Earnings call transcript Q1 2024

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Dave Gennarelli

Hi, everybody. Welcome to Okta's First Quarter of Fiscal Year 2024 Earnings Webcast. I'm Dave Gennarelli, Senior Vice President of Investor Relations at Okta. With me in today's meeting, we have Todd McKinnon, our Chief Executive Officer and Co-Founder; and Brett Tighe, our Chief Financial Officer.

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

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

In today's in superior Though addition references in non-GAAP during measures to with the it meeting, addition, These non-GAAP we performance are or GAAP. all financial we explicitly to of financial will and measures. to meeting, accordance state non-GAAP. measures discuss profitability not are may prepared a not financial for during substitute

reconciliation discussion a versus available measures release. GAAP of non-GAAP and closest the in GAAP A non-GAAP measures financial using is equivalents earnings their of and between our limitations

find more website. our and on Relations Investor can trended supplemental our key metrics You statements include which detailed financial also materials, posted financial in information

we comparison. meeting, changes noted, financial such of otherwise numeric a And quote we discuss today's In our a as performance. represents reference each unless will year-over-year number growth

And McKinnon. over like turn to now, I'd Todd? the meeting to Todd

Todd McKinnon

Thanks, continues partner. Dave, us to joining as and Okta leading thank independent identity you, this build position afternoon. everyone, for the on its

team and and Okta One Clouds, customers strategy has go-to really our Two market with love Our root it taken partners too. our

macroeconomic financial these we cash which the strong achieved quarter. when results introduced operating improve enabled deliver profitability The We last past non-GAAP in increased anticipated the quarters pressure we and efficiency record and us actions few FY'XX the despite we've taken targets to environment, over increase profit to flow.

Attrition three in tenure pleased two to We continue number year. approach on the level we fully past Cloud lowest team decreased average the We're salespeople conservative positive challenges its is a number our more closing sales And have of quarters faced of Identity also trends to the increases. Customer ramped last our seeing has to years. to significantly in as The go-to deals. a we're over level the outlook. turned reps close to normalized corner market business take in

highlights now some believe success. the achievements in cover I'll of position the that and for we quarter long-term Okta

Turning to total the quarter, added customer in representing new to XX,XXX, QX our over results, we bringing customers our base growth of XXX XX%.

customer believe new quarter, last growth impacted that macro been by Like area has the an we environment. is

with Identity customers US We the we Recruiting for continue are and large such world Customer proud and Service important Force Air and both in to the to growth most OpenAI, see Workforce as with organizations work some the AIA. of

XXX added with customers we QX, $XXX,XXX ACV. In plus

XX%. X,XXX of grew Our have We're XXX of customer at customers seeing ACV customers $XXX,XXX strength of be total customers base over over million with cohort now over $X and in fastest growing ACV, to stands the which We $X over now plus XX%. continues with million with also growth continued plus ACV.

in QX, complex, in needs win upsells come the range line QX. a business industries. exciting and examples which of of was legacy and XXX company Fortune A of line. technology new The just adequately meet a the customer a are Here from company's notable business semiconductor wins couldn't secure was an few wide of not business

Governance Okta to for compliance use line and access cases. Workforce its technology stack standards Okta's Identity multiple partner collaboration industry selected to manage Okta Identity meet ability also to The identity to address selected critical to Cloud business It modernize applications.

Customer We Identity Cloud. great between continue Identity Workforce and see cross-selling to Cloud

its Identity Indeed, visited Cloud self-service customer corporate leveraged a the for Indeed and since were customers. QX job Two site great Customer and authentication has in as with NerdWallet. started Okta most world's to power examples

XX,XXX the This posture experience Identity and company its Workforce expanded the improve its approximately bolster Governance user with for security including Okta Identity quarter, employees. Cloud, to Okta

cross-selling that a another more illustration its customers NerdWallet two provides of was to platform clouds has secure more our and and time. to financial Identity Okta since a our between great capabilities guidance Workforce mid-sized of Cloud consumers how and and over access NerdWallet layer example been great leveraging XXXX small on for Okta businesses employees.

homegrown with added further Identity Governance Customer Customer company to Governance Identity as our continues show expanded In strong Cloud. replaced OIG NerdWallet Okta Identity traction. the processes. Identity or QX, year, it with compliance Solution streamline Okta its Okta Last its to

modern access for purchased management. hundreds have is Football OIG, one demand integrates with wins is just In based Amplitude a QX approach governance, to validating that the and customer of organizations Australian cloud and League. including the initial Indeed, past months The with desire seamlessly six

Workforce see excited to Their so far. of about spend to especially a Identity It's really spend. OIG, of that fantastic future OIG We're OIG the typically of customers OIG total have start. the since around great one-third Cloud more purchased or off their is

users Never Stop value on Cloud with passwords. core we number FastPass. Identity in Advanced phishing generally QX. front. made important seamless product to without is make We our experience that a Okta of advancements now and resistance Workforce Innovating a gives significant a available is Okta FastPass continue advancements user end for

any resistance user Identity Okta workforce Engine new protects on system. the now device early phishing major with with enterprise, against operating phishing XXXX. advanced shipping for covering and customer began users every in every It

our great existing OIE on in are and XX% customers now over made of OIE. to have over progress converting workforce customers We

this, This the value paving will converting OIE. greater means and on and opportunity so based benefits the upgrades, upsell even rolled power higher accelerate automate recently Building customers on of of the our services pace for more to out higher upgrade. on customers rates reap option way to OIE retention also self-service upgrades OIE help More date. we to customers customers can self-service their

integrate will workers identity need. cloud in such infrastructure governance ECX capabilities or now access as centralized We're to extending well Kubernetes into their and resources Okta secure policies easily the great as testing controls across Businesses beta We're AWS, privileged as with Access. Okta for to able resources. the modern Privileged same management be

the convergence Organizations the Identity management of is position in Customers with solution. our recognizing Okta value a are and unique a PAM and Access needs unified to IGA, address in identity

of Privileged We general the of Access continue by expect this Okta availability end to year.

event We're traffic also innovating network on processes month which billions Customer application Okta's and around per Identity to level vantage world logins point a of the cloud, unique both from security data. and provides

Identity this detect data for available as of patterns which is identify enables We're for Center, Cloud. Customer security Security generally attacks. to anomalies All data potential harnessing now that us and Okta

attacks, technology to respond dashboard a security Best-of-Breed. real-time heterogeneous foster an teams the In to help technology devices a number into and potential allowing is expanding for and insights delivering future Best-of-Breed is ever Center applications, of quickly. Security world

of Okta all continues while freedom expand while solutions retaining innovative enhancing our to partnerships the deploy so technology security, most our that customers choice. can

are technology Here our of just couple partnership a developments. latest

and alongside deep now customers. Google's announced We've the Google integrations of will sellers and Workspace. over of In first Workforce had global new shared technology a go-to phase partnerships have public sector for Identity month, co-sell cloud last Okta's decade and a alliance with Workspaces, base Google a market

Okta to Google feature end-to-end security if say Okta's attendees encrypted are. productivity. leverages new customers. This is paid meeting to indirect expanded we who partnership to a the determine Critical success partners. to authenticate they has been guest joint a to our over identity meeting they This years new partnership channel for and reach In Zoom a Best-of-Breed Authentication meetings all both with and month announced approach enable Okta for customers through last will Okta

to Okta engage Historically, reach Last can primarily our as turned and grown, to value month partners and to from customers the with will more Elevate. strategically. called spectrum and to has partners our we partner finding, influencing program the recognize full managing Okta deliver unveiled recognized partners for delivering, need new The and we've transacting. for developing reward and Okta of they program

motions more to Co-Founder the initiatives. cloud. and more value drive Operations. offers created Okta are a and our role of as I've establishing critical help a AuthX of asked of they these on to Okta Streamlining Business take operations these mutual newly provide Pace, To Eugenio business technology The to President customers. primary of the accelerating partner

further excellence I've company. always including has market the knowledge bench automation the Eugenio of turn and incredible of increasing Eugenio will go-to across Okta, effectiveness partner. the his been deep and growth uniquely operational our an overall attention a to our accelerating is identity of proud and market talent.

Cloud. So for cash lead related flow been and of with the Eugenio's has a things profitability Customer years, wrap Ramji, up, record will who To senior new and Shiven pressure. significantly increasing macro we improved AuthX focus, Identity nearly at face leader four delivered in Okta

for block ways leadership cloud Trends more for time, key to innovation. strengthening zero security same the transformation and continue posture. deliver digital macroeconomic customers Identity is security, position as will we environment continue our our while adoption value in product look building their efficient organizations a At to underscore any trust projects. that become and through to

Over believe become firmly will access Identity neutral Workforce a deliver unified access. and Customer will decade, the Identity the we covering identity acts increasingly platform and that will management, and important, next be privileged independent, winner across governance both and

our to Okta and positioned expand long-term. over growth to all the while deliver is market leadership this the company profitable on delivering the best position,

through Now financial here's the outlook. more you Brett our walk and results of QX to

Brett Tighe

joining and everyone, Todd, you, thank for Thanks, us today.

in our the on cost make drive to actions progress structure. to meaningful continue We taken efficiency we've

investing in growth. and noted, our Todd future achieving our As while business platform these results fuel we're to

As have growth we to path macro the navigate confident we come. of that remain increasing set we for years the the of environment, profitable pressures

outlook start These headwinds and felt with on commentary a I'll basis. some environment. business, global I'll results notably review for increased impacts But with enterprise. most our seeing FY'XX. our and SMB quarter the across on were our QX varying business on in first new first macro degrees and macro We're

as are metrics upsells business. also QX, result. finally and experience we contract to to and reported requesting term deal new continue minor incorporated customers business shorter lengths more into on smaller average towards numbers line our And versus seeing Similar was are outlook. FX our headwinds a which our sizes weighted top overall We're

term first Turning revenue shortening lengths backlog of revenue. revenue. XX%, subscription growth revenue or and total of Subscription in driven revenue. represented our to grew general recently our increase represented subscription contracts. is XX% of a for our by X%. QX revenue International signed growth total results. XX% total the XX% RPO was RPO Impacting Total XX% the of quarter grew

Our overall years. is two term and average just length half over

as next XX Current to $X.XX we expect which the backlog, represents over XX% billion. grew to RPO, subscription recognize months revenue

consistent retention, Turning remain gross very to retention prior with mid the rates in range. XX% quarters, healthy

for at rate with upsell Our XXX%. both stemmed retention XX month The period from customers. trailing retention net net and in downtick in enterprise sequential rate the the rate dollar the remained decrease based strong a SMB

recent in this have customers Given the environment, seats in persist environment. at are will the they and this macro we expanding years, believe current not rate trend

a in strong note, we seeing products. positive On are growth cross-selling of

of always, rate fluctuates. the upsells and net renewals the may retention from fluctuate as new As business mix quarter-to-quarter

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

operating Looking at Total the operating lower expenses quarter expenses. were than for expected.

of profitability combination decrease was primarily than efficiency QX and approximately headcount outcomes expected X,XXX. QX. the primarily is the reflects end beginning of Total the revenue to than restructuring the at over measures. better action sequential of performance spend The due from better at taken expected The

$XXX This of QX organizational includes the cash $XX approximately cash flow outlay record to a of flow million, free cash related XX%. free yielding margin million restructuring. was a the

only in opportunistically first a resulting of During we repurchased million gain. our $XXX quarter, GAAP notes, convertible XXXX $XX million the debt

will to and continue structure evaluate We capital priorities. regularly allocation capital our

$X.XX Our balance in equivalents cash, billion anchored by strong short-term cash investments. remains and sheet

primarily our the Before X% net dilution to that historic into and Day was outlook, be our our Investor At November, that getting an expected to norms we equity to X% range near in stock in on change our term, the the provide update to last in price. I I for wanted elevated indicated that dilution. range related

less dilution finished granting report in I'm And than implemented, pleased than that at practices dilution due for slowed changes a Managing dilution the continue focus will changes will further now be to that area expected including back historical committed better reduction net and remain FY'XX X.X%. we to and that believe we to our to our for hiring, we within range. be long-term. FY'XX over

outlook for business turn let's our to FY'XX. and QX Now

continue pressure the projections the to factor macroeconomic in Our increased environment. from

will reduce increase which structure year and several As efficiency we've an beyond. actions our taken cost this organization to our reminder, as and benefit margins a

Non-GAAP to we $X.XX the $XXX income a expect million of billion With that as growth for million, FY'XX, operating $X.XX. $X.XX of backdrop diluted representing of million $XXX representing XX%. $X.XX to $XX share revenue non-GAAP $XX quarter of billion Current of XX%. to net to income second of million growth RPO total XX% per to of and

outstanding of average weighted million. diluted approximately XXX shares Assuming

million high $X.XXX $X.XXX revenue XX%. end raising We by FY'XX, range. growth of at $XX For are the billion XX% of expect to outlook our representing to we of revenue now the billion,

We for of outlook by approximately are $XXX raising to income a million which yields non-GAAP $XXX million, to operating $XX X%. our margin X% operating to million non-GAAP

income net And average raised is outstanding are approximately share flow assuming for we cash million. to shares raising XX% Non-GAAP per diluted XXX $X.XX previously. approximately weighted to XX% our FY'XX to approximately $X.XX from of margin outlook free

the comments applying Lastly, Okta. fiscal for to want Similar past, a help to be I we XX% modelling effective the flow year. of to seasonal QX low static non-GAAP provide is for to a with tax couple and are cash rate years expected

our in our positioning the structure years growth. of we're And many growth. company profitable while fuel confident for To we've that efficiencies to taken cost wrap things investing we drive to are future action up,

over Q&A. I'll turn Dave that, With it to back for Dave?

Dave Gennarelli

question see are then raised I a with to time, limit interest questions. few queue to Brett. of that hands one welcome yourself you're and please already additional there quite the I'll up back order. them the Thanks, in In take and

Dave Gennarelli

the question to goes Piper. Owens first Rob at So

Rob Owens

cRPO Was mean, Thanks, in the here, Dave, hoping me annual somewhat cRPO guess, with the up a could inching way. I XX% afternoon, little everybody. and revenue bit annual and going point good between XX%, out I a other trending revenue. disconnect, it's but is how help you

revenue, the But in bank. it's a that other pointing are of already subscription lot the trends definitely that is realizing way. So

is as we back that the So of is guide, of kind of the XX%, low somewhat XX% Thanks. that a watermark contemplate half year?

Todd McKinnon

we've solid base in of take shot the customer conversations picture I'll terms Hey, from seen of quarters, off be Rob. and super renewals feel probably and details same importance that customer the on solid. healthy is gross year the some to several seeing a is quite Brett like range quarter in also base then you. it We're We're seeing big indicating really really and for the strength. identity I The Nice see strong. start. of guidance. a a add at to the momentum can perspective

degree. it's average a is a we is bit the little a interesting, It's headwinds little itself is an the of lower. customer different The in count little a have The We size macro bit new we're macro little would about story. way bit the talked seeing manifesting to expected. bit is deal numbers a a increasing than little lower

of last on the deal, sales lot watching the whether lot But which side and we're metrics at, looking things CIC interestingly terms -- attrition sales a two doing or better. of better amount enough, getting -- force been quarters, reps a or are a over a execution executional it's of the the we've the go-to-market in the is lot of few

positive. that's So very

that and up is Another XX% super that's million over interesting positive. so the million $X deals -- crossing over customers thing is more large $X that threshold ACV

think of a uncertainty to is things macro And lot solid execution. it. lot I of backdrop about, execution, the be -- -- it's positive around improving but there's just it's So a

that level and So outlook. kind of we're the is how at some of color a looking business high our

Brett Tighe

about I it's it guide, few think the talked macro obviously, really we from can last affecting mean, RPO bit minutes every been over add irrespective, we've I us quarter. I a and bit mean, little a there. a thoughtful the how about more little I current been

of but thing we make the FY'XX on from being it through I side. major RPO remembers So residual I It's also execution does not current year. is some prudent about the have to go the And weigh sure that other growth part that challenges. those as we're this effect think does everybody want

Rob Owens

Thanks color. for the

Brett Tighe

Rob.

Dave Gennarelli

Let's go to Roger Boyd at UBS.

Roger Boyd

macro. for to question. push on Maybe little Thanks the just a Great. further bit

I May think really first through impact is month about wonder sizes. really just if could deal of first the it of that's sounds you changed. the seeing like month talk the around XQ But you're what or biggest

of If cetera, how about the you you've does pipeline, cycles, et out? that laid factor Thanks. sales guidance think into kind

Todd McKinnon

interesting. It's solid. is pipeline Yes,

customer and of look this have qualitative in hey, -- get the interested Customer important being kind and with that's have like look the Identity from whole approach is the customers aspects that the you have, Privileged analytics ticking you of When size you over very customers -- conversations. when at the business, average how the If and where which Identity just just conversations Governance you is of can Workforce get identity deal we down. one we and and positive you at

of always or that slip question quarter -- really doing. maybe long-term first great. identity this we had that a the it's out end the the than that's normal qualitative of more that of is just, slip of saw We of the strategic had have news, it's lot we I me confidence, or about And a nature But more positive of few what in of of it's first that QX side, every of some the more we've And I what guess in not selling. tells Also those company what the more normal. on but an think we're value on here. quarter, weeks deals is or more out than quarter. deals It's many the not close

getting see internally. budgetary for making ourselves be to another Okta, really on ROI. ROI. making more have maybe They There's plan we're asking are doing We're we -- didn't customers every they're of scrutiny We're approval that efficient. before. purchase. this a sure for trying We're sure level

going the -- have some of me of It's And to I some help are a hey, going help identity the to down, to moving. biggest still do more efficient the slow say, workforce. me they things projects but it more more in be customers CIOs world, is talk does when secure. And

That's to me down and transform and doubling help on something investing it's are going digitally, people in.

you're execution, uncertainty, be macro of the market. serve to seeing So I important but lot thing there we're and long-term, a it's be an identity to think -- going solid going to is

Dave Gennarelli

Great.

to goes Wolfe question Next Tilton Josh Research. at

Joshua Tilton

hear me? guys you Can

Todd McKinnon

Josh. Hey,

Joshua Tilton

are How you? guys. Hey,

Todd McKinnon

Good.

Joshua Tilton

same a but macro in back also Just the wanted clarify. to kind reverted me, and QX. of macro quick just to come don't increased to you one I headwinds I the you here Brett, but for then sorry said to to similar sentence,

worse did macro or So understand, I'm did quarter stay from trying get the to last just actually the same? it

Brett Tighe

Yes. definitely worse. it got Yes,

I some upsell be to is much business contract a in QX than being new in what seen. there's similar toward terms duration to us continues remember weighted that pretty lower So That's of of we've more trends right? consistent terms about what bit The seeing that, versus little mix been upsells. historically

trends coming I And the on what house mean side users around expansions. are new about less workforce of house I seat some active also monthly identity. terms the seat of on talk around that expansions, of both But and me heard seat customer when mean are expansion side the the you in

across we're products. seeing it broad-based both So

kind no is there's more a other that it one area there. perspective segment from seeing perspective, we're of like, or broad-based geo area around The really wow, it's a it more where affecting you're

does more medium-sized business. and was said We're previous what it's at seeing data can medium-sized a maybe ago, past it the small from more now broad-based and bit we're or it at, of where it and in really quarters everything we that the little business. small feel and seems both It so we said couple looking than point enterprise this in we the in much see

in terms the QX So it got quarter sorry. worse over -- in definitely QX of

Joshua Tilton

the AuthX finish that to for for about does the if next revenue, see assume guys year mix? guidance today was, raising stays maybe cRPO of the for worse, the the maybe that full are I gets kind with the at should think question same? you comps the just what And look we how you quarter, just And that numbers year-over-year in

Brett Tighe

does, get and side assume current the worse, on both Yes, side. the absolutely. RPO fact, does It that on macro revenue the in

guidance, about incorporated. the that when both got them So we of think have obviously,

in a say in the FY'XX compares, some execution So terms thoughtful obviously, you challenges the about and guidance. what ago, RPO thinking But how in me had the impact from mean, we're quarters. current developed seen what last it's being year, there of how macro given we in of over heard second is the I residual the with we're the few we've balance the

Todd McKinnon

there AuthX like-for-like is in a Yes. year, One was should that be so there. comps thing, quick the last thing

Joshua Tilton

Super helpful. Thanks guys.

Todd McKinnon

Yeah, Josh. sure. Thanks,

Brett Tighe

Josh. Thanks,

Dave Gennarelli

Tindle Adam at Ray up Next J.

Todd McKinnon

Can't hear you, Adam.

Brett Tighe

We can't you, Adam. hear

Adam Tindle

kind down, if average There that's we the size Todd, go. this story I in going that Okta you ticking in cycle is sell got NRR has at seeing products perhaps with we're qualitative quantitative on deal but talked deal for the and on Hey, of opine cheapest. about decline, core of you've metrics to is a of you least wonder been the to more each a here, could We're story the identity. investors. never in more maybe commoditization

I of proud you've that. been think

Stiff competition, broadly. there's kind of this platform consolidation narrative across security

premium just with I a you if helpful. product that arguably if could environment you maybe wonder to ago, product Thanks. how And now would versus wonder that talk comment that compete premium the re-evaluate maybe I being strategy. So the could on and broadly years be pricing changing. about you if environment

Todd McKinnon

the remain a just We're the strong. data. deal price The stayed mentioned we the Yes. bit, it's well. see unit rates interesting, the The in -- we average size -- as but stays don't hear get it consistent. down price -- ticking win narrative And has unit don't little we -- that I we

data and it is don't the rigorous is, something check look the make we see be just culturally, when which seeing holistically and sure we're as So at we it. really it we assumptions and do world at our

analysis. build that think to the use not, position sure and case, the strategy keep is we leadership mean, products But sell and listen, to them cases sell that that market. we we're want we them the We best them that package and as to broadly delivering in and rigorous our the I win -- make we're identity we for think right being continue

open qualitatively executing we look too, an at customer based strategy, what just strategy that think in not seeing, and the just and with we we're the on the we're approach, on sure best but things but make the do and with we're our success seeing all data our mind traction this, which off the the Customer we'll product, access a and the strong and really IGA and of appeal winning and out keep -- core think is just Privileged have Identity innovations not Access coming to we product, also it. Cloud executing management super FastPass, but start based best we And with we quantitatively, strategy a this is

Adam Tindle

there Susan new still just to you an the is Eugenio with management is And intent that about replace talked or to changes is Thanks. today, strategy, the clarify?

Todd McKinnon

search. It's in it's look great. taking which president. making company look of billion-plus, over we for find have that not of Yes, lot in am at we amazing people Thanks of the asking. people where billion several sure for have ways, $XX a searching a important experience $X the ARR everywhere are, truly we're and talking I a in candidate. we lot want go-to-market next years. That's And the a not is when you from really a the a to, we still go world -- And to to there's luxury

role, customer success in -- important. really, that's which really and job have amazing the great marketing Addison on is team doing is this Kelleher, or place Chief the our an we is Interim a thankfully, Officer, or Revenue job, Eugenio is executive, Eric doing that's John taking So whether

to all which and that importantly, operationally president that It's a make an we're adjacent growth for important operations to excellent strategy to and on including about is we're find make the role, but IT that, projects we that. of across important very president, very It's do the have and track role, dimensions, person of to component happen. of the that to including automation how come a go-to-market, together technology, Okta projects think the great I do the going

Dave Gennarelli

at Let's to go Sterling Auty MoffettNathanson.

Billy Fitzsimmons

generative space Fitzsimmons Billy both How for on in is Okta's AI the with for steer a macro you opportunity Sterling and about think away the This the AI identity do guys. emergence Auty. Hey, I'll of from sec. applications? opportunity

Todd McKinnon

everyone. I a newsflash for have big

hype underhyped. And advancements a I what it's think one a language a in lot really of And trends don't still of originally that both the I AI what was -- they're it all algorithmic lot which feels -- compute like is world, probably now the power, really I and culmination models getting or. come is it's like on deal. TensorFlow large or with domains at a come things -- and knows various it's like it's it's these big been is a the of think and once, think in it's doing about just the important of and but everyone

The too, key thing, data. is just the

the but for If model. the Internet trained and that you algorithms, because is of really years Internet that about training because And really application, set ChatGPT it's be the ChatGPT. it of of the think breakout to relevant because compute was on the or XX-plus

the have data. have to you So

or Insights So threats AI our we the have a look of when have for few Threat years, in business, our it's on on we to make like whether sure our side one Center similar types Security own we customers from on Identity our which platform. Customer we use huge, billions and have look of AI and prosecuted customers other defend at products, the that Workforce various against authentications the of side, at been

advantage the and great, take data, get see data algorithms we'll better and they'll we algorithms and advantage have to can the And of more strategic data add better of more are products products continue compute. so patterns. having that Those because we with and much

-- the really excited So about that's potential. I'm

One the can they on XX for applications various of side and up could hundreds Customer or Identity Okta them. use is we're of that applications who policy the with access of might them or access policies about working rules on and Workforce that side XX someone across the access AI configuring how ideas be like Okta, on a us setting typical how use case the

have scratch. done Be pretty start But to been speed to can own from and quickly doesn't configuration, up. that setup see errors, so apply to and then complicated increasing what actually we've AI that the in customer decrease to their set prototyping customers XX,XXX-plus They the using value. a have to that other policy configuration auto-generate

of idea could nonobvious an that's it use So case. maybe in products, be how the a

And technology. is next zoom it's we're about if out think other platform one this generation you the huge excited then is shift, and of a you the

that applications be AI. tons built of So that means going to new there's with

It changed. for that there's new all a be going industries to and tons has be these created means log-in to things. of industry going there's And

on You're need to experiences. to going log these to

That's that. machines, be sometimes to going it's users. going an help to problem, with can be Sometimes identity we

to really sense, be in gold miners. going we're shovels selling to picks So the a and

In OpenAI Cloud for our fact, login Customer is a that and you all know customer is ChatGPT. the Identity

that's, would to application But supplier need be the a them. identity extreme. here a we're exceptional to and say, to example that these So of of as all I serve thousands and applications in types going of very successful they there's

So that's another think. positive business I our trend on

Billy Fitzsimmons

you. Thank Perfect.

Dave Gennarelli

have Next from Kessinger up D.A. Davidson. we Rudy

Rudy Kessinger

do to against cetera. reaccelerate with more metrics macro to and to Thank growth? for in the mid-teens, sales stock my CSC, not the selling even difficult the guess year a in you hand, implies taking guys, even maybe I you guide, guess, do the low improvement to what the you certainly second exiting in And the even revenue coming what the cRPO deceleration maybe on et back I Brett have force maybe I you if one about and put productivity guide, questions. growth more half guidance, teens. talked implied potentially the growth can the a guess,

Brett Tighe

was had question? just I computer the What froze. -- my Sorry

Todd McKinnon

take it. happy to I'm I take can it.

some the that I all, of -- year. execution get progress of -- a first -- trying made comment made last always we're there's lot on that improving there's and to I had we've better. issues think we of And think we're I the

And being reps tenure of being healthy attrition and and terms we being selling positive. productivity talked CIC ramping sales about in of

So board. go-to-market our better we're a of improve. it's lot enablement, still whether doing that's operations products, to faster, products the company, better our way, improving by operationally the across effectiveness, the And better building building whole things efficiency, across

to to So we're going continue improve.

new as of be we other business is a the I guidance when going things outlined. when macro whether of it's us quarter size, that to whether can comfortable like terms deal modeling we're going see turn the think that, of than we've forward, these we in really of to way, greater past business upsell, the one it's mentioned, achieve the and mix that's like the trends some and

Brett Tighe

I I with remain and add that can to talking committed had, XX% Yes. we you that been this a concept, would quarter margins. I just to that we we've now, it the in profitable margins say while this right? also growth that, this for would see about mean,

huge flow the improvement. improvement strong On free operating year-over-year. was well. as There XX-point margin Non-GAAP a cash side, was

just, to want not obviously, as it's but we grow we forward. can we as want to we as responsibly grow fast So profitably and move

Rudy Kessinger

you. helpful. Thank That's

Dave Gennarelli

William Let's go to Ho Jonathan Blair. at

Jonathan Ho

where us you we with done at what's afternoon. sales right You And understand sales the productivity be to left Good maybe this you. help point? maybe are the conditions Can transition, levels? here. referenced Thank

Todd McKinnon

up. Jonathan, catch people just to

the we're was in Identity Customer Workforce in the November, So that quarters that's it so world Cloud to clarifying did of last the announced kind into -- Cloud. into Identity revealed of of and on the QX. that -- so a positioning change it, of QX year, we three really And big the

kind the QX really was publicly third it the internally. is of since quarter This on of end we since started the it working is fourth launched, quarter here really

So -- conversations that milestone cetera, and qualitative cetera, And One that of evidence we was those look analysts us. conversations with evidence the et of in et for look very big the that all going is is just we market, analysts, a when thing resonating. with behind customers, industry are well. at

-- we over how and new deals. That's Cloud product Doing many do the suite. positive is in look we sales demonstrates Identity over. and done familiarity mentioned is the it to and it Quantitatively, That a been has is one It's reps of in place. positively really a look deal I future That's thing. numbers capability more it, there portends big have at what healthy trending the Customer at so. a do

continuously more the running machine of generation, effective terms of something driving and That a go-to-market always improving, global it's campaigns being top-level, in the of we're on better is basis said, how tuning sales, tackling whether it's funnel taken of sales that. blocking and improving go-to-market demand whether opportunities, the the the just sales all has leads kind we're operationally, those the we're and and machine, the to of sales the how team opportunities prosecuting

last clarifying the talked Cloud with Workforce the positioning year that we time. Identity the some think we the changes Cloud big made of changes of I Identity Customer but and that -- at and through

can. the So they're machine positive they is effectively deals it's more as have as also retention those done I and attrition or to continuing We're ramp, rocks it have more But a productive, more you do that's low, big guess and and behind signal. things. remember, a advice strong is more to make deals the a more humming you more is go-to-market us. have tale every the is and team of which getting they've quarter, two getting sure It's

Brett Tighe

in Yes. is that add But in WIC about which Todd like Jonathan, we was would customer was of saw to that that, which WIC other CIC. it trend the more I a all comment thing the better. a one in CIC terms a field getting is across participation quarter, talked the WIC real buying like or cross-selling was products products customer to whether strength the

actually we in was had definitely the areas one in and fastest-growing to growth of company quarter. the accretive It's the

base. that deliver because of shows about excited value to that really a very breadth go-to-market value we're how understanding you're our to getting of pitch organization to So trend how a the has customer that and

Jonathan Ho

Thank you, Brett.

Dave Gennarelli

Guggenheim. we'll at McDonough go to Ray Next,

Ray McDonough

just two any on purchasing bringing help Maybe How for release And delay Ray accelerate or IGA to do is those maybe put around and is Todd. PAM but product, for IGA? DiFucci. together? McDonough attention to customers This Thanks. of I solutions the the for or adoption hesitancy see with IGA early ramp together Great. you, in full PAM important know waiting you it's of John

Todd McKinnon

it's for Yes, -- -- IGA we've originally It of IGA a Identity customers more it well. to goal don't. be product, Hundreds of -- Governance, is using surpassed we every really or as OIG, terms which thought provided our has in surpassed insightful it. value the largest the Okta had We companies it. would the We some question. actually expectations of of It's a mid-enterprise. has

alongside be solutions your first one. seeing don't would other was it thing. greenfield, -- in a of you Another This actually be it which be surprising unexpected, solution. is We the positive have hey, some market, any we're -- the is of deployed would more, we bit see thing thought IGA it a little

And they didn't people product wouldn't they replacing modern product the the on-premise had replace -- we then a new of something even times, thought more solutions, with also surprised me. think I that which installed, particularly once it's few that have. I

So those trends. are positive all

I true. that think the are to think with go between IGA, do and I think people integration actually flip -- I all for be between IGA that Privileged. at integration the waiting -- will don't for the

I because hasn't think will that accelerate integration happened before. has something that the IGA Privileged to fact Privileged that that's

servers, really and kind doing the -- all somewhat capabilities really the can reporting access those across kind Privileged Privileged of And the were around Access visibility your that the what and things resources was of you with same Kubernetes is around resources get with of same silo. governance accounts or and admin dealing a management have and you that. we're certification,

an tailwind -- the although seeing not of to a there'll for where there a go quite not I way there to there the upside, hesitancy we're be people we're Privileged not being IGA lot other but seeing be the of So with yet. I think waiting -- could think just because

Ray McDonough

Thanks.

Dave Gennarelli

Adam at to Borg go we'll Next Stifel.

Adam Borg

question. for taking federal on vertical. Thanks the Awesome. so just the Maybe much

like for You seems with Talked growing US interesting Arasoft. guys announcement. Okta recently about about military. a That partnership an talked

maybe Thanks. the to investing broadly you're think So where how federal and about the there. most more opportunity

Brett Tighe

Todd. Yes, Go ahead, federal .

Todd McKinnon

the for say Yes, And which it's then are is that us. DoD, dot you important tailwinds instance. achieved FedRAMP to the also, an these recently, really us. -- we huge had High was mentioned instance DoD we've business to the for I a vertical and going military important And for military, all the

-- The it's as the federal, by local the way, and government is state it's well. just not and

big to and and over achieve and doing projects. a this states, overachieve few Some of in quarters And opportunities are excited of over a on quarters our big potential that couple lot we next invested federal very transformation and It's the we're states last targets. its goal target have sizable for about yes, the we year. actually even something the with

Brett Tighe

Service that and I Yes, we a add segment you just spoke last the direct created for customer. a had move time to we across in a that's sense as the company, momentum I this specifically federal was us FY'XX, if we put fastest-growing mean, on for on year. for of Force US sign result that going the in remember would of through FY'XX. focus the the saw as lot that's And we're Recruiting us to you Air I think

are the run. about So excited the we opportunity definitely long in

Adam Borg

Awesome. That's a lot.

Dave Gennarelli

Schwarz Wells go Let's Stefan Fargo. to at

Stefan Schwarz

question. Hey, I'm for on taking for Andy Nowinski. my Thanks

a Just quick one.

that? the is beta. from Any PAM mentioned in early You customer feedback

Todd McKinnon

-- a of Yes. It's were was a they've kind they're in I -- to beta the think, are -- like evaluation into their and six customers honed be pretty passwordless, But, like access familiar road types of want of types a they on yes, of platform with so that lot these primitives environments the of and early. to there dynamic is It product, Okta map, management released, lot they eeks of like really ago. environments that digging of kind capabilities the the sweet of use side use really provides. with lot which those same instances, management cloud access core the containers, anti-phishing, control

kind So this. of they're fits really for perfect

early. good off it's start. So a very to It's

customers We lot wave out expect next that signal this of and will broader, of customers also good be will of well. as a be we'll the next maybe as much so wave hand-selected weren't it that get

Stefan Schwarz

wave see when next customers? you any it. then of real Got And might just the on quick, timing

Todd McKinnon

GA. instead of would that I on So we're on exact year the focus time I fact -- the on the the of track that, would end for

Stefan Schwarz

Thank Okay. you.

Dave Gennarelli

from Jefferies. Joe Gallo is up Next

Joseph Gallo

key being a for this Thanks year. focus guys. you've CIAM Todd, area Hey, mentioned the question.

Just on Workforce. And any force's a CIAM. maybe update comfortability quick of versus just qualitative update then or Thanks the quantitative performance on selling sales again. CIAM the

Todd McKinnon

have customers is it -- couple of lot for in but of we watch, to both the of for of something X my a and qualitatively, importantly accounts The working mentioned lot and that being Okta new with customers. executive a kind I'm times and with talk big conversations and Yes. do I deals I a customers, as just I sponsor -- also I

of the do customers and of in number, a small we It's relatively still the deals quarter. number given number XX,XXX-plus a

data. my So data aggregate with -- actually like do I the qualitative quantitative to compare

them just to massive qualitatively, across important both. are And Identity the to investment for look make there's sure through interest going customers, support then you want Workforce and that But is going strategic rollouts Okta. when the pretty be at want us there -- that that's look important that There's you to the we're big transformations CIC huge to That's Customer similar customers a these number in doing and deals. business number, And sales reps products forward just can go-to-market both balanced X really going aggregate more the a organization scale. when that's but of at at think, going of, really the repetition. lead is -- to to, sell and I more

macro toward well we're as of are new upsells use both size qualitative whether or -- the well as average it's the average say The deal I or one will talking terms these thing in that versus cases. than in about, across business, it's say the or decrease quantitative tilt smaller impacts is we

X are the market it's across be why which both more that consistent the different also businesses that impacting It's confidence track you gives We dynamics competitive, interesting pricing impacting Customer. ideas and think Workforce about don't and when we all one competitive CIAM, is is we -- the And macro-related. want consistent or might reason these us very or see trends a other it's are two had you across also which have -- don't would to of These that. the we than that, it sets.

Brett Tighe

ago was just second if to heard that Yes, whether around in you sense it's the that business, or comment a cross-selling add the would our intra-cloud across really my good. I inter-cloud,

CIC was in spots of types other into customers. cross-selling of One that bright of the the

it's inside in good So organization. we're sign the of another seeing the execution positive what

Joseph Gallo

Thanks.

Dave Gennarelli

go we'll Next, to Macquarie. Havemeyer at Fred

Fred Havemeyer

to Yes. I'm the conversation sorry much return very to macro, Thank but the taking back you And question. -- for

Todd McKinnon

No worries all. No at worries.

Fred Havemeyer

the headwinds to more picture hoping kind a get a where or about of are intuitive better macro I'm understanding originating.

ubiquitously layoffs increases So something Or and more perhaps are elaborate about something related or this wanted organizations is just controls this that range perhaps within it be cost is is just, hire could coupled something you across different? markets? could a that to general ask of if completely ongoing whole the to

Brett Tighe

I would of expansions. just are heard Cloud, you Workforce say Because seat what of both you talk when you look it's about me a expansions the mix the Identity said. really at Well, seat they're so contractually have they right? had don't when our as going agreed than originally expected they as have not They customers' they employees, maybe they to more, less with many buy us. or

the by So way, Customer the Cloud that's side, happening, CIC -- as on and the Identity well. side

commitments seeing the websites around or their to so. own We're and their customer-facing expectations own being applications less little a

a look durations, bit but normal. seeing, if contract shorter they're we're seeing So also than that we're you component, seeing how then at little

we about more the the out I thoughtful being just people are That's uncertainty there can quantitative see. macro. the all think in

contracts. qualitative close hear they procurement of the from budgets little a and into field reduced they be CFO because the deals the slower that about being also a hey, bit enter want we to to how being thoughtful or, little There's

variety of just what a of those things said, you seeing we're So Fred.

on. you've spot it think I So got

Fred Havemeyer

Thank Okay. context. you the for

Brett Tighe

problem. No

Dave Gennarelli

Let's go to Shrenik Kothari at Baird.

Shrenik Kothari

Hey, question. my thanks for taking

strong know across growth seen So on the guys cross-sell mentioned have side you positive I in that Brett products.

the move kind you to But going Governance, of Workforce So Cloud one-thirds about future needle as spend are as guys Identity the I'm to mean, I ACV. of mentioned guys seeing Identity Identity of terms assuming OIG. of total well almost Customer you beginning since or the more it's both IGA in

upon wondering, just in think essentially, are replacements of it win expectations. touched of but in being and your the terms majority your the business RFPs greenfield, the also I terms and So exceeding you to ability of still

how there that's Thanks. Has some provide terms you quarter compared of to in can So mix, last more been there? trending? color more replacements the

Todd McKinnon

and statistics there. think, I of of good it's -- healthy aggregate some questions kind really the it's really the cross-sell upsell numbers. separate I'll a Yes, good

you is this Workforce. a So of inclusive have

multi-factor. add You

governance. have multi-factor sign-on, you or advanced add You single

cross-sells Workforce and Customer you also Customer buy Workforce. it's Workforce. -- upsell or there's where buy So buy -- cross-sells -- have have you It's products you you sorry, within Workforce. Customer upsells also It's within and you

holistically. So in the just that's data

moving So but yet. a -- We don't but off not start, it's in it's to IGA, it over needle fast start. really it only time. that of a it's is strong I hundreds very customers But think will to optimistic, very so it's the off

of that It's assumption think I -- all think need. that access need with a cases was management. more a what it is IGA. integrated and would clarify It's modern just said, be very that to -- super I greenfield. the to it would all in architecture integrations modern that the cloud-centric It's more want it's -- And customer -- basic one use their covers or and a I that thing our technical want

so -- I greenfield. the would it's installed it next to be more being And that legacy is The surprising thought thing deployments.

the legacy chose broad So even as and didn't Governance next for of to. a Okta putting fast reason, it though to kind get didn't vendor, they whatever they value they in Identity couldn't that. as they They're expand or it for it surrounding enough, it it get want

rare. of seen be but I rip-outs a replacements, relatively couple think to we an don't are full of IGA I going have solution --

a with the mean, not Okta that's why much, big. are people And big right think much think We these they But IGA it can get work installed, trends great touch larger. them. once a Identity Governance, market think like also product is they there's I super exciting. opportunity. things these and that don't make now early we we I

Shrenik Kothari

Thanks it. a Got lot.

Dave Gennarelli

let's Scotiabank. go to up, Next

Joe Vandrick

Can for hear Colville. Joe This Vandrick Patrick me is you on okay?

Todd McKinnon

clear. Hey, Joe. Loud and

Joe Vandrick

right. All

So spend adopt similar we who uplift out? going for incremental customer Thanks. the rolled governance should a who it, an XX% adding that's expect product, for those to to back or so adopt once PAM customers

Todd McKinnon

market want because of to I on see realistic. it hundreds is the market, see that's that contribute in based the and think customers. that it customers looking at Yes, increase in We one-third

before But we confident what we're So contribute it we're out. actually we as as Governance. of want that we to when pricing think we model look it could at -- see the in it kind PAM see right it now, Identity of be Okta seeing and that much. We

Dave Gennarelli

BofA. to go Madeline Brooks Let's at

Madeline Brooks

okay? me Can you hear guys. Hey,

Todd McKinnon

Loud and clear.

Madeline Brooks

Great. the Thanks taking so question. much for

Just is? impact I large AuthX parameters and on impact one about how oneclarifying follow-up. integration you question then the very that quick guide, guess, different from some if last on us impact. I'm give thinking I X% can year, from the cRPO mean, is a just X%

Brett Tighe

the You associated year? the mean Identity Cloud Customer selling impact like last from

Madeline Brooks

Right.

the selling how cRPO reflected issues growth? that's And some and of in

Brett Tighe

it headwind we feel Look, I we've we mean, actually issues percentage. obviously, for and quite us, nice obviously, turned I couldn't a execute give as we on a revenue like both the bottom those had you line on cRPO creates line. and exact of both want. But execution as as you've a quarter, and didn't well we've lot top heard corner today, the because

can't So, you give number. yes, exact I an

Madeline Brooks

project.If given But little is bit then that. the customer you little transformational side, you difference And are we worries. bit that that you too, a side is on think I forward to it, having No on guys you any macro to seeing on it. impact forecasting because a conservative aren't go, you that a forward said Got Brett, impact, look an you no mean, slowdown Okay. that? going customer And a know are I if mentioned going as how more there's the year Customer -- forward. the more of to from of

Is you're similar where coming that on impacts product conservatism going is still it to assuming see lines? from? So both

Brett Tighe

worse both because -- lines are now in gets both The seeing the product it's it lines. in product assumes we guidance right impact

how we're forward. really that's So thinking about going it

Madeline Brooks

you. Thank Okay.

Dave Gennarelli

Bachman Keith of go to Let's BMO.

Keith Bachman

second. and for wanted I afternoon a Brett thank you. Good ask to

little months If a latest the you retention could the talk rate, XX number. about bit net

this investors related big as of thinking net about be a other presumably, quarter-over-quarter to a And and on look step quarters? so that, presumably some you've basis. the quarter rate And we But IGA products over and retention being PAM was how talked down interesting customers. about couple the next should pretty to out

we that with the are I from that if stays the really mix so these here? what to guide might investors does Because be really candidly two But how will? gets to to worse, if the the XX%, disappointing. products if deemed the quarters, the larger is get it be maybe the macro four XX% you the able a is or cRPO question bottom struggling is, is bit think same help or upsell, think next to is or just over little worse And

Brett Tighe

okay. Yes,

they of we expect spoke terms from to in to number decline and reasons. quarter-over-quarter for decline, XXX So XXX, we the previously, were net retention rate, did the two like about

call If about macro last and this we worsening. basically most worsening, I talking macro you talked remember spent about of time,

So of played it out we definitely like was. thought kind it

You can stats seat see we today. it due expansion, about to that talked

that I in came to other throughout thought rate throughout want to is customers landed. make remained thing is we on stable we Both thus customers we that FY'XX. it retention clear around business And do obviously expect everybody FY'XX, balance talked why range. in very was going the XXX FY'XX new mid-XX% FY'XX. to much in those The makes didn't of that upsell was drop thing we the adds. sure has new about to add We customer is that fruition, of FY'XX less where is to it the continue into in as But gross

a your do and of the through terms two there's that and difference the from do which year, upsell we down gross here other net we terms through the those rate basically continued net headwind retention rate influence balance between is the believe rate, retention in retention In of of basically FY'XX. we factors, upsell rate rate, tick believe

only those a on Now to But OIG, going obviously, still PAM And as numbers offset, mean, GA working have OIG customers We to year. to XX,XXX-plus expansions, hundreds you've off and heard yes, right? talk the that your end versus start, PAM, actively those about. very seat I great small. we're the Todd but question at then are need the of of is all customers,

more from PAM So 'XX. see 'XX likely and we'll effects in the

net that's about forward. So going would think how retention I

Todd McKinnon

Yes.

or cloud. Customer has too, to point. Workforce The bigger and other selling IGA year the someone change at products think than impact are Customer Identity this has some when that the in opportunities the the to upsell Identity, about or is upsell, for Workforce is that or a potentially that year, 'XX, next thing, you could That Identity the customer other PAM big this but way selling a Workforce

Keith Bachman

at too about was just anything to there bottom point? hard the you want call to is is finish just you I it this to Okay. And off though, mean, this or cRPO say the say growth? can

Brett Tighe

Obviously, and get a don't far macro we it's update point. go. We'll of to environment so out at you in this as fluid we ourselves too want front

Keith Bachman

you. Thank Okay.

Dave Gennarelli

we're a of little questions. top try here, know the a go the a we'll more bit bit I into but few more little overtime to to past hour, get

go next, So let's Gabriela at Goldman. to Borges

Gabriela Borges

classic how you Hi. how today? versus to cross-sell contributed think of the the could growth net remind retention. you Brett, net topic Thank on you much retention us, look about is what If want I retention back has or net how years, stay percentage you. to seat split count or between much do upsell over upsell? couple past of

Brett Tighe

earlier, that saying we growth was And forward, I a move retention was to definitely we're our headwind on be seat expansion a net and headwind what do to as was to that continue a in to So we also given which seeing. what is expect and QX. macro headwind lens

to cross-sell the say, and on be really it's side. workforce had quarter, is customer but what we're MAUs us So very expansion I on say it's clear, seats both really and side a seats, seat heard nice you've seeing -- when the like that is

believe sides headwind do business. the it FY'XX. that balance in throughout And of continues So we're seeing both we the to a be of

Gabriela Borges

from year in the a Is normal what there upsell think MAUs? seat typical contribution would of about count to and a be magnitude way classic

Brett Tighe

between been but like from been hasn't it's a varies a one XX-XX, been or the It mix It the right? the other, between It's year-to-year two. mix two.

Gabriela Borges

Thank Okay. you.

Dave Gennarelli

Let's go KeyBanc. to Eric Heath at

Eric Heath

Thanks, kind you, week Conference or Microsoft last CIAM. Todd, product I mean, question at Dave. a of a announced Just for their a around new Build program new

here may and alter you So landscape will? on your get maybe of to thoughts initial how competitive that if kind product just that curious the

Todd McKinnon

past. didn't attention it. to -- so I'm customer in I that not tried familiar But I pay that -- announcement can't that Yes, identity stuff just I'm with do comment not the it's I on specifically. they've know

And is by identity of it's kind just your really is e-mail. it's part extension, whole identity of e-mail for different different than and -- pretty think pretty I as their identity for than security. identity -- program picture be of workforce a focus their like it's the identity be to then

identity a And Identity on a experience motion pretty great having to different have have you Customer and and the having that integrations it's the than customer just developer side.

think why I the to a different think both. I have I So just in specifics, that's pretty -- know and we're pretty it's don't scale businesses world unique but such

successfully, reasons but is By company to bring far, of to it's what you the done. it it's so that is from vendor from perspective pretty it's be why to important because vendor, a which have a we've both customers, muscles two the one -- do build -- valuable identity to customer biggest really to

Eric Heath

Thanks, Todd.

Dave Gennarelli

to Cleveland. at go Wilcox Brian Let's

Brian Wilcox

that to taking you many cloud seeing transactions as about think and contribution cloud are longer down about given work commits? -- marketplace hearing cloud Could excess way customers you're question. term, a for Thanks you talk the the Great. how channel we're it using from

Todd McKinnon

growing partner the for seeing enterprise like that been compelling pretty you've successful still of hear can rapidly. has on like their well. it's quite spend they've they It's pretty small but to relatively purchased. They as marketplace. terms sounds as We're Okta well. Customers Marketplace us. definitely Yes. AWS same heard, our channels, credits That's it The thing, it in spend And the we can them. that through

-- they're cloud customer that a us But customers Okta, the if being think has really that's to for why use more resonates locked likely talked good lot the one. Zoom announcement. the I it's is use reason into that marketplace. versus Amazon providers means to we partner a think Google announcement, there's -- a the and because we bigger whether about have, that's a of And I but And it a that's just that not why partners of Amazon choice

props One neutrality. our and independence big of value our our is

beholden ecosystem big the or the customers. also interest of them. how us, of scale an or an Amazon way willing Google with the they're in But of Workspace it's work we're ready to build some hundreds that for having shuttling to partner just be talked about kind in to they're that technology and certain and it's the or ability hundreds capable we features and other choice Zoom and to vendors And have whether technology ecosystems not is and we partner's and

Brian Wilcox

Thanks.

Dave Gennarelli

go Let's Hedberg to RBC. at Matt

Matthew Hedberg

Hey, thanks, guys.

access within the lot you talk and cross-sell side, could hundreds, be logos. when out unlocked. a been replacement? I'm new we billions there's how So waiting think the look do identity, sort your on you there base start curious, side if of upsell to better unlock Like management broader logo not legacy the new seemingly of dollars, at legacy versus Todd, there's of about to like

Todd McKinnon

pleasure I've meet listened Yes. said folks It's -- so and think to I had that the I've talk have and before, this the to for calls to.

their coming, of the and Okta from for to organizations, I own VPNs. in it on-premise, local the of the cloud, mass own opportunity is movement is really biggest and area do they think security about in the of workforce it data it the old large especially identity their center in the to side, think which is office -- world just the default kind own default mass that's -- do do networks where their people on and and do whether the

on just customer build identity it And the side, it's of kind yourself.

is conservative I investments being the I about that news the firewall, good would that that and can their provider. is macro think that people they're good identity questions that change chosen changing. cloud-based -- they've that, is news slow or outside much So the so choose I bad lead the more of the of security bad some with technology news in infrastructure -- guess it's so modern now -- cases the the big want maybe guess some economy to cloud so own applications place stack or and SaaS to a a much down up they much them going to news where

They that's reticent do macro in softer. cases, that be, to some environment a more in might maybe

they that divesting infrastructure very we for strategy going that's means we apps adopting maybe is for and look when or a catalyst adopting cloud and that things, companies it's things together, for do change, change, merging that they're whether that's what opportunities our we really So are through they're something -- well. look are is or doing M&A,

how change. company So keep you think keep I you building success ready. they're having thing that Well, a is going we're part and investments, the that? provide going to you and going these to when kind to is help of do make Companies great I of one products mean, keep customers Technology move it's you do building solution forward. with customers can the going there is other then unlock inevitable. do. are identity just you And it and to it's they be when to

Dave Gennarelli

two Bernstein. last to at these quickly. Weed We'll get can we go Maybe Peter

Peter Weed

you. Thank

continuing One year. slipped What's is reacceleration. get into next and of that but optimism optimism are modest, taking actually And you've to your that anticipated of raise looks you had deals some and year second of quarter-over-quarter imply those the bit perhaps conservative full But get might and here the kind yourself I in reaccelerating have second in even half this got some that your the quarter the in -- obviously, a quarter into half? guide for look of that you it things and of hopefully, numbers of you next some the and more it's I'm sense kind that out acceleration and to this of quarter. kind of guidance like giving

Brett Tighe

we're us, aggressive don't about we're mean, guidance, I thinking I getting mean, for think when overly here. I I the think Yes.

the in I environment. some seen think quarter. execution the good obviously with prudent being we've we're And

off we're from with that the macro. effect so balancing And the obviously

how we're the that's So thinking really about guidance.

Dave Gennarelli

Yes.

from Let's question take our Param last Singh.

Param Singh

Hi. and you. in. for squeezing much Kidron thank for me Param you Thank is on This Singh Ittai so

the get a how Cloud get Customer I use then quick still So a follow-up. XX,XXX much how Identity of a firstly, of cross-sell I the customers, wanted between sense just a And Workforce trying to sense of bulk? mean, the to many had I Cloud, opportunity and out exists.

Todd McKinnon

The think huge. opportunity I the -- is

power Identity, customers clouds, both just our existing XX,XXX success would Workforce if in think many, many for quarters. both the I Identity fully all Customer and had the products

Brett Tighe

I years. I would say would say, actually

Todd McKinnon

quarters all Yes, many, like many plus.

Param Singh

XX%? any You there have way Is that? to XX%, quantify like XX%,

Todd McKinnon

it we've to of part so the across to partners employees you tricky interesting, because how not some have look on uniformly, this. contractors is it's about work like -- XX,XXX trying say many Identity assumptions at it's where done and quantify you Workforce spend. making side So about the The Customer and then customers, it can

we broadly? know ChatGPT digital of calculate, going go customer, know through how -- bit execute, to the to big opportunity. little to enough are that kind a leap these if With make it's or about when's have So it's we harder next much you have but industries a a we to transformation

Param Singh

with follow-up here do is, And here the then quick more trim right-sized there? Or quarter? there's you're think fat and think the real to you restructuring opportunity do the you some first had you in

Todd McKinnon

guidance growth, the we profitability terms We the good of plan the [indiscernible]. We're in it's profitable think the always a think is and plan. and

Param Singh

you're think at this You time? right-sized

Todd McKinnon

yes. think good it's a We plan,

Param Singh

Okay. Thank you much. so

Dave Gennarelli

appreciate We Well, everybody great. attending today. in

those this Mizuho hope you We'll you on and Before Summit participating to be let you go, see I we'll Cyber to that of the know June events. be XXth. several event at one June we virtual wanted attending in also bus tours

you investor@okta.com. can if follow-up meeting. So e-mail at And have questions, that's you today's it any for us

Todd McKinnon

Thanks, everyone.

Brett Tighe

Thank you.

Okta (OKTA) 31 May 232024 Q1 Earnings call transcript