Q4 2025 Okta Inc Earnings Call

March 3, 2025

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Speaker Change: Hi, everyone welcome to <unk> fourth quarter and full year fiscal 2025 earnings webcast.

Dave: Dave generally 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 tie, our Chief Financial Officer.

Dave: At around the same time that the earnings press release hit the wire, we posted supplemental commentary to the IR website.

Dave: In today's meeting we 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.

Dave: 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.

Dave: Looking statements represent our management's beliefs and assumptions only as of the date made information on factors that could affect our financial results 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.

Brett Tighe: and co-founder, and Brett Tighe, our Chief Financial Officer.

And Brett tie, our Chief Financial Officer.

Unknown Executive: At around the same time that the earnings press release hit the wire, we posted supplemental commentary to the IR website.

Dave: In addition, during today's meeting we will discuss non-GAAP financial measures, though we may not stated explicitly during the meeting all references to profitability our non-GAAP. These.

at the earnings press release hit the wire, we posted supplemental commentary to the IR website. In today's meeting, we 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.

Unknown Executive: In today's meeting, we 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 position. 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 our management's beliefs and assumptions only as of the day made.

Dave: These non-GAAP measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP.

Dave: 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 are available in our earnings release.

Unknown Executive: Information on factors that could affect our financial results is included in our plans with the SEC from time to time, including the sections on risk factors in our previously filed plan 10Q.

Dave: 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.

Unknown Executive: In addition, during today's meeting, we will discuss non-GAAP financial measures. Though we may not say that explicitly during the meeting, our recognition of profitability on non-GAAP.

Speaker Change: In 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, and now I'd like to turn the meeting over to Todd Mckinnon Todd.

Unknown Executive: These non-GAAP measures, in addition to and not as substitutable or superior to measures of financial performance, have been an inequality of GAAP.

Unknown Executive: The reconciliation between GAAP and non-GAAP financial measures and the discussion of the limitations of these non-GAAP measures versus the closest GAAP equivalence are available in our next release.

Todd Mckinnon: Thanks, Dave and thanks, everyone for joining us. This afternoon, we're really pleased with our strong Q4 results and the finished FY 'twenty, five which includes accelerating <unk> and <unk> and record profitability and free cash flow demand for both workforce and customer identity products was strong and our growing portfolio of new products as Stu.

Unknown Executive: You can also find more detail with the nation on our supplemental financial materials, which include trending financial statements and key metrics posted on our investor relations website. In today's meeting, we will quote a number of numerical virtues as we discuss our financial performance and unless otherwise noted, each such reference represents a year-over-year comparison.

Unknown Executive: And now I'd like to turn the meeting over to Tom again. Tom?

Todd Mckinnon: Turning to make an impact Bret will cover more of the Q4 highlights and I'm going to cover Y Octa is best positioned to capture more of the massive market opportunity in front of us as we go into FY 'twenty six and beyond.

Okay great.

Thank you Patrick.

Okay.

Todd Mckinnon: As you know two of our top FY 'twenty five priorities were one transform okta to become one of the most secure companies in the world and to reignite growth through prioritizing our partner ecosystem, turning up the dial on product innovation and increasing go to market specialization these priorities and purposeful investment.

Thanks.

Okay.

Todd Mckinnon: As you know, two of our top FY25 priorities were, one, transform Okta to become one of the most secure places in the world, and, two, reinvent growth through prioritizing our partner ecosystem, turning up the dollar on product innovation, and increasing good market specialization. These priorities and purposeful investments built momentum as we progressed through the year and really paid off in Q4.

That's correct.

Okay.

Todd Mckinnon: <unk> built momentum as we progressed through the year and really paid off in Q4, one year ago. We introduced the okta secure I did any commitment we've made incredible progress on this top priority and have become a trusted and leading voice for security best practices in discussions with customers and prospects the worker.

Yeah.

Todd Mckinnon: One year ago, we announced the Okta Security Implement. We've made incredible progress on this top priority. We've become a trusted and leading voice for security best practices in discussions with customers and processors.

Good morning.

Okay.

Okay got it.

Okay.

Todd Mckinnon: The work around security advancements will never be done, but it's a strong start.

Okay.

Got it.

Okay.

Brett Tighe: Later, Brett will cover some of the achievements with our partner ecosystem.

Got it.

Todd Mckinnon: Round security advancements will never be done, but it's a strong start.

Okay.

Todd Mckinnon: And I'm going to dive deeper into product innovation and go to market specialization. Our relentless focus on product innovation has been resonating with our customers as over 20% of Q4 bookings were from new products, such as Okta Identity Governance, Privilege Access, Device Access, Fine Grain Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI. Okta Identity Governance has been a huge success. What we hear repeatedly from customers is the amazing time to value with OIG. Customers are getting up and running just a few short months after signing. Since launching OIG just two years ago, we now have over 1,300 customers contributing over $100 million in annual contract value.

Yeah.

Todd Mckinnon: Later, Brett will cover some of the achievements with our partner ecosystem and I'm going to dive deeper into product innovation and go to market specialization.

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Todd Mckinnon: Our relentless focus on product innovation has been resonating with our customers as over 20% of Q4 bookings were from new products, such as okta identity governance privilege access device access fine grain authorization identity security posture management and identity threat protection with Okta AI.

Alright.

Yes.

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Next question please.

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For the year.

Thank you Bob.

Okay.

Todd Mckinnon: Okta identity governance has been a huge success.

Okay.

Got it.

Todd Mckinnon: What we hear repeatedly from customers is the amazing time to value with Oh AG customers are getting up and running just a few short months after signing.

Can a trusted and leading voice for security best practices in discussions with customers and prospects to work around security advancements will never be done, but it's a strong start.

Todd Mckinnon: Since launching <unk> just two years ago, we now have over 1300 customers contributing over $100 million in annual contract value, that's great progress and the product is only getting better as we continue to add more functionality in.

Speaker Change: Later, Brett will cover some of the achievements with our partner ecosystem and I'm going to dive deeper into product innovation and go to market specialization.

Todd Mckinnon: That's great progress, and the product is only getting better as we continue to add more functionality. In addition to OIG, We have another approximately $300 million of business with Okta Lifecycle Management and Okta Workflows. Combined, that's over $400 million in governance related business. And we're just getting started. We know that customers that adopt more products have the highest retention rates, so we're excited about the trends here and the long-term contributions to the business.

Brett: Our relentless focus on product innovation has been resonating with our customers as over 20% of Q4 bookings were from new products, such as okta identity governance privilege access device access fine grain authorization identity security posture management and identity threat protection with RTI.

Todd Mckinnon: In addition to <unk>.

Todd Mckinnon: We have another approximately $300 million of business with Okta lifecycle management and Okta workflows combined that's over $400 million in governance related business and we're just getting started.

Brett: Okta identity governance has been a huge success.

Todd Mckinnon: We know the customers that adopt more products have the highest retention rates. So we're excited about the trends here in the long term contributions to the business.

Brett: What we hear repeatedly from customers is the amazing time to value with Oh AG customers are getting up and running just a few short months after signing.

Todd Mckinnon: Product innovation continues to be a key investment area in FY26. To get security right, organizations need to get identity right. With the steady rise of cloud adoption, machine identities, and now AI agents, there has never been a more critical time to secure identity.

Todd Mckinnon: Product innovation continues to be a key investment area in FY 'twenty six to get security right organizations need to get identity right with the steady rise of cloud adoption machine identities and now AI agents. There has never been a more critical time to secure identity.

Brett: Since launching <unk> just two years ago, we now have over 1300 customers contributing over $100 million in annual contract value, that's great progress and the product is only getting better as we continue to add more functionality.

Todd Mckinnon: Last week, we held our annual launch week event where we highlighted our latest innovations. Here are just a few. On the Okta platform, customer identity for US public sector is now even better. New features, including passwordless, enhance security, and streamline the user experience while helping agencies meet strict compliance.

Todd Mckinnon: Last week, we held our annual launch week event, where we highlighted our latest innovations here are just a few.

Brett: In addition to <unk>.

Brett: We have another approximately $300 million of business with Okta lifecycle management and Okta workflows.

Todd Mckinnon: On the Okta platform customer identity for U S. Public sector is now even better new features including password list enhanced security and streamline the user experience, while helping agencies meet strict compliance needs. We also announced workforce identity suites, which are new pricing packages designed to provide a simple and unified <unk>.

Brett: And buying that's over $400 million in governance related business and we're just getting started.

Todd Mckinnon: We also announced Workforce Identity Suites, which are new pricing packages designed to provide a simple and unified solution tailored to our customers' security needs. These suites will provide even faster time-to-value outcomes for our customers.

Brett: We know the customers that adopt more products have the highest retention rates. So we're excited about the trends here in the long term contributions to the business.

Todd Mckinnon: Solution tailored to our customers' security needs. These suites will provide even faster time to value outcomes for our customers on.

Todd Mckinnon: On the Auth0 platform, we announced Auth4GenAI will begin early access this month. We already have a waitlist of eager customers ranging from early startups to Fortune 100 organizations. Auth4GenAI is developed to help customers securely build and scale their GenAI applications.

Brett: Product innovation continues to be a key investment area in FY 'twenty six to get security right organizations need to get identity right with the steady rise of cloud adoption machine identities and now AI agents. There has never been a more critical time to secure identity.

Todd Mckinnon: On the office zero platform, we announced off Virgin AI will begin early access. This month, we already have a waitlist of eager customers ranging from early startups to fortune 100 organizations off for Gen. AI is developed to help customers securely build and scale their gen. AI applications. This suite of features allows AIA.

Brett: Last week, we held our annual launch week event, where we highlighted our latest innovations here are just a few.

Todd Mckinnon: This suite of features allows AI agents to securely call APIs on behalf of users while enforcing the right level of access to sensitive information.

Brett: On the Okta platform customer identity for U S. Public sector is now even better new features including password list enhanced security and streamline the user experience, while helping agencies meet strict compliance needs. We also announced workforce identity suites.

Todd Mckinnon: Agents to securely call Apis on behalf of users, while enforcing the right level of access to sensitive information.

Todd Mckinnon: We held our annual sales kickoff meeting a couple weeks ago, and our go-to-market team is really excited about all the new product innovation.

Todd Mckinnon: In part, our rapidly expanding portfolio of identity security solutions is what led us to the shift we're making in our go-to-market strategy to further specialize. Customers need us to meet them where they are. And to address this, we're expanding our specialization into Okta sellers and Auth0 sellers. Okta sellers will focus engagement on IT and security buyer needs, including all workforce and products, as well as Okta customer identity. Okta sellers will focus on meeting the unique needs of developers, which include highly technical customer identity calculations and flexible deployment. Success we've had with sales specialization in other parts of the business gives us confidence that this is our opportunity to better serve our customers, be a further focus, and to better drive office growth.

Todd Mckinnon: We held our annual sales kickoff meeting a couple weeks ago and our go to market team is really excited about all the new product innovation in part our rapidly expanding portfolio of identity security solutions is what led us to the shift we're making in our go to market strategy to further specialize.

Brett: Which our new pricing packages designed to provide a simple and unified solution tailored to our customers' security needs. These suites will provide even faster time to value outcomes for our customers on.

Customers need us to meet them, where they are and to address this we're expanding our specialization into okta sellers in a zero sellers.

Brett: On the office zero platform, we announced off Virgin AI will begin early access. This month, we already have a waitlist of eager customers ranging from early startups to fortune 100 organizations off Virgin AI is developed to help customers securely build and scale their gen. AI applications. This suite of features allows AIA.

Todd Mckinnon: After sellers will focus engagement on it and security buyer needs, including all workforce identity products as well as okta customer identity, a zero sellers will focus on meeting the unique needs of developers, which include highly technical customer identity customization and flexible deployment models.

Brett: Agents to securely call Apis on behalf of users, while enforcing the right level of access to sensitive information.

Todd Mckinnon: And finally, I want to share our FY26 priorities, which build upon the great progress we made in FY25. The first priority is elevate the industry with the Okta Secure Identity Commitment. This initiative underscores our dedication to be the trusted leader in combining identity-based apps. I can't tell you how much this resonates with our customers and prospects, who now seek active advice and guidance on hardening their IT security environments.

Todd Mckinnon: Success, we've had with sales specialization in other parts of the business gives us confidence that this is our opportunity to better serve our customers via a further focus and to better drive ocdesk growth.

Brett: We held our annual sales kickoff meeting a couple of weeks ago and our go to market team is really excited about all the new product innovation in part our rapidly expanding portfolio of identity security solutions is what led us to the shift we're making in our go to market strategy to further specialize.

Todd Mckinnon: And finally, I want to share our FY 'twenty six priorities, which build upon the great progress we made in FY 'twenty five the first priority is elevate the industry with the okta secure identity commitment. This initiative underscores our dedication to be the trusted leader in combating identity based threats I can't tell you how much.

Todd Mckinnon: Next is lend IT and security to Okta. Identity has become fragmented and customers are increasingly interested in nearby platforms that deliver innovative security outcomes before, during, and after application. Identity investments have become more strategic, with the security buyer front and center. Okta's market-leading and expanding product portfolio makes us uniquely positioned to capitalize on this opportunity.

Brett: Customers need us to meet them, where they are and to address this we're expanding our specialization into okta sellers in a zero sellers off.

Brett: After sellers will focus engagement on it and security buyer needs, including <unk>.

Todd Mckinnon: And the third priority is lend developers without zero. This focuses on further strengthening Okta Zero's market presence through strategic investments in product innovation, branding, and marketing. Similar customer loans like the Global 2000 Food and Beverage Retailer that purchased Okta Zero in September to replace their aging home-grown system gives us increased confidence in our ability to capture more of this huge market opportunity.

Brett: For us.

Todd Mckinnon: This resonates with our customers and prospects, who now seek octave advice and guidance on hardening their it security environments next.

Brett: Okay.

Brett: Yeah.

Brett: Okay.

Brett: Customers.

Todd Mckinnon: Next is when I T and security with Okta.

Brett: Okay.

Todd Mckinnon: Identity has become fragmented and customers are increasingly interested in unified platforms that deliver integrated security outcomes before during and after authentication.

Brett: Successfully.

Brett: Especially.

Todd Mckinnon: Before wrapping up, I want to congratulate Eric Calderon, Promotions and Chief Operating Officer. Eric's been part of our leadership team since 2016, and he'll be focused on re-eventing growth, championing the Okta security agreement, and building on Okta's reputation as the world's leading company.

Brett: Okay.

Brett: Yes.

Brett: Okay.

Brett: Perfect.

Brett: Okay.

Todd Mckinnon: Did any investments have become more strategic with the security buyer front and center Okta is market, leading and expanding product portfolio makes us uniquely positioned to capitalize on this opportunity.

Brett: Right.

Brett: Okay.

Todd Mckinnon: I also want to thank and congratulate Eugenio Pace, who will be retiring this month. With a cost of about $0, he's helped build an incredible platform. His contributions to Okta over the past four years cannot be overstated. He will be missed.

Brett: Sure.

Brett: Thanks.

Brett: Great progress.

Brett: Okay.

Brett: Prior to that.

Todd Mckinnon: To wrap things up, we're excited about the momentum we've built going into FY26, and are taking the right steps to advance our position as a leader in the Indian market. More and more, our customers are looking to consolidate their disparate and ineffective systems, and Okta is there to meet them with the most comprehensive identity security platform in the market today.

Brett: Yes.

Todd Mckinnon: And the third priority is wind developers with our zero. This focuses on further strengthening often zeros market presence through strategic investments in product innovation brand and marketing.

Brett: Yes.

Brett: Sure.

Brett: Yes.

Brett: Okay.

Brett: Okay Tayo.

Brett: Okay.

Todd Mckinnon: Seminal customer wins like the global 2000, food and beverage retailer that purchased off zero in Q4 or to replace their aging homegrown system gives us increased confidence in our ability to capture more of this huge market opportunity.

Todd Mckinnon: I want to thank the entire Okta team for their tireless effort, and also thank our loyal customers and partners who put their trust in us every day.

Brett: Okay.

Brett: Jacob.

Brett Tighe: Now, here's Brett to come to the finish commentary and talk about how we're positioned for long-term profitable growth. Thanks, Brett.

Brett: Yes.

Brett: Thank you.

Brett Tighe: Thank you, everyone, for joining us today. Like Todd, I'm pleased with the top-line results, which stem from the hard work and investments we've made, transforming the business around security, partners, and doing market changes and product innovation. I'm especially proud of the incredible progress we've made building on the efficiency initiatives we started over two years ago. This is best illustrated by the nine points of operating margin growth and six points of free cash flow margin growth we achieved for FY25, all while making the right investments for future growth. We're proud to once again finish the fiscal year above and over 40, which we've achieved every year since going public in 2017.

Brett: Okay.

Brett: Thank you.

Todd Mckinnon: Before wrapping up I want to congratulate Eric tell her on his promotion to Chief operating Officer, Eric has been part of our leadership team since 2016 and will be focused on reigniting growth championing. The okta secured any commitment and building on Oct is reputation as the world at any company I also want to thank and congratulate you any a pace who will be retiring.

Brett: Okay.

Brett: Yeah.

Brett: Okay.

Brett: Sure.

Brett: Okay.

Brett: Thank you.

Brett: Yeah.

Brett: Got it.

Brett: Okay.

Brett: Yes.

Speaker Change: This month is a co founder of Asaro. He helped build an incredible platform and his contributions to opt over the past four years cannot be overstated. He will be missed to wrap things up we're excited about the momentum we've built going into FY 'twenty six and are taking the right steps to advance our position as the leader in the IDC market more and more customers are looking to.

Brett: Okay.

Brett: Yes.

Brett Tighe: My commentary will provide insights to our two-part financial performance and then move on to our outlook for Q1 and up. Underpinning our overall strength in Q4 was sales productivity that reached a multi-year high. Notably, OpZero had its best month in this quarter in history, which is another testament to the hard work that the team has put in all year. We also experienced a particular shift to cross our workforce into existing client customers and cross our new workforce products to existing workforce customers. The strong Q4 results were highlighted by RPO that increased 25% and crossed the $4 billion mark, driving acceleration in RPO growth with an increase in weighted average term length for Q4 deals, which reached a multi-year high.

Brett: Okay.

Brett: Perfect.

Brett: Yeah.

Brett: Right.

Brett: Okay.

Brett: Yes, Sir.

Brett: Richard.

Brett: Okay.

Speaker Change: Holidayed their disparate and ineffective identity systems and Okta is there to meet them with the most comprehensive identity security platform in the market today I want to thank the entire okta team for their tireless effort and also thank our loyal customers and partners, who put their trust in US every day now here's Brett to cover the financial commentary.

Brett: Tax rate.

Brett: Okay.

Brett: Thanks.

Brett: Okay.

Brett: Yes.

Brett Tighe: We achieved record bookings in Q4, which crossed $1 billion in total contract value for the first time. Large deals and large customers continue to be the driving force behind our success. A great demonstration of our success with large customers is that the total contract value of our top 25 deals in Q4 was over $320 million. Additionally, we added 25 customers in Q4 with a $1 million-plus ACV in the quarter. Our total base of $1 million-plus ACV customers grew 22% to $470 million. The $1 million-plus cohort represents over $1 billion in total. Our focus on deepening our relationship with our partner ecosystem as part of our growth initiative is really paying off.

Brett: Okay.

Okay.

Brett: And talk about how we're positioned for long term profitable growth.

Brett: That's right.

Brett: Right.

Brett: Thanks, Todd and thank you everyone for joining us today like Todd I'm pleased with the top line results, which stemmed from the hard work and investments we've made transforming the business around security partners go to market changes and product innovation.

Brett: Yeah.

Brett: Possibly yes.

Brett: Okay.

Brett: Yes.

Brett: Sure.

Brett: Okay.

Brett: I'm, especially proud of the incredible progress we've made building on the efficiency initiatives. We started over two years ago. This is best illustrated by the approximately nine points of operating margin growth and six points of free cash flow margin growth, we achieved for FY 'twenty five.

Brett: Sure.

Brett: Okay.

Okay.

Brett: Alright.

Brett Tighe: In the fourth quarter, over 70% of deals were partner-influenced. That includes 18 of our top 20 deals closing.

Brett: You need them.

Brett: Okay.

Brett Tighe: We are recently honored to be named the Partner of the Year by AWS Marketplace. Our partnership with AWS Marketplace has been a tremendous success. The best demonstration of that success is that in Q4, we surpassed over $1 billion in aggregate total contract value since the partnership was announced just four years ago. In FY25, revenue from AWS Marketplace grew over 80%.

Brett: Okay.

Brett: All while making the right investments for future growth.

Brett: Yes.

Brett: Okay.

Brett: We're proud to once again finished the fiscal year above the rule of 40, which we've achieved every year since going public in 2017, my commentary will provide insights to our Q4 financial performance and then move on to our outlook for Q1 and FY 'twenty six.

Brett: Yes.

Brett: Okay.

Brett: Right.

Okay.

Brett: Sure.

Brett: Right.

Brett Tighe: Now let's turn to our business outlook for Q1 and FY26. The headcount reduction action we took last month was part of our current learning assessment to optimize The action is intended to reallocate dollars and resources per priorities to drive growth and was factored into the preliminary FY26 guidance we provided last year. We're taking a prudent approach to forward balance that's not been in our previously announced bear market specialization. For the first quarter of FY26, we expect a total revenue growth of 10%, financial growth of 12%, non-GAAP operating margin of 25%, and free cash flow margin of approximately...

Brett: Thank you.

Brett: Okay.

Yes.

Brett: Underpinning our overall strength in Q4 with sales productivity that reached a multiyear high notably off zero had its best bookings quarter in history, which is another testament to the hard work that the team has put in all year. We also experienced particular strength cross selling workforce into existing <unk>.

Brett: Okay.

Brett: Thanks, Brian.

Pardon.

Brett: Yes.

Brett: Okay.

Brett: Yes.

Brett: Okay.

Brett: Process.

Brett: Alright.

Brett: Yes.

Brett: <unk> customers and cross selling new workforce products to existing workforce customers.

Thank you.

Brett: Okay.

Brett Tighe: Inclusive on the expected cash impact of approximately $11 million related to the headcount reduction expected to be paid out in the For the full year FY26 we are raising our outlook across the board. We expect total revenue growth of 9% to 10%, non-gap operating margin of 25%, and a free cash flow margin of approximately $2.6 billion.

Brett: Right.

Brett: The strong Q4 results were highlighted by <unk> that increased 25% and crossed the $4 billion Mark driving acceleration in <unk> growth was the increase in weighted average term length for Q4 deals which reached a multiyear high.

Brett: Okay.

Brett: Good morning.

Brett: Yep.

Brett: Okay.

Brett: Yes.

Brett: Okay.

Brett: Alright.

Brett Tighe: To wrap things up, we remain focused on real-time growth and driving spend efficiencies in cash flow. We've demonstrated exceptional leverage in our model and are positioned to deliver profitable growth for years to come.

Brett: Which one.

Brett: We achieved record bookings in Q4, which crossed $1 billion in total contract value for the first time large deals and large customers continued to be the driving force behind our success.

Yes.

Brett: Yes.

Brett: Yeah.

Unknown Executive: With that, I'll turn it back to Dave for Q&A. I think that's it.

Brett: Yeah.

Brett: Alright.

Brett: [laughter].

Brett: Great illustration of our success with large customers is that the total contract value of our top 25 deals in Q4 was over $320 million. Additionally.

Unknown Executive: I'd like to thank you for joining us.

Brett: Okay.

Unknown Executive: Now I'd like to take any questions you may have that may have been in the way.

Brett: Okay.

Unknown Executive: In the interest of time, please let me start with one question so that we can get to everyone. And then we'll get you back up when we get to the show.

Brett: Okay.

Brett: Thanks.

Brett: Additionally, we added 25 customers in Q4 with $1 million plus ACD in the quarter, our total base of $1 million plus ACB customers grew 22% to $471 million plus cohort represents over $1 billion in total HCV.

Brett: Yes.

Unknown Executive: So with that, I'll take the first question from the jury, which is that there's no time.

Brett: Alright.

Brett: Yes.

Brett: Okay.

Brett: Mr Archer.

Unknown Executive: Thank you. Thanks.

Brett: Okay.

Brett: Sure.

Unknown Attendee: Um, I'm going to say this, but nice job, guys. Um, listen, you talked in the past, and this I think is sort of a broad thing to talk to, about improvements in getting guidance. And you mentioned, again, your prepared remarks. So I just want to kind of gauge that a little bit, because they've not changed at all, especially with annual guidance, which was a pretty big uptick from previous numbers. Um, you know, there's something changed in the business, or even your macro backup. So I'd have to be the first guy to say, hey, listen, there's a new normal out there.

Right.

Brett: Yes.

Brett: Uh huh.

Brett: Got it.

Brett: Right.

Brett: Okay.

Brett: Our focus on deepening our relationship with our partner ecosystem as part of our growth initiatives is really paying off in the fourth quarter over 70% of deals where partner influenced that includes 18 of our top 20 deals closed in Q4.

Brett: Yeah.

Brett: Okay.

Brett: Uh huh.

Brett: Okay.

Brett: Yes.

Brett: Gotcha.

Brett: Yes.

Brett Tighe: And if there are any changes out there that give you more confidence, then you don't have to be quite as prudent in getting guidance.

Brett: Hi.

Brett: Great.

Brett: We were recently honored to be named partner of the year by AWS marketplace. Our partnership with AWS marketplace has been a tremendous success. The best demonstration of that success is that in Q4, we surpassed over $1 billion in aggregate total contract value since the partnership was announced just four years.

Brett: Yes.

Brett Tighe: And that's about it.

Brett: Okay.

Brett Tighe: Thanks for the question, and thanks for the compliment for the game. Too far in the draw. We really, really liked the record. And we talked a few months ago on the call, and we were talking about guidance, and the initial guidance you gave us at the end of the year. And the team really thought it was a broad one. And some of the staff, it was, first of all, we had over a billion dollars, which is a record quarter for us. They are, you know, the top million dollar record, 22% year-over-year. So the record is on the big staff.

Brett: Okay.

Brett: Yeah.

Brett: Yes.

Brett: Okay.

Brett: Alright.

Brett: Yeah.

Brett: 'twenty two.

Brett: Again in FY 'twenty five revenue from AWS marketplace grew over 80%.

Brett: Okay.

Brett: Yes.

Brett: Right.

Brett: Now, let's turn to our business outlook for Q1, and FY 'twenty six the head count reduction actions. We took last month was part of our ongoing assessment to optimize our cost structure.

Brett: Okay.

Brett Tighe: So that informs the quality of guidance for next year. I think the macro is consistent. I think maybe the difference is that this idea that identity is this really important foundation. We're going to have two different ways that they can modernize the dispatch system that they have, and they can invest in this right way, and it's going to really lead to budget-free outcomes. They're going to get a handle on their various other resources. They're going to be able to go into preparation, customer need, work better. It's going to be synonymous with AI and logistic workloads.

Brett: Okay.

Brett: Yeah.

Brett: That's perfect.

Brett: Yes.

Brett: Okay.

Brett: 70%.

Brett: The action is intended to reallocate dollars and resources toward priorities to drive growth and was factored into the preliminary FY 'twenty six guidance, we provided last quarter.

Brett: Right.

Brett: Yes.

Okay.

Brett: Yeah.

Brett: Yes.

Brett: Okay.

Brett: We're taking a prudent approach to Ford guidance that factors in our previously announced go to market specialization.

Brett: Market.

Brett: Okay.

Okay.

Brett: Alright.

Brett: For the first quarter of FY 'twenty six we expect total revenue growth of 10% Qunar apio growth of 12% non-GAAP operating margin of 25% and free cash flow margin of approximately 25% inclusive of the expected cash impact of approximately $11 million.

Brett: Okay.

Brett: Right.

Brett: Sure.

Brett: Just four years ago.

Brett: Yeah.

Brett: That's great.

Brett: Chris.

Brett: Yeah.

Brett Tighe: So far, I think that pretty much the same. You guys are executing things that can be done at the office. Also, you know, I'm going to answer a little bit on the philosophy at the beginning of my last quarter. We talked about reducing the conservatism in the model that we talked about in the initial year. Same program. We're going to continue to do that from now until FY26. And the line item in there is what we talked about earlier, which is the special item of the year.

Brett: Thank you.

Brett: Yes.

Brett: Okay.

Brett: Related to the head count reduction expected to be paid out in the first quarter.

Brett: Right.

Brett: Yes.

Brett: Right.

Brett: Yes.

Brett: For the full year FY 'twenty six we are raising our outlook across the board.

Brett: Yes.

Brett: Yeah.

Brett: Okay.

Brett: We now expect total revenue growth of 9% to 10% non-GAAP operating margin of 25% and a free cash flow margin of approximately 26%.

Brett: Okay.

Brett Tighe: But yeah, that's really that's it.

Brett: That's correct.

Brett Tighe: But before I get off the session, just a congratulations. At the same time, Martin and I did a heck of a job in the quarter. Hopefully you guys appreciate that and see it in the numbers because we're really pleased with how they executed. And I'm looking forward to starting in FY26. We can see it.

Brett: Okay.

Brett: Right.

Brett: Yes.

Brett: Alright.

Brett: To wrap things up we remain focused on reigniting growth and driving spend efficiencies and cash flow. We've demonstrated exceptional leverage in our model and are positioned to deliver profitable growth for years to come with that I'll turn it back to Dave for Q&A Dave.

Brett: Yeah.

Brett: [laughter].

Unknown Executive: Thanks guys.

Unknown Executive: Right, thanks guys, it's been very, very cool to be able to see.

Brett: Okay.

Unknown Attendee: So, definitely, Brett, just to start with you quickly, and I want to see if we have time for one or two, hopefully it's done, a few points sequentially, so I'm going to call over to let you know. And then, sorry, I don't want to set a test for everyone, there's a special STI model for this year. So, just to elaborate a little bit more on the existing data points that you're seeing, and you've implemented it right, that's given you confidence in the strategy, and just help us understand maybe that it's a great exchange of materials.

Brett: Alright.

Brett: Approximately 20%.

Brett: Okay.

Dave: Alright, Thanks, Brad.

Brett: Okay.

Dave: I think our attendees are going to be moved over his talents now and I'll take the questions as the hands get raised in order.

Brett: Okay.

Brett: Yeah.

Brett: Alright.

Dave: Interest of time, please limit yourself to one question. So that we can get to everyone and then youre welcome to queue back up when we get two additional questions.

Brett: Yeah.

Brett Tighe: So, let me just say, and Brett, maybe you can go first, I want to say this, it's a real short answer, that the seasonality of our fiscal year is very different than religiously-spoken about, so, do you want to just add that lowering of expectations here? In terms of the growth, so, you know, it's obviously better in the end, if you want to, like I said, seasonally have those.

Brett: Okay.

Brett: Alright.

Brett: Yes.

Brett: 10%.

Brett: Yes.

Dave: So with that I'll take the first question from John Fucci at Guggenheim John.

Brett: Yes.

Brett: Okay.

Brett: Alright.

Brett: Yeah.

Brett: <unk>.

John Fucci: Thanks, guys.

Brett: Okay.

Dave: Thanks.

Brett: Thank you.

Dave:

Brett: Yes.

Dave: I don't normally say this but nice nice job guys.

Brett: Okay.

Brett: Yes.

Speaker Change: So listen you talked in the past and in this I think this for her breath, but maybe Todd too about your prudence and giving guidance and you mentioned again in your prepared remarks, but I just want to kind of gauge that a little bit because has that changed at all especially your annual guidance, which was a pretty big uptick from the previous numbers.

Brett: Okay.

Brett: Alright.

Brett: Yeah.

Brett: [noise] [noise] [laughter].

Speaker Change: Or has something changed in the business or even the macro backdrop. Todd I think you were the first guy to say hey, listen this a new normal out there is there any changes out there that gives you more confidence that you don't have to be quite as prudent in giving guidance.

Brett: Okay.

Brett: Sure.

Brett: Yeah.

Speaker Change: Our Q4, John Thanks for the question and thanks for the compliment that began in Q4 was a blowout.

Brett: Okay.

Brett: Oh.

Speaker Change: We really really had a great great corner and when we talked three months ago on the call I mentioned, when we talked about guidance in the initial guidance you gave and I said the year.

Brett: Thank you.

Brett: Okay.

Brett: Got it.

Brett: That's it.

Brett: Yes.

Brett: Okay.

Speaker Change: FY 'twenty five hearings finish was pretty backend loaded and the team really delivered.

Brett: Okay.

Brett: Right.

Speaker Change: It was a blowout quarter in some of the stats. It was the first time ever we had over $1 billion of bookings in a quarter record quarter for <unk>.

Brett: Yeah.

Brett: Okay.

Brett: Right.

Brett: Yes.

The top.

Yeah.

Speaker Change: The top million dollars Yoko heart grew 20, 22% year over year. So the records on the Big stats go on and on so that.

Brett: Hi, Chris.

Brett: Got it.

Brett: Okay.

Brett: Yeah.

Brett: Alright.

Brett: Thank you Mike.

Speaker Change: Forms part of the equation for our guidance for next year you see the range, we did on the guidance.

Brett: Okay.

Speaker Change: But just zooming back out a bit in terms of the macro and what's going on I think the macro is consistent I think maybe the difference is that this idea that identity is this really important foundational layer in particular from big companies and they can modernize the disparate system they have and they can if they invest in this layer there.

Brett: Okay.

Brett: Yes.

Brett: [laughter].

Brett: Okay.

Brett: Yes.

Brett: Okay.

Brett: Yes.

Speaker Change: To really lead to better security outcomes, they're going to get a handle on their various under any silos and theyre going to be able to do governance privilege and customer identity win with one vendor that's going to lead its going to help them with AI and agenda workloads people are trying to stitch together, a gentex platforms and rent their own engine Agentic systems, and what they run smack into.

Brett: Okay.

Brett: Sure.

Brett: Okay.

Brett: Yeah.

Brett: Uh huh.

Brett: Right.

Brett: Okay.

Speaker Change: Wait a minute how am I going to give these agents access all of these systems have I don't even know what's in the system that I don't even know the access permissions that are there and how to securely authenticate them. So that's driving the business but.

Brett: [noise] [noise].

Unknown Executive: Thank you so much.

Unknown Attendee: I know this has been a bit hard for both of us, but if I reflect over the last couple of years, I feel like many other companies in the software industry, when they're talking about suitcase headwinds, and I think back to the comments that you made in Octane, you talked about an expectation that that would continue, you do think that that would persist through the first half of next year.

Speaker Change: Great quarter, we're very bullish but we have we're.

Brett: Yeah.

Speaker Change: Q1 is just halfway over and we are making.

Brett: Yeah.

Brett: Right.

Speaker Change: Making sure that we're prudent in our guidance going forward as well.

Brett: Okay.

Brett Tighe: And I'm just wondering, as we think about the puts and takes of the business, where your head is now, if you think about what you've just seen here, these results, and the guidance that they're providing us, tremendous success in big governance and OPA that's more than I'm sitting on, or do you have a change in what the expectation is, I think, that you have to say, if the macro were better, that that would lead to a two-pronged solution on the put next year, I think. So, yeah, maybe I'll, I'll, maybe I'll, I'm sorry that I'm dragging you into it, but on the suitcase headwind, I think the macro condition we've seen has been fairly consistent throughout a lot of our takeover years, and we think it's going to be the same going forward.

Brett: Okay.

Speaker Change: So it sounds like things are pretty much. The same you guys are executing things are coming together for okta.

Brett: Yeah.

Brett: Sure.

Okay.

Speaker Change: Absolutely. We're very excited yes, John I can answer a little bit on the philosophy I think if you remember last quarter, we talked about reducing the conservatism in in the model that we've talked to you know that we have.

Brett: Thank you.

Brett: Okay.

Brett: Yeah.

Brett: Okay.

Brett: [laughter].

Speaker Change: Issued here.

Brett: Yeah.

Speaker Change: Same same program, we're going to continue to do that in for.

Brett: Okay.

Brett: Great.

Brett: Okay.

Speaker Change: For the balance of FY 'twenty six the only line item in there is something we talked about earlier, which is.

Yeah.

Brett: Okay.

Brett Tighe: I think the big difference, as you mentioned, is that in context we started in, you know, I started in 2022, and then in 2021, before it was a zero-interest trade-off, and people were, you know, buying a little bit, you know, they just bought a lot to make, or they're forecasting what they're going to need to do, they've got $1,000, they need $1,500 now, the world is different the rest of the year, and now if you need $1,000, you buy $700, and then you wait to see when you go $700 more, and then you buy $1,000.

Brett: Okay.

Speaker Change: Further specializing in the field, but.

Brett: Okay.

Gotcha.

Speaker Change: Yeah, that's that's really that's it but before I get off this I should just say congratulations to the entire go to market team. They did a heck of a job in the quarter Hope all of you guys I appreciate that.

Brett: Yeah.

Brett: Okay.

Brett: Right.

Speaker Change: And see it in the numbers because we were really pleased with how they executed and.

Brett: Okay.

Brett Tighe: So, it's a very different world, but those things, the average contract, when those contracts come up from a zero, they don't get renewed at $15, they get renewed at around $5 per hole. So, you're seeing that happen. The fact that the macro is changing, it just means that our contracts are rolling out from that, I think, once we've seen it for a period of time.

Speaker Change: Looking forward to a strong FY 'twenty six.

Brett: Okay.

Speaker Change: We can see it thanks guys.

Brett: Okay.

Eric Heath: Yeah, Let's go to Eric Heath of Keybanc.

Brett: Yes.

Brett: Thank you.

Eric Heath: Great, Thanks, guys and really great quarter, great to see.

Brett: Okay.

Brett: That's correct.

Speaker Change: Two from me Bret just start with you quickly.

Unknown Attendee: Yeah, I just had Brad in that question, which is, do you have two options of buying more products, or have you been debating if buying more products or starting to have new products, questions related to that.

Brett: [laughter].

Eric Heath: On the <unk> guide for <unk> it.

Brett: Thanks, Tom.

Speaker Change: It looks like it's down a few points sequentially, so anything to call out regarding that seasonality and then Todd I wanted to ask you a bit more on the specialized sales model for this year.

Brett:

Unknown Attendee: So, it's like, there's sort of an edge between what you do very well, and your business is a failure, and you just have to look around and try to congratulate them at the beginning of the career, at the beginning of this contract.

Brett: Thanks.

Brett: That's helpful.

Brett: Thanks.

Brett: So let's talk about it.

Speaker Change: Can you just elaborate a little bit more on the existing data points that youre seeing or you've implemented array, that's giving you confidence in that strategy and just help us understand maybe the degree of change. This entails. Thanks that makes sense, Hey, Brett maybe you go first on that.

Brett: Oh gosh.

Unknown Executive: Thank you very much for your attention.

Unknown Attendee: Please have a seat. and from from from Thank you for the question. It's awesome to see the $1 million cohort, everybody's like, oh my god, $1 million, that's so amazing. Can you talk about how much opportunity remains for those largest customers, how is the revenue retention rate there? Is that where we should expect the bulk of that to see it come from?

Brett: Right.

Yes.

Brett: Okay.

Brett: [laughter].

Brett: Right.

Brett: I appreciate that.

Brett: Okay.

Speaker Change: Short answer to the seasonality of our fiscal years are fairly back end loaded just like Todd spoke about so.

Brett: Yes.

Brett: Please go ahead.

Brett: Yeah.

Brett: Sure Chris.

Todd Mckinnon: Where should the market be done? Yeah, I think it's a really tough question. So I think that the maybe not so secret secret is that you know our success, we are really just scratching the surface. If you look at IT spend, if you look at budgets, that's kind of quite big, you can look at the revenue spend and kind of extrapolate what that would cost but I think the more powerful thing is just to have customers and get to know them and work with them through this journey. I told the story about, you know, the first time I talked to a company, and how this quarter we did, and that would be even better.

Speaker Change: Q1 has that that lowering of expectation if you will in terms of the growth. So.

Brett: Okay.

Brett: Thanks, guys.

Speaker Change: It's obviously very early in the year in Q1 is like I said is seasonally our lowest quarter typically.

Brett: Okay great.

Brett: Okay.

Brett: Yeah.

Speaker Change: Specialization has been the trend specialization has been a trend for a little bit over a year now at the beginning of FY 'twenty five we specialize the corporate team in terms of Hunter farmers.

Brett: Thank you.

Brett: Okay.

Brett: Thanks.

Brett: Got it.

Brett: Okay.

Brett: That's right.

Todd Mckinnon: And that first quarter seems huge, but when you compare it to workers' savings and value they can get from it, and what they can take out of the environment in terms of reducing complexity and the sheer value of that. So their security operations are worth it, and they can have more than you. It's very powerful, and they have a customer that they deal with. So it's like one anecdote, but I think there's hundreds and hundreds and hundreds of these companies out there that are just starting to get a little bit of attention for the potential benefits.

Brett: Okay.

Speaker Change: And we learned a lot from that we learned that the transition into that model. It took a couple of quarters, a little bit slow out of the gate, but then paid off in the second half in a strong way.

Brett: Yes.

Brett: Okay.

Brett: Yes.

Brett: Right.

Brett: Gotcha.

Brett: Okay.

Speaker Change: When we think about further specialization it makes sense for a lot of reasons and the biggest reason is that the products are a lot more detail that in a lot more sub markets. If you're an okta seller today, you're selling really an integrated workforce suite that creates an identity fabric for our customers across many categories access management.

Brett: Yes.

Brett: Okay.

Brett: Yeah.

Brett: Okay.

Brett: Mr. Ajay.

Brett: Yes.

Okay.

Brett: Thank God.

Todd Mckinnon: That being said, I just want to bring it up because it's kind of this mini-advancement, and we're already quite successful. And with our investments in partner ecosystem and the 100 partner specialization, we've crossed the billion-dollar threshold. This is like the quarter of a billion-dollar threshold. We want to place a million dollars in TPP, which is a lot of money in the enterprise, but a big part of it is in the market. So now we're already in our self-service business, and we're doing a lot more than that.

Brett: Sure.

Brett: Yeah.

Brett: Okay.

Brett: Gotcha.

Brett: Okay.

Speaker Change: Identity governance, but these are all traditionally were all separate companies privilege access management and then its security posture management of data protection with Okta and so these are all different subcategories that we have a very unique position. We're in and we're trying to bring those together into one platform and go to a big customer like we closed a big deal in Q4 it was a.

Brett: Got it.

Brett: Okay.

Brett: Perfect.

Todd Mckinnon: We haven't even touched the third person, by the way. If that gets to a certain point, it can be absolutely the best thing. So we have a strategy where we're going from top over $2,000 with these large platform leaders. You mentioned the top. We've got the opportunity to get $20 to $30 million in funding for the partner. Over there, we've got our self-service partners. That's the best thing for us.

Brett: Right.

Brett: [laughter] [laughter].

Speaker Change: It was a big upsell on a deal and we talked about in Q3, which was a global technology Company Fortune 500 company and they really went all in with this end to end workforce identity suite all of our products retiring 10 legacy application for just our masses. It's one of those big deals that put that over $1 billion.

Brett: [laughter].

Brett: Okay.

Gabriela Borges: Hello, I'm Gabriela Borges. Hi, Gabs, thank you.

Brett: Okay.

Gabriela Borges: I wanted to follow up on your comments on Gold Zero and some of the nuances to the go-to-market this year. You know, just to remind us, I know you've experimented with Gold Zero Go-To-Market in the past. What have been your learnings from the prior iterations of Go-To-Market?

Brett: Yeah.

Brett: Okay.

Speaker Change: <unk> on the board in Q4, but I'm not saying this one deal was $1 billion in TCP, but I'm, saying that these kind of deals led to that kind of number is added up in the quarter.

Brett: Okay.

Todd Mckinnon: And just to clarify as far as what's different with how you're approaching the Gold Zero Go-To-Market this year, what are some of the other ways of how you've described it to us in the past? Yeah, it's real simple. We bought the company in two separate sales teams. And then we combined it into one generous sales team. So everyone sold their products. And we did that in 2021, right at the end of 2021. So right at the beginning of 2022. Because we wanted coverage. We wanted to get the product out there. The product was on fire.

Brett: Thanks, Matt.

Brett: Yeah.

Brett: Okay.

Speaker Change: And so and then when you go on the off zero side, you were talking about selling a platform to developers people building technology, it's quite broad and Scott the core authentication and things like that but it also has.

Brett: Okay.

Brett: Sure.

Brett: Okay.

Brett: Yes.

Brett: Yeah.

Brett: Okay.

Speaker Change: I didn't.

Speaker Change: Fine grain authorization, which is like how do you actually get sub domains of permissions inside your applications are highly regulated identity, which is advanced capabilities to do step up authentication and so forth and so you're in now as we have on the auto side. We have offered <unk> like how do you actually stitched together, if you're building and genetic applications.

Todd Mckinnon: I was going to the box. I wanted to get to as many people as possible as fast as possible. And what we learned over the last two years is that works, especially when people are working for a company like Gold Zero. And we also learned that it's just complicated stuff. And the product over the last two years is expanding. You've got more powerful and timely organization. And highly regulated in the day. And a lot of capabilities. And John works there. And he's a teacher. And he has a business partner. And he's an educator.

Brett: Yeah.

Brett: Okay.

Brett: Yeah.

Brett: Okay.

Brett: Yeah.

Brett: Yes.

Okay.

Brett: Okay.

Brett: Sure.

Brett: Yeah.

Speaker Change: And make it all secure and make sure that agents don't get hacked and make sure. The agents on the right authentication et cetera et cetera. So that's a lot to understand as a seller and so we're on this arc of specialization, which is going to really lean into long term growth because these products have become so powerful and these awesome people in our go to market team. The most talented people in industry that can really drill down and understand.

Brett: Okay.

Brett: Alright.

Brett: [noise] [noise].

Brett: Okay.

Speaker Change: These products do and when we look at like success metrics, we talked to customers and talk to prospects and we asked them. How are these leading to the great outcomes for you. How are how are you and the sales process of understanding these things because I think these complicated and if our seller can go in there and really understand the details of what these products are doing well.

Brett: Okay.

Todd Mckinnon: And that's about one of the things that we've done in terms of taking the field and putting it out there and putting it in places that they're comfortable. They have this kind of doubtless pessimism already. And so that's why we're excited about this, because we're looking at the results that we just saw. We keep forwarding, we're looking at our standard bookings. We're filling out those people who want to see us on the house. And so we're looking at all these great new products that are coming out.

Brett: Yeah.

Brett: Sure.

Brett: Okay.

Brett: Yes.

Brett: Thank you.

Brett: Yes.

Speaker Change: Further differentiate us we're already differentiate it because.

Brett: Yes.

Speaker Change: We're basically competing against a large monolithic platform that kind of says hey, but everything on our stack and we'll do it all for you and maybe accept no. One really has everything in one stocks it doesn't really work or you're talking to point identity vendors, which don't have the whole platform, we have in our customer identity, and they don't and privilege and governance and data security posture management threat protection and so.

Brett: Yeah.

Unknown Executive: Mr. President, I am glad to see you. Thank you so much for taking the time out of your busy schedule to join us today. I think the strongest geography was North America, like you said, strength across the board, but in terms of like being exceeding expectations and really blowing out their plan, North America was top of the list there, and that, you know, I think long term, a big growth opportunity for us, as we've talked about a lot as international, it's still, you know, hovering right around 20-ish percent of our total revenue, and over time, that needs to be higher as we drive broad-based expansion around the globe.

Brett: Okay.

Brett: That's correct.

Brett: Yeah.

Brett: Alright.

Brett: Thank you.

Brett: Yes.

Brett: Okay.

Speaker Change: Please come to the seller that knows the details of these products and can really speak to customers' language that just further differentiates us and leads to a better run rate. So that's the that's the metric we're watching as we transition into this and it's off to a good start people are pumped about it.

Brett: Right.

Brett: Yeah.

Brett: Okay.

Brett: Yes.

Brett: Okay.

Brett: Yeah.

Brett: Yes.

Speaker Change: We saw success in a little.

Brett: Christine.

Brett: Okay.

Speaker Change: What we did last year with Hunter farmer, and it's really we're excited about this year and working hard.

Brett: Okay.

Speaker Change: Can go faster and grow more and do even better in the Q4 Q4 was great, but we have big ambitions here and we're trying to do a lot more on the team is fired up to do that.

Brett: Okay.

Brett: Yeah.

Unknown Executive: The problem is North America won't slow down. So we've got to figure out how to do both at the same time.

Brett: Okay.

Speaker Change: Thanks, Doug.

Brett: Yeah.

Unknown Executive: Yeah, I would say EMEA. EMEA also had a really good quarter. Public Sector had a really good quarter. I mean, Adam, it was a really strong quarter across the board. I don't We could find a, an area of weakness, frankly, I mean, new business upsell, upsell renewal, cross sell, everything really went well, the team executed really quite well. I'm proud of the effort.

Brett: Yes.

Speaker Change: So let's go to Brad Zelnick at Deutsche Bank.

Brett: Okay.

Brad Zelnick: Great. Thanks, so much and congrats on a blowout Q or.

Brett: Uh huh.

Brett: Okay.

Brett: Alright.

Brad Zelnick: I don't know if this is better for tighter for Brett, but if I reflect over the last couple of years. After like many other companies in the software industry. We were talking about seat based headwinds and if I think back to the comments that you made at octane you talked about an expectation that that would continue you expected that that would persist through the first half of next year.

Thank you.

Brett: Okay.

Brett: That's correct.

Brett: Great.

Brett: Okay.

Unknown Executive: Great. And maybe just comment just on the quality of the pipeline entering this year versus last size or anything. You can comment there. Yeah, yeah. We're comfortable with the pipeline based on the guidance we gave here, you guys, today. So we're comfortable with where we're at, excited about executing in FY26.

Brett: Yes.

Brett: Okay.

Brett: Sure.

Brett: Okay.

Brad Zelnick: I'm just wondering as we think about the puts and takes of the business where your head is now.

Brett: Yes.

Brett: Okay.

Brad Zelnick: What we're just seeing here in these results and the guidance that youre providing us.

Unknown Executive: Nice work. Thanks again.

Brett: Yeah.

Brett: Okay.

Unknown Executive: Ok, next up, Jonathan Ho at William Blair. Let me echo my congratulations as well on what appears to be a good inflection in the business.

Brad Zelnick: Tremendous success in governance in Opa, that's more than offsetting that or do you have a change in what your expectation is and I think you had said if the macro were better that maybe we'd see improvement sooner than the midpoint of next year. Thanks, Yes, maybe I'll start I'll, maybe I'll start.

Brett: Okay.

Brett: Right.

Brett: Yeah.

Brett: Thanks.

Todd Mckinnon: Can you help us understand the opportunity for agentic AI and maybe how AI could play a role in the increasing number of identities out there, and particularly how Okta potentially benefits from that? Thank you. Yeah, Jonathan, the I'll focus in on the AI is a pretty big topic. And I know there's a lot of people out there in the world trying to give everyone broad based lessons about it. So I'll spare you that and I'll focus on the agentic part of AI. That's probably the most in the medium term, that's probably the most applicable to our business.

Brett: Okay.

Alright.

Brett: Okay.

Brett: Yeah.

Brad Zelnick: You can join in but on the seat.

Brett: Okay.

Brad Zelnick: Seat based headwinds I think the macro condition and we've seen has been.

Brett: Okay.

Brad Zelnick: It's been consistent for a while now I would say a couple of years.

Brett: Yes.

Brad Zelnick: We think it's going to be the same going forward I think the big difference as you mentioned is that in contracts, we signed in call. It the first.

Brett: Yes.

Brett: Okay.

Brett: Sure.

Brett: Okay.

Brett: Yes.

Brad Zelnick: First quarter of 2022.

Brett: Okay.

Brad Zelnick: Then in calendar 'twenty, one before it was a zero interest rate era and people were buying a little bit. They just bought a lot and they over forecasted what theyre going to need and if you needed a thousand things you about 1500 and now the world is different in the last few years now if you need 1000, you buy a 700 and then you wait to see when you go 701, and then you buy.

Brett: Okay.

Todd Mckinnon: And I think the way to think about it is an important challenge of identity and security for a long time has been machines. Or another way to call them a service accounts. So you have all these systems and you have all these networks and you have all this infrastructure and there's people that log into it. And we have ways to manage that and have biometric authentication and we have single sign on systems. And then there's machines that log into that stuff. And, you know, if you look at a server, maybe, you know, probably 99.9% of the connections to that server are probably other machines.

Brett: Yeah.

Brett: Yes.

Brett: Okay.

Okay.

Brett: Okay.

Brad Zelnick: Lastly, so it's a very different world, but.

Brett: Bob.

Brett: Yes.

Brad Zelnick: Those things are average contract length is two and a half year or so as those contracts come up for renewal. They don't get renewed they don't get renewed at 1500, they get renewed at a right sized level. So youre seeing that headwind abate. It doesn't mean the macro is changing it just means that our contracts are rolling off from that I think unsustainable period before.

Brett: Yeah.

Brett: Yes.

Brett: Okay.

Brett: Yes.

Brett: Thanks.

Brett: Yeah.

Brett: Okay.

Todd Mckinnon: And so this challenge of machine identity has been with us for a long time. There's been different strategies on how to manage it and different approaches, different protocols. We've gone through different ways in the industry. We had, you know, firewall based where we try to lock everything. We had no lateral movement data center technologies where you try to control machine account access the inside the data center and the fabric of the network. We've had PKI, which, you know, 20 years ago, 15 years ago was the way we're going to give every machine a public certificate and we're going to manage that on a certificate authority that kind of never really took off, except in some narrow cases.

Brett: Okay.

Speaker Change: Yes, I would just add Brad to that question was just to hear you had two options buying more products or the headwinds abating its Brian buying more products, we saw that in the new product.

Brett: Okay.

Brett: Yeah.

Brett: [noise] [noise] [noise].

Brad Zelnick: Percentage, we gave you guys.

Brad Zelnick: So those headwinds are still there or just the team executed really well in new business upsell upsell a renewal I mean, they just they had a heck of a quarter and so I congratulated them at the beginning of the call at the beginning of this call it.

Brad Zelnick: Yeah really excellent execution from our sales team they all deserve it. Thank you.

Brett: Okay.

Todd Mckinnon: And now here we are today with this, the agentic revolution is real and the power of AI and the power of these language models, the interaction, the interaction modalities that you can have with these systems, these machines doing things on your behalf and what they can do and how they can, you know, infer next actions, et cetera, et cetera. OpZero has the machine to machine tokens where people, if they build some kind of web app that services other machines, they can use OpZero for the login for that. Okta has similar capabilities. And now you have not only that basic authentication challenge, but you have all of these applications as you get, you know, two orders of magnitude more things logging in, you have to really worry about the fine grain authorization into your services.

Brett: Okay.

Brad Zelnick: Yes.

Speaker Change: Bonnie Brown, they all made a lot of money so.

Brett: Okay.

Speaker Change: Thank you.

Brett: Okay.

Brad Zelnick: Okay.

Brad Zelnick: Next up is Joe Gallo at Jefferies.

Brett: [noise].

Joe Gallo: Hey, guys. Thanks for the question it was awesome to see the $1 million cohort represent over $1 billion of total ACD. Todd can you just talk about how much opportunity remains with those largest customers. How are the net revenue retention rates, there and is that where we should expect the bulk of growth this year to come from or should the mid market rebound a little bit yes.

Brett: Yes.

Brett: Sure.

Brett: Alright.

Yes.

Brett: Right.

Brett: Got it.

Brett: Yes.

Brad Zelnick: Yeah. So I think it's a real insightful question, so I think that the.

Brett: Sure.

Brett: Okay.

Joe Gallo: The the.

Brett: Yes.

Joe Gallo: Maybe not so secret secret is that even with our success, where we are really just scratching. The surface. If you look at it spend if you look at the just that's kind of quantitatively you can look at total it spend and kind of.

Brett: Yes.

Brett: Okay.

Brett: I'm sorry.

Brett: Uh huh.

Brett: Thanks, Chris.

Brett: Alright.

Brett: Yeah.

Joe Gallo: Try to extrapolate what that would mean for us, but I think the more powerful thing is just talk to customers and get to know them and work with them through this journey.

Brett: Okay.

Brett: Right.

Brett: Uh huh.

Brett: Okay.

Joe Gallo: The story of that five Fortune 500 Tech company last quarter, we did a big deal with them in Q3 and now this quarter. We did another deal that's even bigger than that first sale seem huge but when you compare it to what they are saving and the value. They can get from that and what they can take out of the environment in terms of reducing complexity in.

Okay.

Brett: Okay.

Brett: Sure.

Brett: Okay.

Brett: Yeah.

Brett: Thank you.

Brett: Yes.

Joe Gallo: And streamlining the effectiveness of their security operations are more effective and they kind of have one view of all of our entities across privilege and governance and access management, it's very powerful and they haven't even done the customer at any deal yet that might be bigger than the whole thing.

Brett: Yeah.

Brett: Thanks.

Brett: Yes.

Brett: Okay.

Okay.

Brett: Okay.

Todd Mckinnon: So what they're doing is they're building an AI wrapper around a bunch of stuff.

Brett: Okay.

Brett: Yes.

Todd Mckinnon: And now once they get that, I'm sorry, an API wrapper around a bunch of stuff. And once they get that API, they need a system like fine grain authorization. from Auth0 to make sure that it's easy to express the rules on who and what agents and what roles and what's group can access which parts of this information inside that API. So you want to say Jonathan can access these records, but John can access these other records and Gabrielle can access the others. You can do that with FGA. And then when you put these APIs in front of all your systems, you have a nice fine grained authorization model.

Brett: Yeah.

Joe Gallo: So it's like one anecdote, but I think there is hundreds and hundreds and hundreds of these companies out there that are just starting to get on this bandwagon so that retention for the potential.

Brett: Yes.

Brett: Okay.

Brett: Thank you.

Brett: Yeah.

Brett: Yes.

Brett: Okay.

Joe Gallo: Potential of massive that that'd be inside the also August bread and butter growing up was kind of this mid enterprise are lower lower enterprise success, and with all of our investments and our partner ecosystem and the Hunter and farmer specialization in the.

Brett: Yeah.

Brett: Yes.

Brett: Right.

Brett: Okay.

Brett: Yeah.

Brett: Okay.

Joe Gallo: We crossed the $1 billion threshold with Amazon This was like the quarter of $1 billion thresholds.

Brett: Okay.

Brett: Good question.

Todd Mckinnon: So now when you start building your agents that talk to these APIs, those agents are only seeing what they can see because you don't want to open the whole world to those agents. Because if that thing goes awry or that thing gets hacked, then all of your data is exposed versus exactly what the agents can see. So it's least privileged. It's very important. Now on the agent side, the equivalent of a lot of these deployments have like passwords hard-coded in the agent. So if that agent gets compromised, it's the equivalent of your monitor having a bunch of sticky notes on it with your passwords before single sign-on.

Joe Gallo: Through the marketplace $1 billion of TCE, which is a lot of that is in the enterprise, but some of them are big part of that too is in the mid market. So and then on the low end of our self service business, where on the zero side, we're doing more and more there that never even touches a salesperson and by the way once that gets to a certain point it can be up sold in an enterprise plan. So we have a strategy where we are.

Brett: Sure.

Brett: Okay.

Brett: Yeah.

Brett: Alright.

Brett: Okay.

Brett: Yeah.

Brett: Sure.

Brett: Yeah.

Brett: Hi.

Brett: Sure.

Joe Gallo: From top global 2000 with these large.

Brett: Okay.

Brett: Right.

Brett: Sure.

Joe Gallo: Platform deals we mentioned the top 25 deals were $320 million of bookings in the quarter all the way down to the bottom of the self service plans and yes, it's robust strength across the board.

Brett: Yeah.

Brett: Okay.

Todd Mckinnon: So Auth4Gen AI gives you a protocol and a way to do that securely. So you can store these tokens and have these tokens that are secured. And then if that agent needs to pop out and get some approval from the user, Auth4Gen AI supports that. So you can get a step up biometric authentication from the user to say, hey, I want to check Jonathan's fingerprint to make sure before I book this trip or I spend this money, it's really Jonathan. So those three parts are what Auth4Gen AI is, and we're super, super excited about it.

Brett: Okay.

Brett: [noise] [noise].

Joe Gallo: Ultimately here nice job guys.

Thanks, Joe next up is Gabriella gorgeous at Goldman.

Brett: Okay.

Speaker Change: Hi, Good afternoon. Thank you Todd I wanted to follow up on your comments on <unk> on some of the nuances to the go to market. This year next just remind us I know you've experimented with Sarah kind of market in the past what has been your learnings.

Brett: Yeah.

Yeah.

Brett: Right.

Brett: Sure.

Brett: Okay.

Todd Mckinnon: We have a waitlist over 200 plus Fortune 100s and startups are on that thing. They want this product and it's going into early access this month. So we're really watching it closely to see how well it can do.

Brett: Okay.

Speaker Change: Iterations of scatter market than just crystallized for us what's different with how youre approaching zero kind of market share versus some of the other.

Okay.

Brett: Okay.

Brett: Thank you.

Brett: I'm sorry.

Brett: Gotcha.

Speaker Change: Waves of selling that you thought you would expire.

Brett: Okay.

Speaker Change: Yeah, Yeah, it's a real simple one.

Ittai Kidron: All right, next up is Ittai Kidron at Oppenheimer. Hey guys, again, congrats on a great quarter. A couple from me.

Brett: Yeah.

Brett: Yes.

Speaker Change: When we bought the company. It was two separate sales teams and then we combined it into one generalist sales team. So everyone's on both products and we did that in 2021.

Brett: Okay.

Brett: Sure.

Brett: Okay.

Ittai Kidron: Brett, on the CRPO, you gave guidance for the first quarter, but not for the fiscal year. To a previous question, you said you're, this is the beginning of the year, so you're a little bit conservative on the CRPO. So I guess we should assume it only accelerates from here till the end of the fiscal year. In growth, help me get some color on that.

Brett: Okay.

Brett: Sure.

Brett: Yeah.

Brett: Okay.

Speaker Change: But at the end of 2021 or at the beginning of 2022.

Brett: Sure.

Speaker Change: Because we want to coverage, we wanted to get the product out there the product was on fire. It was growing super fast we wanted to get it to as many people as possible as fast as possible and what we learned over the last few years is that works, especially in Q4, I worked well record quarter ever for ASO, but we also learned is that this is complicated stuff and the product over the last two years has expanded and got more.

Brett: Yes.

Brett: Uh huh.

Brett: Hi, guys.

Brett: Okay.

Brett: Alright.

Brett: Yes.

Todd Mckinnon: And then for you, Todd, you didn't talk about PAM and the progress that you've had with that, and how much that's contributing to your business, many of you can share some data points on progress there. Thank you. Great.

Sure.

Brett: Yes.

Brett: Okay.

Brett: Alright.

Brett: Okay.

Brett: Right.

Speaker Change: Powerful find great authorization.

Okay.

Speaker Change: And in the highly regulated in a day and other capabilities inside of our thorough just features and enhancements in how people use it and the SDK is and the same thing has happened on the auto side. So really got to a point, where we were seeing that people that were tended to focus on one area. We're more productive we saw conversations with certain buyers around product officers or.

Brett: Yes.

Brett: Okay.

Brett: Yes.

Brett: Okay.

Brett: Hi.

Speaker Change: Buyers versus Iot and security they were more kind of differentiated.

Brett: Yeah.

Speaker Change: Differentiated conversations and so when we look out the next five years as we go from where we are now.

Brett: Got it.

Brett: Okay.

Brett: Yes.

Brett: Yeah.

Speaker Change: $2 $6 billion forever last year re accelerating growth building. This massive company, we're trying to build over time, we think the right way to do it is to have specialized sellers specialized marketers specialize demand generation.

Okay.

Brett: Right.

Brett: Okay.

Speaker Change: Speak to those value props those buyers were going to serve multiple buyers overtime, we're going to serve every buyer in the C suite ultimately identity touches everything and this is a good step in the right direction.

Brett: Alright.

Brett: Okay.

Speaker Change: I would also add one of the things that we've done in terms of taking the field and putting them either on Oct. Terra zero is putting them in places that they're comfortable right, where they have the scale they've got the specialism already and so that's why we're we're excited about this because we look at the results like you just saw in Q4 record Osteo bookings, let's put a lot of those people on the ask.

Brett: Okay.

Brett: Yeah.

Brett: Yes.

Brett: Okay.

Brett: Hi.

Brett: Okay.

Brett: Sure.

Yeah.

Zero side of the house.

Brett: Okay.

Speaker Change: And see how well they can do with all these great new products that are coming in.

Brett: Okay.

Speaker Change: Thank you.

Brett: Okay.

Speaker Change: Next up we have Adam Borg from Stifel.

Brett: Okay.

Speaker Change: Awesome and.

Brett: Sure.

Speaker Change: Thanks, so much for taking the question.

Brett: Okay.

Speaker Change: Part of Brett. So obviously like you said really strong quarter here.

Brett: Yeah.

Brett: Okay.

Speaker Change: Look to be broad based and is there any geography or vertical that stood out and maybe as you think about kind of the setup into fiscal 'twenty six versus 25 lead qualitatively can you talk about the size of the pipeline the quality of pipeline entering this year relative to last thanks, so much.

Brett: Yes.

Brett: Okay.

Brett: Thanks, Brian.

Brett: Yeah.

Brett: Okay.

Speaker Change: I think the strongest geography was North America.

Brett: Okay.

Brett: Right.

Speaker Change: Like you said strength across the board.

Brett: Okay.

Speaker Change: But in terms of like been exceeding expectations and really blowing out their plan.

Brett: Okay.

Brett: Yes.

Brett: Okay.

Speaker Change: America was top of the list there.

Brett: Good morning.

Speaker Change: I think long term a big growth opportunity for us as we've talked about orders international it's still right around hovering right around $20 20 ish percent of our total revenue and over time that needs to be higher as we drive broad based expansion around the globe problem is North America won't slow down so we got to figure out how to do.

Brett: Uh huh.

Brett: Alright.

Brett: Okay.

Brett: [laughter].

Brett: Yeah.

Brett: Okay.

Brett: Uh huh.

Brett: Right.

Brett: Yes.

Brett: Yeah.

Speaker Change: <unk> the same time.

Brett: Yes.

Speaker Change: I would say EMEA EMEA also had a really good quarter public sector had a really good quarter I mean, Adam it was a really strong quarter across the board I don't think.

Brett: Yeah.

Yes.

Brett: Okay.

Speaker Change: We could find a an area of weakness frankly, new business up sell upsell and renewal cross sell everything really went well the team executed.

Brett: One by a pipeline entering this year relative to last thanks, so much.

Brett: I think the strongest geography was North America.

Speaker Change: Really quite well.

Brett: Like you said strength across the board.

Speaker Change: We're proud of the effort.

Speaker Change: Great and maybe just comment just on the quality of the pipeline entering this year versus last size or anything you can comment there, yes, we're comfortable with the pipeline.

Brett: But in terms of like been exceeding expectations and really blowing out their plan North America was top of the list there.

Speaker Change: Just on the guidance, we gave here you guys today and so we're comfortable with where we're at.

Brett: I think long term a big growth opportunity for us as we've talked about a lot is international is still right around hovering right around 20%, 25% of our total revenue.

Speaker Change: Excited about executing in FY 'twenty six.

Speaker Change: Thanks again.

Brett: Over time that needs to be higher as we drive broad based expansion around the globe problem as North America will slow down so we've got to figure out how to.

Speaker Change: Yeah, Thanks, Steph, Jonathan Ho at William Blair.

Jonathan Ho: Let me Echo my congratulations as well on what appears to be a good inflection in the business. You can you help us understand the opportunity for a genetic AI and maybe how AI can play a role in the increasing number of identity is out there and particularly how okta potentially benefits from that thank you.

Duval: Duval from Samsung.

Speaker Change: Yes, I would say EMEA EMEA also had a really good quarter public sector had a really good quarter I mean, Adam it was a really strong quarter across the board I don't think.

Speaker Change: If we could find an area of weakness frankly, I mean, new business upsell of solid renewal cross sell everything really went well the team executed.

Speaker Change: Yes, Jonathan the I'll focus on AI is a pretty big topic.

Speaker Change: Really quite well.

Speaker Change: Im proud of the effort.

Speaker Change: And maybe just comment just on the quality of the pipeline entering this year versus last sizes anything you'd comment there yeah, yeah, we're comfortable with the pipeline based on the guidance. We gave here you guys today I'm sure we're comfortable with where we're at.

Speaker Change: And I know, there's a lot of people out there in the world trying to give everyone broad based lessons about it so I'll spare you that and I'll focus on the <unk>.

Speaker Change: They are.

Speaker Change: And that's probably the most in the medium term, that's probably the most applicable to our business and I think the way to think about it as an important challenge of Nigerian security for a long time has been machines.

Speaker Change: Cited about executing in FY 'twenty six.

Speaker Change: Nice quarter. Thanks again.

Jonathan Ho: Yeah, Thanks, Jeff Jonathan Ho at William Blair.

Jonathan Ho: Let me Echo my congratulations as well on what appears to be a good reflection in the business.

Speaker Change: Or another way to call them a service accounts. So you have all these systems and yellow is networks and you have all this infrastructure and there's people that logging into it and we have ways to manage that and have biometric authentication and we have single sign on systems and then there's machines are logging into that stuff.

Speaker Change: Help us understand the opportunity for <unk>, AI and maybe how AI.

Speaker Change: All in the increasing number of identity is out there and particularly how okta essentially benefits from that thank you.

Speaker Change: If you look at our <unk>.

Jonathan Ho: Yes, Jonathan.

Speaker Change: Server, maybe probably 99, 9% of the connections that server are probably other machines and so this challenge of machine identity has been with us for a long time, there's been different strategies on how to manage it in a bit different approaches different protocols, we've gone through different waves in the industry. We had firewall based where we've tried to lock everything we had no.

Jonathan Ho: I'll focus on AI is a pretty big topic.

Todd Mckinnon: Let's go to Gray Powell at BTIG. All right, great. Thank you very much for taking the question. And congratulations on the good results. So I thought the $100 million ACB stat on OIG was a good number, really helpful. You called out the $300 million on lifecycle management workflows. So I'm curious, if those customers were to upgrade to OIG, can you give us a ballpark sense as to what the uplift would be? And then just how should we think about the growth of your governance products, you know, on a combined basis over the next year versus the rest of the business?

Jonathan Ho: And I know, there's a lot of people out there in the world trying to give everyone broad based lessons about it so I'll start that and I'll focus on the <unk> part of that.

Jonathan Ho: And that's probably the most in the medium term, that's probably the most applicable to our business and I think the way to think about it is.

Speaker Change: Lateral movement datacenter technologies, where you tried to control machine account access the inside the data center in the fabric of the network, we've had PKI, which 20 years ago 15 years ago. It was the way we're going to get every machine a public certificate and we're going to manage that on a certificate authority that kind of never really took off except in some narrow cases.

Jonathan Ho: Important challenge of Nigerian security for a long time has been machines.

Jonathan Ho: Or another way to call them a service accounts. So you have all the systems in yellow is networks and you have all this infrastructure and there's people that log into it and we have ways to manage that and have biometric authentication and we have single sign on systems and then there's machines are logging into that stuff.

Speaker Change: Now here, we are today with this the Egencia Revolution is real and the power of AI and the power of these language models.

Todd Mckinnon: Yeah, I think the way to think about it is, we've talked about this consistently now for a while, that when they upgrade to OIG, it can be a 30% to 40% plus increase in the ACB for that customer. So if you have nothing and you buy OIG lifecycle and workflows, it can be north of 40%. If you have workflows or life cycles, maybe it's just in the 30% range. But I think when you look at the book of business and workforce identity, the opportunity is to upgrade all of those customers to include OIG. So that's how big it is.

Jonathan Ho: If you look at our.

Jonathan Ho: Our server, maybe you know probably 99, 9% of the connection to that server probably other machines and so this challenge of machine identity has been with us for a long time, there's been different strategies on how to manage your edge is a bit different approaches different protocols, we've gone through different waves in the industry. We had firewall based where we tried to lock everything we had.

Speaker Change: The interaction the interaction modalities that you can have these systems. These machines doing things on your behalf.

Speaker Change: And what they can do and how they can infer next actions et cetera et cetera, you all know its really real but the way to think about it from an October specter of it is like machine identity on steroids turbocharged to like two orders of magnitude higher so that's a really exciting for us because what do we do.

Jonathan Ho: No lateral movement datacenter technologies, where you tried to control machine account access the inside the data center in the fabric of the network without PKI, which 20 years ago 15 years ago was the way we're going to get every machine public certificate and we're going to manage that on our certificate authority that kind of never really took off except in some narrow cases.

Speaker Change: A good part of our business is actually logging in machines right now at zero has the machine to machine tokens, where people if they build some kind of web app services. Other machines that can use at zero for the login for that Okta has similar capabilities and now you have not only that basic authentication challenge, but you have the.

Todd Mckinnon: It's quite significant, quite a lot of run rate, a run room above the $100 million directly for OIG and the $400 million total you just talked about.

Todd Mckinnon: And if you think about one of the reasons why we are further specializing the field to your question about maybe going forward, Gray, is to be able to get in there and deeper into accounts and be able to do more of these upsells that Todd was just talking about, right? Whether you started the basic package and move all the way up or you already got a little bit of the more advanced capabilities, the idea here is to allow our reps to go in and be able to sell some of these more advanced capabilities because that's really a big opportunity for our customers to solve as many use cases as possible.

Jonathan Ho: Now here, we are today with this the Agencia Revolution is real and the power of AI and the power of these language models. The interaction the interaction modalities that you can have with these systems.

Speaker Change: All of these applications as you get two orders of magnitude more things logging in you have to really worried about the worry about the fine grain authorization into your services. So if youre in an enterprise and you're building a system that is going to be an API that the agents talk too by the way that isn't under that is a misunderstood thing or not.

Jonathan Ho: Machines doing things on your behalf.

Jonathan Ho: What they can do and how they can and for our next actions et cetera et cetera, you all know its really real but the way to think about it from an okta perspective. It is like machine identity on steroids turbocharged select two orders of magnitude higher so that's a really exciting for us because what do we do good.

Unknown Executive: Understood. Okay. Thank you.

Speaker Change: Understood. Thanks, do you want to get a gentex AI in your enterprise, Yes, one solution as you can do everything and Salesforce or you can do everything in service now, but thats pretty impractical for most organizations. So what theyre doing is theyre building, an AI wrapper around a bunch of stuff and now once they get that I'm, sorry on API wrapper around a bunch of stuff and once they get that API they need a system.

Saket Kalia: Okay, let's go to Saket Kalia at Barclays. Okay, great. Hey, guys, thanks for taking my question here and echo my congrats to the team.

Jonathan Ho: A good part of our business is actually logging in machines right now zero has the machine to machine tokens, where people if they build some kind of web app services. Other machines that can use of zero for the log into that.

Saket Kalia: Todd, maybe for you, I was wondering if you could dig into the workforce identity suites that you talked about at launch week. And maybe the question is, what are some of the suites that we're introducing? And how do you make that pricing packaging enticing to a customer that wants to continue to consolidate identity? But what you look at now is just if you buy those things all a cart, there's a lot of them. And it's, you know, universal directory, single sign on events, single sign on multifactor events, it's a little bit complicated to buy. And so we took a comprehensive look at it, we said, what are the outcomes customers want to have, whether they want to just get started the workforce starter suite, and then there's the professional suite, and then there's the enterprise suite, basically good, better, best, meaning the, if you want a full identity fabric to cover all of your use cases, from privilege to governance, to threat protection, to posture management, that's the enterprise.

Jonathan Ho: Similar capabilities and now you have not only that basic authentication challenge, but you have the.

Like fine grain authorization.

Speaker Change: Asaro to make sure that it's easy to express the rules on who and what agents and what roles and Whats group can access which parts of the information inside that API. So you actually Jonathan can access these records, but John can access. These other records and Gabrielle can access to each other's you can do that with FDA and then when you put these.

Jonathan Ho: All of these applications as you get two orders of magnitude more things logging in you have to really worried about the worry about the fine grain authorization into your services. So if youre in an enterprise and you're building a system that is going to be an API that the agents talk too by the way that isn't under that is a misunderstood thing or not.

Speaker Change: In front of all your systems, you have a nice fine grain authorization model. So now when you start building your agents that talk to these Apis those agents are only seeing what they can see because you don't want to open the whole world to those agents because as that thing goes awry or that thing gets hacked than all of your data is exposed versus exactly what the agents and see some at least privilege it's very important.

Jonathan Ho: Understood. Thanks, do you want to get a djindjic AI in your enterprise, Yes, one solution as you can do everything in Salesforce you can do everything in service now, but thats pretty impractical for most organizations. So what theyre doing is theyre building, an AI wrapper around a bunch of stuff and now once they get that I'm, sorry on API wrapper around a bunch of stuff once they get that API.

Speaker Change: On the agent side.

Speaker Change: The equivalent of a lot of these deployments have like passwords hardcoded in the agent. So that agent gets compromised. It's the equivalent of your monitor having a bunch of stickiness on it with your passwords before single sign on.

Speaker Change: I need a system like fine grain authorization.

Speaker Change: From a zero to make sure that it's easy to express the rules on who and what agents and what roles are much group can access which parts of the information inside that API. So you actually Jonathan can access these records, but John can access. These other records Gabrielle connections together. So you can do that with FDA and then when you put these.

Speaker Change: No ostrich Nai gives you a protocol and a way to do that securely. So you can store. These tokens and have these tokens that are secured and then if that agent needs a pop out and get some approval from the user.

<unk> supports that so you can get a step up or step up biometric authentication for unusual to say, hey, I want to check jonathan's fingerprint to make sure before I booked this trip where I spend this money, it's really Jonathan so those three parts of what offer Gen. AI is and we're Super Super excited about it we have a waitlist over 200, plus fortune 100.

Speaker Change: <unk> is in front of all your systems you have a nice find great authorization model. So now when you start building your agents that talk to these API as those agents are only seeing what they can see because you don't want to open the whole world of those agents because as that thing goes awry or that thing gets hacked and all of your data is exposed versus exactly what the agencies at least privilege that's very important.

Todd Mckinnon: And then you know, if you want to do that, but without the some of the more advanced capability, more advanced modules, I talked about you do the enterprise, and then the starter is just the basic. So it's just simplicity, and clarifying the little bit making the buying process simpler for our customers. Makes sense. Thank you.

Speaker Change: <unk> and startups are on that thing they want this product and it's going into early access. This month. So we're really watching it closely to see how well it can do.

Speaker Change: Now on the agent side.

Speaker Change: The equivalent of a lot of these deployments has like passwords hard coded in the agent so that Aegean gets compromised. It's the equivalent of your monitor having a bunch of sticky notes on it with your password before single sign on.

Todd Mckinnon: And next up we have Shaul Yall at TD Collins. Thank you. Good afternoon, Chance. Congrats on the quarter and outlook. Thanks for the color on OIG. Can you maybe outline for us, maybe in broad strokes, that the profile of OIG customers, are these new logos existing customers? Are they more high-end enterprise or SMB driven? Are they mostly displacements or greenfields? Any color will be greatly appreciated. Thank you. Yeah, absolutely. So I think It's, um... The majority of the vast majority of OIG customers are upsells. They have access management and they add OIG. It's not 100 percent, but it's close to 100 percent.

Speaker Change: Thank you.

Speaker Change: Alright, and next up is <unk> Kidron Oppenheimer.

Kidron Oppenheimer: Hey, guys again, congrats on a great quarter a couple for me.

Speaker Change: So Oscar Genii gives you a protocol and a way to do that securely. So you can store. These tokens and have these tokens that are secured and then if that agent into pop out and get some approval from the user.

Speaker Change: Brett on the CRP Oh, you, Dave you gave guidance for the first quarter, but not for the fiscal year.

To a previous question you said, you're this is the beginning of the year, so you're a little bit conservative on the CRP also I guess, we should assume it only accelerates from here till the end of the fiscal year in growth help me get some color on that and then for you Todd do you didn't talk about Pam and the progress that you've had with that and how much that's contributing to your business.

Speaker Change: <unk> supports that so you can get a step up or step up biometric authentication from user to say, hey, I want to check jonathan's fingerprint to make sure before I booked this trip I spend this money, it's really Jonathan so those three parts of what off Virgin AI is and we're Super Super excited about it we have a waitlist over 200 plus fortune one.

Speaker Change: Maybe you can share some data points on progress there. Thank you sure.

Speaker Change: <unk> and startups are on that thing they want this product and it's going into early access. This month. So we're really watching it closely to see how well it can do.

Speaker Change: I'll just tell you. It's a quick one we only guide one at a time when corridor time, we've never done a year out so let us get through Q1, and then we will give you a guide for Q2 and go from there sounds good.

Todd Mckinnon: There are a couple of cases of new lands with OIG. But in both those cases, they the customers went with the full access management suite pretty quickly after.

Speaker Change: Thank you.

Alright, and next up is <unk> Kidron Oppenheimer.

Speaker Change: Yes, Pam is doing great I mentioned, the new products, the total new products or 20% of the bookings in the corner, which is great.

Speaker Change: Yes.

Todd Mckinnon: So, yeah, you can almost think of it as what my main point of the answer, which is I think we're moving to this world where this is a suite. I talked about the suites in the previous answer. And the way customers are thinking about it is is I think this idea that you're going to get governance from one vendor and privilege from another and protection from another is really antiquated. And we're moving to this world where there's one identity platform that can cover all these use cases and try to increase your security outcomes by having it all stitched together and take out point products.

Speaker Change: Hey, guys again, congrats on a great quarter a couple for me.

Speaker Change: Brett on the CRP Oh, you, Dave you gave guidance for the first quarter, but not for the fiscal year.

Speaker Change: The standout there I think in terms of size and maturity is okta identity governance, I mentioned that over 1300 customers a $100 million of just <unk> bookings when you add in the other lifecycle and workflow, which is really what you would include if you kind of looked at all the parts of our governance of our businesses over $400 million in bookings, which is Gregg.

Speaker Change: To a previous question you said you were at the beginning of the year, so you're a little bit conservative on the CRP also I guess, we should assume it only accelerates from here till the end of the fiscal year in Grove help me get some color on that.

Speaker Change: For you Todd do you didn't talk about Pam and the progress that you've had with that how.

Speaker Change: <unk> not at scale, yet, but it's off to a really good start in the quarter, we signed a deal with a really brand name financial services company for Global 2000 company that bought those existing us okta customer upgraded in the quarter to not only the access management product out before but they added identity security posture management HR.

Speaker Change: How much.

Todd Mckinnon: That's that's where we're going.

Speaker Change: Okay.

Todd Mckinnon: And so I think when we think about innovating on the product, the product has to be, of course, more. It has to be better than the competitors. It has to be better than SailPoint. It has to be better than Savion. It has to be better than the other small. There's a bunch of little startups out there doing stuff here. It has to be better than all those.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Sure.

Yes.

Oh, yes.

Speaker Change: Any type of protection with Okta, and okta privilege access so they added those three products and an increase the air on that account.

Speaker Change: Yeah, Pam is doing great.

Todd Mckinnon: But then it really has to be great integrating with the rest of our ability. So you need to be able to have governance workflows on the credentials you involved in your in the PAM product. It has to have governance workflows consistently across business applications and servers and any kind of resource you want to control through Okta. Your identity security posture management has to have universal visibility and tell you alerts about human identities that might be compromised or not set up correctly across any system, any identity provider, but also has to give you notifications and updated constantly about non-human identities in a modern way.

Speaker Change: The new products, the total new products or 20% of the bookings in the quarter, which is great.

Speaker Change: North of 30% so that was a pretty significant upsell on the stories like this are on and on and I think that product okta privilege access is.

Speaker Change: The standout there.

Speaker Change: [noise] [noise].

Speaker Change: It's getting really good and really mature and we're adding more capabilities. We've got a great engineering team moving quickly.

Speaker Change: It's really a modern product its integrated great SaaS applications. It's.

Speaker Change: Kind of a rethinking of how the privilege access management market is and I think in the next few years as we have these conversations more I think what youre going to hear more and more as it's just not it's just part of the whole suite and you buy it as part of because you want it with your access management and I think a lot of the vendors in our space agree with us like they actually the vision.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Alright.

Speaker Change: Okay.

Todd Mckinnon: But then you can then put those in a modern protocol and both those credentials with with our privilege access products.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Todd Mckinnon: So that's that's the idea. I said before, and we saw the trend continue. I've been I didn't think that I didn't think that people were ever going to take out a governance system they had installed. I thought this was like a bunch of customers didn't have one. And that would be the opportunity here. I've been surprised by the amount of takeouts still not massive. There's a lot of greenfield out of here and we're having a lot of success there. But there are more takeouts than you think, especially if you include the companies that didn't really get that implemented with.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: This is all going to be one thing, yes, it can be buying separate governance and separate Pam separate posture management, you're going to buy an identity platform and we're in great position to deliver that if you look around if you want an independent neutral at any company Theres no. One else has the pieces. We have no. One has privileged access management no one's at near our scale no one has that.

Speaker Change: Gotcha.

Speaker Change: Okay.

Speaker Change: Hum.

Okay.

Speaker Change: Alright.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: [laughter].

Speaker Change: [noise].

Speaker Change: The pure SaaS heritage and can do these integrations and doesn't have to manage a complex combination of customers that are kind of somewhat upgrading of their SaaS solution, but not really in the big customers don't want to do it and they are kind of managing multiple things. We don't have those problems and so this market is ours to take and we haven't we have a lead.

Todd Mckinnon: That's the secret about some of these governance things is that that they were software. So they were sold a big license and they never got it implemented. And that was kind of like the vendor was off doing something else now.

Speaker Change: Okay.

Todd Mckinnon: But in the fast world, you really have to make them successful. And that's how we built our product to make sure that they can be successful. You see, we see it in the data. Like we should release some of this data next report. Maybe that the time to value and the how much usage our customers get out of our governance product very quickly is best in the industry.

Our scale our operating hours.

Speaker Change: Okay.

Jonathan Ho: You have to combine them like two or three of the other companies and independent on a day to get close to the scale, we have and we can bring that all to bear with our leading customers and are great engineering team to keep innovating and we're going to see results like we just saw I think Jonathan you used the word before.

Speaker Change: Because you want with your access management and I think a lot of the vendors in our space agree with us like they actually the vision that this is all going to be one thing, yes. It can be buying separate governance and separate Pam separate posture management, you're going to buy an identity platform.

Speaker Change: Alright.

Speaker Change: Great.

Todd Mckinnon: Yeah, I would just add there are there are in addition to what Todd was just saying that there are side by side implementations, because that was part of your question. And we're really excited about those for a lot of reasons, because we can what Todd was just talking about demonstrate value to the customer, and earn the right for future flows or future opportunities or the right to take out that other one. And if you remember what made us big in the beginning was we did that with access management. That was our play. We never went in whole hog and took everything out.

Jonathan Ho: On the previous question about inflection I really think this is an inflection.

Speaker Change: [laughter].

Jonathan Ho: And then I'm really excited we have we have work to do to back it up and keep going but I'm really excited about what the future brings for okta.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Thank you just one point to clarify when you were saying $100 million and $400 million annualized contract value. So that total book of business. Okay.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Our next question.

Speaker Change: Now bookings you said bookings so she'll make sure on the same pitch.

Speaker Change: No. That's okay. So I'll make sure you got the facts right, they're huge businesses, they're massive and we're really proud of where they've gotten to you, but we've got a lot of opportunity as we move forward.

Yes.

Speaker Change: Okay.

Todd Mckinnon: It was go demonstrate value to the customer and earn the right for the next thing. And so we're running a very similar play with governance, and just the sweet strategy that we're running now, which is obviously showing some some traction with these numbers we just produced.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Sounds good thank you.

Speaker Change: Thanks Lisa.

Speaker Change: Let's go over to Serena consortia error.

Speaker Change: Okay.

Speaker Change: Awesome. Thanks for taking my question and congrats on a great execution.

Speaker Change: Okay.

[noise] [noise].

Speaker Change: Okay.

Unknown Executive: Thank you.

Speaker Change: Got a couple of them.

Josh Tilton: And next up, let's go to Josh Tilton at Wolf Research. Hey guys, thanks for sneaking me in here. And I will also echo my congrats on an awesome quarter.

Speaker Change: Okay.

Speaker Change: So are you capitalizing on cross selling which is great and I got to start out gradual maxing out the strong public sector performance, especially integrating but that's where I got to do it in the public sector. So as you know.

Josh Tilton: I think maybe a high level one for me. Naturally, I think we kind of gravitate to the workforce side of the business is having this clear agentic AI opportunity. But listen, you guys speak, it's pretty clear that you guys have opportunities across both workforce and SIO.

Speaker Change: Macro momentum keeps building right.

Right.

Speaker Change: Yeah.

Speaker Change: Curious in the face of a.

Speaker Change: If I grow uncertainties, how are you seeing the near term.

Speaker Change: Okay.

Okay.

Speaker Change: Yeah.

Speaker Change: Medium term long term outlook for not just your opportunity set but also the execution dynamics any specific initiative. That's helping you navigating these challenging macro dynamic right now I had a quick follow up.

Todd Mckinnon: I guess my question is, Todd, for you, like, which side of the business are you more excited about, from an agentic AI perspective? And maybe which side do you think we'll see a monetization opportunity sooner? And why? And you can't tell me you can't pick between your favorite kids. You always have a favorite, Josh. You always have a favorite.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: <unk> sector for US is includes federal Court U S Federal of course.

Speaker Change: Okay.

Yeah.

Speaker Change: U S commercial federal on DVD, but also includes all of the state and local.

Speaker Change: Yes.

Todd Mckinnon: I think the customer identity side is more exciting. I think it's a little bit of a, my answer is a little bit of a, I'm kind of like having both ways, because a lot of the, when you talk about developers building agentic AI, they're doing it inside of enterprises. So they're like the pattern I was talking about earlier, there's these teams and these companies that have been tasked with, we hear about this agent thing, make it work. And the first thing they have to do is, I've had many conversations with customers where they've been in these discussions and we did a POC, and now we're worried about doing it broadly.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: And so it's a big important vertical for us so the momentum across the entire vertical is very strong as we mentioned, but let's not lose side of the of the state governments in the big deals outside of federal that we closed last year and in Q4 in particular, so now focusing on the <unk>.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Thanks.

Speaker Change: U S. Federal specifically I think Theres a lot obviously a lot going on there with.

Speaker Change: Yes.

Speaker Change: Okay.

Alright.

Speaker Change: The new administration and thinking about the government structure and efficiency and so forth, which saw super important but big picture.

Speaker Change: Okay.

Speaker Change: Got it.

Speaker Change: Thanks.

Speaker Change: Okay.

Todd Mckinnon: But the task was basically hook everything up to our existing, hook these agents up to all of our existing systems. And before we could do that inside of enterprise, we had to get a good identity foundation in front of all these people. And so it's kind of like similar to you're building something, you're a developer, you're you're, you know, exposing APIs, you're doing fine grained authorization, you're taking another, you're using another platform, or you're building your own agentic AI platform, and you're having to talk to those https://www.youtube.com.uk So you're a developer, but it's kind of like a workforce use case, but I think people building these systems and getting the benefit from that is really exciting.

Speaker Change: I think the number of licenses that we sold into the federal government. So far is a good start, but it's relatively low, especially compared to the money. They are spending in the complexity and the risk they have with their legacy identity systems. The federal government has a lot of legacy identity systems. The agencies, we have been successful.

Speaker Change: Got it.

Speaker Change: All of them.

Speaker Change: Public sector for US is includes federal U S federal of course.

Speaker Change: U S commercial federal on DVD, but also includes all of the state and local.

Speaker Change: And so it's a big important vertical for us so the momentum.

Speaker Change: Because we've been able to consolidate and replace and really help modernize those applications and I think that when you talk about efficiency and effective government. This is where like perfect for that you don't have to manage servers. You don't have the implementations are much easier to time the time to value is much higher the amount of people. It takes to run our services and run our systems that a customer is.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Yes.

Speaker Change: Okay.

Sure.

Speaker Change: Okay.

Speaker Change: Far far far less than the legacy identity technologies would they have to upgrade it and maintain it in.

Speaker Change: Sure.

Speaker Change: And it's not because.

Speaker Change: Sure.

Speaker Change: Okay.

Keith Bachman: Okay, next up we have Keith Bachman at BMO. Hi. Thank you very much. I just also want to congratulate you specifically on the cash flow. It looked really impressive and the guide likewise. Keith, we were rule of 54 in Q4. And I just want to say thank you, Keith, for noticing. There were a bunch of questions that get to that, 42%. Yeah, yeah. Todd was mentioning his Salesforce got well paid. I assume that, you're going to look for some of that as well based on the cash flow. But moving on to the question, the net retention rate was 107 this quarter.

Speaker Change: It's because the legacy technology that surrounds us identity systems is it's hard to integrate too, but as those things get modernized in the federal government goes for more efficiency.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: That's right.

Speaker Change: Okay.

Speaker Change: We're going to have a big opportunity to help them do that.

Speaker Change: Okay.

And I think there's probably a little bit of uncertainty right now, especially in the first part of the year as things get sorted out, but I'm very confident that we're going to be.

Speaker Change: Hi.

Speaker Change: Okay.

Speaker Change: A big we're going to be very successful in the federal government in helping them modernize be more secure.

Speaker Change: Okay.

Speaker Change: No one wants a federal government is unsecured.

Speaker Change: Okay.

Speaker Change: Probably the only non partisan thing in Washington These days.

Speaker Change: Okay.

Speaker Change: And we can we can help them be more secure and that's why we're so excited about that opportunity.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Brett Tighe: And I know it's sort of a lagging indicator. But as we march through the year, how are you just thinking about it directly in terms of what's the puts and takes? And particularly, some of the things that you were talking about as it relates to governance and some of the upsell opportunities, it would seem to me that we're hearing that you're gaining more traction, so to speak, in governance, that that would be a source of upside tension as we progress through the year and you anniversary some of the headwinds. But just to talk a little bit about the net retention rate.

Okay, that's great Paul that BTG alright, great. Thank you very much for taking the question.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: And congratulations on the good results.

Speaker Change: Okay.

Speaker Change: So I thought, though 100 million ACB stat on OID was a good number really helpful. You called out in the 300 million on lifecycle management and workflows. So I'm.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Curious if those.

Speaker Change: And those customers were to upgrade to <unk> can you give us a ballpark sense as to what the uplift would be and then just how should we think about the growth of your governance products.

Speaker Change: We're going to be a.

Speaker Change: Big we're going to be very successful in the federal government in helping them modernize it'd be more secure.

Speaker Change: On a combined basis over the over the next year versus the rest of the business.

Brett Tighe: Yeah, thanks, Keith, for that question. So, as you know, we did expect it to go down into this range on the back of healthy gross retention. From here, for the balance FY26, what our model suggests is roughly in this range, maybe plus or minus a point in either direction really depends on new business versus upsell mix. So that's where we're seeing it for the balance of FY26. Okay.

Speaker Change: No one wants to federal government is unsecured.

Speaker Change: Probably the only nonpartisan thing in Washington These days.

Speaker Change: The way to think about it as we've talked about this consistently now for a while but when they upgrade to <unk>. It can be a 30 to 40 plus percent increase in the ACB for that customer. So if you have nothing and you buy LNG lifecycle and workflows that can be north of 40% have you have workflows.

Speaker Change: And we can we can help them be more secure and that's why we're so excited about that opportunity.

Speaker Change: Okay, Great I'll, let BTG.

Speaker Change: Great. Thank you very much for taking the question.

Speaker Change: Congratulations on the on the good results.

Speaker Change: So I thought the 100 million ACB stat on OID was a good number really helpful. You called out in the 300 million on lifecycle management and workflows. So I'm curious if those.

Unknown Executive: All right. Thank you very much.

Speaker Change: Our life cycles, maybe its just in the 30% range, but I think when you look at the book of business and workforce identity. The opportunity is to upgrade all of those customers to include LNG. So that's how big it is.

Roger Boyd: Let's go to Roger Boyd at UVS. Awesome. I'll echo my congrats as well.

Brett Tighe: Brett, just a quick one. You mentioned, I think, record sales productivity in the quarter. Just wondering how you're thinking about go-to-market capacity in the fiscal 26. And to what extent do you see an opportunity to invest behind some of that strength, especially as you think about kind of the sales specialization from here? Thanks. Yeah, we feel good about the capacity where it is today. We feel we're in a really good spot. We want to make sure we find that right balance between having enough capacity to grow as fast as possible, but also having a bunch of very productive reps.

Speaker Change: Those customers were to upgrade to <unk> can you give us a ballpark sense.

Speaker Change: It's quite significant and quite a lot of run rate of run room above the.

Speaker Change: The uplift would be and then just how should we think about the growth of your governance products on a combined basis over the over the next year versus.

Speaker Change: $100 million directly for LNG in the 400 total you just talked about and you think about one of the reasons why we are further specialize in the field to your question about maybe going forward Greg.

Speaker Change: The rest of the business, yes, I think that the way.

Todd Mckinnon: As to be able to get in there and deeper into accounts and be able to do more of these upsells that Todd was just talking about right. Whether you started the basic package and move all the way up or you already got a little bit of a more advanced capabilities. The idea here is to allow our reps to go in and be able to sell some of these more advanced capabilities because that's really.

Speaker Change: To think about it as we've talked about this consistently now for a while.

Speaker Change: When they upgrade to <unk>. It can be a 30 to 40 plus percent increase in the ACB for that customer. So if you have nothing.

Brett Tighe: We don't want to get too much in one direction or the other. We want to make sure the porridge is just right. So we feel good with where we are right now.

Speaker Change: By LNG lifecycle, and workflows that can be north of 40% and you have workflows or our lifecycle is maybe its just in the 30% range, but I think when you look at the book of business and workforce identity. The opportunity is to upgrade all of those customers to include LNG. So thats how big it is.

Rudy Kessinger: Okay, let's move on to Rudy Kessinger, D.A. Davidson. Hey, great. Thanks for taking my questions, guys.

A big opportunity for our customers to solve as many use cases as possible.

Speaker Change: Understood. Okay. Thank you.

Brett Tighe: On the sales productivity, could you just talk about it relative to, I guess, where you guys were at, you know, pre-DOS zero integration, like where you guys are at now, and what level of productivity gains are you baking into the fiscal 26 guide? And then, again, I might congratulate very, very strong on the corner here, the CRPO growth acceleration, et cetera. Just the strength you saw in the quarter, I know Q1's a smaller quarter, we're only a month into it, but have you seen that momentum continue thus far in Q1, or just where are you seeing a quarter to date?

Speaker Change: Yeah, let's go to cyclically at Barclays.

Speaker Change: Okay, Great Hey, guys. Thanks for taking my question here on Echo my congrats to the team.

Speaker Change: It's quite significant and quite a lot of run rate of run room above that.

Speaker Change: Todd maybe for you.

Speaker Change: $100 million directly for LNG in the 400 total you just talk about how you think about one of the reasons why we are further specialize in the field to your question about maybe going forward Greg.

Speaker Change: I was wondering if you could dig into the workforce identity suites that you talked about at launch week and maybe the question is what are some of the suites that we're introducing and how do you make that pricing packaging enticing to a customer that wants to continue to consolidate identity. The main part about it is it simpler.

Speaker Change: Would you be able to get in there and deeper into accounts and be able to do more of these upsells that Todd was just talking about right. Whether you started the basic package and move all the way up or you already got a little bit as more advanced capabilities. The idea here is to allow our reps to go in and be able to sell some of these more advanced capabilities because that's really.

Speaker Change: And Thats whats enticing its helps customers understand simply what they need to buy it and be successful in the.

Brett Tighe: Yeah, in terms of productivity, it was really good. I can't give you a compare back to those timeframes, but it was really good. We talked about multi-year high. Really pleased with how things came out. In terms of your question on Q1, look, I mean, like we talked about earlier, Q1s usually are seasonally lowest and the reason why is we're getting accounts in the right places, territories in the right places. We have our sales kickoff, so February doesn't typically offer too much for us in terms of information. And so we obviously got a long ways to go for the quarter and are excited about the quarter.

Speaker Change: History of this as we monetize innovation over the years by.

Speaker Change: A big opportunity for our customers to solve as many use cases as possible.

Speaker Change: Keeping the we basically sold customers.

Speaker Change: Understood. Okay. Thank you.

Speaker Change: The capabilities at the time and then as we added more capabilities, where Theres multifactor lifecycle management, we out of those as new Skus and new products and so and that was great because they would add more over time, but what you look at now is just if you buy those things all our card Theres a lot of them its universal directory single sign on advanced single sign on multifactor events.

Speaker Change: Yeah, that's kind of cyclically at Barclays.

Speaker Change: Okay, Great Hey, guys. Thanks for taking my question here on Echo my congrats to the team.

Speaker Change: Todd maybe for you.

Speaker Change: It's a little bit complicated to buy and so we took a comprehensive look at it. We said what are the outcomes customers want to have them, whether they want to just get started the workforce starter.

Brett Tighe: People are very excited at the kickoff. Yeah, that's a good point. I guess that's not nothing.

Speaker Change: <unk> part about it is it simpler.

Unknown Executive: Okay, I know we have a lot more hands raised.

Speaker Change: <unk> suite, and then Theres the professional suite and then Theres the enterprise suite, it's basically good better best meaning the.

Speaker Change: And Thats, what is enticing and it just helps customers understand simply what they need to buy it and be successful in the.

Unknown Executive: We're at the top of the hour, but let's try to take a few more here. We'll go to Kevin Mead from SBA and from Adelaide. Yeah, I mean, I'll take I'll take the first part of Todd, you can add you can add in how you see fit, which is, we had a lot of big deals, there wasn't any one single deal deal that was outsized relative to the rest, but we had a lot of big deals. That's why we gave you the stat of, you know, top 25 deals over $320 million in total contract value.

Speaker Change: History of initiatives, we monetize innovation over the years by.

Speaker Change: You want a full identity fabric to cover all of your use cases from privilege to governance to threat protection to posture management, that's the enterprise.

Speaker Change: Keeping the we basically sold customers.

Speaker Change: The capabilities at the time and then as we added more capabilities, where Theres multifactor lifecycle management, we added those new skus and new products and so and that was great because they would add more over time, but what you look at now is just if you buy those things all Ala Carte Theres a lot of them its universal directory single sign on advanced single sign on multifactor events.

Speaker Change: And then you know if you want to do that but without some of the more advanced capability more than Thats modules I talked about you do the enterprise and in the start or is just the basic so, let's just simplicity and clarifying.

Speaker Change: Little bit, making the buying process simpler for our customers.

Speaker Change: Makes sense. Thank you.

Speaker Change: It's a little bit complicated to buy and so we took a comprehensive look at it we said what are the outcomes customers what they want.

Speaker Change: And next up we have show you all at TV Cowen.

Speaker Change: Thank you good afternoon, gents, congrats on the quarter and outlook.

Speaker Change: They want to just get started workforce starter.

Thanks for the color on.

Speaker Change: Sweet and then there's the professional suite and then there's the enterprise suites basically good better best meaning the.

Speaker Change: <unk>.

Speaker Change: Can you may be a client for us maybe in broad strokes that the profile of OLED customers or are these new logos existing customers are they more high end enterprise or SMB driven.

Speaker Change: You want a full identity fabric to cover all of your use cases from privilege to governance the threat protection to Usher management, that's the enterprise.

Todd Mckinnon: So is it goes back to really the the all the work we put in throughout FY 25, whether it be new product introduction, which we've talked about enhancing partners, further specializing the field, doubling down on security, these are all things that helped us build toward this Q4 that was so successful. Yeah, just from a company like a culture and a leadership perspective. We are here to build a large growing important company. So we expect more and more quarters like this. I think you know, this was a blowout. So it's tough to repeat this exactly. But this is the expectation we have.

Speaker Change: Are they mostly displacements or greenfield any any color would be greatly appreciated. Thank you yeah, absolutely. So I think the.

Speaker Change: And then you know if you want to do that but without some of the more advanced capability more than Thats modules I talked about you do the enterprise and then the start or is just the basic so, let's just simplicity and clarifying.

Speaker Change: It's.

Speaker Change: Yeah.

Speaker Change: The majority of the vast majority of <unk> customers are upsells.

Speaker Change: And little bit, making the buying process simpler for our customers.

Speaker Change: They have access management and they add LNG, it's not 100%, but it's close to 100%.

Speaker Change: Makes sense. Thank you.

Speaker Change: And next up we have so we all at T D Cohen.

Speaker Change: There are a couple of cases of new lands with OID, but in both of those cases, the customers went with the full access management suite pretty quickly after that.

Speaker Change: Thank you good afternoon, gents, congrats on the quarter and outlook.

Speaker Change: Thanks for the color on OAG.

Speaker Change: So yes, you can almost think of it as one of my main point on the answer which is.

Brett Tighe: We're not here to build a slow growing company. We're here to build a company that's changing the industry and going to really solve this problem of identity security and help companies achieve their objectives and free them to use any technology. So that's what we're, that's what we're obsessed with doing. And that's what we show up every day working hard trying to do.

Speaker Change: Can you maybe a client for us maybe in broad strokes the profile of OLED customers or are these new logos and existing customers are they more high end enterprise or SMB driven.

Speaker Change: I think we're moving in this world where this is a sweep.

Speaker Change: Talked about the suites in the previous answer in the way customers are thinking about it is is I think this idea that youre going to get governance from one vendor and privilege from another.

Speaker Change: Are they mostly displacements or greenfield any any color would be greatly appreciated. Thank you.

Speaker Change: Threat protection from another is really antiquated and we're moving to this world where there's one identity platform that can cover all of these use cases and try to increase your security outcomes by having it all fits together and take out point products.

Unknown Executive: Thank you guys.

Speaker Change: So I think.

Speaker Change: <unk>.

Speaker Change: It's.

Unknown Executive: Thanks for being here.

Unknown Attendee: I am maybe just one, you know, what are you seeing in terms of like the ratio of like non human AI agents to employees? And I asked, I guess I want to understand like the pricing model. And perhaps, you know, when you're talking to your customers, if they're willing to pay for it's one to five or one to 40. Just curious to know, you know, how do you price that? And when do you think it will be accommodated? And that's not quite there yet, of course. Platforms that are coming out with agent versions have this to some degree, but there isn't a common cross company cross enterprise Definition of an agent, which is an interesting opportunity for us.

Speaker Change: Yeah.

Speaker Change: The majority is the vast majority of <unk> customers are upheld.

Speaker Change: That's where we're going and so I think when we think about innovating on the product the product has to be of course more it has to be better than the competitors. It has to be better than sailpoint has to be better than savvy honest to be better than.

Speaker Change: They have access management and they had LNG, it's not 100%, but it's close to 100%.

Speaker Change: There are a couple of cases of new lands with OID, but in both of those cases, the customers went with the full access management suite pretty quickly after that.

Speaker Change: The other small theres, a bunch of little startups out there doing stuff or is it better than the others, but then it really has to be great integrating with the rest of our capabilities. So you need to be able to.

Speaker Change: So yes, you can almost think of it as well my main point of the answer which is.

Speaker Change: I think we're moving in this world where this as a suite.

Speaker Change: <unk> governance workflows on the credentials use vault and you're in the Pam product. It has to have governance workflows consistently across business applications and servers and any other kind of resource do you want to control her okta to your.

Speaker Change: So it protects you from another is really antiquated and we're moving to this world where there's 100 any platform that can cover all of these use cases and try to increase your security outcomes by having it all fits together and take out point products.

Speaker Change: Our identity security posture management has to have universal visibility and tell you alerts about human identities that might be compromised or not set up correctly across any system that any entity provider, but also has to give you notifications and updated constantly about nonhuman identities in a modern way that then you can then put those in a modern protocol and bought those credentials.

Speaker Change: <unk> with <unk>.

Speaker Change: With our privilege access product. So that's that's the idea.

The other small theres a bunch of those startups out there doing stuff or is it better than the others, but then it really has to be great integrating with the rest of our capabilities. So you need to be able to.

Todd Mckinnon: Actually, we do know in the business today There's a there's a significant amount of there's significantly more Machine-to-machine interactions forget about agents. There's a lot of API calls and a lot of tokens and a lot of API access management that's done on the office zero platform and the octa platform And like I said, I think that's the the machine part of that with agents could increase by two orders of magnitude If the potential is that high Thank you Go to Matt Hedberg at RBC. Great. Thanks for the question. You know, sitting back, you're kind of seeing all the opportunities that you guys have here.

Speaker Change: I've said before and we saw that trend continue.

Speaker Change: Ive been I didn't think that I didn't think that people were ever going to take out our governance system. They had installed I thought this was like a bunch of customers didn't have one and that would be the opportunity here I've been surprised by the amount of takeouts still not massive theres a lot of greenfield out of here and we're having a lot of success there, but there are more Takeouts then you would think especially if you.

Speaker Change: <unk> governance workflows on the credentials you fault and Youre in the Pam products. It has to have governance workflows consistently across business applications and servers and any other kind of resource you aren't controls rocker Youre identity security posture management has to have universal visibility and tell you alerts about humans.

Speaker Change: Include the companies that didn't really get that implemented with that's the secret about some of these governance things is that the.

Speaker Change: The entities that might be compromised not set up correctly across any system that any entity provider, but also has to give you notifications and updated constantly about nonhuman identities in a modern way, but then you can then put those in a modern protocol and both of those credentials with our.

Speaker Change: There are software so they were sold a big license and they never got implemented.

Todd Mckinnon: And the questions that I'm getting from my inbox is like, there's a lot that we can think about in terms of fiscal 26 and beyond. And again, it's kind of getting back to the question of picking your favorite child. But, you know, between like all of the cattle that you've got going here, we're sitting here 12 months from now, large enterprise, large enterprise success. Okay. Yeah, yeah. Yeah. Sorry. I didn't mean to cut you off. But I think the answer is so clear in my mind. Well, as I work on these big transformers, big deals with these customers, it's just different than it was a year ago, two years ago, you can see the products are there, you can see the buyers are ready, you can see the partners.

Speaker Change: And that was kind of like the vendor was off doing something else now but.

Speaker Change: The SaaS World, you really have to make them successful and that's how we built our products to make sure that they can be successful you see we see it in the data like we should release some of those data next report maybe that the time to value and the <unk>.

Speaker Change: With our privilege access products. So that's that's the idea.

Speaker Change: I've said before and we saw that trend continue I've been I didn't think that I didn't think that people were ever going to take out our governance system. They had installed I thought this was like a bunch of customers didn't have one and that will be the opportunity here I've been surprised by the amount of takeouts still not massive but there's a lot of greenfield out here and were out.

Speaker Change: How much usage that our customers get out of our governance product very quickly as best in industry.

Speaker Change: Yes, I would just add there are there are in addition to what Todd was just saying that there are side by side implementations because that was part of your question.

Speaker Change: We're really excited about those for a lot of reasons, because we can what Todd was just talking to demonstrate value to the customer and earn the right for future flows or future opportunities or the right to take out that other one and if you remember what made us.

Speaker Change: A lot of success there, but there are more Takeouts then you would think especially if you include the companies that didn't really get that implemented with that's the secret about some of these governance things is that.

Todd Mckinnon: I work on these big deals with these global systems integrators, and they're turning their whole practices to security and to modern identity, they're done with the whole, they're done with the whole, you know, we're going to install software to manage your identity, that's out. They need a cloud solution. And we're the only game in town, unless you want to, unless you want to go with Microsoft and just, just kind of wrap your entire company up in one company, which none of these large enterprises can do. I mentioned this global technology company, they have an E5 license.

Speaker Change: There were software so they were sold a big license and they never got implemented.

Speaker Change: Big in the beginning was we did that with access management, but that was our play we never went in whole hog and took everything out. It was go demonstrate value to the customer and earn the right for the next thing and so we're running a very similar play with governance and just the suite strategy that we're running now which is obviously showing some some traction with these numbers we just.

Speaker Change: And that was kind of like the vendor was off doing something else now but.

Speaker Change: In the SaaS World, you really have to make them successful and that's how we built our products to make sure that they can be successful you see we see it in the data like we should release. Some of this data next report may be that the time to value and the.

Todd Mckinnon: Microsoft has licensed every identity product they have. It didn't matter. It didn't matter because they're not going to wind their whole future around Microsoft. They have three infrastructure clouds. They have, you know, these companies, the complexity and the expanse of what their identity challenges are as far as what one company that's not focused on it can do. And we're the only game in town where the cloud version, we have all the parts of the suite. So, yeah, when we're talking in a year, if I'm if I'm off to something and not large enterprise, then you can call me on it.

Speaker Change: How much usage as our customers get out of our governance product very quickly as best in the industry.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: And next up let's go to Josh Tilton at Wolfe Research.

Speaker Change: Yes, I would just add there are there are in addition to what Todd was just saying that there are side by side implementations because that was part of your question.

Josh Tilton: Hey, guys. Thanks for sneaking me in here and I will also echo my congrats on an awesome quarter.

Speaker Change: We're really excited about those for a lot of reasons, because we can but Todd was just talking to demonstrate value to the customer and earn the right for future flows or future opportunities or the right to take out that other one and if you remember what made us a big in the beginning was we did that with Axis management that was our play we never went in whole hog and took every.

Speaker Change: I think maybe a high level one for me.

Speaker Change: Naturally I think we kind of gravitate to the workhorse side of the business is having this clear agentic AI opportunity but.

Speaker Change: But listen you guys speak it's pretty clear that you guys have opportunities across both workforce and I am I guess my question is Todd for you like which side of the business are you more excited about.

Brett Tighe: Thanks, Bob. I would just add to that, Matt, in the sense of like, think about what we told you probably four or five quarters ago. There are four things we're going to work on security, new products, partners, further specializing. We're going to keep working on all those things because that's what that's what will drive what Todd just talked about. So it worked in Q4, we're going to get it right back in the broadcast, we're going to continue to do those things to capture the opportunities as fast as possible.

Speaker Change: Yeah. It was go demonstrate value to the customer and earn the right for the next thing and so we're running the very similar play with governance and just the suite strategy that we're running now which is obviously showing some some traction with these numbers we just produced.

Speaker Change: From an agent take AI perspective, and maybe which side do you think we'll see a monetization opportunity sooner and why and you can't tell me you can't pick between your favorite kids.

Speaker Change: Yeah, there's other favorite Josh yoga.

Speaker Change: I think the I think the customer identity side is more exciting.

Speaker Change: Thank you.

Speaker Change: And next up let's go to Josh Tilton at Wolfe Research.

Speaker Change: I think it's a little bit of a.

Unknown Executive: Thank you for watching! Most of your prepared remarks were actually about the workforce business but the disclosure you guys give around the ACV growth, it looks like actually customer agency was the most front, you know, leading Fortune with ACV growth at 16%. So I guess just talk to us about, what are these things you're pointing out about the workforce but also about the customer businesses, actually what's really kind of the market share right now.

Speaker Change: My answer is a little bit of it.

Josh Tilton: Hey, guys. Thanks for sneaking me in here and I will also echo my congrats on an awesome quarter.

Speaker Change: I'm kind of like having both ways because a lot of the when you talked about developers building agenda guy either doing it inside of enterprises, so that like the pattern I was talking about earlier there.

Speaker Change: I think maybe a high level one for me.

Speaker Change: And that's really I think we kind of gravitate to the workforce side of the business is having this clear hey, Jensen AI opportunity.

Speaker Change: These teams in these companies that have been tasked with.

Speaker Change: We hear about this agent that can make it work and the first thing they have to do is.

Speaker Change: But listen you guys speak it's pretty clear that you guys have opportunities across both workforce and I am I guess my question is Todd for you, which side of the business are you more excited about from.

Speaker Change: Many conversations with customers, where they've been in these discussions that we want to we did a POC and now we're worried about doing it broadly, but the task was basically hook everything up to our existing cookies agents up to all of our existing systems and.

Speaker Change: From an H M think AI perspective, and maybe which side do you think we'll see a monetization opportunity sooner.

Speaker Change: And why and you can tell me you can pick between your favorite kids.

Speaker Change: And before we could do that inside of enterprise, we had a good half we had to get a good idea any foundation in front of all these things.

Speaker Change: Yeah, there's other favorite Josh yoga.

Unknown Executive: That's it for this week's Man Against Philosophy.

Speaker Change: I think the I think the customer identity side is more exciting.

Unknown Executive: We'll be back next time, back with another edition of the World Contemporary Journal. Now! We have a lot of quarter. I can only do so much. And we're going to close my business. So there's success on both sides. And I think, you know, it gives us a diversity in the business that, you know, is really powerful. It really gives us that seat at the table to help customers with these strategic problems. It gives us credibility to scale. I mean, we talk about the cash flow, and we're only 54, and we're under 700 million dollars of tax revenue in our share.

Speaker Change: And so it's kind of like similar to your building something youre developer you're.

Speaker Change: I think it's a little bit of a.

Speaker Change: My answer is no to that.

Speaker Change: Exposing API as Youre doing fine great authorization your.

Speaker Change: I'm kind of like having both ways because a lot of the when you talked about developers building ginger guy either doing it inside of their presence so that like the pattern I was talking about earlier there.

Speaker Change: Taking another you're using other platform are you building your own agenda gas platform and Youre, having to talk to those.

Speaker Change: Systems, and those Apis to do things on user's behalf.

Speaker Change: As these teams in these companies that have been tasked with.

Speaker Change: So youre developer, but it's kind of like a workforce use case, but I think people building these systems and.

Speaker Change: We hear about this agent that can make it work and the first thing they have to do is.

Speaker Change: Many conversations with customers, where they've been in these discussions and we want it we did a POC and now we're worried about doing it broadly, but the task was basically hook everything up to our existing turkeys agents up to all of our existing systems and.

Speaker Change: Getting the benefit from that is really exciting.

Speaker Change: Okay next up we have Keith Bachman of BMO.

Speaker Change: And before we could do that inside of enterprise, we had a good half to we had to get a good idea any foundation in front of all these things.

Keith Bachman: Hi, Thank you very much.

Speaker Change: Just also want to congratulate specifically on the cash flow it looks really impressive in the guide likewise.

Speaker Change: And so it's kind of like similar to your building something youre developer your exposure.

Speaker Change: If we were a rule of 54 in Q4.

Speaker Change: Exposing API as Youre doing fine great authorization your.

Speaker Change: So I just want to say thank you Keith for noticing you guys are.

Speaker Change: And are you using other platform are you building your own agenda gas platform and you're having to talk to those.

Speaker Change: We went through a bunch of questions to get to that 42%.

Speaker Change: Yeah.

Speaker Change: Systems and those API is to do things on user's behalf.

Speaker Change: Todd what Todd was missing a salesforce got well paid I assume that that Brett youre going to look for some of that as well based on the cash flow, but could move it onto the question. The net retention rate was one seven this quarter and I know, it's sort of a lagging indicator.

Speaker Change: So your developer of us kind of like workforce use case, but I think people building these systems and.

Speaker Change: Getting the benefit from that is really exciting.

Brett Tighe: And it's because of the scale. I mean, we've spent 16 years running this business that has amazingly loyal, happy customers. So it gives us the opportunity to provide, you know, do all the work we've done in security and do all the product invention at the same time, generating a lot of tax revenue, which is really important for our business.

Speaker Change: But as we March through the year. How are you just thinking about it directionally in terms of what the puts and takes and particularly some of the things that you were talking about as it relates to.

Speaker Change: Okay next up we have Keith Bachman of BMO.

Keith Bachman: Hi, Thank you very much.

Speaker Change: Just also wanted to congratulate you specifically on the cash flow looked a really impressive in the guide likewise.

Speaker Change: Governance, and some of the upsell opportunities it would seem to me that we're hearing that youre gaining more.

Unknown Executive: Thank you for joining us.

Unknown Executive: Great. Thanks for taking the questions, guys. And congrats on the quarter from our end as well. Two parties here. The first on the OIG. I just want to make sure we're running our numbers now on $100 million in ACV versus the 1300 customer count. If we're at call it about 75,000 per customer, does that Is that a fair assessment of what customers are paying you currently for OIG, or is that skewed by any of your power customers, like the big power users? No, I think that's a good average. That's a good average. Yeah, I mean, obviously, there's some big ones and some small ones, but it's a good average.

Keith Bachman: Doug.

Keith Bachman: We're a rule of 54 in Q4.

Speaker Change: More traction so to speak and governance, if that would be a source of upside tension as we progress through the year.

Keith Bachman: [laughter] pricing.

Keith Bachman: I just wanted to say thank you Keith for noticing.

Speaker Change: And your anniversary some of the headwinds, but just to talk a little bit about the net retention rate. Yes. Thanks, Keith for that question. So as you know we did expect it to go down to this range, yes on the back of healthy gross retention.

Keith Bachman: We went through a bunch of questions to get to that 42%.

Todd: Yeah Todd.

Keith Bachman: Todd what Todd was missing a salesforce got well paid I assume.

Speaker Change: Brett Youre going to look for some of that as well based on the cash flow, but moving on to the question. The net retention rate was one seven this quarter and I know, it's sort of a lagging indicator.

Speaker Change: From here for the balance of FY 'twenty six what our model suggests is roughly in this range, maybe plus or minus a point.

Speaker Change: In either direction really depends on new business versus upsell mix.

Unknown Executive: And then the second piece is the AWS stat that we got today. Solid growth. If I'm running the numbers on my side, is that down north of 10% of Okta's ACV? Have we breached that threshold yet? It's a growing percentage. It is definitely, as you saw the 80% revenue growth in FY25, I mean, it's definitely getting big now, which is one of the reasons why we're so excited about it, why we're one of the partners of the year, we were the partner of the year. So we're, yeah, we're excited about that opportunity, as part of the four that we've talked about, right?

Speaker Change: So that's where we're seeing it for the balance of FY 'twenty six.

Speaker Change: Okay, Alright, thank you very much.

Speaker Change: Let's go to Roger Boy that UBS.

Governance, and some of the upsell opportunities it would seem to me that we're hearing that you are gaining more.

Speaker Change: Awesome I'll Echo my congrats as well just a quick one you mentioned I think record sales productivity in the quarter I'm, just wondering how youre thinking about go to market capacity into fiscal 'twenty, six what and to what extent do you see an opportunity to invest behind some of that strength, especially as you think about kind of the sales specialization from here. Thanks, Yeah, we feel good about the.

Speaker Change: More traction so to speak and governance, if that would be a source of upside tension as we progress through the year.

Keith Bachman: And your anniversary some of the headwinds, but just to talk a little bit about the net retention rate. Yes. Thanks, Keith for that question. So as you know we did expect it to go down to this range, yes on the back of healthy gross retention.

Speaker Change: Where it is today and we feel that we're in a really good spot we want to make sure we find that right balance between having enough capacity. It grows as fast as possible, but also having a bunch of very productive reps, we don't want to get too much in one direction or the other we want to make sure. The porridge. It just right. So we feel good with where we are right now.

Unknown Executive: It's under the partnership umbrella that we talked about throughout Excellent.

Keith Bachman: From here for the balance of FY 'twenty six what our model suggests is roughly in this range, maybe plus or minus a point.

Fatima Boolani: Thank you guys. Yeah, let's go to Fatima Boolani at Citi. Thank you very much for screwing me in. Todd, I wanted to go back to something you mentioned with regards to launch week, where there's a dedicated Siam product now for the US public sector. So you gave us a lot of good reasons to appreciate why you won't, you won't be sort of victimized by you know, the doge efforts and mandates. And that's pretty compelling. Efficiency has no victim. Efficiency. And so just with regards to the opportunity for the customer identity centric solutions, consumers and I'm a big consumer of government services.

Keith Bachman: In either direction really depends on new business versus upsell mix.

Keith Bachman: So that's where we're seeing it for the balance of FY 'twenty six.

Rudy: Okay, let's move on to Rudy customers here at D. A Davidson hey, great. Thanks for taking my questions guys.

Keith Bachman: Okay, Alright, thank you very much.

Roger Boyd: Let's go to Roger Boyd at UBS.

Speaker Change: Sales productivity.

Speaker Change: Awesome I'll Echo Michael.

Speaker Change: Gratz swell, Brad just a quick one you mentioned I think record sales productivity during the quarter I'm, just wondering how youre thinking about go to market capacity into fiscal 'twenty six what to what extent do you see an opportunity to invest behind some of that strength, especially as you think about kind of the sales specialization from here. Thanks, Yeah, Yeah, we feel good about the capacity where it is today.

Speaker Change: Could you just talk about it relative to I guess, where you guys were at pre Dos zero integration like where you guys right now.

Speaker Change: And what level of productivity gains are you baking into fiscal 'twenty six Guy and then again I'll add my congrats on very very strong quarter here.

Speaker Change: Dr growth acceleration et cetera.

Todd Mckinnon: So what does that opportunity look like today between DIY and other commercial products? It's a huge market. And it's we've seen success in the business. We did the ACV growth rates. We've released ACV growth rates. It's, you know, it's the ACV growth is faster than the workforce business. That's 16%, I believe, was the ACV stat we released. I think it's it's I think if you go back the last three years, you know, you've you've done great work following us, Fatima, for a few years now. And I think what you're seeing now is almost kind of a resurgence of the workforce business, in our own minds, in our own psychologies.

Speaker Change: And we feel like we're in a really good spot we want to make sure we find that right balance between having enough capacity. It grows as fast as possible, but also having a bunch of very productive reps, we don't want to.

Speaker Change: Just the strength you saw in the quarter I know Q1 is a smaller quarter roughly a month into it but have you seen that momentum continue thus far in Q1 or just what are you seeing quarter.

Quarter to date.

Speaker Change: Get too much in one direction or the other we want to.

Speaker Change: Yeah in terms of productivity.

Speaker Change: We showed the porridge it just right. So we feel good with where we are right now.

Speaker Change: It was really good and I can't give you a compare back to those Timeframes video is really good we talked about multi year high.

Speaker Change: Okay, let's move onto Rudy custom jewelry D. A davidson.

Speaker Change: Really pleased with how things came out.

Speaker Change: Great. Thanks for taking my questions guys.

Speaker Change: In terms of your question on Q1 look I mean, we talked about earlier Q1 is usually our seasonally lowest in the reason wiser.

Speaker Change: Sales productivity.

Speaker Change: Could you just talk about it relative to I guess, where you guys were at pre Dos zero integration, where you guys right now.

Speaker Change: Getting.

Speaker Change: Accounts in the right places territories in the right places however sales kickoff. So February doesn't typically offer too much for us in terms of information.

Speaker Change: And what level of productivity gains.

Todd Mckinnon: For a long time, we thought that this customer opportunity is so big, so massive, let's focus on that. And maybe let's not focus as much on the workforce business. I think what you're seeing is us realizing that that business is big as well. And with the with the security initiatives, and how identity is really the center of security these days, and how you have to have identity in place to get good security outcomes. I think you see us talking about that more, but that doesn't belie the fact that whether it's governments, or whether it's tech companies, SaaS companies, whether it's companies and other industries, you know, this infrastructure and how they authenticate users.

Speaker Change: The fiscal 'twenty six guidance and then again I'll add my congrats on very very strong quarter here.

Speaker Change: And so we obviously got a got a long ways to go for the quarter and are excited about the quarter.

Speaker Change: Dr growth acceleration et cetera.

Speaker Change: Just the strength you saw in the quarter I know Q1 is a smaller quarter, we're only a month into it but have you seen that momentum continue thus far in Q1 or just what are you seeing a.

Speaker Change: People are very excited at the kickoff.

Speaker Change: Yeah.

Speaker Change: That's a good thing I guess, that's not nothing.

Kevin: Yes, no we have a lot more hands raised we're at the top of the hour, but lets try to take a few more here I will go to Kevin need per room at Bofa and for Maryland.

Speaker Change: Quarter to date.

Speaker Change: Yeah in terms of productivity.

Speaker Change: It was really good and I can't give you a compare back to those Timeframes Judy was really good we talked about multi year high.

David those are pretty good for your first time.

Speaker Change: Really pleased with how things came out.

Kevin: Last name.

Speaker Change: Thank you. Thank you for taking my question I guess I have two quick questions for you.

And in terms of your question on Q1 look I mean, I think we talked about earlier Q1 is usually our seasonally lowest in the reason wiser.

Todd Mckinnon: And, you know, we're the another big deal in Q4 was, you know, we were the by far the leader in authenticating the chatbots. So we basically have all of the chatbots out there, even from some customers, some tech companies that might have competing technologies for the workforce side, or the authentication of our chatbots.

Speaker Change: The first one is in this quarter were there any large one off deals that led to the outperformance or did the environment really inflect.

Speaker Change: Getting.

Speaker Change: Accounts in the right places territories in the right places however sales kickoff. So February doesn't typically offer too much for us in terms of information.

Speaker Change: I guess my second question is looking into the future are these trends that you saw on <unk> are they sustainable or what should we expect that the street can kind of reset their models going forward.

Speaker Change: And so we obviously got a got a long way to go for the quarter and are excited about the quarter.

Speaker Change: Yes, I mean, I'll take I'll take the first part of Todd you can you can add and how you see fair which is.

Speaker Change: People are very excited to kick off.

Todd Mckinnon: Thanks for taking the question. Great to see the acceleration of CRPOs. I think that last quarter, I'm glad Matthew noted that part of the reason for this kind of disparity in the corporation's attitude is that he shifted it to create some enhanced incentives to start longer duration contracts. So I guess if it's not very explicit. But we did have Todd, he was able to understand what some of the conversations of enterprises are like there, what's a part of those longer term contracts, what are their incentives, and how much visibility does this give you? And CRPO acceleration, for example, is those longer duration contracts amortized into the current category?

Speaker Change: Yeah.

Speaker Change: That's a good point I guess, that's not nothing.

Speaker Change: We had a lot of big deals there wasn't any one single deal the deal that was outsized relative to the rest, but we had a lot of big deals. That's why we gave you the stat of top 25 deals over $320 million in total contract value.

Speaker Change: Okay. I know, we have a lot more hands raised we're at the top of the hour, but lets try to take a few more here I will go to Kevin need per room at CNA and for Maryland.

Speaker Change: David those are pretty good for your first time at all.

Speaker Change: Who is it goes back to really the the all the work we put in throughout FY 'twenty, five whether it'd be new product introduction, which we've talked about enhancing partners.

Speaker Change: Last name.

Speaker Change: Thank you. Thank you for taking my question I guess I have two quick questions for you.

Speaker Change: The first one is in this quarter were there any large one off deals that led to the outperformance or did the environment really inflect.

Speaker Change: Further specializing the field doubling down on security. These are all things that helped us build toward this Q4 that was so successful.

Todd Mckinnon: Yeah. It's like the mindset up front is like, this is a strategic platform versus another thing that might be more tactical. Okay, we'll come into a year and we'll see what it's like. And I think that's the biggest thing I'd call out there. Thanks so much and congrats on the continued progress. You know, I'm obviously very excited about the many people who have been able to expand some opportunity that kind of identity provides. You know, I think today in the market, you know, it's probably modestly adopted as an opportunity. Yeah, I think you're already seeing really great traction.

Speaker Change: I guess my second question is looking into the future are these trends that you saw on <unk> are they sustainable or what should we expect so that the street can kind of reset their models going forward.

Speaker Change: Yes, just from a comfort like our culture and our leadership perspective, and we are here to build a large growing and important company. So we expect more and more quarters. Like this I think this was a blow out so it's tough to repeat this exactly but this is the expectation we have we're not here to build the <unk>.

Speaker Change: Yes, I mean, I'll take I'll take the first part of Todd you can you can add and how you see fair which is.

Todd: We had a lot of big deals there wasn't any one single deals the deal that was outsized relative to the rest of it we had a lot of big deals. That's why we gave you the stat of top 25 deals over $320 million in total contract value.

Speaker Change: Slow growing company and we're here to build a company, that's changing industry and going to really solve this problem of identity security and help companies achieve their objectives and freedom to use any technology. So that's what we're that's what we're obsessed with doing and that's what we show up every day working hard trying to do.

Todd: It was it goes back to really the all the work we put in throughout FY 'twenty five whether it be a new product introduction, which we've talked about enhancing partners.

Speaker Change: Next thing Peter Levine.

Todd: Further specializing the field doubling down on security. These are all things that helped us build toward this Q4 that was so successful.

Peter Levine: Thanks, guys for being here maybe.

Speaker Change: Maybe just one what are you seeing in terms of like the ratio of non human AI agents to employee and I ask because I guess I want to understand like the pricing model and perhaps when you're talking to your customers what are they willing to pay for it's one to five or what is it 40.

Todd Mckinnon: We kind of look forward at a pipeline of customer demand for this and whether it can get to, you know, I think it's going to be massive. I think what we could potentially look forward to doing is talk to the folks who want to talk about it. We're going to do that. We're going to have a showcase of that coming up in April when we talk more about this. But we can monetize it on the Chromebook website. People are building agents and people are using agents. You know, agents have to run in and they have to run in sometimes.

Speaker Change: Yes, just from a company like our culture and leadership perspective, and we are here to build a large growing important company. So we expect more and more quarters. Like this I think this was a blow out so it's tough to repeat this exactly but this is the expectation we have we're not here to build the <unk>.

Speaker Change: Curious to know how you priced that and when do you think it will become maybe accretive to your top line now one of the one of the things that.

Speaker Change: The things that we don't have today is the industry doesn't have a way to identify an agent I don't I don't mean in the tent.

Todd Mckinnon: So I think potentially monetize it on the website. But whatever we do there, I think it's going to be, like I said, it's going to be pre-integrated. It's going to be across all the different types of technologies. It's not going to be tied up to one cloud or one app or one collaboration tool or one chatbot. It's going to be very mutually independent. That's what we want.

Speaker Change: Central Black authenticating are validated and edge I mean to actually a universal vernacular for how to record an agent have track it and how to.

Speaker Change: Great. Thank you Peter Levine.

Speaker Change: How to account for it and so I think that's something youll see coming you'll see you'll see there'll be actually a type of account and okta, that's an agent account.

Todd Mckinnon: … cable porter Great, thank you for squeezing me in. You know, Todd, I think your comments on the importance of a platform Akshay Kumar that you're seeing, you know, customers gravitate toward this platform. But when we look at the new components of that platform, OIG and PAM, it does seem like those are maybe more large customer tools. I'm just wondering if... If you think, you know, the the OIG and PAM solutions are applicable to your entire installed base, are they more targeted at those larger customers? And same thing on the platform sale? Is that that more of a large customer deployment?

Speaker Change: Thanks, guys for being here.

Speaker Change: You'll see companies starting to when they buy software they say hey, my body's many people on this many of Gentex licenses and.

Speaker Change: And that's not quite there yet of course.

Quantify but what is it for you.

Speaker Change: Platforms that are coming out with agent versions have this to some degree but there isn't a common cross company Cross enterprise definition of an agent, which is an interesting opportunity for us actually we do know in the business today, there's there's a significant amount of there's significantly more machine to machine interactions forget about agents, there's a lot of API.

Speaker Change: Just curious to know how are you.

Speaker Change: Okay.

Speaker Change: I don't I don't mean in AR and the <unk>.

Speaker Change: Like authenticating are validated and age I mean to actually a universal vernacular for how to record an agent have track it and how to.

Speaker Change: Calls and a lot of tokens and a lot of API access management, that's done on the officer of platform and the Entre platform and like I said I think that's the machine part of that with agents could increase by two orders of magnitude.

Todd Mckinnon: I think that's the reason I don't think that impression is right. And I think the reason why people have that misimpression is that Ham Market and Governance Market, the products were so hard to install and configure and put on premise that that's why large companies use them. I think now that we've made it so easy and integrated and accessible, I think that's why you're going to see this greenfield opportunity really blossom. You know, it's very similar, like Brett was saying earlier, this is how we did access management. When we started Okta, it was like, oh, we'll just, you know, make it really easy for smaller companies that are adopting a bunch of SaaS apps and they want to hook it up to Active Directory on-prem, make it super easy.

Speaker Change: <unk> had.

Speaker Change: How to account for it and so I think that's something Youll see coming Youll see youll see there'll be actually type of account and okta, that's an agent accounts.

Speaker Change: Potential is that high.

Speaker Change: Thank you.

Speaker Change: You'll see companies starting to when they buy software is they say hey, you know everybody is putting people on this many djindjic licenses.

Speaker Change: Go to Matt Hedberg with RBC.

Speaker Change: Great. Thanks, Dave for the question.

Speaker Change: And that's not quite there yet of course.

Speaker Change: Like I think a lot of us are just sitting back youre kind of seeing all the opportunities that you guys have here in the questions that I'm getting from my Inbox is like there's a lot that we can think about in terms of fiscal 'twenty and beyond and again, it's kind of getting back to the question I'll picking a favorite child, but between like all of the catalyst that you've got going here. We're sitting here 12 months from now large enterprise.

Speaker Change: Enterprise success Okay.

Todd Mckinnon: And then, you know, you work really hard for five years and seven years and 10 years and pretty soon it's like you really find yourself somewhere. And I think we're going to see the same thing here where we're going to work hard on this. We've been at it for really three and a half years now, consistently working on it, staying applied, not getting distracted, the team's cranking, customer driven success, and you're going to see the same thing blossom here on this unified platform over the next few years.

Speaker Change: Yeah, Yeah, sorry, I cut you off but I think the answer is so clear in my mind.

Speaker Change: There's a lot of tokens and a lot of.

Speaker Change: API access management, that's done on the offshore platform and the Okta platform and like I said I think that's the machine part of that with agents could have increased by two orders of magnitude.

Speaker Change: I work on these big transformative deals with these customers. It's just different than it was a year ago. Two years ago. You can see the products are there you can see the buyers are ready you can see the partners I work on these big deals with these global systems integrators, and they're turning their whole practices to security and a modern identity, they're done with all that.

Speaker Change: The potential is.

Speaker Change: Thank you.

Speaker Change: Go to Matt Hedberg with RBC.

Speaker Change: Great.

Unknown Executive: Thanks.

Speaker Change: Question.

Unknown Executive: Thanks for everybody's patience and appreciate you going along with us here before we go Just want to let investors know that in addition to hosting on-site virtual buff tours We'll be attending the Morgan Stanley conference in San Francisco this Wednesday KeyBank conference in San Francisco this Wednesday as well Susquehanna virtual conference on Thursday, March 6th The Evercore Cybersecurity Summit in New York City on April 1st And the Wells Fargo Software Symposium in Menlo Park here in California on April 10th So we hope to see you at one of those events and we'll talk to you then.

Speaker Change: One with the hole were going to install software and our manager identity that's out they.

Speaker Change: Okay.

Speaker Change: And that Youre kind of thing all the opportunities that you guys have here on the questions that I'm getting from my Inbox is like there's a lot that we can think about in terms of fiscal 'twenty six and beyond.

Speaker Change: They need a cloud solution and we are the only game in town unless you want to do it unless you want to go with Microsoft and just just kind of wrap your entire company up in one company with some of these large enterprises can do I mentioned this global technology company have any five license.

Speaker Change: I'm just kind of give me the question of picking a favorite child, but.

Speaker Change: Like all of the catalyst that you've got going here, we're sitting here 12 months from now large enterprise large enterprise success. Okay. Okay. Yeah, Yeah, sorry, I cut you off but I think the answer is so clear in my mind as I work on these big transformative deals with these customers. It's just different than it was a year ago. Two years ago, you can see the products are there.

Speaker Change: So Microsoft has license or them every identity product, but how does it not matter because theyre not going to widen their whole future around Microsoft.

Speaker Change: They have got the best three infrastructure clouds. They have you know these companies the complexity and the extent of what their identity challenges are as far beyond what one company. That's not focused on it can do and we're the only game in town with the cloud version, we have all the parts of the suite. So yeah, when we're talking in a year.

Unknown Executive: Thank you Thanks, everyone.

Speaker Change: You can see the buyers are ready you can see the partners I work on these big deals with these global systems integrators, and they're turning their whole practices to security and a modern identity, they're done with all they're done with the hole were going to install software and our manager identity that's out.

Speaker Change: If I'm off to something and not large enterprise then you can call me on it.

Speaker Change: Thanks, Bob Yeah, No I would just add to that Matt in the sense of like think about what we told you probably four or five quarters ago. There are four things, we're going to work on security new products partners further specializing.

Speaker Change: They need a cloud solution and we're the only game in town unless you want to you unless you want to go with Microsoft and just just kind of wrap your entire company up in one company with some of these large enterprises can do I mentioned this global technology company. They have any five license.

Speaker Change: We're going to keep working on all those things because that's what that's what.

Speaker Change: We'll drive which I just talked about.

Speaker Change: So it worked in Q4.

Speaker Change: So Microsoft has license or then every identity product that hasnt matter didn't matter, because theyre not going to widen their whole future around Microsoft.

Speaker Change: We believe those are the right vectors of growth for US we will continue to do those things to be able to capture the opportunity as fast as possible.

Speaker Change: They have got the best three infrastructure cloud they have.

Speaker Change: Thanks, guys.

Patrick Colville: Let's go to Patrick Colville at Scotiabank.

Speaker Change: These companies the complexity and the extent of what their identity challenges are as far beyond what one company. That's not focused on it can do and we're the only game in town, where the cloud version, we have all the parts of the suite. So yeah, when we're talking in a year.

Patrick Colville: Sure David.

Speaker Change: Thank you for taking my question here, So I guess.

Patrick Colville: Let me just sneak two quick he's in.

Patrick Colville: I mean, if I look back at this quarter and last the shield Beach to go significantly larger.

Speaker Change: And if I'm off to something and not large enterprise then you can call me on it.

Speaker Change: Thanks, a lot, but I would just add to that Matt in the sense of like think about what we told you probably four or five quarters ago. There were four things we're going to work on security new products partners further specializing.

Patrick Colville: You said this was a blow out quarter, but I guess, how should we think about the guidance philosophy Bret for <unk> heading into 2025 and then.

Patrick Colville: Towards I guess, just distribute most of your prepared remarks are actually about the workforce business.

Speaker Change: We're going to keep working on all of those things because that's what that's what.

Speaker Change: We will drive what Todd just talked about.

Speaker Change: So anyway.

Patrick Colville: The disclosure you guys gave around an ACB growth.

Speaker Change: Okay.

Patrick Colville: It looks like actually customer density was the real sprint.

Speaker Change: Okay.

Yes.

Patrick Colville: For Q with ACB growing 16%, so I guess just talk to us about.

Okay.

Speaker Change: Okay.

Speaker Change: Yeah.

Patrick Colville: Why do you sense, a pumped into fed remarks about workforce when it seems like the customer businesses actually what's really kind of the rocket ship right now.

Speaker Change: I'll take the first which is around the guidance philosophy.

Speaker Change: Like we talked about last time last quarter, we talked about reducing the level of conservatism in the model now.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Right.

Speaker Change: We had a blowout quarter.

Speaker Change: I can only do so much and we're going to close as much business as we possibly can if it blows up.

Speaker Change: Okay.

Speaker Change: Yes.

Most of your prepared remarks are actually about the workforce business, but the disclosure you guys gave around an ACB growth.

Speaker Change: The guidance philosophy in this situation I'm happy to have that problem, but you can see the guidance philosophy inaction in the sense of we had a very large quarter.

Speaker Change: Yes.

Speaker Change: And you see the revenue growth going up by a very significant amount going from 7% to 10% a raise of $80 million and we're giving it to you right. There. So in other words, whatever that upside that big upside you saw you're seeing it reflected in our guidance immediately so that is going to be R. R.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Thanks.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Our strategy going forward and our philosophy going forward and I'll, let I'll, let Todd talk about the growth rates, Yeah, I think both.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: [laughter].

Speaker Change: Zero Anoxia had really strong quarters.

Speaker Change: Okay.

<unk> was the biggest ever.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: My remarks, maybe weren't accurate in the sense that I want to reflect the strength in both <unk> and.

Speaker Change: We had a blowout quarter [laughter] I can only do so much and we're going to close.

Speaker Change: And both of those respective businesses.

Speaker Change: Okay.

Speaker Change: I worked very closely Ive mentioned, a few times on the call. This unfortunate having our tech company was a big workforce steel I also worked and worked on a name brand global food and beverage company.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Alright.

Speaker Change: Thanks.

Speaker Change: Yes.

Speaker Change: But after you ought to be the front door login for there.

Speaker Change: I'm sorry.

Speaker Change: Yes.

Speaker Change: Their entire mobile App, which has huge volume. So there is success on both sides and I think.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: It gives us a diversity in the business that.

Speaker Change: Sure.

Speaker Change: Got it.

Speaker Change: I should add.

Speaker Change: It was really powerful really gives us that seat at the table to help customers.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: With these strategic problems. It gives us credibility because of scale I mean, when you talk about the cash flow and the rule of 54 in the over $700 million of cash generated last year.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: [laughter].

Speaker Change: It's because of the scale I mean, we spent 16 years building. This business that's has amazingly loyal happy customers. So it gives us the opportunity to.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Do all the work you've done security and do all the product innovation at the same time generate a lot of cash so it's a good position to be in going forward.

Speaker Change: Okay.

Speaker Change: That accompany that.

Speaker Change: That would be the front door logging for there.

Speaker Change: Thanks Robert.

Speaker Change: Their entire mobile App, which has huge volume. So there is success on both sides and I think you know.

Speaker Change: Two five questions here over the next seven minutes will go to Mexico or India.

Speaker Change: It gives us a diversity in the business.

Speaker Change: Great. Thanks for taking the questions guys and congrats on the quarter from our end as well.

Speaker Change: Really powerful I'm really gives us that seat at the table to help customers.

Speaker Change: Two parts here, but first on the OID.

Speaker Change: Just wanted to make sure we're all going to be running our numbers now on $100 million in ECB versus the 1300 customer count.

Speaker Change: No problem.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Call It about 75000 per customer does that.

Speaker Change: Okay.

Speaker Change: <unk>.

Speaker Change: Yes.

Speaker Change: Is that a fair assessment of what customers are paying new currently for OID or is that skewed by any of your power customers like the big power users.

Speaker Change: Okay.

Speaker Change: From a business that has amazingly loyal happy customers. So it gives us the opportunity to.

Speaker Change: That's a good average yeah, I mean, obviously, there's some big ones and some smaller ones, but that's good.

Speaker Change: Goodbye.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Sure.

Speaker Change: And then the second piece is the AWS stat that we got today.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Solid growth.

Speaker Change: Okay.

Speaker Change: I'm running the numbers on my side is that now north of 10% of Okta as HCV.

Speaker Change: Okay.

Speaker Change: Take care of them yet.

Speaker Change: We breach that threshold yet.

Speaker Change: Great. Thanks for taking the questions guys and congrats on the quarter from our end as well.

Speaker Change: It's good it's a growing percentage it is definitely as you saw the 80% revenue growth in FY 'twenty, one I mean, it's definitely getting big now.

Speaker Change: 240%.

Speaker Change: Yes.

Speaker Change: Which is one of the reasons why we're so excited about it why were one of the partners of the year that we were the partner of the year.

Speaker Change: Now $100 million excuse me versus the 1300 customer count.

Speaker Change: If we're call it about 75000 per customer.

Speaker Change: So yeah, we're excited about that opportunity as part of the four that we've talked about right. It's it's under the partnership umbrella that we talked about throughout this call.

Speaker Change: Does that.

Speaker Change: Is that a fair assessment of what customers are paying you currently for OID or is that skewed by any of your power customers like the big power users not in this section.

Speaker Change: Excellent. Thank you guys.

Speaker Change: It's got a team of Baloney city.

Speaker Change: That's a good average yeah I mean, obviously there is some big ones and some smaller ones, but it's good.

Speaker Change: Thank you very much for squeezing me in.

Speaker Change: Todd.

Speaker Change: Wanted to go back to something you mentioned with regards to the launch week, where there was a dedicated Siam product now for the U S public sector.

Speaker Change: And then the second piece is the AWS stat that we got today.

Speaker Change: Solid growth.

Speaker Change: I'm running the numbers on my side is that now north of 10% of Aqua E D.

Speaker Change: Gave us a lot of good reasons to appreciate why you won't you won't be victimized by the daily effort 10 mandates.

Speaker Change: We breach that threshold yet.

Speaker Change: It's good it's a growing percentage it is definitely as you saw the 80% revenue growth in FY <unk>.

Speaker Change: It's pretty compelling.

Speaker Change: Since he has no victim efficiency.

Speaker Change: And so just with regards to the opportunity for the customer identity centric solutions and Dean Martin, we see that as a greenfield opportunity I mean, certainly.

Speaker Change: It's definitely getting big now.

Speaker Change: Which is one of the reasons why we're so excited about it why were one of the partners of the year.

Speaker Change: We are the partner of the year.

Speaker Change: So we're yes, we're excited about that opportunity as part of the four that we've talked about right. It's intended the partnership umbrella that we talked about throughout this call.

Speaker Change: Emerge.

Speaker Change: Consumer of government services, and what does that opportunity look like today between DIY and or other commercial competitors and why continue to double down on investments.

Speaker Change: Excellent. Thank you guys.

Speaker Change: Let's go to the team at <unk> City.

Speaker Change: Thank you very much for squeezing me in.

Speaker Change: Yes.

Speaker Change: Todd.

Speaker Change: Wanted to go back to something you mentioned with regards to lunch week, where there was a dedicated Siam product now for the U S. Public sector. So you gave us a lot of good reasons to appreciate why you won't you won't be victimized by the daily effort 10 mandates and.

Speaker Change: I mean, it's a huge market.

Speaker Change: We're seeing success in the business, we did the HEV growth rates, we've released ACB growth rates.

Speaker Change: The SUV growth is faster than the workforce business at 16% I believe was the Suvs Dot we released I.

Speaker Change: And thats pretty compelling efficiency has no victim efficient.

Speaker Change: I think it's.

Speaker Change: I think if you go back the last three years and you've used.

Speaker Change: Done great work following us talking about for a few years now and I think what Youre seeing now is almost.

Speaker Change: And so just with regards to the opportunity for.

Kind of a resurgence of the workforce business in our own minds in our own psychology is for a long time, we thought that this customer opportunities. So big its a massive let's focus on that and maybe let's not focus as much on the workforce business I think what youre seeing is us realizing that that business is big as well and with the with the security initiatives and how identity.

Speaker Change: Customer.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: I can add one certain whereby consumers.

Speaker Change: And then the consumer of government services, and what does that opportunity.

Speaker Change: Yeah.

Speaker Change: Right.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: It's really the center of security these days and how you have to have identity in place to get good security outcomes I think you see us.

Speaker Change: Okay.

Speaker Change: So a huge market and it's <unk>.

Speaker Change: <unk> success in the business, we did the ACB growth rates, we've released ACB growth rates.

Speaker Change: Talk about that more but that doesn't belie, the fact that whether it's government or whether it's <unk>.

Speaker Change: The SUV growth is faster than the workforce business at 16% I believe was the.

Speaker Change: Tech companies SaaS companies, whether it's companies in other industries this infrastructure and how they authenticate users.

Speaker Change: As you start we released I.

Speaker Change: I think it's I think if you go back the last three years and you've done great work falling as fast enough for a few years now and I think what Youre seeing now is almost kind.

Speaker Change: What are the.

Speaker Change: Another big deal in Q4 was.

Speaker Change: <unk>.

Speaker Change: What are the by far the leader in authenticating the chat bots. So we basically have all of the leading chat bots out there even from even from some customers that some big companies that might have competing technologies with us on the workforce side.

Speaker Change: Kind of a resurgence of the workforce business in our own minds in our own psychologies for a long time, we thought that this customer opportunities. So big its a massive let's focus on that and maybe let's not focus as much on the workforce business I think what youre seeing is us realizing that that business is big as well and with the with the security initiatives and how identity.

Speaker Change: What are the authentication now for all of their chops.

Speaker Change: So the opportunity on that side is big and important and we're trying to capture both of them.

Speaker Change: Really the center of security these days and how you have to have identity in place to get good security outcomes I think ucs.

Speaker Change: Okay.

Brian Essex: Yeah, Let's go to Brian Essex at J P. Morgan.

Speaker Change: Okay.

Speaker Change: Talk about that more but that doesn't belie, the fact that whether it's government or whether it's.

Speaker Change: Hi, good afternoon. Thanks for taking the question great to see the monster acceleration on RPM.

Speaker Change: Tech companies SaaS companies, whether it's companies in other industries.

Speaker Change: Good acceleration of <unk> as well I think Brett last quarter.

Speaker Change: This infrastructure and how they authenticate users.

Speaker Change: Call back he noted that part of the reason for this kind of like disparity in the growth rates between the two is.

Speaker Change: You know where the another big deal in Q4 was.

Speaker Change: Now that you shifted the.

Speaker Change: <unk>.

Speaker Change: I guess enhanced incentive to sell longer duration contracts.

Speaker Change: We are where are the by far the leader in a syndicated chatbot.

Speaker Change: So obviously, if it's not broke don't fix it.

Speaker Change: Yes.

Speaker Change: [noise].

Speaker Change: But maybe for Todd can you help us understand what some of the conversations with enterprises like there with regard to those longer term contracts what are the incentives and how much visibility does this give you kind of.

Speaker Change: Yeah.

Speaker Change: [noise] [laughter].

Speaker Change: And CRP acceleration for example, as those longer duration contracts amortize into the current category.

Speaker Change: Yes.

Speaker Change: Conversations are I think it's a sign of the.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Displacements like how many products are displacing they realize that if they're going to get better on a vendor that's going to replace $10 15, literally 25 30 products. It's crazy how many identity products. These big companies up in many cases, it's the same product in multiple divisions or it's the same.

Speaker Change: Yeah.

Speaker Change: Alright.

Speaker Change: That's great.

Speaker Change: Alright.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Infrastructure customers different way. So when you have that kind of conversation, Brian they're much more apt to sign up for longer term just because they think about it they have a big GSI and they're thinking about replacing and they have a multi year timeframe and there. It's like the mindset upfront is like this is a strategic platform versus another thing that might be more tactical in that okay. We will commit to a year and we'll see what it's like.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Right.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: And I think that's the biggest thing I'd call out there.

Speaker Change: Perfect.

Speaker Change: Yeah.

Speaker Change: Got it it's helpful. Thank you.

Speaker Change: Yeah.

Speaker Change: Hey, Peter Reid of Bernstein.

Speaker Change: Okay.

Speaker Change: Thanks, so much and congrats on the continued progress.

Speaker Change: Okay.

Speaker Change: No.

Speaker Change: [laughter].

Speaker Change: Obviously really excited like many people around maybe the expansive opportunity that kind of a gentex.

Speaker Change: Okay.

Speaker Change: [noise] [noise] infrastructure.

Speaker Change: Identity provides.

Speaker Change: <unk>.

Speaker Change: Think today.

Speaker Change: In the market, it's probably modestly adopted as an opportunity.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes, I think youre already seeing really great traction when.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: When you kind of look forward at the pipeline of customer demand for this and where this could get to.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: It's like the mindset upfront is like this is a strategic platform versus another thing that might be more tactical in okay, well commensurate year, and we'll see what it's like and.

Speaker Change: How material could the scale of this be relative to the number of workers that you cover or these types of things when we start to think about there out of the possible here.

Speaker Change: I think that's the biggest thing I'd call out there.

Speaker Change: Got it.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: I think it could be massive and.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: And I think we can potentially we have more work to do and got to give you folks more details about our plans there and we will do that but we have our showcase event coming up in.

Speaker Change: Okay.

Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: In April we were talking more about this but we can monetize it on quote unquote, both sides, meaning people building the agents and people using the agents.

Speaker Change: Yes.

Speaker Change: Alright.

Speaker Change: Yes.

Speaker Change: The agents have to log in and they have to log into something so I think it's potential to monetize that on both sides, but whatever we do here I think it's going to be like everything we do it's going to be pre integrated it's going to be across all different kinds of technology is not going to be tied up to one cloud or one app or one collaboration tool or one chatbot, it's going to be very neutral and.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: All right.

Yes.

Speaker Change: To get to.

Speaker Change: Yes.

Speaker Change: Steve.

Speaker Change: Yeah.

Speaker Change: And I think that's what customers want.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: And we will wrap things up and <unk> Wells Fargo.

Speaker Change: Okay.

Speaker Change: Great. Thank you for squeezing me in.

Speaker Change: Okay.

Yeah.

Speaker Change: Todd I think your comments on the importance of a platform.

Speaker Change: Okay.

Speaker Change: As like an edge that customers have had for many years, but could never scratch. So it makes sense that youre seeing.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change:

Speaker Change: Customers gravitate toward this platform, but when we look at the new components of that platform OAG and Pam. It does seem like those are maybe more large customer tools I'm just wondering if.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: If you think.

Speaker Change: Okay.

Speaker Change: The the OAG and Pam solutions are applicable to your entire installed base or are they more targeted at those larger customers and same thing on the platform sales that that more of a large customer that deployment.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: Thanks.

Speaker Change: Okay.

Speaker Change: That's the.

Speaker Change: Yeah.

Speaker Change: The reason I don't think I don't think that impressions right and I think the reason why people have that misimpression is debt.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Great. Thank you for squeezing me in.

Speaker Change: And then Pam market and governance market. The products were so hard to install and configure and put on premise that that's why large companies used I think now that we've made it so easy and integrated and accessible I think thats why youre going to see this greenfield.

Speaker Change: Chad I think your comments on the importance of a platform.

Speaker Change: Is like an edge that customers have had for many years, but could never scratch. So it makes sense that you're seeing.

Customers gravitate toward this platform, but when we look at the new components of that platform OAG and Pam. It does seem like those are maybe more large customer tools I'm just wondering if.

Speaker Change: Opportunity really blossom.

Speaker Change: Yeah, it's very similar like Brent was saying earlier and this is how we did access management. When we started our octave is like Oh, well just you know.

Speaker Change: If you think you know that the <unk> and Pam solutions are applicable to your entire installed base or are they more targeted at those larger customers and same thing on the platform sales that that more of a large customer salute that deployment.

Speaker Change: Make it really easy for smaller companies that are adopting a bunch of SaaS ops and they want to hook it up to active directory on Prem make it Super easy and then you work really hard for five years, and seven years, and 10 years and pretty soon it's like.

Speaker Change: You really find yourself somewhere.

Speaker Change: So I think that's the.

Speaker Change: And I think we're going to see the same thing here, where we're going to work hard on this we've been at it for.

Speaker Change: The reason I think asked about impressions right and I think the reason why people have that misimpression is that.

Speaker Change: Really three and a half years now consistently working on outstanding APA not getting distracted the team is cranking customer driving success and Youre going to see the same thing blossom here on this unified platform over the next few years.

Speaker Change: And then Pam market and governance market. The products were so hard to install and configure and put on premise that that's why large companies used.

Speaker Change: Thanks.

Speaker Change: Now that we have made it so easy and integrated and accessible I think thats why youre going to see this greenfield.

Speaker Change: Well, thanks for everybody's patience and I. Appreciate you go along with this year before we go just wanted to let investors know that in addition to hosting onsite virtual busters, we'll be attending the Morgan Stanley Conference in San Francisco. This Wednesday, Keybanc Tech conference in San Francisco, This Wednesday, as well Susquehanna Virtual conference on Thursday March six.

Opportunity really blossom.

Speaker Change: Yeah, it's very similar like Bret said earlier. This is how we did access management when we started off with.

Speaker Change: <unk> make it really easy for smaller companies that are adopting a bunch of SaaS option.

Speaker Change: Got up to active directory on Prem makes it Super easy and then.

Speaker Change: The Evercore cyber security Summit in New York City on April one and the Wells Fargo software Symposium in Menlo Park here in California on April 10th So we hope to see you at one of the those events and now we will talk to you then thank you.

Speaker Change: You work really hard for five years, seven years, and 10 years and pretty soon it's like you.

Speaker Change: Do you really find yourself somewhere.

Speaker Change: I think we're going to see the same thing here, where we're going to work hard on this we've been at it for real.

Speaker Change: <unk> three and a half years now consistently working on outstanding APA not get distracted. The team is cranking and customers are having success and youre going to see the same thing Boston Marathon. This unified platform over the next few years.

Speaker Change: Thanks.

Speaker Change: Hello, Thanks for everybody's patience and appreciate you go along with this here before we go I just wanted to let investors know that in addition to hosting onsite virtual clusters will be attending the Morgan Stanley Conference in San Francisco. This Wednesday, Keybanc Tech conference in San Francisco, This Wednesday, as well as Susquehanna Virtual conference on Thursday March 6th.

Speaker Change: Evercore Cyber security Summit in New York City on April 1st the Wells Fargo software Symposium in Menlo Park in California.

Speaker Change: So we hope to see you at one of the.

Speaker Change: Those events and now we will talk to them. Thank you.

Speaker Change: Thanks, everyone.

Speaker Change: Okay.

Speaker Change: Yeah.

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