OKTA - Earnings call transcript Q1 2022

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Dave Gennarelli

Hi, everyone. Welcome to Okta's First Quarter of Fiscal Year 2022 Earnings Webcast. I'm Dave Gennarelli, Vice President of Investor Relations at Okta. With me in today's meeting, we have Todd McKinnon, our Chief Executive Officer and Co-Founder; Mike Kourey, our Chief Financial Officer; Frederic Kerrest, our Executive Vice Chairman, Chief Operating Officer and Co-Founder, Brett Tighe, our incoming Interim CFO; and Eugenio Pace, CEO of Auth0. Today's meeting will include forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding our financial outlook and market positioning.

implied and results, and be performance from expressed known cause that materially involve statements. those actual forward-looking our or or statements unknown uncertainties risks may different Forward-looking the by achievements to

in Forward-looking titled statements assumptions of financial previously could date time our the the results that time, beliefs Risk is Information the factors our the to only SEC XX-Q. filings on with as Form made. affect our represent management's Factors and company's section included including filed in from

discussion In addition, to financial closest not measures of versus addition limitations non-GAAP A during measures performance today's will superior equivalents discuss earnings using and of measures meeting, GAAP the are with measures. non-GAAP non-GAAP we in GAAP accordance a GAAP. to a reconciliation or of their available prepared between release. and in financial These for is our and financial financial substitute non-GAAP in measures

And materials, such or our performance. find also And our website. each can You we our metrics, In posted growth number today's and will Investor financial more discuss trended on Relations of a meeting, turn reference information meeting in like I'd financial financial statements represents a key Todd changes year-over-year noted, otherwise numeric McKinnon. Todd? to unless as comparison. the now quote to supplemental which we detailed over include

Todd McKinnon

With the highlights many quarter QX Okta future of the been our fantastic our closing the more now with a I'll year Thanks, Dave transaction. developments and some AuthX other are off fiscal first and new get about AuthX closing of right and for into There our then so a thanks notable the the is business. quick of I've strong everyone excited about including start never the start. recap afternoon. results that and this happening at transaction, the us results, joining recent exciting of to

normalized an customers revenue helping about access generated recovery. a record will customers exceptionally anywhere. $XX first are grew contract $XXX,XXX XX%, thing base Our surpassed XXXX these quarters are technology XX% with with enterprise annual well flow. new we in customers added from is clear we team from our our and large metrics, To environment, QX, at total Consistent customers than When global in value million the One the additions to a XXX secure greater optimistic organizations free with has accelerate quarter the executed business in subscription RPO prior of as we safely yet the highlight of continue revenue $XXXk RPO recover. XX%, record a a customers. financial quarter. addition just importance of Okta grew XXX of few of XX%, and grew economies to current continue to grew identity ACV We of cash were half in quarterly not

that new just fantastic of of QX, chose notable identity from win for company Okta Fortune a new are in enterprise upsells digital was range customer and the wins Here wide layer a few come large industries. application. a XX as identity which its A examples

access Cloud profile pandemic are shifted attacks. great business to is customer Okta's and existing workforce for not remain years, in of upsell person. privacy, all via part data past a Okta environments Learn key SLR while maintain will also CIAM Okta's the of the highly an access Okta's customer are work closed interactions its organization an environments. omni-channel identity part and Also, platform and unified digital to selected to all app and identities, workforce As A of to needed management automate IT, example key forward. the with leader of its organizations distribution of the to access not will Okta identity Western its regulated manage several partners cybersecurity these customer transformation and provider, secure to expand a mega security a their applications. of in if cloud their progressive with a IT this we that ophthalmic personalized, allow experience but providing the gateway XXXX to and community Okta identity their to just of industry, SLR dynamic The of millions will environment, the integral for provide of a that single multi-factor degree conversations build Okta source Okta's and with deployment retooling customers. give of growth for Health to is leveraging secure processes, need. selected the profiling businesses access Identity customers are engage Western win business. they Australian partners part an identity eye and was have digital the and projects Okta trends Health, deliver lifecycle and to legacy driving truth its authentication three secure modernize a management are data Health to one the care identities Organizations adaptive is their unified and adapting optics view adoption the only experience strategy new Western identify staff, their been will examples common hospital a provisioning the based access its with organization capabilities, world hybrid a staff policies of across the competitive ensure customer trust the least will its thread organization the strategy, company driving to zero frequent as accessing of contextual strategy A securely professionals. better going and high also helping the health at XXX the group, can customer use care

that wins like must advance further posture, for the that states the must adopt a explicitly trust cybersecurity FedRAMP solution and administration see We've authorization, some improving While, zero this level had month need states the which across particularly zero great government a issued federal DoD highlighted sector Biden recent environment. a architecture which high on term with agencies, for executive and is moderate authorization provisional and federal MFA, order FedRAMP The is agencies also public toward to achieving recent order nation's critical existing roadmap. growing opportunity the presidential impact trust government the the Okta's. our given a on near

our month, Cloud Turning and Investor Okta recent at me product we're platform to about our you talk last building. heard Identity the Day announcements the

identity expansion component and connection epicenter to the Identity Expanding we is any also our This both these new a our other in use announcements incredible privileged and more extensible important is to products making so has primary market. cases build broadening to passionate it become everyone and of enables about capabilities represent tech even becoming organization. governance cloud capabilities a about ensuring identity why accessible world, technology. I'm integrated infrastructure, identity us platform primary those cloud. is access than a foundation it freedom an organization's of is of unified to our the strategic platform clouds. or workforce that choice an is into and further important clouds an more adopt Oktane Our made centric identity become features, The the and while In because collaboration offers in Okta's to cloud. connections, at

to infrastructure solutions. growth and very on We've In our we can't the core dramatically way our organic introduced Customer in first access will continue you quarter accessed our number update cloud world CIAM business. and wait Importantly, an just future And workflows remain for to in resources are of identity to are for we're seeing transformed. CIAM identity Once in in unify control progress. the they as we're deployed cloud led building customer today the customers, reimagining recently identity with more was well. both the in has our privileged perform ever than critical governance one by where goal customer identity I plane. exciting is and meantime, our and interest be time. strong like received workforce success products and about organization with again, were feedback developments products by from the positive These excited a

our processes. now this on a game more of we and the expertise. In just choice every give can changing Okta together, And integrating the presence Okta earlier such took administrative strengths meet the leap as the with need. focus month. systems, identity closing AuthX to accounting market acquisition to Of forward course, other customers we're and CIAM end going those and around back short-term, AuthX in have complimentary

experience. more over On platforms are the time, product side, both in even have innovation a customers maintain cohesive technologies ensure to we'll and to that invest going and be to integrating our we provide

became across main of maintain use been couldn't strong experiencing feedback heard analysis of resonating CIAM as and at from with team Our and organizations. has in company. reinforced customers transaction, all has built be goal We've we've existing inside been aligned. and very we Everything have a the to we detailed The and our only belief Since a about and the our we customers company is partners very closing we do incredibly for breadth AuthX that we've much Okta. They're able a Eugenio received offer. the combined base evident. momentum our we and the things offerings. two are cases the And happier few excited more the also both coverage cultures to and and are expected, enthusiasm of energy very weeks special today on

a push become up for for identity CIAM AuthX core for more both approach and to sell by and make even platforms and be leading to We've to possible there's with are our spectrum case, AuthX over low more led to Okta the that well and a the every is market, and everyone. And expected. there's use cloud. cross approach technologies need Okta combination. independent are customizable meets opportunity identity the the extensible clear the Together connects everything as standard create developer create identity. positioned AuthX that will flexible, to Okta digital ecosystem incredibly world's upsell position that First, safer, time and made value a strengthened second, Okta than platform of and The technology building the code powerful

step our opportunity use customers the We powerful range will still and The will a identity innovation, The early effects that market network create capture financial and up a as $XX with from we the trends backdrop, business modernizing broader mentioned better significant our platform a its that massive world as have for of long-term billion new result, drive identity to FY'XX business come. establishing to been prior serve in that we're will I of audiences. faster. With which more driving framework. our cases our allowing secular even continue growing even And infrastructure. to drive stages earlier us will is years of target, more a is a

unmatched portfolio cash year, along way, $X that flow Given in grow to base confident with our at leading initiatives will and market XX% while FY'XX. to opportunity, margin FY'XX, in we're and each XX% position, the driving our massive market least our go-to-market achieve of we revenue continue product growth targeting invest free technology in can the of we billion innovation a

Of faster we levels, free invest margins. to were may course, to if elect balancing we these cash more than flow while grow

over contributions his want significant it Okta. to turning to acknowledge Before Mike, I to

five Committee, and his leadership he the was of Chair our Audit CFO. Over as years, for the plus

the made has already acquisition a that Over significant impact, Mike the of with AuthX improvements especially he's and past implemented. months, operational several

While next Okta a transition. week, endeavors. considered Michael best always in member to CFO we stepping him are capacity grateful in friend down future be the his all on family with assist he's that a and as advisory and wish we staying the of be he'll an the

finance happy We six the and He's Tighe CFO. over countless to years. Senior position. Brett is that to Brett Treasurer. he great growing force. very the the in experience worked our with search be In with initiating finance meantime, the a Vice a search President as Brett, Okta's contributions process terrific and I spent He past Interim made are have I'm Finance a fill of years and Okta to has the process. the to leader is will responsibilities XX know closely sales also CFO almost be in considered Having

pass our then share I'll to financials words more over QX to and detail. few Now Mike a in discuss it

Michael Kourey

XXXX. success in kind words, company's privilege to proud the member my those has for today, the And the opportunities for Todd, been company. a of team Thanks, and since the be of tremendously future it significant I'm Okta growth the

him of Notably, since the impressed strategic closely joined more I've Okta teams. the with since operational over Directors to I of thinker has years with with he closely strategic and worked CFO. have a both will ago confident, to organization work and expertise Over I immense be organization. and shoulder of job. more the is Brett identity five enjoyed not of excellent understanding AuthX past for I've worked Brett industry. Brett the the Board the several respect be and with opportunity deep and shoulder I've a months, the I've Okta in been very the I'm much the I could and

Lastly, our Form to be will And XX-Q, after discuss next a week, team QX I later our which that on before will I transition. filed the mentioned I signing results, as help will to smooth note on advisor quarterly an as ensure report stay today. be Todd

results. our to turn let's Now

the contain on results As do transaction as a reminder, closed AuthX any impact X. from May QX not

quarter, of will provide review Brett inclusive the which of business outlook my the AuthX. be Following will

recognize subscription an when total driven along Subscription $X.XX and the revenue. year-over-year XX Regarding and early important to an by revenue or which subscription in has XX% expect a revenue. of over unbilled Current XX% next continued billed demand recognized us and yet revenue represents not billion. the revenue revenue which especially grew XX% strong growth XX% XX% subscription RPO increased for contracted of backlog believe increase that is growth. revenue metric, subscription both strong in experienced We RPO been our represented driven in renewals. QX, also with months to total is we RPO current uptick billings growth viewed by

first we by fiscal not Total Calculated driven an respectively. current this outpace will and organic While the for throughout we was to billings RPO believe grew XX%, current revenue continue in basis provide and do RPO, specific that billings two growth calculated current guidance on year. growth AuthX excluding factors. growth subscription quarter XX%

mentioned for new both existing that customers, across macro strength and as earlier. experienced the products trends Okta robust, Todd First, by remains demand our driven

growth two Second, billings date. both been on we subsequent with our large annual process would anniversary XX%. This start that due on $XXX subscription QX, These of in practices are and we're are million than payments rather timing. a build cash to and without one, a now improvements, these improvements Note signature even which the than other conforms implemented have process operational has improvements Billings favorable collections billings effect date, representing of billing calculated contract peers. the now rather two, SaaS

Going more forward, expect we of effect these to changes the be much modest.

quarter, for our our the at XX-month retention, business rates strong customers XXX% from value consistent quarter. retention to trailing Turning our the was dollar base net portion new XXX% of our retention high-end of slightly to historical to customers. rate period It down of the total represented reflecting XXX% remain at XXX% remained a Gross as last product this with QX larger range.

Additionally, strong. upsells were enterprise particularly with very our customers

rates fluctuations retention the current reminder, and a may that the As retention pronounced. possible it's quarter-to-quarter from be rate may and environment fluctuate in more

that going to will non-GAAP and like results profitability, forward. discussing items out be Before to I'd point here I turning expense

which our implemented change flow strong the the a flow during free yielded looking from expenses model. ended change free generate quarter. Note is strong $XX terrific Headcount office-related at growth partially in the Now We the and respectively, operating expenses recent million in the and million, billings quarter grew a go-to-market invoicing with end biggest $X.XX XXXX XX% growth is globally. flow cash cash to was over not sheet balance in cash a Free term illustration first operating the team to travel operations and anchored free offset our was by of by that short impacted quarter. equivalents XX% expenses, We and flow continue by total leverage a cash XX%. $XX as first The record to employees and accelerated we driven flow billion record reduced margin. by the with of cash, investments. spend. as was scale of cash This the increase collections cash at in

Now our over call Brett let to me turn outlook. discuss to the

Brett Tighe

both appreciate all role. the Todd. into opportunity incredibly company. has and the the from you excited years. this Really over comments to true thank with want you It you done to have to been Thanks, And a for you I'm this for partner I pleasure say about step Mike.

into period part get date close of from financial We prospective let's Current AuthX now AuthX for and that AuthX QX our Okta is of Now our outlook the and more forward. for FY'XX. going purchase mind excited been This financial CIAM. to early on the strong and and closed of as May from acquisition X, in the AuthX profile are even include customers inclusive opportunity is margin the results Keep net the of capture companies guidance that growth investing high demand stage products. remains it aggressively has consistent both a of in has adjustments. massive AuthX accounting with for will

business opportunities the scales, will As for efficiencies. there be

For million, we total $XX fiscal to $XX year-over-year, of non-GAAP $XXX to of of average of loss representing shares expect million share million. of loss revenue XX% to $XXX quarter net XXX growth per million, operating $X.XX, 'XX, assuming approximately weighted $X.XX, the second of XX% million outstanding non-GAAP

year we XX% our and [ph] for expected contribution year results, to then the added now of $X.XXX our year-over-year. for expect revenue billion growth total to full beyond billion representing strong of the Given fiscal organic AuthX, of [QXb] revenue 'XX, the the outlook full $X.XXX we QX raised XX%

given is costs, transaction million $XXX provided for assuming which flow weighted We view great QX, free $X.XX fiscal from improvement we the loss fiscal flow strong to had our outstanding expect shares of provide And be approximately now XXX. the Non-GAAP the of non-GAAP $X.XX, year. generation is integration last million. year. flow, quarter. net guidance also expect of while don't and average $XXX We for of cash slightly to to related loss in inclusive a start operating share an cash explicit and cash This great quarter to a positive now we we per

levels, Okta developed least And be in extremely year and $X about the with a market while are our at FY'XX growth free will million together. grow AuthX free XX% has front the we a closing Todd are FY'XX. mentioned, to invest able were in achieve market foundation we capitalize margin as cash margins excited flow more, targeting of to balancing to we growth continue these in to in while each cash position. as transaction may We flow confident And than elect faster we if XX% opportunity accelerating revenue massive we strong and leadership of on us.

back it Dave? turn to for I'll Now Dave Q&A.

Dave Gennarelli

All hand will on looks a you when of icon. raise a you turn most click To announce Brett. Thanks, right. have indicate like the already. that please have to it's question, I ask your question. It

time please one and unmute of and have You limit question. question interest the follow to in yourself one that at up to yourself time,

So Tindle that we're going Raymond to James. go Adam? at to Adam

Adam Tindle

Thanks, Dave.

appreciate ago, First circa how than profile, operating Todd size about about me implied when scale question. loss loss four that I looks on X.Xx, Okta company, this It's more like it's to do basis. five versus probably maybe a of you ask comparing it Eugenio. similar consistent I'm margin AuthX, and for and have Thinking for first. it's to AuthX scale operating a profile or time an high think trying growth the that Okta, so at the years longtime or to putting caller, early question way listener, stage with

the AuthX how the models guess observed here? economic you would from theirs? ramp differences the versus own I And Okta's be, the key versus and profitability that your you've see similarities of in do So are what question

Todd McKinnon

to business. philosophically, answer I first this know think growth part a the just would this is be of

really, investing very So TAM, both is this for the are a AuthX dynamic Okta were win and market, billion organic stakes high growth. This to $XX really market. identity, customer very

what the we're success. philosophy, seeing So side think in side. And our the about very tremendous in And on they're aggressive. success AuthX Okta being Eugenio on just terms I of I'll that comment let seeing we're

Eugenio Pace

would same was from growth really different makes the Yes. that high agree I in we was a revenue So add, the what Right? previous what profile perhaps What that stronger. In I with is even it's us, mentioned have of our originates almost would percentage that, combination calls, our large heavy we a that, XX% U.S., outside the case. of described. profile. international

audience different to also slightly company, jointly We and been oriented can a But audience years. bigger out continue to we now also and reach that's, Okta a grow. it's are what has doing And maybe and has which complimentary developer different for that a go-to-market. a

We QX. great have

Okta's, the as beat shifted slightly, QX really, our heading really QX what, And from is but was plan. QX, Our strong month, we one well. are we to

So be excited. more I couldn't

Todd McKinnon

looked a enterprise first revenue It's running. more about something to the sales lot just we'll seeing come engine the add the well. of what the models sales actually very one there, thing AuthX a revenue together more the We're word qualitative the really much, one synergy developer seeing leverage over weeks. few get parts. because time and in at that much as as I successful two like required the combination you make of out a has than does took the sum the of And lot have great numbers. ahead did. the between it differences as kind we're of enterprise of remember team. of the the sales many model, able past of team the I'll the was give started and back how for we an you a ramped, a the teams and And too, be comparisons, don't when of one to got little And ours. because so not why been there exact reasons comparison, AuthX seeing but that's we color, went in and really lot deals, excited spending to developer we're bit But actual great big that between

Adam Tindle

here targets Todd of on sheet. X.X a your nearly at big billion balance Very I helpful cash have updated, of picture a on color. up, stream financial follow have search you as that's look the that annuity of and resilient. CFO 'XX, cash going When dollars Maybe recurring you're highly fiscal were the over to quick just billion

So CFO as next thinking key about just the with wondering how the characteristics backdrop? you're that for

Todd McKinnon

would points that M&A is definitely the mentioned think with for very, is imminent, company. significant I And you the a of integration integration add I success part critical are equation, very the of the very early. AuthX it's the

been in the that, with hasn't we're world. we're it was generations future of change. think this of a be that's unique. of part primary ecosystem experienced dynamic other So was It working will technology of hard to of one a done I in the growth, Because it every that identity really Oracle. and cloud. or that's just the adaptable class a And past rightful to high windows platforms. And was also before sure identity identity, helpful. industry, that place thing about a in has different defining make organization And our part part primary its something of cloud making We're first as

so think, the the has team. not I and And whole it's for to And that it's team up CFO, invigorates entire one invigorates the be but just one me challenge.

it, part So of as that's well. an important

Adam Tindle

Appreciate the on and the start. congrats details strong

Dave Gennarelli

to at to go BMO. Keith we're Next, going Bachman

Keith Bachman

this what asked deal they on the cost question can the a layering to laying what is a why was Hi. most explicitly. Thank that I just the companies, it provide little us do not you information, you're you're And I'm for structure want out tell directly, more ask also when revenue just into FY'XX. a confused little more that you. contribution

Todd McKinnon

It's color to and communicate But of felt go but best feedback was kind on model, more that's give to high forward, we some way other high we I'll level the level good to as we to we'll in to on the as just general, about try thinking the get feedback. it things there. need out pass this you it. And the talk then, break business. as we Brett

Brett Tighe

Todd. Yes. Thanks,

about we're keep a in So the components. revenue talking to I things few mind, when think

like First going for And for of that continue balance Okta-standalone the was and foremost, really we QX said, we is solid. year. strength believe to the

perspective, guide. company, just that's QX. have And greater had from not Eugenio the AuthX like also was but spoken QX, about we've year. than raised standalone they're the of embedded We the saying, -- goal so really And to by ARR, being the for year, been that $XXX end would toward tracking in million a previously revenue then, an well just the we QX for of in

And so that's embedded well. we thing guide, about into then, deferred the talk one did the as also And haircut. is revenue revenue

As just weeks closed deal ago. three we you guys know, the

embedded QX so the little to we'll we're through And in revenue color we've do weeks. our next But estimate an over got going when the give we a And guide. few earnings. work with more that auditors you

helping the think the be year. then, group deferred this the operating all it's really can accounting that's the and continue the for thing the On integration the market opportunity But of workforce by going expenses. as be had saying And us billion house. talking side just that I market, expenses. we're also once margin believe we invest we're the billion from And itself. would kind were fairly a will just, revenue slightly what's house, then, is, of the with acquisition sizable. the free again, margin. Okta-standalone balance performance one-- as another into And about they we standard pleased for we the there's obviously, real on putting I QX, those a cash positive that about, this on and Okta And with knows, And it be now then group but great we're a AuthX, being positive slightly previously quarter. like flow into only of of and positive also great integration about opportunity AuthX, sell obviously, $XX talked $XX CIAM without of massive a is headwind the purchase acquisition the think accounting you with CIAM regular to well. acquisition a And are going side not as And cross to

that So margin some from perspective on really progress and a nice side.

Keith Bachman

just next two whether revenues, come cadence Thank organic or Brett. think second could or about, little landscape, you the changed growth billings you, I competitive without. are the from with certainly win seeing I'm just wondering the that your in you. it's more part I'm one investors more wondering, what just broadly be in cents anything mean, any and can now could the as AuthX also sneak a my AuthX was, on if your on, rates bit would Todd, seeing if you [indiscernible]? could particularly landscape you, more competitive mid include versus it be I But you from Could appreciate some I Microsoft a what or your arsenal, the Okay. Microsoft, market time have you that question response. talk Are you maybe to speak you. category? for you hopefully in. Thank of my so would is recognizing

Todd McKinnon

had invest to product, And it But happened primary they ago. competing concept for really has eight this I consistent or Microsoft best that landscape ever Microsoft is really it of years launched five people launched been the now, platform six time. this thing at think vis-à-vis when It ever to players system has in. since last Amazon identity years, and largely largely seven years what competitive was that a not The been on was the or major now seven Google being Okta their scary product, the like us. the and going validated

interesting. So change a It's seen there. haven't we

the mid-market is identity general, weaker think, relatively their I business. -- for in weak Microsoft in

say have but strong know approach about up have So, a then well not $XX their of gateway, you that a would identity virtuous one -- can you with smaller It -- they've the about this, a we billion can of up is power in out to being they've built leads would tended is channel, I it's to the And solutions. code get being been ground that sell to that The had you'd we of that need conversation. building about cycle because approach. get the Microsoft -- show billion, we're the think versus that Okta product, very the gone our AuthX, a access to weakness CIAM. it's that's own of, customer, from Okta to on And your that maybe workforce. dynamic low that there. developer the customer increased really, And of own. our maybe it's competitive maybe would question companies with really segment. call of buy if them question going that build of our their on market, they a those maybe some take to as interesting projects of lot mentioned it's over organic that been maybe we I I some access why, them don't sell events XX the them people would capability centric was But market

products value and Brett identity not was and sell developer gives saying with approach also a more time. to customer billion but provide us So only helped AuthX $XX as over customer in TAM, that more the that foothold us

Eugenio Pace

It's our it, the problem only has so scratch, problem. thing And companies deals already Keith, about already. deployed, to as existing its started startups, with own right? else solution not that from think afford And start about has small everybody can in companies this just if and today, that an anybody customers, think you a

saw realization one moved world. than pushback, complex attacks that is past know, some because do that And are digital has this in to we solving away, resources getting better problem problem can are they more of the has the more sophisticated, us, all the the gone the the being that with we put we in away, getting things gone

adding And deliver today's just very system and build quickly. requirements system, going is away the home to that existing a effort, on just notion bit more fixing little so your

course, of no. So a we competitor side The world, I work. on of seeing are more The to that. consistent developer this, can effort is what one is already build and our just the put the, number from I still a more very top lot answer is make it perspective,

Dave Gennarelli

going Taz at to go Guggenheim. up, Next we're

Taz Koujalgi

I question AuthX of the have a billings. the about on impact

revenue impact than You would higher a growth on write impact, is fair on on But billings would be that from the the more gave your that given on statement us impact down, the billings that the assume I would deferred revenues than revenues. AuthX. impact revenue be

Brett Tighe

think how about FY'XX. Taz to let's and kind billings talk QX of about Yes. for

standalone margin, very said Okta So a and continues couple on like just things going do revenue on there. to there, well I

obviously QX we're So obviously the that's that, excluding which operational growth, billings by shown with as the XX% pleased very change. billings

bringing And really we're us we're billings modestly in the and billings so obviously, going of continue was net forward. you to impact will cash the to with biggest QX bringing as any for it's QX QX QX talk free into a And to to deferred acquired be that continue, forward large will on perpetuity then, couple things that to AuthX forward top. going we because future, going along billings going quarter And But revenue. the not operational be that's side, revenue talk other when layering change, well. that help that flow obviously now,

of the think So any acquired the to AuthX back number obviously, will DR. about when number, bunch into DR billings add We're you a going QX. for out

digits subscription a get billings And typically QX, billings about QX just FY'XX, digits between it growth for in probably can say growth think because growth be for delta we single of then, subscription billings of mid to FY'XX. and those more will single number high that growth. you billings, we to So than of that operational probably impacts I And terms described growth. growth revenue talk in in be due revenue will change, I'd higher true, primarily number. that revenue about the And subscription forward, going all relation when operational

Taz Koujalgi

Can revenue run you're comment deferred QX, what up. normal the in you your And more now just of assuming much on QX? been right are then would haircut rate just you assuming like And AuthX? for the how revenue have one follow for for guidance

Brett Tighe

The minus to Yes. out over think you couple we're ago, a plus haircut, the after in of we've three it's the range months going just a next to over transaction QX. that weeks revenue probably But XX%. little deferred or we work guys talk the done obviously before we

Taz Koujalgi

lingering QX? well go And QX as Or does write and in QX have completely away we down that in do know? some

Brett Tighe

a of their linger of bill lot will customers. in Okta, lot AuthX along they similar a because very It annually No. to ways being primarily

likely as nature, annual it's But impact will you Obviously, so work. know, it 'XX. more be in And mechanics it's into you QX DR, less the if last the will guys of built FY'XX. so know how

Dave Gennarelli

going to Oppenheimer. Guys, we're Ittai next, at

Ittai Kidron

guys, AuthX you And cross I see think quarter. in? a else last now versus to us more you Thanks bit. in mentioned you want you update, Todd, did with expected you little in what started sell more a detail the digging to find maybe a our go can after little bit back what great that opportunities I prepared give remarks you of to there

Todd McKinnon

first, customer an developer CIAM, a this going that assumption an after with they're we There's the code much approach. low approach. about things, wasn't We a after going overlap with bases forth. pipelines and assumption billion, the TAM, get few had had We're $XX there validated. we between so led been can finally lists is weeks all three and those do the customer the we And that's to two prospects. One in and thing first see

distinct Which So two this parts $XX our validates of really very market. overlap there. thesis means that there's are these billion it little

really that's exciting. So

to right we're prospect, there we're sure leading the So the make collaborating solution. we're level, the second doing overlap quickly a thing very with where go-to-market at well and is, is

that that to developer low not someone wants and we're sell So wants developer low to trying code code. to someone

base. are a servers lot really that of are is perfect with starting the Then, which in product is dynamically is other advanced a stopping to server overlapping shops released out is, that's really the which going a there. dev few That couple products. Okta Linux two synergy for PAM for has call that people for our be One have foundation access, quarters. that server there's things is So I servers, customer AuthX

exciting sell This that we there's think has PAM helping on think a And well. gateway. us base access upsell ASA helpful IT, has that big customer in base. the And also especially and our the the opportunity product a large sell AuthX that hybrid to that's products as to customer a enterprise got companies we So have big cross in opportunity same AuthX's challenge. into Okta been for is really

And are he well, those I the has some probably So specifics. anecdotes this has been things, can share. working close Eugenio he as more of know some on

Eugenio Pace

business integration gateway, we there's opportunities our workforce only ASA, with it's between server opportunities. application able like we with already. three three tons kind Look, had and years are identity. so access Yes. mentioned weeks, uncovering details. weeks three that feels to teams of But into the bXb And were only bXe, been it and like of look Okta Todd

together. points just points. not not But perhaps tons use finding using can already uncovering DevOps there's that apps. frankly, it's and connecting more In of team. is even those interesting we use say, AuthX teams, ASA So are cases, I my for we hey, my protecting it's what's our customers connecting many exciting, here? that in our ASA I'm Can

great synergies. that coming are they is it's of on the our with is customer excitement to to not and up course, just which what is see. already But also exciting so really base also And opportunities side, great of see is with our

Ittai Kidron

prepared performed the mentioned expectations, in hear. your certainly described feels to a that like of as source on it it, was That's great Todd for Right. Maybe up, you upside. identity but remarks, it's follow a workforce not way

So is growth to? that progress can growth comment What business business? maybe at here? it going this forward what about is workforce that how the think you -- do on point rate in And down business your from in in we

Todd McKinnon

In subscription Yes. that. little XX%, of billings very of our organic and number bit are strong. both revenue north growth businesses is was a The

also large more Particularly automate transactions think of management product workforce foundation because power, was it both the which $XXX,XXX. really the is and But our that it helps our over lifecycle more advanced it customers we product. continues, exciting, governance for point product, the identity I they're well, processes. gives saw doing one the strong the So upcoming their our is numbers

foundation foundation the is management identity lifecycle So the is governance, for for PAM.

cloud those broader products these identity. to which good categories, of of, trying is product well really harbinger So this success doing build concept for is a we're important for the in primary

sub Security was well the three for I very be And whether a in the the want it's bXc, the government, work, talk and very resonating it's -- should customers, -- of perfect agency. has, bXe, they known complex identity, have value. that that have a press will at We've a IGA, have very when the have another building product with federal I strong. public primary state remarks right a Iowa. same it's answers And the if access, really for it's with high an for of to steered in how zero covered. the workforce cloud talked public workforce, to look the cases right told talked to landscape. you federal whether what's it's sector, the kind customer use really on want complex well, They And to way And environment, And time. release in whether to it then, app, having every parts agency in Officer at -- we you that and federal want sector, storm whether as parts. we privilege through case of multi-factor was They you basically administration, businesses, about It's they of for mentioned landscape in a predictable use Okta be the trend in at letter there this of vendor, happened This prepared at the Okta every want them. happened trust. the whether a it's good cloud have So be Chief media like in about and customer is the it's recently them. all meeting Biden it's the agencies authentication. agency, to their go customer whether time, terms couple what's

workforce core request it just that leaks, these trust, these you with the were we it bright. opportunity it marketing very at they have very, sounded is, the we're really a wins, product agency et entire meeting of say. a exchange from worried the solo but is And They and met the areas basically, urgent to the cetera, there good the these the what to like as go saying attacks, is, and would big all. of them is, was, we're were that future literally of an zero got we before, attacks, had I Okta as CISO script about CIO other So of victim doing other put I a sign well. identity exchange together when it is with how And said,

Ittai Kidron

much. And Thank I'll echo numbers. Keith's you great. [indiscernible] very comments, That's

we So hopefully get something. Thank you.

Todd McKinnon

vote another was we have hear. Yes. Zoom? a That voting for Do good feature to on that,

Dave Gennarelli

right. All

Owens at Rob to Piper. going we're up, Next

Rob Owens

Todd, you stated will on a hoping much on a call little bit Brady seeing Bunch Freddie do [indiscernible], guys about windows you I smiling, here. I AuthX what and for lonely, break can since you from out, are sector presence a he have been public was elaborate public standpoint my could sector of maybe been seems you it's

to in place? sector you have what public channels guys and Just about talk market for

Frederic Kerrest

the some for my you opportunity. I enjoying notes was own. taking really Thank here conversation, absolutely. on the just Yes, sitting and

appreciate to I actively. opportunity, Yes. participate the Rob. happy So

We've state very talked switch years. overnight. certainly local, And federal, expand on a little -- it's can to federal not important that, business, on bit are We very, about very good. opportunity and bit going public a been you working for flip something remember are the the are Todd's the it sector, authorizations on federal comes things when them So in commentary to just certainly the little there, we well. both think to

we So the level which got FedRAMP we We moderate roadmap. near well DoD as and have provisional just FedRAMP for today authorization, term announced impact highs today. authorization existing on

issuing That administration we the the states, hey, effect. order, explicitly nation's the saying zero trust the federal architecture advance and posture. cybersecurity improve got [indiscernible] have to towards the to states that after orders executive has this he you've Biden presidential So government

So from vendor. conveniently, approved do have to that an they

heard or the the can telling to spot is but more they're was private at to you if it's but to logo good vendors, us find to retention, the they're over with. puts what public you the you, acquisition, vendors, that bit right think just two, trying customer or net new sector consolidate, the and trying build -- do, story whether look or when that releases based about replayed consolidate, obviously, So over, just you little And momentum, that's to in they're number they're pretty sector, they a trying one. relationships a trying not right Number Todd get trying dollar not see press becoming the CIAM is clearly capabilities cloud. and becoming broadening cloud. We're that We're of with on workforce their the IGA. you tech PAM the a last transaction. a and organizations conclusion. to see obviously, with we're -- and We're management come of primary Gartner has identity of the clear like and of even identity week cases, week access noted component connections. CIAM every AuthX the which expanding otherwise, And of an becoming our our as expanding in primary or workflows is conference, recently convergence organizations important around, epicenter they our foregone state use way before our they

buying goal. going That's our management, fraud So they're and access saying every IJ detection possibly organization is to from vendor. even downline be PAM one

small current as then look an it's entrepreneur about at billion business growing, I'm $XX what RPA, very and it years I that, in, TAM, like feels compared an look, XX quaint, what's to a be. a it revenue So excited billion business XX%, can dollar year-over-year,

job think to that Worldwide Susan last talked a then, And of bunch frankly, our of what's But level really focused moves. that bringing in the and And starting yes, the piece quarter. It's very and a doing finally, place years make I channels, for St. to is an ahead. joined leading happen I some lot kind results. we're President of she's particular, that's about into. strong go-to-market as thinking already going business. sector. another we've in in to So excited certainly about who recently that's Ledger, next a exciting public we're amazing on about mean, opportunity the we're the quarters, on the our of And

particular federal, public in to success. to comes have certainly sector in it when So continuing general, we're

got Maricopa State back State state saw of but of quarters, Illinois. for having, Iowa and county, it's couple You the Clark same the invest ways it's at us for bigger us sector? County, Okta today they're going budget see Montana, if is the a a And you it's finding you're citizens when So in to a the to for you is who's their than Cloud better for employees. all release And times the roll public whether down when then mean, success sure. their true Identity huge press look about list, continue you ahead, County, think of whether the I go State and opportunity I use to and

Rob Owens

QX, come one would Brett, count, you share Thanks, the looking Freddy. Great. you what at? quick would are And where fully for be diluted profitable be

Brett Tighe

XXX around Maybe million.

Rob Owens

you. thank XXX,

Dave Gennarelli

Next going Jonathan at we're Blair. Ho William to

Jonathan Ho

after Hi, on relatively you're I little ask, more bit think good down a the investors period wanted to I some I a would Yes, Mike, guess, seat. brief clarity in afternoon. why like stepping

rationale decision? maybe could So us and for help you timing understand the the the

Michael Kourey

of in starting I Thank the XXXX, you, way the the on was been as I've chair, fall and mentioned, all I Jonathan. as Yes, 'XX. of through board audit December

So, a billion we than guidance obviously, years, from bit time a period time. to of more opportunity guided five think scaled over revenues, it terrific the thought, dramatically, public In as private that now. for we went of just I quite call, first having course, and up in that a over

to the very the a working closely the one that's honestly would but same. that. Since say involved future I'm the the of CFO, I'll been forward. on And advisor in going to asked an shoulder certainly team, Todd had And continuing the excited I'm I management of planet. opportunity about companies Brett, me has and be as with well. the the Brett the shoulder. as with been deeper I've in fantastic team, company. experience Okta on having So even staying finest I've do And this as role to an advisor

Jonathan Ho

of an traction bit then, privilege can know bought that But mean, in the you. contribution. Thank GRC us a seeing And of your of terms I Thank out gotten Solutions. you. purchase? that bundle just can little give a how maybe you early with And in you're part a revenue talk I you as initial sense some of you've or about often it's of

Todd McKinnon

Yes.

over and this then, a is product access couple over foundation And the next the the we've for advanced bit we're we're had to release for the little half that going we're as Same regular is going few we've first -- way next management, for like year to the a PAM expanding module, that think the the that be that'll year have a in product well. advanced full quarters. it in year. now So of quarters. server that PAM. lifecycle management year about first for we're a a to be about and in the first we product And few of market the out the out quarter And for lifecycle next that next IGA expanding had as quarter that had we'll

markets good to thing there's plane, integrated these happening want is us. management, as unified no-brainer. want across the this process get And does the of these And companies years, strength forward. There's we same So that in And better product from SailPoint. -- and two management. lifecycle for more and we're what's lifecycle automating Okta like customers. did for vendors legacy software when -- the categories, CyberArk, you. they not is become use, about the we businesses will a cloud shifting. what science the But and products the We or The customers, PAM we solutions to centric from that. That IGA. the of when talked a industry, just approach be see easy the this to control and good But companies. access ago, advanced and massive was you of that things that deprovisioning, we we pre identities in XX change thank This call We that. They're really happening invest integrated to none like, QX. these around And whole it we second I this came automated or very very don't doing everything were advanced this reception directory well believe MFA the the the winner enterprise. want that And the -- approach new then, we Okta with as products One legacy also, reception easy the thing provisioning building. are today and to this want is call PAM the think PAM with out XX their identity, them fundamentally companies. software what the with five these adopt, a to market. of people advanced are won't catalog, just have server results is them for going really But was years they're IGA look the both that there, like the call good and they're IGA particularly

next you five like, the around XX technology, years of Just software companies. rest to legacy winners aren't look if going the to the in be

once We'll report identity, So so we'll enthusiasm. and bullish that's back we're it. excited But PAM, this core see to how see that IGA share cloud-centric doing. that's we it feedback, world. how we're about we on lens now. right why based to products the customers bringing integrated that's have It's opportunity for And and out, this the about converged, get and across they're a approach

Michael Kourey

listen on going the Yes. is mean, going. our think of ideas. to I on thesis not going. company, in are add towers we are see have also course, It's where coming call things where what we with as of about and trends to future clearly the software our mega hybrid was we enterprise not understands going customers, own ivory customer as back to this we mean, I at legacy are very driven you I very everyone on we're It's just to I there. But And end that, IT. said, software. Todd sitting the up though premises closely cloud it seeing listen -- closely a asking like PAM for you to want threats in It time. that on information IGA going what are that events. access is lot you're security our the your access, to every in for access to the are Look, bring in PAM. you privileged and you cloud public if a especially basically -- of Okta, security the all cloud long we're customers. bring kind not could and They've recent solution the cloud that of a put been what identity service then argue sense. world, based privilege these is this makes increasing in of these

So your think information identity. then, own It's when reporting what to governance, identity identity. of about access first derivative it's news all. is is what all, with every access, everyone's of second of core basically think its you information. it, off of like happened It's not about got the And privileged

right, to identity reports as where they're highly but tied HIPAA as of of management auditors. it's cloud, information core want cloud, brought going public your to a on in sure it to that information they that to there, to the customers, the public access tightly back constraints, the mode into bunch to you service. service. going in very consultants, as And a And give identity getting workforce, that cloud to on And run governance running over they you're If well. to time, if services, that your that's all that customer be all happens financial regulated need run all make to that employees, premises your run industries, It's too. for there's into reports customers bringing going contractors, stop also both are sense makes their

Jonathan Ho

additional the appreciate color. I you. Thank

Todd McKinnon

your ask but we two you questions, can can give answers. You

Dave Gennarelli

going go we're Next, RBC. at to to Matt Hedberg

Matt Hedberg

identity, acceleration of COVID. to AuthX some disclosures think maybe know, talking all Todd. players. of do data one you replacement think that in was to I legacy, some guess have workforce you legacy another deals, about another b, legacy due attention for I last And that version mean, I maybe, a like But, the CIAM I opportunity. sort for you guess guess these replacement think that for mean, the a, perspective feel year I true? those rightfully workforce track there I could one certainly or vote at Freddy, there I home. opportunity days, ask I the for from so. identity be you I'm think gets an wanted additional I workforce But, keeping gen identity that, slowed out do

Frederic Kerrest

this customer ago. Yes. a very just couple to up. know management we've lot sense we Thanks obviously of the of first one. But on and important that started. given given transaction that's that it identity weeks a for bringing access makes identity, it's workforce When to AuthX where run I a all, call, comes and closed

to the understand TAM very entirely that and when the go historically, It's TAM part the call suite, piece a -- organization, billion easy software, at the in SX public, XX So And go RSA if it's if was because to you huge got large you suite our you document if you been back going back we started budget to IBM of why and was enterprise when line legacy registration we workforce. biggest we said, and that a identity item TAM. and like had CA still it's an you of went Oracle they've it's TAM. happen suite. and a a What's look

more out to grow PAM and $XX takeout software going improve adopt that people adopt more because technology and about to thinking And prophecy. their is take And it's and continue to are IGA, So to CIAM, it's ways billion. still growing. number

answer So important. absolutely is first the very of all,

a last I Second about slow it what question so. of did think all, don't your year? bit little

react. people I to think just are trying

remember, the few the or hybrid got are to thing [ph], everyone intelligent MFA back and/or buying coming And quarters lot this is companies environments, do, so the long if a going this these And think quarters to their into inside I over going MFA the you back starting people you're to the first industry into of years, go is, CIOs, time a identity to they're the CTOs instantly But [CXOs] forward-thinking because started a usage is what's have business. our of coming forward-thinking continue through happening shipped office, what management moments. as be and great is, realize And people ago, around lot leapfrog technology, trying to a went home. see roof. a been workforce one political of those capital own

that XX to software we and X, are of slowly next all eat replace going out to the that's years, the going Over there, we're into legacy TAM. X,

replace going is Oracle up your and see say, a happen, and to a maybe works. and $XX can from then, about oh, pay show XX you you not here's going business what's you're months rip show Our some to and our us That's not CIO to how well, yes, and of don't forklift up know, upgrade XX business value. to to stuff. million, now We

earned it. What we works, show you is running or opportunities And us existing build in them little don't your then the okay, back start them about the our infrastructure business platform, that Perfect, of or and work. you to value say help we've how that not running company, we we look, quarter our later, touch a right months are it's some to exciting with let to XX two, a us, Our relationship. up, mainframe show XX now We that today, new working stuffs we go for? that. your have say,

Now which on again, And TAM, to to the understandable. slow or like whatever or going to talk continue really the that And and we've next time doing examples continues that expands continue you the and consolidation, over to that's go And T-Mobile, -- expand the is IBM, TIM of is and have to through. Access it's XX lights infrastructure. you about, they're or Manager, stencil our to as steady. going still talked Federal identity whether and final about which Oracle see XX the slowly rid deployment, roadmap acquisitions, they and the especially we're let's Express, turn months. wall gets it's time off to their The whether deployment roll wall, Sprint, it's thing do through going all and all

up, got become If you're got more universal I've and a I've lifecycle they tools, these Oh, your get own. I've you're of nuanced, I all authentication, and can got selling? perfect, a it. PAM it's is what CIAM, I rep customers IGA, show going these that's like, or build a sales how it it lot because directory, call works, I you to am management, little understand

new see shelf get And people next we're ramp it's lot it to years. to and progress they understand about. get going the is you're have well, a why workforce over And I should how fast, to excited to but stencil so and you growing of kind That to the legacy reps of deployments goes, business is obviously, off to X, the great take a it XX out the them that take think going very continue there. stencil

Dave Gennarelli

more I take to a is running but stuff. going we're going go questions. we on Great. know time, overtime. few to are This We're into short good

at to we're Morgan go you Hamza, to Stanley. So going

Hamza Fodderwala

are product higher to IGA, you sell think into Just one complexity. rollout bit these from standpoint, little to quick tend generally, be to from mean, go-to-market broader I you PAM next go-to-market a adjacent how and are preparing categories of a some these of in preferred guys to solutions organization the a like me year? Todd, Because I ahead

your it, more taking of consultants, there? approach own us of a So leveraging is what approach more you any partner you color the are can solutions kind ecosystem, is with give direct

Todd McKinnon

identity what to infrastructure, PAM. the of And and convergence you identity and not convergence When starting out. to means are figure with a very it's think Yes, we're statement, of news sudden for natural good Garner these management, out sure. foregone happening Well, of and conclusion adjacencies. get is, need left to you're what's this access a right, like you it's coming the adjacencies, flying of think first is, reps the like as selling not it's is, field, thing that about all going about IGA use start if cars that

about it's First identity. stuff, the of same all, all

of Second of all, times buyer. it's same the lot a

find speak right all, I the for vendors, have of find you and results to need of right trying they're mean, and consolidate, and times like, the I CEOs of Third obviously, too to and And lot CTOs some go our they're these partners. to trying many CIOs, to I they're vendors. a talk themselves.

organizations. more We are of large partner and right becoming these for more the

revenue, we're about We're kind kind lifecycle thinking selling management, but modern like askance we're is think hey, the they're do is, right at And PAM where beat continuing. the our now, be we IGA, like solutions But how they're plans. internal not can finally, it's of buyer. reps, going well. to thinking year, today. for mean, server the help PAM them? all and it's it's solution? new it's down. a going obviously, what access. new management it And if I similar asking new. magic we phenomenally But look we're net ASA absolutely. it's that's last have SKUs, world to introduced It upsell, It's been what is And of they're new they're to we hotcakes, are bit in motion, that it so, to going? for to of company today, fire of I of ASA, the So going a Lifecycle selling a our brand advanced to it's I are learn doing today, brand, years something train to line take not be quadrants, then, people yes, sure. a doing And brand I did mean, going sold advanced and And the we're customer about have the be also well. little have that's couple going what SKU

some going CIAM management, that and advanced its great. over that going it's the Now, that and transition top, tune to similar we're on to we're we're is for get going kind again, motion, management, buyer, AuthX, provide is management But fine IGA, lifecycle to that obviously which already be what stepping entitlement advanced into. something going door, lifecycle to and which to out similar of we're some reporting, it

we to have do to quickly. going training, going course, to have we're training, we're pretty up wraps, do to smart pick some have of yes, So think but it and I pretty they'll

Dave Gennarelli

Needham. Alexander to at Henderson Next, go let's

Alexander Henderson

about extend build like that little what arena. into to feel modern need bit you're looking I was to more much environments, about talk hoping is functionality to what could extent micro service architectures. based we and cross extent realm, you application a you out and machine-to-machine delve capabilities Kubernetes, that domain to and which to environments into And more

Todd McKinnon

Yes.

really Alex, side. PAM it's the think I important, on

and that modern some on And with functions doesn't on of to to access, starting and new headed. containers, concepts, is PAM. is as virtualized big Legacy and then, centered but where real servers where our other events these their very then focused of containers, that you them DevOps right going very I native and focused between service, have is that's servers, really a really a when or difference think some on PAM product -- which at be that's solution legacy connecting workloads, protocol. the of a PAM for modern features lot go really

Alexander Henderson

and that So if you're if in traction a you vaulting talking with HashiCorp Or you that multi-cloud them? obviously, space with player is could about compete cloud – like, do the you extend probably conversation you the exceptional in them? participant, to, how do with Do major dominant integrate

Todd McKinnon

with HashiCorp is, -- things story. really workloads, Terraform implemented you're partnership -- around, integrating copying how motion, some It's at we integrating in great a terms have job they've of an And DevOps that done we're their there. we've integration in people. great provider system. good a And -- moving people it's

If our you one integration look at our hallmarks is our of network.

most the do. easy So what most we're going of company there part with be work to we to out integrated, as

Alexander Henderson

Are doing you planning any vaulting? on

Todd McKinnon

something on we evolved at decision that in that I looking -- time we're Yes, the have solution when think is Is right. will PAM partnership? We'll the options is a it. that different make buy?

Dave Gennarelli

Nowinski Davidson. Andy to go Let's D.A. at

Andy Nowinski

and you're is made the to was with maybe development PAM Just update give And next one for me. soon the could us complicated one just I regard progress releasing more to if year. like that on you've develop. a an which products IGA to wondering be quick you upcoming

Todd McKinnon

going are plans. it's the Teams away building our of They're well. strength on cranking with working these two products. Again, vetting all early customers,

from market do to have we a signal really need we quality the there. So what good, on high

resist are call both have I they're opportunity about wouldn't to solution there. future. for temptation while I tools I we the requirements challenge Not same we the In of -- the build make really their -- make out challenge, engineering they ourselves But also the terms been of it's have think for to the have out is And just before still spending to are complexity, think of both They things and complexity. existing the sure right. probably that times that to That's them time the go biggest, requirements real I are implement the the in lot teams other. meeting product a get challenge. And changing. an there out is it's the past, kind to on the because both think biggest than that's complex implemented one more a sure the too. what of on -- as

Andy Nowinski

deploy customers And identity? platform you convince to do for two, to do a those then, in market both Todd, you benefit to a be to think leader move just managing enough platform? have both to for willing will solution of really one actually be Or customers the and your good

Todd McKinnon

bit semantics. little a it's think I Well,

now. go say, to be been And and have the in modern right an bunch the CyberArk customers the be the not going you've the want things a a for and we're version PAM the go to of IGA the it's SailPoint doing companies implementations. that going don't This you We're CyberArk future. solution. need to go a replace of of replace of modern implementations. customers the you the are going going not access that. that have Sun XX-times is think market to to bunch server, have that tough Yes, I leader I going We're about to to database legacy and Oracle and think -- those

that to more going trending there's do I toward is modern But the out technology access a privilege XX that that technology don't that. companies take to want old are the You're new unlikely. product around for times think Okta

Dave Gennarelli

next, go let's Joshua Tilton at to And Berenberg.

Joshua Tilton

a where going PAM over customer market looking to for these identity to vendor decision to product choose are does one I purchasing do other? -- one or of the the talk customers unified of about or which bundle three governance, want product kind future think to buy access think converge. we the this about drive are features for management And you a

Todd McKinnon

it's think the access I core management.

fuzzy most between with remote think they access and it's things fair and get to many being they customers? -- I agency, compelling because cloud and so some privileged privilege the might mention accounts to was sensitive, to CISO What CIO number of core, starts are to it So core little say that work talking that the the management, letter are a from wanted that that and just increasing. When I is federal access access three control.

MFA, when So Biden do the administration control. access says it's

driver. So the that's

the control, view be that That's on in, secure workforce can my So end which the the we side. for while your making we we access core environment, it the leader to you give degree users. in easier your

Joshua Tilton

I there. employs And MFA a opportunity Gov about and year, on comments, that if million could bucks implies is Fed follow it user X public XX think sector kind sizable is per people way per just pretty of up simple to the which

are doing So of anything that is guys that on out to you capitalize there? directly kind that opportunity

Todd McKinnon

dedicated sales We have up. ramping team, we're that

We FedRAMP high FedRAMP authorization, have the provisional ILX the authorizations, in and is the plans. the moderate short-term

that years working do, there. number we've on the you it been success good. And yes, it's just So lot can not we've a of of something a and timings for seen

there. buy seen all to So Okta, it's going a not lot they now we've bought progress of they're Okta zero like just

work have base we a from. very to So solid

Frederic Kerrest

fruition. a And and to just see a also a working channel while I posed you're not ago, question for just there. big little channel add of on strategy that going would it think really years, been We've coming component that I was start to the there's direct, it's number to obviously

you can't again, folks the you're start can build for from them you same from really those think going get, you more those to buy working while, more results. obviously, they the buy exact relationships. build can see every and the So to But overnight. We've I been time, on they a

Dave Gennarelli

Gray BTIG. Powell running from long. to question more Okay, at one we're take We're going

Gray Powell

very it. in appreciate Hey, much me great. Thank the Really working last you for here at minute.

Todd McKinnon

one. good Make a one, it it a good make Gray,

Gray Powell

All right.

I think one. I got

a questions. up guidance on follow the bear to going And me I'm So just second. with

than QX seen So specifically, you've upsides actually XX more if like million little beat prior QX a in in few versus million in what you and the at quarters, XX last better the vacuum, was the look I revenue in on results quarters. by your a of revenue few

revenue auto that is know, if So beat, year it don't million would I auto maybe full the XX the upsides was guidance fairly to raise been assume the of million standard in a XX QX a have organic standard to safe range? fairly

Todd McKinnon

I to going I say that's was think fair.

Dave Gennarelli

the Apologies we didn't on call. to you get Okay. those Good. that

your afterward, We you'd will like. questions take if

Before of conferences We'll and two you be Tech on Conference virtual X, X to June and Conference a let June at we're on bus this also go, Growth quarter, will we Global we Stock know. tours. want at BofA the participating you be William in the number Blair

So see to of those we hope you at one events.

for today's meeting. So that's it

you us any follow up If investor@okta.com. have can at email you again. Thanks questions

Todd McKinnon

everyone. Thanks,

Okta (OKTA) 27 May 212022 Q1 Earnings call transcript