<SEC-DOCUMENT>0001564590-17-002003.txt : 20170504
<SEC-HEADER>0001564590-17-002003.hdr.sgml : 20170504
<ACCEPTANCE-DATETIME>20170222163631
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ACCESSION NUMBER:		0001564590-17-002003
CONFORMED SUBMISSION TYPE:	DRSLTR
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20170222

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Okta, Inc.
		CENTRAL INDEX KEY:			0001660134
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				264175727
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		DRSLTR

	BUSINESS ADDRESS:	
		STREET 1:		301 BRANNAN STREET, 1ST FLOOR
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94107
		BUSINESS PHONE:		888-722-7871

	MAIL ADDRESS:	
		STREET 1:		301 BRANNAN STREET, 1ST FLOOR
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94107
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman">Richard A. Kline</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman">650.752.3139</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman">rkline@</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman">goodwinlaw.com</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Goodwin&nbsp;Procter&nbsp;<SMALL>LLP</SMALL><BR> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman">Counselors at Law</P>
<P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman">135&nbsp;Commonwealth&nbsp;Drive</P> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman">Menlo Park, CA 94025</P>
<P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman">T: 650.752.3100</P> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:8pt; font-family:Times New Roman">F: 650.853.1038</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">February&nbsp;22, 2017 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Katherine Wray </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Attorney-Advisor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Okta, Inc. </B></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&nbsp;&nbsp;</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Amendment No.&nbsp;1 to Draft Registration Statement on Form S-1 </B></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&nbsp;&nbsp;</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Submitted January&nbsp;27, 2017 </B></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&nbsp;&nbsp;</B></TD>
<TD ALIGN="left" VALIGN="top"><B>CIK No.&nbsp;0001660134 </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Wray: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This letter is submitted on behalf of Okta, Inc. (the &#147;<U>Company</U>&#148;) in response to the comments of the staff of the Division of
Corporation Finance (the &#147;<U>Staff</U>&#148;) of the Securities and Exchange Commission (&#147;<U>SEC</U>&#148;) with respect to the Company&#146;s Amendment No.&nbsp;1 to Confidential Draft Registration Statement on Form S-1 submitted on
January&nbsp;27, 2017 (the &#147;<U>Draft Registration Statement</U>&#148;), as set forth in your letter dated February&nbsp;13, 2017 addressed to Todd McKinnon, Chief Executive Officer of the Company (the &#147;<U>Comment Letter</U>&#148;). The
Company is concurrently filing an Amended Draft Registration Statement (the &#147;<U>Amended Draft Registration Statement</U>&#148;), which includes changes that reflect responses to the Staff&#146;s comments. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For reference purposes, the text of the Comment Letter has been reproduced herein with responses below each numbered comment. For your
convenience, we have italicized the reproduced Staff comments from the Comment Letter. Unless otherwise indicated, page references in the descriptions of the Staff&#146;s comments refer to the Draft Registration Statement, and page references in the
responses refer to the Amended Draft Registration Statement. All capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Draft Registration Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The responses provided herein are based upon information provided to Goodwin Procter&nbsp;LLP by the Company. In addition to submitting this
letter via EDGAR, we are sending via courier four (4)&nbsp;copies of each of this letter and the Amended Draft Registration Statement (marked to show changes from the Draft Registration Statement). </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Prospectus Summary </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Overview, page 1 </U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><I>In response to prior comment 1, you advise that the average number of users on business days within your fourth fiscal quarter was 2.1&nbsp;million through January&nbsp;25, 2017. In light of this data, please
consider revising the references in your filing to the number of people who use Okta every business day to be more specific, or tell us why you think it is appropriate to refer more generally to &#147;millions.&#148;</I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">RESPONSE: In response to the Staff&#146;s comment, the Company has revised pages 1, 60 and 89 of the Amended Draft Registration Statement to
describe the number of people who use Okta every business day with more specificity. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><I>We note the revised disclosure provided in response to prior comment 3, where you indicate that certain cloud providers are your &#147;customers, partners or both.&#148; Consider clarifying your disclosure to
describe more specifically the nature of the relationships for each of these providers, such as identifying which of these categories the referenced companies fall within.</I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">RESPONSE: In response to the Staff&#146;s comment, the Company has revised pages 2 and 90 of the Amended Draft Registration Statement to
clarify the nature of the relationships for each of the listed providers. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Management&#146;s Discussion and Analysis of Financial Condition and Results
of Operations </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Our Business Model, page 60 </U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><I>We note your response to prior comment 15 where you state that the methods used to measure contribution margin have been refined over time, such that you do not have consistent corresponding information for prior
historical periods. Revise your disclosure to explain why you are not presenting information for prior cohorts, and describe the impact of not providing comparable information for other cohorts.</I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">RESPONSE: In response to the Staff&#146;s comment, the Company has revised page 62 of the Amended Draft Registration Statement to explain why
information for prior cohorts is not presented and to describe the impact of not providing comparable information for other cohorts. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Business </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Overview, page 86 </U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"><I>Consider revising your disclosure to clarify, consistent with your response to prior comment 20, that the number of integrations with third-party software applications is not directly tied to revenues.</I>
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 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">RESPONSE: In response to the Staff&#146;s comment, the Company has revised page 90 of the Amended
Draft Registration Statement to clarify that the number of integrations does not directly correlate to revenue. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Our Customers </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Customer Case Studies, page 99 </U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top"><I>Please disclose the time period during which each profiled customer has used the Okta Identity Cloud.</I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">RESPONSE: In response to the Staff&#146;s comment, the Company has revised pages 102-105 of the Amended Draft Registration Statement to
disclose the time period during which each profiled customer has used the Okta Identity Cloud. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I></I>[<I>Signature Page Follows</I>]<I>
</I></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If you should have any questions concerning the enclosed matters, please contact the undersigned
at (650)&nbsp;752-3139. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top">Sincerely,</TD></TR>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Richard A. Kline</TD></TR>
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<TD VALIGN="bottom">Richard A. Kline</TD></TR>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top">Ivan Griswold, <I>Securities and Exchange Commission</I> </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Melissa Walsh, <I>Securities and Exchange Commission</I> </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Stephen Krikorian, <I>Securities and Exchange Commission</I> </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">William Losch, <I>Okta, Inc.</I> </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Jonathan Runyan, <I>Okta, Inc.</I> </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Sarah Axtell, <I>Goodwin Procter LLP</I> </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Dianne Glynn, <I>Ernst&nbsp;&amp; Young LLP</I> </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Tony Jeffries,<I> Wilson Sonsini Goodrich&nbsp;&amp; Rosati, PC</I> </TD></TR></TABLE>
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