Earnings call transcript Q2 2024

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Dave Gennarelli

Hi, everybody. Welcome to Okta's Second Quarter 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-Q. made. affect our represent Management's in and financial titled in the Form our time

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

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

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

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

Todd McKinnon

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

that I'll of has environment, Brett you more few we details why to top-line while along believe execution to we for on financial cover with success. improving solid walk Okta and significant focus quarter achievements still the some believe improvements now through flow. relative profit long-term in last cash stabilized and operating results, the discuss the and efficiency delivered has of and the Our position macroeconomic will challenging, the highlights quarters.

and one was of lines exciting come a upsells shipping in quarter a transportation largest from industries. customer the QX, notable with wins wide with few range of start Europe. I'll this examples An win in and of which new

sought with Okta compliance. its workloads locked struggled seamlessly Identity company and more company to time-consuming the and a and the will the Identity it employees systems bolstering while manual security identity Governance to improving strong to Cloud, including the solution partners enable processes. As posture thousands cloud, OIG, Workforce or its and access apps and Okta of its of move

a Cloud that will improve customers. consumer of company an massive company The Okta packaged sought mobile, developer-friendly Global over multiple win. Customer A be and as opportunities different well web, is will goods This flexible have IoT expansion would as a across was solution customer-facing customer company across Identity a that their deploying great XXX new help The applications, time. digital exciting Okta experience the with beginning brands.

was Ryder and Identity for Okta Rentals has an Cloud, since exciting access Solution been business Truck XXXX secure its upsell. Okta Customer Workforce leveraging employees to including partners. Identity Ryder

Identity Governance, costs. for onboarding the Okta significantly request just certifications. for was in to will access OIG provider employees, experience Workflows, the of deployed while new with This replace improve and its quarter, and selected Ryder flows, Governance power legacy reducing Ryder Identity access weeks

extensibility Experience And will for here leading A is a provider its lead an as global OIG example and product. Solutions with the OIG selected of value. new Customer customer landing OIG of Workflows power of ensure to and Okta's leverage have company streamline platform right their the of complex the enable lifecycle identity to governance customize the to employees requirements. access level resources, management,

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

expanding existing environment sector larger is an area sales also that which impacted The organizations conducive results public with customer relationships. by been has the New macro agencies. customer in environment, to net and a strength that customer growth reflects believe is adds we increasing more

large strong customers Workforce most see ADT, General the with world, and growth Customer important and to work continue of for organizations We such are Identity, both in some as the with proud Services Mars, and to Administration. we

added we ACV. QX, XXX with $XXX,XXX-plus In value customers contract annual or

Our X,XXX total our customers ACV with now growing to cohort base was last million-plus fastest $XXX,XXX-plus grew stands of Similar ACV. customers XX%. over at and quarter, $X

value deals. a had deals the top XX contract we when $X the aggregate value fact, total In $XXX of look was value And the total in number quarter, contract million-plus of at you over million. record the

companies for companies require the stack. architecture for units, technology beginning. with use. platforms from more of has Okta to already Global organizations differentiator we with was choose only flexibility. and flexibility into ease XXXX, very to which the greater Flexibility that been Okta's the new component It's Yesterday, decentralize. competitive architecture Okta incredibly security to Large first run Global controls it upsell force of This makes and processes, is a against which monolithic technologies even their centrally to XXXX and work complex which announced flexible core enhanced industry's identity powerful transactions. critical and solution have environments gives built that that a business large

spoke Okta organizations a deployment example Ecosystem. central IT provides the Data's NTT one environments. distributed powers XXXX in as separate Data Global set that a with Okta to domains manage ability the for Okta NTT hub various Identity users great A and this customer, of it with NTT needs includes of Data. hub the is long-time Their engine and

innovation been Product core products. this Okta's success, long is year banner to has a new and for

of customer reception enthusiastic be about Governance. Okta Identity We continue early momentum and to the

well at being from the displacements, that has brought as of We the OIG OIG size both surprised governance replacing on existing been range the identity as vendor. and purchasing solutions an for, scenarios deployed competitor of organizations alongside pleasantly home-grown have to

Identity were and uplift total to with or a buying building see It's the came Cloud Lifecycle continue third half which the it's Workforce hadn't significant that typically business of of Okta to in OIG spend. spend OIG Workflows, QX OIG, that customers from particularly of purchased see booked more encouraging as nearly blocks a customers previously Management or we their

was with Another and Grubhub, their customer. both bolster and notable of to Okta applications. suite, upkeep Access servers customer added Identity OIG security long-time Workforce to Governance and They Identity product reduce Advanced a Server on-premise win manual

also on continue beta has We access. the from Since call, later to look OPA update or QX Access to OPA of this our earnings early moved Okta into Privileged forward launch year. the

corporate Verizon another product security the early touch to at device associated protected Device MFA among Okta seamless Breach incidents resources Report, enable's Investigation desktop that that we're by point, This excited vulnerable the last just These the risk. extends are applications XX% the sensitive XXXX This misplaced Device to According up such stolen to Access locally as with logged-in attempts means devices, laptop experience device. access is remain access password. Identity-powered frontier made immediately a user Access Okta powered devices and the login. to first authentication are store Okta's information about. is in or when device or are where protect unlock are when Data the documents, computers. and

MFA which event. It's an has risk one reduce the may last just requested been the benefit, in held modernization an desire capabilities This timely. extra added premiums. help our Organizations technology White customers House This also this year. their last is highly of has month, security, insurance as the by most of layer

At faster of earlier biggest roadmap at user as and employees. our technology strategy. We'll is into early Okta Access, at security Okta about I excited AI productive adopter AI the and for talk application has has they mentioned build event, from what the Francisco in have working exciting utilizing interest Global trust XXXX they're AI. more San stronger threats in Oktane, NTT of machine-learning opportunities zero identity about of products the and models AI more share October. that our spotting we'll shift week and Device detail for more continue customers we're security to we're more go for hosting of and also news years patterns we'll with against area which I'm development on transformative first Oktane. defending attack to their better part been to and paradigm Okta an for a experiences technology decades, as that upon in and

Cloud by company More to applications QX. OpenAI, AI. with great Just company be like log-ins technology the I which a every Okta. developed again a Okta's believe on AI company, is be of to being of Okta be with identity an have strategy. founded AI, like must has Identity is will expanded Customer for utilized how will massive and this every need be will its identities daily authentication modern with partnership in and companies A number how More example more solution protected

Chairman serve returning Okta but news. bittersweet some will share be to of of overstated. Okta's and want Directors, Board contributions Frederic to to an dear I His Vice Kerrest, be continue not Co-Founder, cannot finally, And to capacity. Okta My operational friend as in will

to highly for goals. We're Of committed Okta I course, our forward remains Freddy and we'll guidance years the seat, to my to him closely work Board he look helps forever formulate continued with continue grateful achieve from our I'll what he's strategy for and and ahead. partnership long-term in as connected with provides very and remain Freddie his Okta. done all happy for helping

a Okta's long-term. we've all projects, their macroeconomic our what and cloud look to more strengthening is in committing execution overall for still independence, To over our any of made and key advancements QX we efficient efficiency. we're platform massive and transformation, adoption we're identity covering identity, will These customer because AI. early market while organizations a digital profitable success always block to with ways positioned on neutrality, pleased delivering deliver We're access trends unified growth good a expand while security, reminder to and wrap trust zero that as things addressable for and up, believe and performance access, privileged in a is the building security become environment to now governance, in management, very continue ability It's in the posture.

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

Brett Tighe

you, and today. Todd, actions with in root. for to efficiency structure joining the taken have pleased thank drive us taken our We're how Thanks, we've quickly everyone, cost

and results while noted, start investing FY first QX in business As these platform fuel review with our growth. environment. to outlook 'XX, I'll I'll achieving we're on macro future results some quarter but and the our our for our second and commentary Todd

QX. continued impact our headwinds, We the including to minor a headwind macro to in While believe environment FX revenue, stabilized business.

between Our healthy, be or but skewed view build versus is new towards and upsells split based average duration, Pipeline sequential were upsells, renewals. within modest trends size, business upsells. the to expansion new and continues contract seat deal upon stabilizing pipeline improvements in

of sales further and team, We closing including improvement also tenure, experienced Workforce in to number Identity reps related go-to-market deals. our in the Identity average ramp Customer metrics

data maintain While prudent we are near-term it's all these points, outlook. encouraging believe to a cautious

XX%, revenue results. revenue grew in Turning increase XX% a XX% second revenue. total XX% for of International XX% quarter to our represented our QX was total driven revenue of represented growth Total revenue. and subscription by revenue. Subscription the

between and Identity. Identity ACV ACV. Workforce Customer ACV and of XX% XX% Looking split total the XX% Customer total represented grew represented ACV and at grew XX% Workforce of ACV. Identity

expect mix term, in fifty-fifty Over with trend we the both. the healthy growth towards to long

lengths or grew past shortening of term total The several subscription RPO signed impacted growth. quarters RPO has general over backlog the X%. contract

see we contract lengths. pleased to a in increase QX, term were modest sequential in However,

over expect just XX% overall to RPO, we remains $X.XX length next over Current XX the years. Our X.X months revenue grew billion. to backlog term represents which recognize as average subscription

prior to strong remained Consistent retention. gross quarters, retention range. the in with mid-XX% rates Turning

recent trend net business, seats the XX-month Similar from may the fluctuates. years. environment, I'll remains mix driven was to retention the renewals, they was to activity. where this persist and this XXX%, fluctuate net environment. of upsells both dollar-based will a net period are strong of quarter, result the retention rate not in expanding in quarter rate and new quarter trailing retention have macro reiterate sequential that the believe Our by rate at the We as upsell downtick the for in and customers last cross-sell at rate

noted I've business shift more to mix upsell our we've As cross-sell a in new business. and previously, versus experienced macro-related

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

overperformance, measures. Looking efficiency our to primarily was than XXXX. margin expenses slightly $XX expenses. cash a billings of QX increased Free approximately the operating of flow spend were on by cash is end to revenue and cash free lower X%. yielding focus at expected. free expected was collections. flow driven QX strong significantly million, at The flow the headcount profitability for quarter Total better-than-expected due Total operating and continued than better

the our debt This $XXX GAAP-only million convertible convertible debt second million $XX of resulted in gain. we During quarter, opportunistically XXXX repurchased of and a notes. our $XXX XXXX million notes

the in gain. repurchased resulting we've GAAP-only Over of $XX debt, past $XXX million quarters, two a million

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

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

'XX, Now, of let's and our FY turn in the macroeconomic which to environment. state for factors QX the business current outlook

weighted share we've million, revenue cost million diluted benefit our a billion, $X.XX Non-GAAP of Current actions representing of as this to fiscal shares As growth $X.XXX that XX%. reminder, income diluted of backdrop, margins income With million. will to $X.XX, efficiency year million year billion several non-GAAP per our $XXX taken which to structure million to to we 'XX, of RPO organization, increase $XXX $XX and and average quarter and for assuming representing XXX growth $X.XXX the third reduce $XX of expect outstanding of total of of XX%. an as operating a net beyond.

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

of XXX a average for to our a are And to million. net previously. yields million. outstanding a diluted of from $XX flow to free by is for that's assuming raised margin FY raising operating basis, shares to operating XX% outlook non-GAAP our margin weighted million, outlook $XX On We of cash XX%. $X.XX XX% 'XX $XXX to raise income dollar non-GAAP approximately we which diluted share are million million Non-GAAP $XXX per $X.XX, income raising

to Lastly, comments I with modeling help want provide a Okta. few to

We tax the non-GAAP effective XX% year. are applying fiscal a static rate for

continue and We mid-teens flow to into QX in expect in the margin grow free low cash in the to QX. double-digits

To of up, second the optimistic wrap the things fiscal we're going year. half into

we set for the macro come. remain, growth path are environment of years we've the pressures to While that the confident profitable of

our focus flow to drive cash progress We on improvements drive operating top-line, the continue to margins. to to initiatives significant making while and

And excited see finally, at everyone to we're Oktane.

product In and be the addition to Business our hosting analysts the President things side, we'll and great session Todd, with Operations. we'll on investors panel myself, executive be Eugenio of all about Pace, for talking an

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

Dave Gennarelli

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

first we'll at go So, off, to Owens Rob Piper.

Rob Owens

hoping you, of guide unpack talk Thank bit, of Dave. could Great, you you're and you good but afternoon, sequential guys. us the still macro, a about the conservatism. stability, and the mentioned Was a When having level talking for sort just little change.

those customer well. Thanks. to and you And the when retention can cRPO and so, as we as metrics, speak the the relative should turn see help explain A, rates, guide; the this just net sequential B, maybe some stability, of quarter, large to customer metrics count,

Todd McKinnon

results customer XX $XXX the super, with -- the had the couple super happy the of the mentioned, really momentum. in in top a the We TCV over things you large which deals of We're quarter, is were Rob. strong. Hey, quarter, million particularly

also definitely -- you we customer area it's and We think an related the to counts macro. mentioned is that

Our business. part -- really business part -- customer SMB part of the of small influenced are adds and our the by of our small our --

up, of aren't logo and that quarters. and with smaller it's churn course, that we we that as I that believe making closely, here, into it And consistent increase. several eventually the looked we're number, look is the the think picks that of think but will up very at will sure count logo up, as we last happening the and not new economy we picks when, what's we part purchases, that businesses pick I think And manage in it from

leading one million around OIG. million-plus customer On was completely signed deal the of new some $X in and one Okta global had all support ACV high-end strongest of We over $X and the customer the quarter for it's cohort, ever a was big companies cohort wins. to -- it our new that customers, experience including ACV

a momentum the new is seeing of in satisfying. which we're lot largest pretty the world, companies business So, in

think point the of not still, as is it in especially is environment lot quarter, macro good stuff for as be forward our while healthy the that yes, business So, outlook. still I stabilizing, reflecting to to us it's but could to degree, some and the

Brett Tighe

strongest I of the deal the history. Yes. Rob. -- add would actually the had We one deals. just ever of that, to the about in one We talked quarters big big biggest Company's

-- general, But strong only highlights. a Customer but highlight, quarter. up of talked we about deal right. it's that not wasn't stats, That's a bunch Todd participation. very was I it just mean, the into some talked about Identity just in the there's big So, about it

good seeing of proud a of of of, the business. things by macro we're team So, execution great that Lot in lot this really go-to-market the headwind. in spite we're

did the we're the being for In of still field guidance reflection question is in macro it just a of about quarter, a the our mean in itself, what really it your of that terms the talking is the we with RPO more of terms business. but point current I outlook prudent on at specifically significant stabilize terms headwind. given were Yes, growing this in headwind

Rob Owens

Thanks.

Dave Gennarelli

Next Ittai up, at Kidron let's go to Oppenheimer.

Ittai Kidron

guys. Hey,

could and it maybe you Solid on numbers. kind us bit more base. color I customer the guess, parse a of give by Todd, maybe little OIG

before latest dynamics can percentage bit the I'm demand changed just install already how and customers, base wrong, all, if had first this the what of maybe from the First correct but platform standpoint? Workforce modules the a base, applies couple you component your little dig of to of into just to me clarify, the adding of a

whole of demand pent-up base? add on how just a upside a you already the incremental versus I with the two, and this get existing module, there there. greenfield already what just the can one; lot, trying of that platform was have but lot know for incremental number to is like a sense a was sounds I'm it, number customers of much new the to it of

get of So, trying upside. year to to the deal-type

Todd McKinnon

thing you can OIG It's ask first said it any -- mean to you to OIG, applies The we I about, Workforce. customer. sell

And, a of Identity to value usually process, is we is business, upsell synergy whole -- Identity as point Access not for the sell to a of that's real a and but So, not with a managed that's just team OIG expansion Customer by a it's as kind customers. part makes the of because the good Customer separate OIG product. customers. directly It of integrated great in but lot sense. that terms increasing It's the customer, the of Management separate

which If you that tight the the and Cloud sell a access. that auditors at that and OIG. and applications Workforce integrated resource governance you system go-to-market just think with your it's actually first access That system about which when we potential bunch we indeed right in new customers to bundle our report makes have deal Access integrated Management. access ability is land controlling cases, just with your to we the get a manager Identity doing like sense does have then you Customer management to for and look the a to many a have is or the at technically OIG, and application of that have to and just tightly But you new can that approve, the work, the routing approvals tightly can

of So, Workforce first customer, the but could that Identity as it be an the suite. entry upsell Cloud Customer to

numbers in legacy of exceeding for So, is the the start. products, expectations generally that but now. just And and deploying revenue, strong It's expectations. but in it a so penetration are our terms terms It's to of displacements. also also our a very companies been competitive not of of the its exceeding alongside and governance the few terms quarters like forth, product available in off

something think we're didn't but this think those we we early competitive more this degree, displacements than are that of the would I seeing to happen expected.

this OIG they heard struggling a as had feature-rich a Fortune of. Truck ago other year it legacy well. good Ryder wasn't on replace some in enough, to we're their at they they bringing because Global company so which helping a was to surprise they have wasn't product couldn't account, legacy it a XXX pleasant was those. they we're XXXX of Rentals, There that and legacy their Workforce were a looked -- OIG They is do, products product that's needed and and ended the OIG quarter you've decided about -- past with at It and them it what but product, with win, up looked we -- enhancements do in all

the tree it's also product So, good we feel Workforce this about Privileged is the really really entry -- about and Access. which we're excited next in

Okta Access the it's year. on couple built success having general which on schedule early for to the of It's availability out this beta schedule, So, and in of product got using access. Privileged from it's dozen QX It's progressed is and customers us. with

the entire then exciting. are exciting So, those of examples in two stuff on specifically Workforce, the product suite pretty lots and

Brett Tighe

And now. third amounts their Hopefully, about customers out I average about of wanted it, a to heard of then, right you Workforce that have and of it's the getting total just it's on and one really but in a this, thing, more we're Ittai, who earlier, spend upsell terms spend third clarify.

significant in So, it potential is the entire customer base. a XX,XXX-plus upsell

about we So, as forward. we're opportunity move excited the

Ittai Kidron

have tell XX,XXX, this? already us you that what you Can like how percent penetrated are into

Brett Tighe

go. of a lot still There's opportunity to

Todd McKinnon

the single part certifications part It's wheel not next Management. it. authentication. and sign-on part rounds the the the nearly component, as access single -- And close but the sign-on base Workflows multi-factor requests highest, you penetrated The is a is know the rates you our as product of and as then highest in is as the then penetration and there's multi-factor or of the nearly mean installed product it's as Lifecycle for access new the Management out it there of product. and the -- I that is -- there Lifecycle is

that Workflows. access have Then companies Governance, and there's only request. just And certifications SKU few then the -- highest the the the a is have the Governance next actually

really to is there So, excited a it. we're lot about here run and of room

Ittai Kidron

Very you. Thank good.

Dave Gennarelli

Let's go Joe at to Gallo Jefferies.

Joe Gallo

Hey tough for the growing broad durability the with comps. should it well ACV year-over-year and has then stabilization, now? outsized How have question that CIAM? the Thanks. on noted nice of force CIAM held we Is sales more XX% does at about macro business? in ease you guys. Thanks quarter. really on think impact selling that an And

Todd McKinnon

that we the data reps this with it, question there comfort data and quarter have in Customer The is for sales we of more terms is force's Customer with look the Identity, at closely your pretty Identity that doing deals. about

we should So, conveys they as that. et much et is, Customer strive the to conveys revenue at rep's split Overall, cetera, think it It of that so we're should Workforce. are long-term participation The it, with can to with markets their Identity and opportunity a the be think that XX:XX a cetera., as lot over growing a just it the both both opportunities, level, -- ability We they as I things. quickly. familiarity for the both be and that is execute which be can growing. contribution the ultimately, big the be comfortable healthy for

and really before, to legacy So, versus it's -- to buy. the offering to customers we've something different and Workforce more, of their platforms open durability. it's versus services are competitive something Workforce more a their not The Identity It has established -- the of dynamic choosing with or in a are about versus we with stack. buy there a talked really Identity themselves into used Those build companies think trying lot side dynamic it players. whole there's solution players, locked buying source developers is big different. a, along a more as apps has that get It's the it's and is more build different

So, we both big to have there's lot dynamics, think and a different but run. are of room both

at-scale you we player in look only at Identity. Identity and is, if we the leader are strategy our our neutral the independent and are And in strategy,

Identity covering our is so, first And double-down all all, on use that strategy to the by, cases. of

that important and business So, for and it's we a customer, you say market listen, of it's parts is all should and really your you Identity and full driver the do really And Identity of by offering independent cover products infrastructure, importantly, your to to plus, Workforce, clouds some and a partner that the you we're bring part a up suite the key money key of of level and of spend biggest technological the cover on. we neutral. very go the

So, and to choices I seeing that's in in results. of have horse tools lot with getting to security Identity very Identity, from we not give going gain choice because -- especially think that's the tools technological foreclose and the resonating lot that's companies, of we're the of and cloud which customers we a collaboration what we're you're and or environments right, terms larger complex going have the infrastructure -- a behind of people race a to some by of what or favor our and lot

Joe Gallo

you. Thank

Dave Gennarelli

Go to Adam J. Tindle at Ray

Adam Tindle

the wondering to if if And one, you've in confirming two-part gotten Early in any you for us I'm give you that that be Access. QX. just would in feedback thanks Privileged Todd, us, the context maybe question, of for Dave. helpful. could Thanks, GA it for could Access put kind a OIG that Okay. compare product to product it

zoom of products, Customer, out enables. unified forward, going platform if Workforce, have kind a talked I we you're of what the bigger if of secondly, a and picture, PAM fast about to to holistic sort OIG, then wondering a that often And Identity platform, and you've

go-to-market would you've be helpful. the If head considered new go-to-markets alongside of like any and that update on bundling

all. so them hopefully in many Sorry, questions there, hit but

Todd McKinnon

remember can if very be myself. them No proud Yes, to I of I'm worries. all, going

to Early comparing Privileged now similar the into was move beta and in are Access. reception with of question Privileged the Governance terms Access they of Access, very First and

the So, to this of are be solutions is Access -- driver the it Management. -- value integrated the big a really value the to the -- natural similarities how of is

companies report tied servers the apps, like on of these manage -- the or your more you're example, a or the container a with get for the all access accounts can and for that Access app a access on fact do Privileged you're that get a auditors into employees, and collaboration importantly, -- same you approval way management on access workflow to and to approval their app to that resources servers Access, does who who for a see attests a with containers, server, system all collaboration resources it's are integrated more should and whether probably these finance workflow Privileged the that the have do appealing. governance that's that's right and the really their containers applications, very finance you servers, So, access following, to all actually appealing. really should access they applications, the so It's or and that can people for a fact all importantly route single their going using fact to the system, to

that is a it's I So, about little it. Access coming from Privileged bit top last features fact And it's call, compare talked the because think second. were the to of we OIG OIG it the on to Access Access, benefiting unfair Early that the Privileged integrated

So, positive. that's really

us. audience. privileged the accesses a traditionally was a for of past is who what bit with team, but who a do I Okta, for is and I controls has it's a in think -- which little little bit little the infrastructure Privileged audience done decision-maker new resources a new Access team a think and bit infrastructure The different the that, them in that them, big

CEOs Boards Directors organizations our the to really the of the our we're trying the company's and really this people and appeal that Officer to infrastructure, resonate. more So, employee believe security -- across resonance appealing an the get has their lock CIO, Security We relying and and are prominent all approach their with that's to systems Chief really down. why the to will to Security the strategy in or all have -- which of more risks Officer way Chief security umbrella security, the of on

off we're think. a and exciting good pretty it's there I to So, start

same Privileged umbrella. our Workforce Your And it's as Workforce, the about -- then, talked and put we course is parlance the major Identity platform Customer cloud. actually broad question of Governance about and you we under second under are that

talked what for it does go-to-market. about You mean

take structure up go-to-market our advantage think is of it. set I to

get to economy across think back And the in -- do with at that, and levels So, that's in message of have and really -- and we're of clouds really is broad improve great to that sign. to deals be growth means ramp, The is suite big which the as participation with, to one starts high and our ability tenure, more, and our are sales sales in terms reps that's the which comfortable that of is the market. and starts team we healthy. going their a we scale happy tenure experience future levels deals in help us are this resonate the the to both possible

Adam Tindle

of Head go-to-market?

Todd McKinnon

years three of I people, for search knew years to President important to one, do it's for I ton to right. five we're the we really of a important -- The role. The forgot sorry. that It's a a what find is, is really that we're right it's next person progressing. go-to-market trying meeting get search

candidates. to We're as but us and wait ready and right can't yet, update announce as an anything events I soon important bunch not to for a of meeting thing to it's get give a the on you warrant focus we're So, it. super

Adam Tindle

you. Thank

Dave Gennarelli

Great.

let's Anushtha up, Mittal to RBC. Next go at

Anushtha Mittal

starting feels I'm question for legacy large to up wanted I for to for taking for the thanks on some a on Matt deals question. there Hedberg. ask Anushtha grabs. my like opportunity Access Management. replacement legacy are come replacement Hey, It

So, can customers to Okta how some are platform? shift legacy this help these and that vendors what opportunity away the do you think about from catalysts

Todd McKinnon

I a think really question. insightful it's

big and I potential, TAM and you market is, potential that's think the have it it's Okta, the it's and for your and being on installation look The coupled the been do drivers data -- the a it's whether center, that you if control IBM, legacy at the growth the really in Workforce stack, Oracle side. realized a the and -- Identity it's really it's you it's factor. yourself big you traditionally or on-premise it's way you tightly software, with fact

the maybe on your it's it's roll Customer registration really open it's own. own it password checking form source, your then just and build and side, And build maybe Identity yourself,

on-premise a Okta. people choose like to use manage cloud those talking to we we're on-premise technology likely and really more move about really next-generation two to more the really are we modern technology those of and together transformation, they a drivers, have solution are so, talk bunch they important. want they of think in long-term the about as catalysts cloud, the business and these it trends, things And and digital secular cloud, to the kind When like are the about

data tons into make didn't stuff, it's -- anymore where public applications, a is going dimension bunch I were SaaS one of workloads I technology, was their to earlier and time, really some some were talk perimeter are two to reevaluating sense there to customer make they real all applications way didn't for I there it own into anymore security moving just that catalyst Workforce platform them center about and the big catalysts, is more a think out at public any Identity we this and that building their So, going to sense their more the finally you taking what way that cloud new to changed Workforce, think they network talking legacy is dimensions the asked that given and cloud of They -- look really that work, and cloud. are work solution. to was have just going their the they week getting their for the was was like

catalyst. a that's So,

the is are better. products getting catalyst second The

to the and fact GA Workforce So, can it's Governance we management fact the universal or huge phishing-resistant Okta Workforce that big starting every comprehensive come a this That's only the fact is Access Privileged is do is in all only -- fact a one, Okta across capability, provider, way. we that differentiator. have identity have that in a a Identity in applications the device, feature authentication client a across QX, rollout. the that this that Privileged, The

some applications, breaches do do these some it of big methods of on you or one-time it's SMS, they So, of to creative multi-factor a deals phishing-resistant, the everywhere. on security just Okta are just heard phishing-resistance starting look that, And Windows like like you've do and number, lot of SIM at aren't phishing can when Swap to move, just it's not authentication that and things. password phishing of phishing it's there's kinds a all and enough

We have the only solution all that's phishing-resistant, across and platforms. it's

better product the too. getting so is And

I help So, things those going of time. two us continue to have take we think opportunity advantage big to this over are

Anushtha Mittal

you. Thank helpful. That's

Todd McKinnon

Welcome. You're

Dave Gennarelli

Next KeyBanc. up, have Heath at we Eric

Eric Heath

I hear you me? can Hey, do.

Todd McKinnon

clear, Eric. and Loud

Eric Heath

guess the you side. just on execution Appreciate it. I Todd, for

the Just I inning point curious are execution sales roll you yet in enabled what get the installed OIG. are the starting this And to to go? you wanted base? the left force kind up to on to think just where what's more do we aggressive first That's and of is start more to at is of of How side, and of playbook and the perhaps follow the part. OIG into kind sell in terms kind on one, second to feel this the displacements enterprise maybe and much just confidence

Todd McKinnon

in like the I'm question, Cloud we first what talked kind of the quarters. on previous for you assuming I'm some Identity assuming meant Customer stuff rep of in attrition, about the integration, execution, we're inning

that is behind I us. think

the there two or is will the look in long I it reps the is, feel The with think of of deals, our how last? question we impact message the when Identity of what comfortable clarity the I macro the things. Cloud and overhang rate at Customer participation clouds, those

are always our go-to-market tomorrow better increase be -- to more today. can and productive. the better. We think doing our can be productivity our is better sales it's because first think get we're get team always There and overall, of all, to and things we Because you striving than we

macro I a question the -- mark is think think I But there.

our to but I think in in thoughts I what -- off potential our and that to the We the approach taking think we'll it's going get macro unfolds. we're frankly, get our worse, is tomorrow think, assumptions assuming the And going what that to it don't productivity it's kind for we between trading but degree any while. is think I and how be models, have that's see have think macro there a the a conservative forecasts We either. going of that to to and better is is, don't pretty is which the

pretty being that. we're conservative So, on

Brett Tighe

I would that. on just add

the one Eric, think we've of the I cross-selling tailwind highlights, been that receiving. is

really good deliver been is to the and we're just adding is products of I well, the combination that and it's to also you quarter but last roll-off Device cross-selling executing some as the it's improvements -- around will, if and highlights able talking continuing so are obviously a great assembly being well, and came think because line, the making to very been high really Access really the statistics as and the and think thanks the a at we Todd releasing few indicator doing in level. why the as this to really working prop now well those a what value field, of value quarters, out percentage part was customers the the to ramp that has about Todd thanks I So, team to product over things deliver the to tenure have execution Governance that's last that just the from mentioning, improving, plus

it. has So, We're executing. been team we're really pleased pleased with how the with

Todd McKinnon

ramped much -- is about sales how And Governance. Governance, on you asked of also team Identity Okta the the

I go-to-market, the new have have and great is a and at more sales There next that take through -- product like ramping capacity, comfort comfortable and education we team to is it's still get a sales do and left there quarters, how but is think think market. that reality think there. really to I ramp more are broadly executing to is, that's to them, in that product expectations. comfortable continue any exceeding and the at it take team year. it's rest and but quantifying the The And continue it a several sales opportunities, its and good scale going is our Governance of still early will team products, we fully that more and to with the a of they decent does, still amount sales lifecycle scale as once ramping to it selling I

Eric Heath

Thanks, Todd.

Dave Gennarelli

Stanley. Morgan at Angie Song to let's go up, Next

Angie Song

Hi, my thank for taking much so you question.

you FedRAMP High? Could seeing from of last how uptick been momentum quarter, us in just you. Thank this is one vertical federal remind in in And you vertical quick Okta? a the you for Just have big me. achieved as the an

Todd McKinnon

federal most last very a was not for key -- -- bunch or They're noticed I reminder, of invest in direct the they but it's our week not they probably office a just to that All are the probably just lot during Identity around in also, it IT about modern quarter, really a strategy, spend, The multi-factor Washington have most Identity. is programs known -- use the a Solutions. but and formal -- mean, all of I about of vertical the it's and I they a spent or big part important agencies -- Identity. a verticals. the a interesting industries of while, as department I big around to a formal I've of mandates things it's really most one have have most

they mature like think think So, they everyone and how in just I are it, modernizing they're else. about

us. So, it's opportunity for really big a

more our ILX the there, military part Department the workloads, of sensitive part Defense also have our really important have And quarter, and that certifications, to the service which -- exciting. which opens two a great bunch marquee is quarters FedRAMP some that side, ability last authorization, sides strategy that to and and You it's excited of ability of of actually our for we a have so did we High us we received we that sponsored customers move customers of big ago, -- on have more authorization military we it's a to mentioned the the the we're really focus. of up we forward, and

between need identity focus. is big state, a area other the for our verticals the and important and and local we're business well it's in of federal, that's governments, so government, they and very part doing state local The those

Brett Tighe

would early add, I still just We would -- lot a I Angie, the of in there. Hey we're have just innings. -- opportunity it's still

in keep mind. that So,

Angie Song

Thank you much. so it. Got

Dave Gennarelli

at Schwarz Stefan to go (ph). Fargo] Let's [Wells

Stefan Schwarz

I'm for my actually. ask I Thanks taking question. about Nowinksi. to on Fargo, Wells It's OIG. wanted for Andy

they've forward. on terms able any going just been competitive update and price just expecting? you could give there's you. thoughts now, you how been could on customers the able many an is how us you give that how you to you color you has it First, your on mentioned Thank surprise if And in how -- have that weren't displacements think of sustainable using

Todd McKinnon

seeing of deals, The is they're very you on the XX%-plus of Yes. of which our usually of Also -- know we're customers great. has surprise number -- is deal size upside, the a it's sizes exceeded the the expectation significantly. are the a increase What -- on positive the third that spend. it's Workforce

spending add it's more. you're So, on you a or a Governance, if paying Workforce, $X.XX $X you're

mentioned thing. a So, encouraging. really be that's the I about, I it of And example think, of, would we one other thought the greenfield mostly surprises of couple

good. we connects on integrates great the bigger. the we that, we're of for Access think very that it the the because great, rollout, we integrated Management We think because can Management, side. legacy Access underserved, have it's is solutions, haven’t a make think very with super-fast solutions been solution, it's like market to We really for the market ecosystem, Governance And with think the well-known better and I

didn't very rolled-out But was and with the seen I legacy, that Rental, displacement. from their of frustrated Ryder think it were competitive mentioned legacy a was kind with value looked and they ago, with Truck and example got a year a it provider, it snuff, provider, displaced of on they at they quickly. progress the their have they had us OIG to They up legacy

stories that are I really encouraging. So, think like

pretty being it's the the strategy makes have the think still which it in very and early, Workforce comes together potential of it both terms said, exciting could on that side. as I

Stefan Schwarz

Thank you.

Dave Gennarelli

go to Eyal let's Cowen. Yes, Shaul at

Shaul Eyal

modules? seeing commentary Good that Brett's additional you. I that sort to driven maybe double-click driven Is want is duration, afternoon, pricing? on even improvement, Thank Congrats. folks. by on stability, contract of by

Todd, appreciate just there? landscape, you. companies a maybe, Microsoft, about I competitive out some Thank the other it. word And

Brett Tighe

Todd duration, let and a second in part slightly first the tick did take big deals, up product It's Around the take those contract I'll right. the duration contract really Yes, part. of the quarter.

the all with in about typically quarter deals closed the deals come you duration. big So, bigger and bigger heard we

and the itself have So, strategic duration in those that's deals, success to in contract enterprise quarter. of lending really had large we uptick that the and slight to a

with trended pleased we're So there. things how

Todd McKinnon

something competition think question, Yes, a on about lot. we obviously the

the company is the about gross I answer. data stable, that win at I give look in also of and And are which environment quantitative market the the enterprise for remains think is so been numbers and I'll The the we that at And retention few we think rates we kind analyze competitive years thinks every rate, forth, quantitative healthy. of look it. the -- very a has now. the lot answer you

is hard -- deals based you're not of always for solution deals looking look but to all is that, we Those at. numbers the we flexibility. see, a what pipeline to get at not look it's that kind on we're able especially the in, in, the and choice a We in numbers large gives convert there, able at are offer enterprises, sense we're all it, we're the around broad seeing the you're customers to you're

-- their the has deliver as they thing talking a side do, is it critical. to On provide, and way posture, more important as on a and can really this and value that they're you're because cyber When quicker, broad companies really tight it One all as use happen government way really the strategic get trends innovate organizations trying conversations seeing is of deliver matters. that the strategy are it customers Identity these seeing these -- about really cases, it's They're what really seeing they is I to like matters the a and platform and matters. competitively. a big think with a are partner have agencies, all on it's have can about to it's we've have first talked that, Identity we the with really to the that it Identity solutions better Customer being to try customers, and thing when -- can they're things big side, two qualitative really

really is really we to customers the announced how that as on flexibility? companies, are is, for Do a the the very a ecosystem. starting its of advantage this facilitating choice well really, have, earlier an that. part, capability Global versus They're important that week, and thing Identity really conversations the system -- rest which perceive second the of large is see important, bundled integrated And we the And Microsoft. Okta positive -- is this is is really The which as and called that architectural to integral that's resonates Microsoft with in this XXXX as technology built collaboration. Identity this part particularly e-mail

so department, company want of part the buy that of a Okta to you you and you Okta, flexibility rules where to just distributed divest And or if you the of do that you want rules you govern result or that a whole subdivision with have a of business that a a IT can is parts Okta company have can for can do to the govern or want Okta. want to or have for the organization parts that you it for with unit

in flexibility have We we our capabilities. and have architecture,

make some powerful. for at-scale NTT customers added it And capabilities Global others easier some visibility across to really, really and XXXX, we've domains, the and to it's this. different like have doing Okta We do and manage better

e-mail essentially systems they identity. e-mail you Microsoft, different to do With if the of way their because you bundle that, to their have have

basically two So doesn't to two have can you domains, want about have what, do to any have distributed make -- which sense. which rules have you if you have who e-mail to a and teams domains,

I are does value super that's markets you their never companies are some users. and You maybe reacting but a Microsoft the is, to identity, don't to posture certainly their you going apps, for all they to appeal more the companies, of our building to want use decided understand And and and in did buy, strategic we're their a expand to to their would it never have want use new company architecture. see that cost all with it's for real in We're use strategy those they able strategy apps, trying and when address conscious, that aggressive being the their flexibility trade-off And and mostly use that they with do And grow. made you. identity for versus that it. that business things provide why hey, different Their teams bundle, Microsoft whole agility give have to Microsoft bundle just the Tech, to Security.

the -- a really independence and seeing that with thing big as longer and So resonates term, what companies -- in And flexibility we're that matters. particularly the that's for all We company to with identity this long matters, all for value really build going future. Okta. in we're company an iconic at this want to and term that's be the in important provide the

that's to true. So believe

the ecosystem out that's it's from other resonating. the and as platform the You everything of truly second of it's believe reasons have if it's And a win. that matter. of we different going the One at thing the going to why integration markets, capabilities, look players cloud talked neutral to whether And there company is platforms it focusing think identity believe doing do, have to some is we've couple we're And to different identity you big the is you that well. broad believe for have why pretty is the whether on legacy independent does. things. flexibility, And to we some about, that's is what you and

Shaul Eyal

so you Appreciate Thank much. it.

Todd McKinnon

help. to Happy

Dave Gennarelli

we have Next up, Scotiabank.

Bill Vandrick

Bill Vandrick Patrick you've Hey, on got for Colville.

it revenue about think growth? So next quarter. we that How growth how calls should just cRPO to the translate looking for guide, fiscal XX% will at 'XX

Brett Tighe

look QX will on out. us of FY the Yes, give quarters an question. should with historical I at It Thank reminder actually 'XX a couple way before correlate into earnings, we're revenue. to would it's going our things. look get we're a precedent, a you at look stick first like Well, and early I five good to you. prudent correlation, the foremost, you a going be at and

at RPO would a in look will between I if into a to now But off So the then XX dollars gap current right? do would subscription look just you revenue the over of the couple they want that at that. meantime, reminder, I roll bridge yes, months. and we'll next things, And of

historical at look can and correlation that figure You out.

'XX, and I XX% in you imply XX% growth. year-over in produced just we can then the in about million that then growth trend revenue that XX% FY QX, pair QX, that based our QX, $XXX with And fiscal would year that's growth of and guide, on

in historical look, rough correlations area FY XX the like but our 'XX the combine current we earnings out days' So trend I get will to come that for you about 'XX. FY on I said, RPO in time would with with the in first QX

Bill Vandrick

Thanks, Brett.

Brett Tighe

No problem.

Dave Gennarelli

Guggenheim. Go to Ray at

Ray McDonough

thanks. of talked we deploying to adoption. you you about potentially be mentioned of that Great, last times Todd, surprised the we're accounts OIG accelerating by that continue And couple government types PAM a solution. the quarter,

solution opportunity on market? Or of kind as XQ, think accounts? more about the you you attack potentially in of see that the later existing penetrating the with greenfield still do do PAM So general product this you down displacing same availability expect PAM and to potential solutions larger or

Todd McKinnon

it or know -- don't arguing. down not really we're is we're arguing, greenfield a Yes. necessarily don't agree market I the sounds like if thing. I

that big companies. big different there's think -- parts maturities different on it's See well. greenfield as especially I companies of

the a experience net customer and large one Kyndryl, the like mentioned of below. really on be think of kind as and in companies, one new support global leading thought of company customer. I -- the so OIG would solution that applicability we one was thought lessons We've OIG things think We that the standardizing -- mid-market the would that be leading terms with I awful. I what the the -- organizations And of seen that success of solutions segmentation is for it pretty the of of in

have they On -- and secret like the always working. out that And kind get that's also -- the well. working a into invested these not And it's big of of they what and the governance several think on in years everything when it that seeing what they're hook side, actually surprised after the of need of government that about I that, is up of companies -- want I went piece all they're take when part to they privilege sometimes side, big would it's is deployments technology actually it. some only using. to really we it they're they're functionality you broad how with what this to of then compare view and they kind using exceed that And we

swap So out then the decision to it actually expectations. our is beating kind of

a different that Sun for center, be My that just thing could privilege. guess -- it Privilege. I to guess a to that same before. we conservative they're is their over I guess data think put Oracle I in where almost could going it's would be I and not going to happen But many this it's The that out talked that means have market. over the would like in Management company solution and we've probably to seen in to coexistence. Okta they And extend and they've -- it's think people be own block those benefits privileged and going had Governance continue set really to resources. Access there, success, have we're where Okta It's they and with that don't take want still servers that the they into a CyberArk that in its

But company may some benefits But and for just and own they top quickly get the to on taking I get legacy think development, capabilities Okta capabilities. their that, cloud want the out don't the some working and protecting division see they center. them a kind workflow that have doing the data and CyberArk auditing their more capabilities deployment resources I have have of of and containers a database control that's and Oracle do that's those access they same their of deployment same

Ray McDonough

color. sense. That’s for the Thanks makes Great.

Todd McKinnon

Yes. Happy to help.

Dave Gennarelli

Goldman (ph), to is believe go let’s Hey, I Sachs. [Caroline] what

Unidentified Analyst

on Quick is me new program. one Okta's Yes, just partner thank from you.

you think that launched I April in year. of this

partner then clouds? to in the those of reception that initial has kind of to given customer, strategy workforce the what does Curious Just also, And and go-to-market how been? in each the translate differences and that

Todd McKinnon

fundamentals It's it's partners behind the had focused quarters were Yes, focused, the we've on most were going revamped more more valuable for wanted get and of well. the that partner launched couple purposes -- to sound. -- a -- We it now. the super

good Overall, good is seeing important partner program we're partners overall, those to the super a to pipeline, But think specific changes. in Okta. -- not which it's be I contribution that thing. continue program for

Okta, trying you to with your Google -- excited the choice the sell what no a with trying Google sellers boundaries, -- to Google for and natural give of saying company give The go-to-market. rest tools and the in to we're of and across customers use really bunch public kind around Google a a infrastructure. can Google world the and natural Particularly, that's of partnership matter with sector there their alignment Workspace Workspace and technology the anyone, communications workspace is collaborate can you same the message for collaboration about use

very a we're that it's one. that aligned go-to-market So about excited

retire credits, have very quickly. and AWS that they great. Customers do the the and pay can really It marketplace, cloud to a some in emerging service marketplaces. new a -- that's they a big quarters to really Okta is and been couple investments about want through strong for to excited which row. That's down We're want grow for provider of channel Marketplace they continues their us. the with Amazon, mentioned a We've AWS that on few

So partnership is really important.

and in and enterprise we we're legacy They the workforce. biggest start really Systems lot a mature the and governance especially especially Integrators as to of Integrators. business, our large they're Global to of motion with on the focused key replace and to Global going opportunities one on think something do these is some really are Systems on really I side. be rip technologies, of trying

partnerships very and Systems they capabilities not the important. that to the develop to parts digital Global Systems focused trying super the them side, naturally it's to identity already to natural it's on of identity that. relationship that. and do build cloud. the can these some them the And we differentiating a some customer they're do other want on the -- They and the with of companies help transformations because for interesting appealing Integrators Global customer -- is in very identity customer to We're identity and So recreate solutions have help do Integrators

and the -- kind very in to our Okta like and been we're of at had forth, apps We down important on part ecosystem a an important business. to double the ISVs with good partnering because us an important it and the because to part partner, to so partner is it's channel So we've always it We're and of just business. it's so of our continued from beginning. part we're but of of pretty is ability our proud

Dave Gennarelli

on let's raised. into Hey, up more but hands go got here. time, we're got overtime -- we've We've five

Let's go to…

Todd McKinnon

We have scheduling to these start longer.

Dave Gennarelli

Yes.

Let's go at Wolfe. to (ph) I think [Patrick] --

Unidentified Analyst

Josh. for guys. Yes. Patrick It's Hi, on

Todd McKinnon

Patrick. Hi,

Unidentified Analyst

over the on time. quarter Congrats

products that So third not just you they're and if the meaningful the specifically? that second I'm the the time, was uses a kind contribution side? you from in And more called relationship. what can from actually with. on OpenAI the growth talk workforce think or or then maybe expanded that curious expanding little quarter seeing that's to customer out. I any with that OpenAI coming Is And first mentioned bit of side you've the that time also,

Todd McKinnon

lost there. I minute a Patrick, for you

So repeat the was first XX you seconds. the question like needed for if I to me,

Brett Tighe

you I as Yes. well. lost

Unidentified Analyst

me. hear you can Okay,

Todd McKinnon

can Yes, you. hear we

Speakers] [Multiple back came You

Unidentified Analyst

Sorry about that.

was I OpenAI. asking So about

out. success of workforce kind third expansion? them they Is using to then with? the you've there the them with any seeing relatively a contribution this think side, expansion in with side, time was or meaningful a customer products I the what growth second the in are in and like And quarter that short from is called that quarter time. that on significant coming

Todd McKinnon

Yes.

So is OpenAI super interesting.

this OpenAI website Okta. experience started OpenAI we've And customer from so the time, So it. in off. ChatGPT, because last cloud great sizable it and then ChatGPT over pretty log the And through developer using cloud a as took had it interesting and our of customer when and developer mentioned, inside -- and couple the as their Chat and the they're And log-in with picked you had them of -- really you you at a transactions three it's now, identity for APIs was customer, quarters. ago years because a log identity which in

And testament strategy so it's to a our appeals that something having identity, developers. to great customer on

now saw launched BXC is this they pretty recently a ChatGPT right, really something to so interesting you ChatGPT of did -- And their enterprise offering, want and enterprises. and app, to connect they they -- they but

because consumers, customers our connects -- but also So connects too, customer is cloud really Okta customers this, this is to our identity our to at good workforces.

start and authorization. to have you Open then and ID So sign-on single things like supporting and Sam

continues the of And they on, focus which it to want plumbing the models wires and able to in that is open identity together. the so on obviously API focus get can being LLMs it's benefits we on and just what capabilities, to focus their the

TCV -- XX this the $XXX transactions, I it mentioned our of million transaction top one -- math transactions. quarter. So I of was larger side of on the of million. the top the for was don't much -- all those transaction but it the done this But I the -- was total one the haven't XX top on this how it was it was. of was $XXX The was was quarter TCV It -- one

Dave Gennarelli

Great.

Let's Shrenik Baird. to at go

Shrenik Kothari

the for Q&A. thanks Hey, prolonging

idea. think I good it's a

Todd, and PAM, as traction the Brett, and great speak well early as of device So access. about momentum cross-sell to hear to PAM course, OIG the the

architecture And your I become critical a Global has solution the mentioned that, and I the competitive commentary, on think for expanded on you impressing It's On Okta it. of XXXX, you advantage. of component a differentiator then Todd, upon large like upsell an guess new already transaction. that sort

contribution So as like, the a Is is be its in bundle curious just at helpful. going And and point? just still well and like kind of how it upsell momentum? So Brett terms to of Really the in terms curious, become driver. will uplift forward. this just are of add-on potentially and or that it factoring becoming you an the

Todd McKinnon

it, for identity. important also the think true. do, Global leader is it It's about you that something trying -- important a Oracle has in XXXX, What to it's everyone also relevant. the can there's if network, about as make IT you at knows the Okta sure it's companies. some in We is The what traditionally to we're been which when in is how things you mentioned you junior you do And so decision. want the you Okta about explained important when it differentiation, is sold -- other -- kind which I bought more and are part competitive world we platforms, -- But the for it person got identity with is. of got identity all of now made the bought Windows

your is of business for XXXX strategy. the one most to impact is And actually can we're Okta about saying identity world important Global parts what the

know As a this. I CEO,

I centrally, do the Do is As do take I to things or central want want I time, be team want that want function company? to decentralize a CEO, all have want you like I like this I to to group think centralized Do about to what buy the it? centrally, do part it? of want do HR I do and a decentralized to

can you to the care work, you technology going today HR making company, to making and those. decisions also because how that. And And a security decision on the of going you decisions CEOs unless work, strategic can't to are apps to make those free how one flexible about is that own up HR can to the Those whole you're their do you're down are that you They the policies have effectively, the system make things you really use or quickly to their that's and use to identity things. platforms lets identity their out security, -- those their organization, system. decentralize parts they buy department want rules, company how across roll be across And technology do work what are effective. you and own Boards that own when and have about when can lock an going use of is whole own They decision company, the the decisions.

say sure message XXXX, when important want that to Okta message. make say more is would Global on we I we And gets So we across. the the have for that

you buy, you what actually actually Okta's You products. buy

So will Okta's of in way that's at about more world. the convenient it. these for effectively sold you customer working to products. and together. is works can driver the capabilities be the business overall know in companies product biggest would People the identity it is workforce relevance a licensed all relevant. and more about effectively We way the differentiate I suite But of the buy scale Okta They're and think

Shrenik Kothari

Thanks, Todd. it. Got

Dave Gennarelli

to Bernstein. Peter Weed Yes, let's at go

Peter Weed

on comes the hasn't going customers, with I'd the the kind bit back here. we understand the that about selling hopefully, of emphasizing coming I'd to and And love you even bigger started to maybe seat excitement set from your strong the there? frustrating go where larger and been the Okta in in from. the conversation, may you of customers -- side Broader we SMB re-expansion little growth in of Are and this boost love Appreciate about largest reacceleration a of those that and platform But functionality. more is you. the is of logo more as some future? a overtime dig obviously that some Thank to back. Or mostly get hearing strength sits kind through

similar look of the types this you execution? similar like really setup And in obviously, how Is out up like future this of stuff expansion could next seeing this at in we couple is on a into type where quarter? the then kind pipeline? sales when of big coming of like -- pipeline, the stacking of good unusual see the kind bubble Are of is was kind you quarters team the

Todd McKinnon

definitely On seat the muted I with is expansion seed question, the macro. expansion think

customer the I enterprise So And business more success new the the global at I think mentioned OIG company. is experience large products. in land

think was company, well-known addition can customer it cloud. identity real estate of I that example another -- a big a have online was in of We transaction an

customer upsells in to advance So customer. there's products, was cloud examples multifactor customers of and customers And workforce selling expansions workforce the the to a the selling what on side. authentication identity whether it's already then large of

more would it's say So case versus expansion seat expansion. I use

strong. about seen rates, few in how going the And in the of into very competitive rates is rates have macro past not the times are economic the we're of quarter how a environment, is quarter that that's interesting. think to pipeline closed the typical we close the current has translate? for I We've rates to in, actual few conversion the The in but pipeline really this the deals fourth think The the ago. the quarters pipeline since years goes much close changed and thing

prudent So were -- to that's year you those the or of But are that approach maybe the stabilization be numbers into the closed part We've a that category we so little the we're a taking at numbers. talked pipeline we There's about. business bit going assume rates ago? to in down about macro. I have wait-and-see think the fall a before saw

Peter Weed

of signals into salespeople think turn Hopefully, will quota and exact. types that's make some churn people can Well, us. these for results means and no things of they their which numbers,

Todd McKinnon

agree I you No, with Yes. there.

Dave Gennarelli

Great.

go BofA. Let's to at Brooks Madeline

Madeline Brooks

Hi, can hear me? guys you

Todd McKinnon

Yes, clear, we Madeline. loud and can

Madeline Brooks

go floors ask my in forward-looking not the to I back moving any go office. Is don't high we single be what really growth trying about to that to win next going tough but macro? I camera think of and digit. but for factor floor be could video, to guidance, -- change I'm more a maybe rate you But cut? just that up video. year, to would currently I'm a finishing would just we're for start need into drastically Is could as of I cRPO our have

Brett Tighe

RPO. to for current going next we're for Yes. guidance year not I mean, definitely give today

So thank you for saying that, but...

Madeline Brooks

Fine, yes.

Brett Tighe

But the next about ultimately, we're when thinking focused really, of year, we're this second-half on year.

is 'XX, think given about year If RPO, subscription fiscal revenue the to more even second-half really model. you of our current important

So we're macro obviously but headwind. to second-half, need we about the optimistic inside excited and execute this

I next if this think the team the you both Because year, really broader total the go-to-market does the biggest next half and line. bottom on executing top do even the line even company we stretch believe to do? is on really the in that well, it's or and it macro out factor what

is how through of this at enter with and the pleased we second-half performing really everyone the into So point QX as year.

Madeline Brooks

follow-up a I quick that, to So if may. just

comments norms What well, of thinking and taking next budget historical, quarter over think marry versus I terms to down year stability. thoughts fourth I How year, And just to is the like are growth in though the budget feel if from this do we just this for your X% think next maybe kind going flush. of translating be that quarter like the flush of as maybe seasonal to So stabilized. to if guidance two? on those into about quarter cRPO

Brett Tighe

is even is it the purely macro headwind. -- a stabilizing, It's Yes. though significant still

the in And And our the so to end go terms results earnings the the to of QX. But that macro of we're now, how QX, QX. call obviously, at we and with we'll factoring budget next into in a flush still second-half. you the the on considerable update expecting guys obviously, be QX headwind are guidance

are or expectations And you giving so expectations our we accordingly. adjusting

Madeline Brooks

Okay, much. great. so Thanks

Brett Tighe

No problem.

Dave Gennarelli

And got JPMorgan. Brian last but not we've at Essex least,

Brian Essex

deteriorating me All But because of have maybe right. last that thanks same? on thinking you macro just you have in quick follow-up Is Can second-half remarks. it squeezing And about Great. staying a might Brett, then Thanks, missed Maybe, the comment. I guys and prepared just clarify the in here. it are for the Todd. for year? the during I the

Brett Tighe

stabilizing. Yes, we view it as

saw other believe it QX. in we QX that stays and words, in what QX, in So we way

Brian Essex

better kind sales of kind the retention? was and sales hiring executive And Got a productivity Is sense fourth like what cultural the this are better sales front maybe, noted the just trying of then retention. it. any think a force environment questions year? for what just of the like And from the Todd, last ago there the noted sales I just it plans that perspective. quarter get and overall Just to force is quarter on through couple of of rest changes you a of

Todd McKinnon

that's a ramp. a quarters we couple And see that now. the is better and it's and The a a healthy of as But level People macro the to question. related. healthy at one great attrition ramps. still look deals, obviously, been productivity the data we is we identity can has Yes, to And you points healthy is of cloud level really be level, the customer the well. if in for attrition then start participation a get think productivity

enabling, does. have the it's we for -- productivity, we're the It's to see the the better. we're the we And marketing better. just to not improve handoffs waiting we do, working very that and always sure -- macro making last get thing macro like is could We're to is and people the but waiting hard running so around I get -- But we're that what funnel are processes think as well.

of stuff. so we're lot And doing a

side. the testament a on sales really have the I it's And to, leadership we think,

sales have interim John the globally basis. Addison on running We team an

that We have and years to right get that that's we're five over the the new in takes get going the a to right there. a going the three new for right be go-to-market, job very to person going next search President to it's -- the out and person person because We important. us to put heights, we're

people feeling positive the people So good how seeing in you seeing ultimately, even see the how I beyond think think just of attrition overall, a when a anecdotally for success they're is that. talk think that, I and and kind the are metric and It's vibe I success. positive is odd. But to

of well beyond. So that the portends the for and year second-half

Brett Tighe

be easier might it saying he's I my But take four quarters Brian, boss. than a would had but two. an row, have in

saying, we've a results. the Todd what I of it together, healthy think yes, through think So I bunch was comes in definitely And quarters strong attrition. really

Brian Essex

Alright.

you Sounds so good. much. Thank

Dave Gennarelli

everybody. Thanks, right. All

San X you as go, Conference at in York the we Piper Citi be X, in the I Sachs at TMT be the want also on September that on in September Francisco and several September X, Wolfe Conference Conference Growth just in Sandler the to September New San Before XX. know bus on tours. Goldman Nashville We'll Francisco attending on well quarter, let conferences we'll as this Conference

and to we for see you our San Oktane Summit Francisco of on Panel in X. And hope course, Executive October

for So that's it meeting. today's

Thanks, have can any at everybody. you us you reach investor@okta.com. follow-up questions, If

Okta (OKTA) 30 Aug 232024 Q2 Earnings call transcript