to shareholders while continuing investments for growth.

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