Q4 2022 Okta Inc Earnings Call
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This was the right deal.
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[music] <unk> vision is to enable every person to safely use any technology digital identity is how we represent our own.
Identity online.
Started with global mindset.
This everywhere around the world.
The innovation that we're going to be able to bring to the industry is only going to accelerate we have successfully deployed <unk>.
Across one of the largest retail fleets in any industry in the U S. Literally millions of sign ons every single week failure was an option we have a live product. This OXXO working behind the scenes to bring all of these platforms together. It gives us a tool to really dream and really think big about where we want to go with that identity piece.
The possibilities are endless.
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Hi, everybody welcome to August 4th quarter, and fiscal year 2022 earnings webcast I'm, Dave generally vice President of Investor Relations at Okta with me in today's meeting we have Todd Mckinnon, Our Chief Executive Officer, and co founder Bret tie, our Chief Financial Officer, and Frederic <unk>, Our executive Vice Chairman Chief.
Worrying officer and cofounder.
Today's meeting will include forward looking statements pursuant to the Safe Harbor provisions of the private Securities Litigation Reform Act of 1095, including but not limited to statements regarding our financial outlook and market positioning.
Forward looking statements involve known and unknown risks and uncertainties that may cause our actual results performance or achievements to be materially different from those expressed or implied by the forward looking statements forward looking statements represent managements beliefs and assumptions only as of the date made information on factors that could affect the company's financial results.
<unk> is included in our filings with the SEC from time to time, including the section titled Risk factors in our previously filed Form 10-Q and.
In addition, during today's meeting we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP, a reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest.
GAAP equivalents is available in our earnings release.
You can also find more detailed information in our supplemental financial materials, which include trended financial statements and key metrics posted on our Investor Relations website.
And today's meeting we will quote a number of numeric or growth changes as we discuss our financial performance and unless otherwise noted each such reference represents a year over year comparison.
Also note that the acquisition of <unk> closed on May <unk>, 2021, and unless otherwise specified each reference to okta refers to the combined company inclusive of <unk> zero and now I'd like to turn the meeting over to Todd Mckinnon, Doug Thanks, Dave and thank you everyone for joining us. This afternoon, we closed out.
They're fantastic fiscal year with strong Q4 results, our consistent execution was fueled by our market leading products for both workforce and customer identity, coupled with our relentless focus on customer success, we experienced strength in both core okta and <unk> zero, which reflects <unk> position as the leading cloud native.
Identity management platform addressing the $80 billion identity market opportunity at scale. The three mega trends that are driving <unk> business, the deployment of cloud and hybrid it digital.
<unk> projects and the adoption of Zero Trust security in an environment of increasing incidence and breaches are only gaining momentum and okta is best positioned to capture the market that is moving toward us and nowhere was the momentum more evident than in our results I'll start with a quick recap of our Q4 financial results and then <unk>.
It into some of our other notable highlights from the quarter.
In Q4, <unk> grew 50% in current RPI grew 60% total revenue grew 63% and subscription revenue grew 64% Okta Standalone total revenue grew 39% and offer zero revenue was $56 million.
We're reaching more customers than we added over 1000, new customers in Q4, which was.
For the record our total customer base now stands at 15000 and grew an impressive 50%.
We continue to do very well with large enterprise customers in Q4, we added a record 275 customers.
With $100000 plus annual contract value or <unk>. These new $100000 plus ACP customers continued to be balanced between new customers and upsells.
Our total base of $100000 plus ACB customers now stands at over 3100 and grew nearly 60% in Q4. We also continue to have strong momentum with even larger contracts.
We had record new adds of customers with both $500000 plus and $1 million plus in HCV.
We now have nearly 600 customers with an ACB of $500000 plus and nearly 200 customers with an ACB of both of these groups grew approximately 60% or.
Our momentum in these large customer wins is a good proxy.
Before our business with large enterprise and government organizations, it's clear that the focus energy we've put into better serving these largest customers.
Here are just a few notable examples.
Large enterprise wins in Q4, which come from a wide range of industries.
Fifth third bank, a fortune 500 financial services company with a fantastic new business win for Okta, because it included both okta work for Us in Op Zero Siam solutions as fifth third bank continues on its digital transformation journey implementing a cloud first identity solution to support its workforce and its digital bank.
<unk> platforms as critical to their success Kendall the world's largest infrastructure provider was a great new customer win for both okta workforce and sign this quarter Tendril has approximately 90000 was formed from the separation of Ibm's managed.
Infrastructure services business and is a great example of how <unk> as they navigate the complexities of mergers acquisitions and divestitures.
A great upsell in the quarter.
<unk> was with block the parent company of square and cash App block had been using okta for its workforce when the company need loosen that would support its M&A activity.
Integrate with its systems and preserve its brands this quarter the company expanded its investment with okta as it integrates its recent acquisition with this expansion okta will continue to serve.
Port blocks, M&A agility, allowing the company to seamlessly integrate thousands of employees, who will have access to internal applications. So preserving the companys branding across its numerous.
Whereas businesses.
And similar to last quarter, we continue to see early success in cross selling between Okta and <unk> zero customers. A great example, in Q4 was Carvana 100 e-commerce platform for buying and selling used cars.
Carvana has been a longtime okta workforce customer the critical role technology plays in providing an exception.
Car buying experience and sought to modernize access for all users building on this initial success Carvana recently expanded the zero to provide its partners and dealerships.
Access to its marketplace platform, which provides carvana customers with a broader selection of vehicles I mentioned that we experienced strength in both core okta and <unk> zero. So now, let's take a look at them or identity and workforce identity in terms of AC.
For this particular metric the growth rate is inclusive of office zero in both comparison periods.
Total <unk> grew nearly 60% and now represent.
And 37% of total ACB within this <unk> ACD grew 47%.
And after zeros ACB grew 81%.
Workforce ACB grew 37% and represented 63% of total ACB, that's fantastic growth across the board.
We're still less than one year into the combination with <unk> zero and to date, we've been able to accomplish job number one which was to maintain the momentum of both businesses.
We're even more excited about the future because starting just last month. The go to market organization under Susan St. Ledgers leadership, one team driven by the relentless pursuit of making our customers successful one team selling both okta and <unk> zero one team.
Providing customers with market leading solutions to meet their unique use cases. This all crystallized with an incredibly energetic annual sales kickoff meeting that we held in person a couple of weeks ago.
There is nothing else in the market today that even comes close to <unk> capabilities and the combination with <unk> and the team at Op zero is helping us realize our vision of identity as a primary cloud deliver best in class experiences for our customers and win the Siam market faster.
Now, let's talk about product updates customers are seeking a cloud first approach to their identity governance needs last quarter I mentioned, the beta for our new identity governance offering the feedback has been amazing Dia Jolly our chief product officer and her team have spent the past couple of months prioritizing enhancements to the product. This month, we are excited.
To initiate early access to a limited number of customers as we fortify our go to market team and partners with content for enablement, we expect okta identity governance to launch in North America by mid year and globally by year end.
Okta identity governance is a natural priority to bring to market scale as the use cases of modern identity governance aligned well with okta sales strengths with existing products like workflows and lifecycle management the opportunity for okta privilege access are significant as well, we're making great progress developing new Pam functionality and we will have.
More news on these developments over the course of this year.
We'll talk more about both products at our octane 'twenty two event after two years of hosting Akatea virtually this year, we're excited to host okta in person in San Francisco to do so we've moved out the date of the conference of the second week of November so be sure to Mark Your calendars octane is always a fantastic event to connect with customers in <unk>.
Partners and share our vision for identity. It's also a great event to hear from our customers as to why they turns to okta.
Time, and time again, you'll hear customers highlight <unk> independence and neutrality Okta provides our customers the freedom to deploy best of breed applications and does so with deep integrations that other monolithic platforms can't provide or don't want to provide because of their competing products today identity has become a strategic component of any organization's.
Picture in a world where cloud adoption continues to proliferate, we believe that in a few years from now there will be just a few primary clouds that really matter inside an organization together with <unk>, we are establishing okta as a primary cloud and the standard for digital identity. We're doing this by adding more users more customers and increasing the use.
Cases, we can address all of which accelerate network effects identity is the connective tissue to all of the other primary clouds as it facilitates choice and flexibility, while enhancing security and reducing risk in other technologies in summary, the okta and off zero teams accomplished a tremendous amount in FY 'twenty two there.
So many highlights to the year for example, we surpassed the $1 billion revenue Mark we added over 5000 customers. We now have nearly 30% of the global 2000 as customers, we expanded our portfolio of products, including Okta identity engine. Our next generation identity platform, which is now generally available.
With Okta and <unk> zero were recognized as leaders in Gardner's Magic quadrant, we continue to attract and retain incredible talent growing our employee base by nearly 80% to just over 5000.
And we made tremendous progress on the ESG front, including our achievement of 100% renewable electricity for our global offices in remote workforce and submitting to the carbon disclosure project for the first time with.
With each passing quarter Okta is further strengthening its market leadership position.
Come quite a long way since Friday, and I founded the company 13 years ago. We're proud of the great progress we've made as a team but as we look ahead. We know we are just scratching the surface of the 80 billion total identity market opportunity I want to thank our employees, our customers and our partners who place their trust in US every day.
Before we get to the financial review I want to congratulate Brett tie on his appointment as our CFO , Brian has been an incredible asset to okta since he joined seven years ago. He was one of the primary architects of our long term financial model and has really excelled in both the internal and external facing responsibilities since stepping into the role now.
Now here's Brett to walk you through more of our Q4 financial details and how we are raising our outlook for FY 'twenty three thanks, Todd and thank you everyone for joining us I'm excited to officially take on the role of CFO .
<unk> seen tremendous growth during my seven years at Aqua and we're still just scratching the surface of the $80 billion identity market.
Look forward to working together with the team to capture this opportunity.
Or I get into the results I want to take a moment to share my top priorities as CFO .
First and foremost is executing against our near term financial targets as well as our long term financial goals.
I'll detail that near term targets in a few minutes.
Our long term financial goals anchor on at least $4 billion of revenue in FY 'twenty six with organic growth of at least 35% each year.
And 20% free cash flow margin in FY 'twenty.
To achieve these targets, we must continue to scale the company from a people and processing standpoint.
Across all areas of the company.
As well as in systems and systems to prepare us for the next phase of growth.
Im focused on ensuring that <unk> will continue to make the right investments that support our growth at the same time, we will continue to be prudent with how we allocate capital.
My second priority is ensuring that we continue the seamless integration of op zero across all facets of the company.
Now that the back office and go to market teams have been fully integrated we will continue to refine our systems and processes to ensure that the tremendous growth opportunity, we see will be realized.
We are off to a great start and recognize there is still a lot of work to do.
With that I will now highlight some of the results for the fourth quarter as well as provide our business outlook.
Total revenue for the fourth quarter accelerated to 63% driven by a 64% increase in subscription revenue subscription revenue represented 96% of our total revenue on and off the Standalone basis total revenue grew 39% <unk> zero revenue net of $2 million in recognized.
Purchased accounting adjustments was $56 million.
<unk> or backlog, which for US is contracted subscription revenue both billed and Unbilled that has not yet been recognized grew 15% to $2 six 9 billion.
Current RPM, which represents subscription revenue, we expect to recognize over the next 12 months also experienced strong growth of 60% to $135 billion. This.
<unk> growth in <unk> was driven by strength across new and existing customers for both after an office zero as demand for our products remains robust fueled by the macro trends that have been driving us for years.
Total and current calculated billings grew 91% calculated billings includes the effects of billings process improvements that were implemented at the end of the first quarter of FY 'twenty two excluding the billings process improvement calculated billings grew 71%.
Turning to retention our dollar based net retention rate for the trailing 12 month period increased to 124%. This was driven by the strong upsell motion, we are seeing with our existing customers across both okta and often zero as they expand on both products and users.
Consistent with prior quarters gross retention rates remain very healthy and reflect the value of our products to our customers.
As always the net retention rate may fluctuate from quarter to quarter as the mix of new business renewals and Upsells fluctuates.
Before turning to expense items and profitability I will point out that I'll be discussing non-GAAP results going forward.
Now looking at operating expenses total operating expenses grew 81% the growth in expenses is primarily attributable to the inclusion of office zero total head count now stands at just over 5000 employees up 79% year over year.
Moving to cash flow free cash flow was $5 million, which yielded a one 3% free cash flow margin. The sequential decline was driven by investments we are making the scale of the business and were primarily related to higher headcount.
We ended the fourth quarter with a strong balance sheet anchored by $2 $5 billion in cash cash equivalents and short term investments now.
Now, let's get into our financial outlook.
The secular market tailwind and our leadership position in the identity market continue.
We're making great progress integrating off zero and continue to be prudent and thoughtful about the rate and pace of near term synergies. This is reflected in our guidance.
With that as a backdrop.
The first quarter of FY 'twenty, three we expect total revenue of $388 million.
Representing a growth rate of 55%.
Year over year.
non-GAAP operating loss of 51 million to $50 million and non-GAAP net loss per share of <unk> 35 to 34.
Assuming weighted average shares at $165 million.
For the full year FY 'twenty FY 'twenty three we are raising our revenue outlook by $35 million preliminary guide provided last quarter. We now expect total revenue and total revenue of $1 $78 billion.
To $1 $79 billion.
Representing growth of 37% year over year.
Additionally, we expect <unk>.
non-GAAP operating loss of $185 million to $180 million and non-GAAP net loss per share of $1 27 to $1 24, assuming weighted average shares outstanding $167 million.
Included in this included in this outlook our expectations for increased sales and marketing investments to help us capture the large market opportunity in front of us.
This includes further investments to build out our go to market operations in key areas, such as international and public sector.
Lastly, I want to provide a few comments to help with modeling.
So.
For Q1, we expect current RPI to 50% range second the billings process.
Cost improvements that were implemented last year has led to some confusion so I'm going to provide.
<unk> billings commentary on a onetime basis for clarity.
We expect Q1, FY 'twenty three billings of approximately $385 million to $390 million when viewed on a like for like basis Q1, billings growth would be approximately 50% to 52%.
Year FY 'twenty, three we expect billings to be approximately.
Similarly to one 8 billion to $2, one 9 billion FY 'twenty three billings growth rate experienced a headwind of a headwind of approximately nine percentage points due to the process improvements.
When viewed on a like for like basis billings growth would be approximately 35% to 36%.
These sugar reference the supplemental slide in our earnings presentation, which outlines in this modeling detail.
From a.
From a seasonality perspective, we anticipate billings in the second half of the year to represent roughly 60% of the full year total which is consistent with normal seasonality and finally, we will continue to invest in our growth in FY 'twenty three and beyond as such we expect free cash flow margin to be down a few points year over year.
To wrap things up we had a great quarter and end to the fiscal year and are extremely excited about the $80 billion market opportunity in front of US is very well positioned to build on our strong foundation and market leadership position in both workforce and signs us continued confidence in our near term and long term and long term outlook.
With that I'll turn it back to Dave for Q&A David.
Thanks, Brett I see that there are already quite a few hands raised so we'll get right into them and I'll take them in the order that they came in and in the interest of time. Please limit yourself to one question and one follow up question, so with that at RBC.
Hi, Thanks, Thanks, Dave Thanks, everybody for the time.
I'll start with you Theres been strong results to end the year first of all but it has been a lot of questions.
On the competitive environment.
And just the strength of the identity market, which clearly from your results look strong.
You talk about maybe the importance of identity as we emerge post COVID-19 because it strikes me that there's a lot of opportunity not only for net new but also large replacement deals from some legacy installments.
Thanks, Matt.
Yes, we're really excited about it.
As we talk about this a lot which is resonates because it's so true that the more cloud applications customers want to buy the more.
They want to build on cloud infrastructure, the more they want to build better experiences for their customers and the more they want to do it all securely. This shifts. This is these are huge secular shifts that put the market in our favor because to do all those things effectively you have to have identity and it's really it's a pretty big shift in technology 2030 years ago, you did <unk>.
By getting into as part of another platform and you got it you got your Windows server had identity in it you got maybe some identity from Oracle RCA the management vendors, but it's different now and we're successful because identity is so prevalent in all of these trends and to be successful to successfully get all of this cloud technology to your employees to re imagine your customer.
And do all securely you have to have an identity system and that's what we're out there offering to customers of all sizes in all verticals and that's why we're having these results the real.
Or is that not everyone knows this yet if you talk to <unk>, maybe three of them would say hey, this is the future identity is.
Is the central platform identity is one of my primary clubs, it's going to unleash all of this potential for me and keep me more competitive we added 10 notice and I bet two of them are our customers and the good news is that more and more people every day are learning this and people that are making technology decisions and they realize that if you want to do zero Trust. If you want to have choice.
In technology, you need to do it with identity and we have the leading identity and identity platform.
So that's what we're focused on making sure everyone understands that specific to COVID-19 and the pandemic.
<unk>.
How has it impacted your business and I think it definitely has had some.
I think some incremental positive impacts as people rush to do remote work in.
It had some headwinds as people.
Maybe their own business was they're not sure how their own industry is going to be impacted or are they just had other priorities. They are working on they weren't sure about the future of our own investment level was a little bit we weren't sure about the future how much what the.
I was going to look like but.
I think when it.
As now we engineer.
The acute phase it depends <unk> in the world starts to get back to normal from a pandemic perspective.
It probably maybe had a little bit what's powered our growth is are these macro trends trends. So when I look out in the out years ahead are our priority has always been it's like we have to establish this vision.
Asian of identity as its primary platform.
And is that a customer identity and workforce identity. It's got to be it's got to get to scale. It's got a it's got to meet customers.
Where theyre going and that's why I'm. So excited about the Siam business momentum Thats why im excited about the results and competitively. We don't we're not we're very very very differentiated we have point competitors that can't can't don't have the scale or the breadth we have the big platform companies like Microsoft that that they have identity. Some of the things that look like us but.
If not neutral there at the end of the day trying to sell you their collaboration are there infrastructure and theyre not about giving customers choice and flexibility. So that's I think if you unpack the results a little bit those are some of the things that are driving them Super helpful. And then maybe just a quick one for Brett first of all Brad Congrats on the promotion.
I'm wondering from your op margin guide how much of that is off zero.
And maybe how should we think about the timing of return to sort of more.
Positive margins.
Thanks, Matt and thank you for that.
Some of them operate operating margin.
Guide, it's really both businesses, but I would tell you as a reminder, our server business and then at the Standalone is and so you see some of those Union unit economics that are a little bit.
Less than then.
And then what okta is on a standalone basis now from a long term perspective.
You're probably asking in regards to the long term framework that we were going to were going to operate the business. The same way we've operated the business.
Is this from day, one which is we've always looked at the rule of 40, plus revenue and growth together.
There is great.
Great growth opportunities, we're going to get them and obviously when there's margin opportunities, we're going to get those as well.
Suddenly over the long term we've done continue to do so in the years to come.
Thank you.
Alright, let's go to Jonathan Ho at William Blair.
Hi, good afternoon.
Maybe to start out with the integration of <unk>.
Yes.
Talk a little bit about sort of that salesforce integration effort, and maybe where you saw some successes.
ICU.
Thank you.
We are thanks, a lot for the question Jonathan we are very excited about the integration.
Okay.
Yes.
We're very excited that it's been done in just under a year from where we are because we actually announced the acquisition a year ago Tomorrow.
As.
I think the most important part is the go to market organization, which was 500 seasons leadership on February one.
Todd talk about one team, which I think is a great position at the end.
We put together a lot of the core systems that we're using to run the business. Those are all running on one platform. So we have one pane of glass visibility into all of that and how it is working there's a couple more pieces, we need to finish <unk> and tying some of the systems on the backend but those.
Just making sure that we are working as one organization going forward.
And so far you can see the results the results speak for themselves. This is even before we had this one go to market organization, we've got graded large organizations, where we're landing with okta workforce and.
Joe.
That is great cross sell opportunities like Carvana, where they've been a longtime okta workforce customer and then became an <unk> customer. So I think theres a lot of different synergies that we're starting to see already.
Todd mentioned the businesses are both going very very well overall when you look at where <unk> is and how far it's 60% year over year growth. We're very excited about that but I think we're just getting started in this big opportunity in that that's the final exciting part for us yes.
Hey, Jonathan one thing I'll add there to for his comments.
If you look at the first three quarters. The strategic reason for this acquisition was that identity is one of the most primary important clouds in our customers' environments to be that primary cloud.
You have to support both use cases, you have to support workforce and customer identity and Furthermore, the customer identity use cases were really divided between what the <unk> platform does and what the <unk> platform does and the answer is more developer centric more you can customize it extended our control every bitten by the Okta platform is more pre integrated.
And low code and so the idea was that there were these are complementary platforms and when I look at the results you see that bear out in the results you see 81% growth in the <unk> platform over the last year over year comparison, and you see nearly 50% growth for the <unk> platform. So we are seeing two complementary.
Platforms, helping us drive toward be very successful in this market, which unlocks this concept of being this critical critical primary cloud for every organization in the world.
Thank you and I'll stick to one question, but congrats thank you.
Alright.
That's good it's good run at Oppenheimer. Thanks, Dave and my question is for you I wanted to dig into Matt's question around the <unk>.
Operating margin loss target for fiscal 'twenty three to have to say on a great quarter, but that was certainly a number that caught me a little bit off basis. So can you give us a little bit more detail on the plans for the year as far as head count additions.
And what is the run rate loss that you expect to have exiting the year and its fiscal 2003, a peak year. I mean are we finally from here moving into a much.
Profitability I think some of the comments on getting point vessels.
There's certainly a little bit off base with regards to their core assumption. So any more color on fluid this opportunity, but it could be more specific on where and why and the ROI behind it I think hopefully that will provide us.
Absolutely happy to talk about that.
So if you think about SaaS business anywhere right you got it.
Invest in front of the demand or invest in front of the opportunity and we've only got a $1 $79 billion guide, which by the way and we're very excited about in terms of revenue for FY 'twenty three but we've got an $80 billion Mark we feel the best opportunity is out in front of us today.
So we will invest into that opportunity so areas, where we're spending additional money so adding quota.
Quota carrying aes as adding.
Salespeople across the board, whether it be sales engineers or.
Areas and pipeline generation.
Can see by the momentum in the business, it's clearly a huge opportunity in front of us and.
That's we're going to invest for we're going to invest and Additionally, we're also investing in the product side of the house and supporting our customers right. When you add this many customers you've got to be able to support them. So really it's going to be up and down across the P&L from an investment perspective, because we're just scratching the surface as I've said earlier in the call. We've got so much in this market opportunity that it would be.
<unk>.
It wouldn't be the right decision not to invest into the opportunity because we do see a tremendous amount of momentum in the market today.
Is there something here.
Improving thereafter.
It is a peak here what do you mean by peak year.
Operating loss.
Well I mean, I think if you look at our our long term.
Goals that we've got out in front of US right. We've got.
Revenue of $4 billion growing at least 35% each year between now and then and also the 20% free cash flow target, we are going to balanced growth and margin just like we have in the past and you'll see that.
Period between now and FY 'twenty six alright. Good luck. Thanks, good luck. Thanks.
Yes.
Okay, Let's go to Andy Nowinski at Wells Fargo.
Good afternoon, everyone. Congrats on a great quarter.
So a few questions maybe on your your upcoming.
Product launch it sounds like it might be generally available a little bit later than previously expected.
Can you just talk about whether there were any sort of significant changes coming out of that beta test phase.
Wanted to implement before making NGA.
The Iga product has actually had a little bit ahead of schedule there might be some confusion on when we talked about it last year.
Being available in the first quarter of this year was it we're talking about EAA or beta or Jay, but the internal schedule, which is has been clear all along we're a little bit ahead of that.
The beta which is going on right now is going very well we're seeing.
Success with a lot of different size of customers, we're seeing really a natural.
It's a natural complement to our advanced lifecycle management product.
With significant new value for customers and new things that can do to automate their business with its access requests or extra certifications, which is a very very natural extension of our core product line. So we're very bullish on that on the Pam side I think Pam is actually a little bit behind what we originally thought.
And the reason why is because as everyone knows we're our product advanced server access.
Is really it's in the Pam market today very focused on server admins and server are controlling access to servers and we've done a couple of shifts where we've learned a little bit more about the requirements in the market and we've made some decisions to put some of that capability into the advanced server access product and then put more additional case.
<unk>, which is going to take a little bit longer in the Pam product. So youre going to see that that's a little bit delayed, but still we are expecting to make a bunch of progress on that this year and we'll be talking more about that as the year unfolds and then also leaned out the octane in the fall.
And then just a clarification did you include any contribution from the AIG solution in your revised annual outlook given that it'll be GAA in mid year I think you said no.
It's making it very very conservative assumption that won't have any contribution there wonderful. Thank you.
Okay. Thanks, Dave Okay. Thanks, Dave Todd I, just wanted to maybe take a step back on the fiscal 'twenty. Three plan you talked before about going through a strategic planning process into the b the different outcomes that you considered I'd imagine that you've.
<unk> had some that were involving showing consistently improving profitability for example, and maybe the flip side of risks to a more of a man and what got you comfortable deciding on more.
That's the spending near term.
Yeah.
Happy to give you color into that it's kind of laughing a little bit because.
It's actually pretty simple the way, we think about it.
And we've been consistent on this over the last five or six years, which is the we look at our internal efficiency of our investment across the business, whether it's mostly the most direct link between investing and payback in terms of.
The revenue is in sales and marketing. So we just look at that efficiency and as long as we can continue to drive up efficiency. We continue to invest we're always going to be we're never going to we are never going to burn cash and we want to increase cash flow over and over the long term, we want to increase free cash flow margin to that stated goal of 20% over time, but we're going to make sure we're efficient.
We can grow we can serve customers. We can make them successful we can take market share and we can do it in this under this efficiency framework, we're going to do it. So it's been relatively simplistic. So the main things are.
How is the efficiency internally how is the how is the growth rate and what's the market how is the customer success and thats.
What can we do to capture the opportunity.
Yes, I would add to that a little bit.
First and foremost we've always had a bias toward growth, but we've also to Todd's point always looked at efficiency and always managed on a rule of 40 and so in.
In the commentary earlier in the call is still reflects that we are definitely managing that rule of 40, and we believe that's the right thing to do to capture the opportunity on France, because it is a massive one out in front of us.
So we feel the time is right to go and grab as much market share.
Makes sense and maybe just a follow up for you just wanted to marry sort of the qualitative.
His commentary versus the quantitative messaging here qualitatively elevation and large customers the demand environment is correct.
Incredibly healthy or investing in public sector in the past you've talked about focusing on <unk> as a key metric and it was.
Growth in the past and that was kind of an indication of acceleration, but thats starting to invert based on your guidance and just wondering if you could double click on what double click on why that would be the case in <unk> should track for fiscal 'twenty. Three. Thank you. Thank you for bringing it up I'm. So happy you brought up current RPI, that's my favorite metric.
Can see clearly was a strong quarter in Q4 and the guidance. We've given you today is low to 50% range recurring IPO. In Q1 is also quite a strong guide.
And so if you think about.
The impact on this fiscal year 'twenty three revenue guidance.
The combination of those two factors is translating directly into that net increase of $35 million up to $1 79 billion.
Growing 38% year over year at the top end of the guidance.
Okay. Thank you.
And next we'll go to Eric Heath.
Yeah.
Okay.
Okay.
Great Thanks, Todd and.
Brett congratulations so.
Todd, but I did want to ask on the quarter not Standalone I think most of your peers showed some acceleration this quarter.
<unk> Standalone decelerate and maybe one point, so just anything you'd call out in terms of the quarter that might have been a little bit softer than you might expect that.
Yes.
We're very excited about that 39% <unk> standalone revenue growth. So Eric Thanks, a lot for for bringing that up when you look at the size of the business.
Workforce business is already 63% of the total business its a $1 billion business.
Growing significantly year over year, you add in what's going on on the science side of the House science side of the house and we're very pleased with that as well. So we look at the business Holistically at this point, obviously, there's a big opportunity when it comes to to workforce, that's going to be a very nice business for us in the years ahead.
Can hire account executives, who know how to sell enterprise I E. They know where to go find it there is a lot of legacy Oracle IBM CA RSA that over time, we're just going to slowly rip and replace obviously our dollar based net retention continues to be very strong it's up 124% up from $1 22 last quarter and Thats because our motion.
Landing and expanding inside these large organizations.
Going very well and so on the workforce side that business is going to continue to go very well. That's why you see us coming at need natural adjacencies of Iga and Pam it's not as though we're sitting here and wondering what we should be building next and a lot of that is customer demand I talked a little about Iga and the early access this month to eliminate a number of customers and thats going to launch.
In North America by mid year globally by year end and that is a natural priority for us, which aligns with a lot of what we're doing around workflow and lifecycle management and then when you think about customer identity access management I mean that market has gone from zero. When we went public five years ago to a $30 billion Tam today, where we are the clear leaders with the only cloud native identity.
From a platform whether you are looking for developer up where you are looking for comps down and Thats why youre seeing in that business.
Most 60% year over year growth of that and that the competitive landscape, which we haven't really talked about it is all greenfield in the opportunity to just helping customers be successful and they have a shortage of developers they need to focus on their core businesses. The more we can make it easier for them to just take that then any off the shelf and put it inside their applications and infrastructure that better.
They're going to be and we see that as a huge investment opportunity back to the previous question. So we're very excited about the overall growth in the business.
If you'd told me when we started that we'd have this business today of 5000 employees being on almost $400 million revenue quarter.
Rowing, 63% year over year, and accelerating I would've taken out on a heartbeat, what I would tell you, though Eric we're very excited about 15000 total customers. We're very excited about adding a record 1000 last quarter <unk> 50000, and 100000 and that's the exciting opportunity for us ahead.
That's great and then just one follow up on that on that point I mean, great to see the large customer adds in our archive tick back up so anyway, we should kind of think about the change to the formulary for 'twenty three in terms of large land versus expansions maybe.
Yes, I mean, what I would say is there.
We have continued success with large enterprise obviously, we gave everyone I think in April of last year. When we had Investor day, we gave everyone an update on $500000 HDD customers in over $1 million ATB customers. When those numbers now are almost 600, almost 200, respectively, I think thats, 50% year over year, compared with 50% year over year.
30% of the U K are now customers, Todd talked a little bit behind.
That's great, but again I think the opportunity ahead is the really big one look when you come out with these new products.
Things like Iga that are critical to our organization, it's not about the 2000 companies maybe today that are using an on Prem Iga solution for 25% and 50000, who want that kind of functionality and are never going to implement on on Prem legacy product from yesteryear.
They are looking for a modern cloud solution same store with Pam you look at advanced our Pam product I mean zoom for this very webinar that we're on right now they use advanced server access to protect all of their production infrastructure for all of their servers around the world those are the kinds of future opportunity.
Is it I think youre going to be very exciting when we think about where we're going and how we're going to get there. Thanks very good historically, we've talked about a $1, 15% to 120% range I know it picked up over that I'm really sorry, I know when it gets bigger that means that were cross selling and up selling too much I know when it goes down people are upset that we had so many new logos. So we're doing the best we can to balance it but we're very.
Happy about where we are and I think it shows a very good.
Honest approach to helping customers to be successful with with our solutions.
Great. Thanks, Congrats again.
Thank you Greg.
Alright, let's go to Alex Henderson Needham.
Thank you very much.
I wanted to go back to the Pam.
My understanding is.
Okay.
Pam.
Only thing you gave guidance on in terms of time of launch was on the governance side can you give us any clarity on when you expect the Pam products to launch and how we should be thinking about.
In terms of the timing to get to market.
It's an important area for us as we expand on the workforce side of the house, we expand what the platform can do.
If you look at what customers are more and more customers are building software themselves, which means they have critical servers and containers and things they need to secure and what better to do that then the leading access management platform mapped to those resources and that's what our advanced server access product as a customer like zoom can get tons of value added as they have to man.
Tens of thousands of servers and many many operations people and developers accessing them in a secure way, which by the way which is remote right because they don't all go to the same office in excess of dedicated.
Data centers and cloud data centers in remote work. So I didn't even talk from a doctor is really well positioned.
Provide value there.
In terms of the expectations in terms of the financial results, we have taken a very conservative assumption this year that.
Pam is not going to contribute revenue this year.
But it is an important area, we're working on and what we're doing as we develop the product as we are balancing out the existing product and what capabilities, we add into there and then what capabilities do we put in the <unk>.
Pam module.
And how we balance those out we made it.
The decision to put things like <unk>.
Managing active directory based servers, we decided to put that into NSA. So it has taken out a little longer. So the Pam is going to be Pam module is going to be pushed out a little bit.
But yes, it will be great details in terms of when it's going to be available to customers in but from an investor perspective Theres no for this year, there's no dependency there.
So we're not you don't have a date for the launch of that product at this point. The second question I had for you is on the operating.
Pending I really was trying to get a handle on what rate of staffing capacity you are adding this specifically to the sales capacity.
Obviously, the spend is up substantially year more a much more aggressive.
Is the capacity adds setting up not just for this year, but for next year coming in at close to a 50% increase in.
Sales capacity reached.
Absolutely Alex I'll take that one.
You sound like you know our business, obviously, clearly very well.
Whenever we're building capacity, we're not building it just for this year, we're building it for future years right. So.
We've historically built capacity and year for the following year and so we're going to continue to do that and that's part of the investment levels you see in FY 'twenty three.
And Todd talked a few minutes ago about.
Our sales efficiency, that's something we always look at when we're thinking about okay. What's the right balance here to add as much as we possibly can while also balancing that efficiency level as we go. After this market is that 50% number a reasonable.
Yes, I'll, let you draw your own conclusions, but we're trying to grow as fast as we possibly can.
Can't blame a guy for trying.
Yeah.
Yeah.
Alright, let's go to Rob Owens with Piper.
Thanks for taking my question.
Curious around op zero any high level guidance as we think about next year I know you're going to tell me, we're not going to break it out for you that being said anything with regard to seasonality and how should we think about the growth of that and Siam overall.
Well I think the.
Okay.
We're investing a lot in making sure Simon.
Successful and the proportionate investment is a lot of thats going to zero, but we're also investing a lot in there.
Sorry on platform. So it's a big strategic important thing for us.
And Youre right were not going to break out the specific expectations around growth rates beyond the guidance we've already given.
But if you look at the top three priorities for the strategic plan of the company next year number one is winning that market and you can imagine that has a lot of importance in priority based on being successful with the developer motion of a zero.
But then also broadly speaking growing the Siam business aggressively.
That's a big if we want to execute on this vision of a primary cloud like I've said before you have to you have to provide both you have to be the leader in workforce and the leader in <unk> and we are the leader in workforce and we're making sure we're going to be the leader in both so that's the top strategic priority.
This is Brad.
We will go forward, we're going to continue to break out workforce.
Just first assignment on a fairly regular basis like we have in the past. So we will definitely keep everyone informed on the progress in both markets because they are obviously both are very important to us.
Thanks.
Next let's move to Adam Borg with Stifel.
Hey, guys. Thanks, so much for taking the question maybe just on the business I'd Love a quick update on the overall channel strategy.
And how that performed in the quarter and maybe just as a quick follow up I don't want zero is more of a bottoms up sale to developers, but I was just curious what kind of opportunities there are to get there.
The channel more involved with Hospira.
Thanks again.
Thanks, Adam Yeah, we are very excited about partnerships in general in the channel specifically.
When we think about channel there is obviously a lot of different constituents. Many of who have been involved with large organizations for many years, helping them stay side of the house or digital transformation side of the house.
So for US it's everything from the.
Large account.
Resellers to value added resellers, there are regional owners and partners out there Theres always lead the global system integrators, and then there are the large platform players out there, which we also consider channel I mean, when you think about the large system integrator.
And Kindle that Tom mentioned earlier is a great example, I mean this is an infrastructure provider formed from the separation of IBM managed infrastructure services business. These are the folks of IBM services 90000 employee they came from IBM. They start a new company last year and they didn't go with IBM. They want with Okta now part of that was there.
Want to use workforce part of that is they want to use I am but also they said hey, a big part of this is we want to get used to it to understand how this works because this is the platform that we want to go and innovate for our customers going forward and so when you are starting to get that kind of reach and that kind of scale.
Out of the gate, that's a big deal for a company like ours. Obviously, we're very excited about the results and 5000 employees an amazing team that is growing very fast and we've talked a little bit about the sales organization and organizing it as one unified team without zero and Okta is starting to have one and that's all going very well and then when you add in almost 100000 employee.
<unk> at the number one service provider in the World. That's a huge kind of reach number one number two when we think about what's going on out there independents neutrality the freedom to deploy best of breed technologies. That's what customers are asking for today and that is what is driving our business and so that's why things like our partnership with AWS for example.
Where were the only managed identity provider when they have 9000 reps those reps get paid commission and quota credit on selling the same is true when you think about what's going on at Google, where do you think about the large software as a service providers, whether it's salesforce or workday or service now I mean, they're all giant customers of ours and they bring us into all the yields.
Make their solutions get deployed much more quickly and successfully so for US. The channel is really this whole world around us of the world is going to more independent more neutrality and Theres a lot of people who have a line that aligned interest with us on making their customers successful by then and so we're very excited.
When it comes specifically to you are they have this amazing model developer up that was the second part of your question I think that it's amazing model and developer up where they do a lot of landing.
<unk> got thousands tens of thousands of free accounts tens of thousands of developers paying credit card monthly and then the upsell them into the enterprise that's something that we're just putting altogether as well I mean, we just have to go to market organization that one as of a month ago. So we're just starting to understand really how all that works, but yes, I mean, that's another huge opportunity I mean, you could think of.
Developers as a channel they are out there talking to each other about what are you using and how are you using it never recommending the best solution and you can just see by the tens of thousands of successful and happily deployed developer and three accounts on the system. They clearly that's working very well. So I mean, there's a lot of opportunity. It's early days, but we're very excited about how that.
My work and working with a lot of the folks who are out there, making our joint prospective customers successful, yes, one more thing I'll add to is at zero before three four quarters ago divisions with the global size.
And.
With now that they're part of October really working on getting it in the hands of the global Global Outsize do they want to build stuff they want to build digital transformation projects for their customers and what do you need to do that you need that data platform for developers. So that's a that's a big area of.
Boost I think in terms of our relationship with the global systems integrators have in Ontario to to work with them on.
Thanks again.
Okay, well I still see nine hand hands raised.
Ensuring on time, so let's try to keep to one question and next we'll go to Steph ensures that BTG.
And then for Greg Thanks for taking my question.
Our 90 day and Panther.
Theyre not really baked into the guidance, but how should we think about the potential for them. Once they go generally available and then how quickly should that contribute to billings once they go live.
There I think about this long term.
It's there they do two things one is that they allow more value prop of the platform. So you can basically upsell value.
And also it's just going to it's going to provide a broader set of capabilities. So just tips over the center of the mask that it takes in some of these big older.
Companies to adopt a new identity stack, so if youre going to many customers and any stack piecemeal one by one.
<unk>.
And Thats, how <unk> traditionally has been very strong. It's very you can take it as a component you can use it for one use case and then slowly extend over time, but as we build out on the wire suite Pam Iga.
<unk>.
Work for even broader workforce capabilities access management.
The other things lifecycle management, what we do the it's just going to become really overwhelming the value and the big new lands as well so the.
Platform approach and having this suite of products is going to help bolster.
In terms of the pace of bookings contribution. It's we haven't really modeled that out and detailed so I can't I can't really speculate on that.
Got it thank you.
Alright, let's go to trigger Walsh.
Great. Thanks, Thanks for taking my question.
Todd you mentioned at the outset around kind of some of the key drivers one of those being zero Trust initiatives can you give us a little bit more detail how it feel that plays out around those engagements and maybe it's just to get one to trade with China not just in terms of is it a broader RFP, where there's kind of a network component. The identity component you are all coming at the.
Same time or have they kind of made their choices.
We're bringing in not to kind of after the fact to layer in that piece what does that what does it look like in those when a customer has that is there kind of main focus is there why theyre, bringing the identity piece I think that there is divided in two camps of customers. One is customers that are really trying to nail down what it means what zero trust means.
To get there.
And for those customers you see them, making a more of a traditional identity management decision.
They think about okay, we need to do maybe multifactor authentication, we do have ease of access to apps or wanted to provisions and that's on the back end, it's more traditional and then as they figure that out we can help them say hey, here's the roadmap of here's the blueprint on zero Trust and now that you've made this.
Decision here is the other pieces you need and they can look at our integration network in the 7000, plus pre integrated systems and we can help them guide them journey. There is another I would call them more.
This set of customers that they know what they want for and they're coming to leaders like okta.
Leaders like Zee scalar leaders like crowd strike.
And they are saying these three components or what's Gonna give me my zero Trust solution, we're going to buy it together.
I've been working on many.
The teams from <unk>.
And crowd strike and Theres other players as well but.
The three of us seem to have been having some success together.
Yes, just adding some specific examples I mean I think we recently saw some surveys I think north of 80% of the global 2000 now have stated initiatives around your trusted community very good examples for us our Fedex, which is a very good successful happy customer of ours.
We've been working with them for a couple of years they started.
Wanted to deploy okta very quickly when COVID-19 hit two years ago, They had a much longer rollout plan, but they fast forward it and when we went down and met with them. Originally I mean, they had on the whiteboard. This is zero Trust initiative that was their initiatives that <unk> baked right into the middle of so certainly I think youre seeing a lot more of that and then what you're also seeing on the pump.
Excited OMB is now recommending to all federal government agencies that they need to have a zero trust security. So it's really gone from a buzzword three years ago, where people like zero trust, but I'm not sure what to do about it to now we really have the architectural documents, where you can present templates to customers and say this is what organizations like.
Yours in your industry or of your size and scope and scale are thinking about.
That's provided a lot of value to customers out of the box because they feel like this is great.
Got the Guinea pig anymore. There are other very good examples there are public. They are referenced are all and they are working very well. So yes, I mean, I think that that is a big underpinning of what's also happened over the last couple of years and I expect that to continue in the years ahead, I mean that is a long big durable growth factor that we see ahead for sure.
Great. Thanks.
Alright, let's go to <unk> at Guggenheim.
As maybe on mute.
No Hamzah, we're going to go to you.
Morgan Stanley .
Hey, guys. Thanks for taking my question.
And Brett I'll add my congrats to your official appointment and look forward to seeing you all next week.
Todd maybe maybe a question for you so if I look at the bookings growth.
For you and some of your peers as well it seems to be a lot more backend loaded than it has even in prior years I'm curious.
As we return to the office or I guess, some semblance of normality are you seeing some of those larger like strategic digital transformation initiatives start to come back and is that starting to contribute more to your bookings and how would you characterize the pipeline 22 relative to how you were feeling going.
'twenty one.
Pipeline is strong and excited about the pipeline.
It's.
It's quality depth maturity, it's really really good but I can't I think the backend loaded question. It does.
Actually have that analysis in front of me, but.
It didn't seem any different this posture than it had been in previous years, just from a kind of a qualitatively.
Qualitatively perspective, and I think that was your question about the big the big digital transformation deals.
I think that the broad if I were to paint with a broad brush I would say.
These these things are.
Maybe during early parts of the pandemic. They were put on hold as more people went after really tactical remote work to get people productive.
And then pretty soon after that these started rolling again, these big customer identity projects or these big.
Big new initiatives that Werent specific reaction that customer.
Lawyers working from home or business continuity and Thats been probably ran through all of last year and continues into the pipeline into next year.
Thank you.
Hey, let's go to Brian Essex with Goldman.
Alright. Thank you very much for taking the question I appreciate Brett Congratulations from me as well.
To it.
Yes, I was wondering.
Maybe maybe for Todd as well.
If you could.
Some of the organizational changes that have happened, particularly the top end of the company I know we had the last month you were super excited about integration of the sales forces and see kind of season.
Running.
And.
It looks like you are any of US is handing the baton off for the <unk> and it looks like you've had some changes or heat as well. So just maybe if maybe we can.
Sense of that a little bit to see how you're aligning things and how the culture between the 2014.
As you are trying to be very fearful of that balance and making sure that you maintain that momentum.
With the <unk> franchise.
Yeah, you any O is.
Just I want to be clear. He is the CEO of the op zero product units. Okay. He doesn't have sales working for them anymore, but he has basically everything else, whether it's R&D, whether it's customer success.
Much of the demand Gen. So it's a it's a very important significant role what we're getting is we're getting synergies synergy on that.
So we have all of the okta reps now can sell all the product can sell all the products. So we increased the capacity we can we.
We can we increase what they can actually sell so theres tons of.
Tons of upside from that but uranium has.
Big job to do with the answer you a product unit driving that they just delivered you heard the results they delivered over 80% growth.
And we expect them to produce a lot in the year ahead.
The other changes.
That is a big is it.
Big appointment for Us I.
As you would expect when we.
We decided to make a change in the CFO I went out and talked to many many many candidates and looked everywhere and no one could get over the.
The bar of the high bar that Brett is set so I'm very excited to get to get Brett in the seat permanently that's really exciting I'm also really excited about the CMO Jon just the most is off.
After a great start that was a little bit of an unexpected change there the his predecessor.
It wasn't as clear as we would have would have hoped for it it was a little bit of unexpected, but john's stepped into the role and he's doing a great job.
So I think some of the changes unexpected, but a lot of the changes directly involved with what we're trying to accomplish which is when the <unk> market.
Scale of this company outgrow aggressively.
And I'm very very excited about the future ahead of us.
It sounds great. Thank you very much yeah for sure.
Okay, we're going to go into overtime, a little bit here, we'll try to get to a couple more will go to Patrick Colville at Deutsche Bank.
Hey, Thank you so much for taking my question and Echo the congratulations to Brian . So let me ask another question about margin.
But I'm going to shake it up a little bit and ask about subscription gross margins.
They were down this quarter turning some debates.
Is this due to mix due to discounting as a competition.
Can you talk to that and then.
How should we model this line fiscal 'twenty three whats baked into your operating margin guidance is that continued ablation on the subscription gross margin line.
Thank you for the question and thank you for the time comments.
Gross subs gross margin in Q4 and also into FY 'twenty three that's us investing.
The upside back into the business right, we want to be able to prepare for future growth you can clearly see the items in the <unk> results from Q4 and in my commentary around Q1 <unk>.
<unk> growth as well so.
Putting money back in there and ultimately investing to be able to deal with the demand out in front of us. So in terms of being more specific on average were bit of a headwind on gross margins.
That's one of the.
Areas that we're that we're investing into to get out and capture this massive market in front of us.
Alright, great. Thank you so much from.
Let's go to Rudy Kissinger at da Davidson.
Great. Thanks, guys.
If I look at it.
I think last time, you gave the growth rate in Q2 was 63% year over year and in this.
Quarter, 81% year over year, so a pretty big acceleration in us zero what.
How much cross selling into the installed base, how much has that been a driver versus just core strength in new customer acquisition and up sells within the asset base.
It's really been both frankly, you can see in some of the references we have talked about today.
It's really a string.
Strength in the market from a zero.
Quarters, where some customers may not have.
<unk>.
Ben is comfortable with a private company, but now at zero as part of the.
Public company umbrella Voc done. So you said you see it helping on that and then I would also argue that theres hub going the other direction as well right. So as zero customers, who may not have had a workforce solution.
That's also been helping us as well and we've mentioned a few of those references last quarter in our earnings script as well as well.
Today, and some of the prepared remarks.
Okay, Let's go to Josh Tilton at Wolfe Research.
Thanks for taking my question guys just the high level. One for me. There was there was a stat out in February is it only 22% of Microsoft.
Azure active directory customers have struck me as pretty low I'm, just curious how does that compare to <unk>.
Customer base, how do you guys think about the broader MSA opportunity and you guys expect any tailwind to our MSA business now that Salesforce has land products.
I think the opportunity is big for MFA, we talk a lot about these advanced customers that are just figured out to zero Trust architecture and are strategically picking vendors Freddie mentioned Fedex, but many many customers are still.
Doing what some people consider relatively basic things like adding MSA all their other environments and many of the hacks you see are still basically.
Things like accounts aren't locked sit down and they should be or disabled or there is a.
Is it a compromised account doesn't have multifactor authentication.
And the reason why it's not it's not because people arent trying harder theyre not smart because its been too hard.
And what we do is we have this pre integrated solution.
You can patients and you can set up our MSA.
Stephen set up other msas connected to the okta platform that connects to everything that platform is doing very well and it can.
We can let you do your multifactor from phase I D or windows, Hello, and customers are using it but that's a it's a big part of the strategy to help our customers be more secure with technology.
Yeah.
Okay and last we're going to bring it home with <unk> at the Miami at Citi.
Thank you for squeezing me in I appreciate that Brian one for you I'll keep it tight.
You didn't mention that sort of process improvements and assuming it's sort of a non issue here, but can you just update us if he's mechanically sort of achieved all of this right time stamping on the contracts and if the entire install base has been sort of recalibrate it under the operational process improvements umbrella and then really.
Lee how should we think about billings and cash flow seasonality for fiscal 'twenty three as we lap some of those tough compares working through the year.
Thank you absolutely. So yes, I mean, the the process changes have been fully implemented studying current entire customer basis now.
Now granted not everybody is not one billing since then but the entire customer base out there in terms of billing seasonality.
We expect about 60% in the back half of the fiscal year, which is.
Normal that we've seen over the last few years.
And then.
And then free cash flow will follow more or less the same historical seasonality.
That we've had in the past so not really much different in terms of billing seasonality, nor free cash flow seasonality.
Thank you.
Alright, that's it for today folks thanks for tuning in before you go I want to let you know we will be attending.
In a few investor events this quarter will be at the Morgan Stanley Conference, which is in person in San Francisco on March eight.
Also the diode investment Tokyo conference that will be attending virtually on the eight and the Wolfe Research software conference that will attend.
On March 23, so that's it for today. If you have any follow up questions. You can E mail us at Investor at Okta Dot com. Thanks.
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