Q1 2026 Okta Inc Earnings Call

Unknown Executive: Are you overwhelmed with identity management in the context of omnipresent threats to your organization?

Are you overwhelmed with identity management in the context of omnipresent threats to your organization does your business struggled to keep up with the growing trade hikes. So no one does that mean.

Unknown Executive: Does your business struggle to keep up with the growing trade?

Unknown Executive: Hi, so, no one knows what that means.

Unknown Executive: Uh, what's happening?

What's happening this explain a walk to help secure digital identity keep it simple.

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Unknown Executive: Keep it simple. Okay, then. Simply put, Okta enhances workplace productivity and complex fragmented authentication— I already logged in.

Al Qaeda simply going after enhances workplace productivity and complex fragmented.

Yes.

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Houseworth: I got up Houseworth is that youre going youre doing great.

Unknown Executive: Alright, you want to just take over?

Speaker Change: All right do you want to just take over.

Speaker Change: Great experiences with great security need.

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Doctor Flake: Total Doctor Flake, Gwen delivering a freshly uniform, arguing Arizona.

Speaker Change: Yes.

Unknown Executive: Or making bread soon at the high school reunion. Oh, I love that color.

Speaker Change: Or making Brad buehler by scoring Union.

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We said that.

Unknown Executive: You can hear it too?

Speaker Change: You can hear it too.

Unknown Executive: Phew, that was a lot.

That was a lot there's more lots more.

Unknown Executive: Oh, there's more. Like, lots more.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yeah.

Dave Gennarelli: Hi, everyone. Welcome to Okta's first quarter of fiscal 2026 earnings webcast. I'm Dave Gennarelli, Senior Vice President of Investor Relations at Okta.

Dave: Hi, everyone welcome to <unk> first quarter of fiscal 2026 earnings webcast I'm, Dave generally senior Vice President of Investor Relations at Okta, presenting at today's meeting will be Todd Mckinnon, Our Chief Executive Officer, and co founder and Brett <unk>, Our Chief Financial Officer, Eric Kelleher, Our President and Chief operating officer will join the Q&A.

Dave Gennarelli: Presenting in today's meeting will be Todd McKinnon, our Chief Executive Officer and Co-founder, and Brett Tighe, our Chief Financial Officer. Eric Kelleher, our President and Chief Operating Officer, will join the Q&A portion of the meeting.

Speaker Change: Portion of the meeting at.

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

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

Dave Gennarelli: Today's meeting will include forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook and market positioning. 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 statement. Forward-looking statements represent our management's beliefs and assumptions only as of the date made.

Speaker Change: Today's meeting will include forward looking statements pursuant to the Safe Harbor provisions of the private Securities Litigation Reform Act of 1095, including but not limited to statements regarding our financial outlook and market positioning.

Speaker Change: 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 for.

Speaker Change: Forward 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-K and.

Dave Gennarelli: 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 and our previously filed Form 10-K.

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

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

Speaker Change: These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP, a reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents are available in our earnings release, you can also find more <unk>.

Dave Gennarelli: You can also find more detailed information in our supplemental financial materials, which include trended financial statements and key metrics posted on our investor relations website.

Speaker Change: Tailed information in our supplemental financial materials, which include trended financial statements and key metrics posted on our Investor Relations website in today's meeting we will quote a number of numeric 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.

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

Todd Mckinnon: And now I'd like to turn the meeting over to Todd McKinnon. Todd? Thanks Dave and thank you everyone for joining us this afternoon. We had a solid start to FY26 highlighted by continued strength with large customers, Auth0, new product contribution, strong cash flow, and record profitability.

Todd Mckinnon: Todd Mckinnon Todd.

Todd Mckinnon: Thanks, Dave and thank you everyone for joining us. This afternoon, we had a solid start to FY 'twenty six highlighted by continued strength with large customers opt euro <unk>.

Todd Mckinnon: New product contribution strong cash flow and record profitability, Brett will cover more of the Q1 financial highlights and I'm going to cover product innovation, our recent showcase event and the latest with the okta secure identity commitment.

Todd Mckinnon: Brett will cover more of the Q1 financial highlights and I'm going to cover product innovation, our recent showcase event, and the latest with the Okta Secure Identity Commitment. New products, such as Okta Identity Governance, Okta Privilege Access, Okta Device Access, Fine Grain Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI, had another quarter of strong contribution. Our combined governance portfolio of Okta Identity Governance, Lifecycle Management, and Workflows has grown substantially over the past few years. With strong adoption of our governance products, Okta is becoming even more valuable and integrated into our customers' IT infrastructure and security posture.

Speaker Change: New products, such as Oct at any governance okta privilege access okta device access fine-grain authorization did any security posture management and identity threat protection with Okta AI had another quarter of strong contribution our combined governance portfolio of okta identity governance lifecycle management and workflows.

Speaker Change: Has grown substantially over the past few years with strong adoption of our governance products okta is becoming even more valuable and integrated into our customers' infrastructure and security posture.

Todd Mckinnon: This is evidenced by the massive growth we've experienced in workflow executions, which have increased nearly 400% over the past three years to nearly 40 billion in March alone. OIG has been a tremendous success to date. We are hearing from partners and industry analysts that OIG is now ready to hit mainstream adoption, especially with recently delivered key capabilities like separation of duties and on-prem connector. These new capabilities helped with great customer wins in Q1, like the Global 2000 Insurance Company noted in our posted commentary. As cyber threats evolve, identity remains the first line of defense. That's why innovation at Okta never stops.

Speaker Change: This is evidenced by the massive growth that we've experienced in workflow executions, which have increased nearly 400% over the past three years to nearly $40 billion in March alone.

Speaker Change: <unk> has been a tremendous success to date, we are hearing from partners and industry analysts that OAG is now ready to hit mainstream adoption, especially with recently delivered key capabilities like separation of duties and on Prem connector. These new capabilities helped with great customer wins in Q1 like the global 2000 insurance company noted in our posted commentary.

Speaker Change: Yeah.

Speaker Change: As cyber threats evolve identity remains the first line of defense, that's why innovation at Okta never stops in early April we hosted showcase which is our biggest event outside of octane to highlight product innovation.

Todd Mckinnon: In early April, we hosted a showcase, which is our biggest event outside of Octane to highlight product innovation. Our newest advancements help organizations protect their employees, customers, and AI systems. The key themes that showcased this year were, one, how Okta is protecting non-human identities, or NHIs, and two, how Auth0 is helping developers build secure AI agents. NHIs have been around for a long time. What's new is how the recent boom in AI agents has resulted in exponential growth in NHIs. NHIs include service accounts, shared accounts, machines, and tokens. NHIs often operate outside traditional identity governance frameworks and can leave organizations vulnerable to security risks.

Speaker Change: Our newest advancements help organizations protect their employees customers and AI systems. The key themes that showcase this year were one how okta is protect a nonhuman identities are energize into how a zero is helping developers build secure AI agents.

Speaker Change: NHI has had been around for a long time, what's new is how the recent boom in agents has resulted an exponential growth in HRS and H is include service accounts shared accounts machines and tokens.

Speaker Change: NHI is often operate outside traditional identity governance frameworks and can lead organizations vulnerable to security risks in fact last year only 15% of organizations said they are confident in their ability to secure NH eyes.

Todd Mckinnon: In fact, last year only 15% of organizations said they are confident in their ability to secure NHIs.

Todd Mckinnon: Okta addresses this problem with Identity Security Posture Management and Okta Privilege Access. By combining these two products, customers can discover, secure, and manage NHIs, with an end-to-end secure identity fabric to secure both human identities and NHIs across a single system. This integrated approach protects non-federated and privileged identities, ensuring AI-driven automation and machine-to-machine interactions remain governed under zero-trust policies while continuously monitoring NHI risks and vulnerabilities across the enterprise.

Todd Mckinnon: Okta addresses this problem with identity security posture management, and okta privilege access by combining these two products customers can discover secure and manage nhi's with an end to end secure identity fabric to secure both human identities and energize across a single system. This integrated approach.

Speaker Change: Texts, non federated and privilege as ensuring AI, driven automation and machine to machine interactions remain governed under zero trust policies, while continuously monitoring NHI risks and vulnerabilities across the enterprise.

Todd Mckinnon: On the developer side, customers have another compelling reason to adopt Auth0.

Speaker Change: On the developer side customers have another compelling reason to adopt zero off for G&A I addresses the problem of AI agents, creating unsecured nhi's by enabling developers to integrate secure identity into their G&A applications. This helps ensure that AI agents, who.

Todd Mckinnon: Auth for GenAI addresses the problem of AI agents creating unsecured NHIs by enabling developers to integrate secure identity into their GenAI applications. This helps ensure that AI agents have built-in authentication, fine-grain authorization, async workflows, and secure API access. Auth for GenAI secures AI agents at every step without slowing them down, providing developers with the trusted tools and flexibility they need.

Speaker Change: As built in authentication fine-grain authorization, async workflows and secure API access.

Speaker Change: <unk> Virgin AI secures a agents at every step without slowing them down providing developers with the trusted tools and flexibility they need.

Todd Mckinnon: The product has had a successful developer preview and we expect the GA launch this summer.

Speaker Change: The product has had a successful developer preview and we expect the G. A launch this summer.

Todd Mckinnon: To get all the details of the announcements coming out of Showcase, we encourage you to review the comprehensive summary available on the Investor Relations website. We also continue to elevate the industry with the Okta Secure Identity Commitment, which is our work to lead the fight against identity-based cyberattacks. In support of this commitment, we're now highlighting the great security work already being done by Okta's Threat Intelligence Team and making their insights more actionable. With thousands of customers across a multitude of diverse industries, Okta is uniquely able to analyze threat activity.

Speaker Change: To get all the details of the announcements coming out of showcase we encourage you to review the comprehensive summary available on the Investor Relations website.

Speaker Change: We also continue to elevate the industry with the access secure identity commitment, which is our work to lead the fight against identity based cyber attacks in support of this commitment. We're now highlighting the great security work already being done by Okta as threat intelligence team and making their insights more actionable with thousands of.

Speaker Change: Customers across a multitude of diverse industries okta is uniquely able to analyze third activity I.

Todd Mckinnon: I encourage you to check out a blog post we shared that highlighted Okta Threat Intelligence's in-depth research on how adversaries are conducting IT contracting scams using AI and our recommendations to help mitigate these threats.

Speaker Change: I encourage you to check out our blog post we shared that highlighted okta threat intelligence is in depth research on how adversaries are conducting I T contracting scams using AI and our recommendations to help mitigate these threats.

Todd Mckinnon: To wrap things up, we're pleased with the start of the fiscal year, and we're excited about the future with our growing portfolio of modern identity solutions. More and more, customers are looking to consolidate their disparate and ineffective identity systems, and Okta is there to meet them with the most comprehensive and unified identity security platform in the market today.

Speaker Change: To wrap things up we're pleased with the start of this fiscal year and we're excited about the future with our growing portfolio of modern and any solutions more and more customers are looking to consolidate their despair and ineffective identity systems and okta is there to meet them with the most comprehensive and unified identity security platform in the market today.

Todd Mckinnon: As always, 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.

Speaker Change: All of US I want to thank the entire acre team for their tireless effort and also thank our loyal customers and partners, who put their trust in US every day now here's Brent to cover the financial commentary and talk about how we're positioned for long term profitable growth.

Brett Tighe: Now here's Brett to cover the financial commentary and talk about how we're positioned for long-term profitable growth. Thanks Todd and thank you everyone for joining us today. We posted solid Q1 results with another quarter of exceptional cash flow and record operating profitability and profit margin.

Speaker Change: Thanks, Todd and thank you everyone for joining US today, we posted solid Q1 results with another quarter of exceptional cash flow and record operating profitability and profit margin. My commentary will provide insights to our Q1 financial performance and then move into our outlook for Q2 and FY 'twenty six.

Brett Tighe: My commentary will provide insights to our Q1 financial performance and then move into our outlook for Q2 and FY26. We entered the first quarter with the previously announced realignment of our go-to-market team, which further specialized our sales force into Okta sellers and OpZero While it's still too early to judge the overall success of this realignment, we're encouraged by some of the early signals in the Q1 results, in particular, OFF0 performed quite well, following a record Q4. We were also pleased to see pipeline strengthening throughout March and April. We remain confident that increased go-to-market specialization will yield long-term benefits for Okta and our customers.

Speaker Change: We entered the first quarter with the previously announced realignment of our go to market team, which further specialized our sales force into okta sellers and offer zero sellers well.

Speaker Change: While it's still too early to judge the overall success of this realignment. We're encouraged by some of the early signals in the Q1 results in particular after zero performed quite well following a record Q4. We were also pleased to see pipeline strengthening throughout March and April.

Speaker Change: We remain confident that increased go to market specialization will yield long term benefits for okta and our customers.

Brett Tighe: Adding to our confidence is the recent performance we're seeing in the parts of our business that had already been special. At the beginning of last year, we moved the team focused on the U.S. S&B market to a hunter-farmer That team performed well in Q1 and underscores how specialization can drive improvements over time. Another area that has been specialized for some time is the U.S. public sector vertical, which has been an area of strength over the last few years. The strength has been a direct result of Okta's strategic commitment and investments in the U.S. public sector.

Speaker Change: Adding to our confidence is the recent performance we're seeing in the parts of our business that had already been specialized.

Speaker Change: At the beginning of last year, we moved the team focused on the U S. SMB market to a hunter farmer model that team performed well in Q1 and underscores how specialization can drive improvements overtime.

Speaker Change: Another area that has been specialized for some time as the U S public sector vertical which has been an area of strength over the last few years. The strength has been a direct result of okta as a strategic commitment and investments in the U S public sector, our public sector team had a strong Q1 as two of our top three and four of our top 10 deals.

Brett Tighe: Our public sector team had a strong Q1 as two of our top three and four of our top ten deals were in the public sector, including the federal deal we called out in our posted commentary. Clearly there is a lot going on in the U.S. federal vertical and we are monitoring the developing situation closely. While we anticipate some near-term uncertainty in our federal business, we remain highly confident in the long-term public sector opportunities. That's because Okta delivers the efficiency and security benefits that government agencies require and our FedRAMP High and IL-4 certifications distinguish Okta from the field.

Speaker Change: We are in the public sector, including the federal deal, we called out in our posted commentary.

Speaker Change: Clearly there is a lot going on in the U S federal vertical and we are monitoring the developing situation closely.

Speaker Change: While we anticipate some near term uncertainty in our federal business, we remain highly confident in the long term public sector opportunity.

Speaker Change: That's because after delivers the efficiency and security benefits that government agencies require and our fed ramp high in IL four certifications distinguish <unk> from the field.

Brett Tighe: Now let's turn to our business outlook for Q2 and FY26. We continue to take a prudent approach to forward guidance that factors in our go-to-market specialization that was rolled out in Q1 of FY26. Additionally, we're now factoring in potential risks related to the uncertain economic environment for the remainder of FY26. For the second quarter of FY26, we expect total revenue growth of 10%, current RPO growth of 10% to 11%, non-GAAP operating margin of 26%, and free cash flow margin of approximately 19%. For the full year FY26, we expect total revenue growth of 9% to 10%, non-GAAP operating margin of 25%, and a free cash flow margin of approximately 27%.

Speaker Change: Now, let's turn to our business outlook for Q2, and FY 'twenty six we continue to take a prudent approach to Ford guidance that factors in our go to market specialization that was rolled out in Q1 of FY 'twenty six.

Speaker Change: Additionally were now factoring in potential risks related to the uncertain economic environment for the remainder of FY 'twenty six.

Speaker Change: For the second quarter of FY 'twenty six we expect total revenue growth of 10% current RVO growth of 10% to 11% non-GAAP operating margin of 26% and free cash flow margin of approximately 19%.

Speaker Change: For the full year FY 'twenty six we expect total revenue growth of 9% to 10% non-GAAP operating margin of 25% and a free cash flow margin of approximately 27%.

Brett Tighe: To wrap things up, we remain focused on reigniting growth and driving spend efficiencies in cash We've demonstrated exceptional leverage in our model and remain positioned to deliver profitable growth for years to come. We're excited about the adoption of new products, the rapid pace of innovation, and are confident that Okta is positioned to lead the identity industry.

Speaker Change: To wrap things up we remain focused on reigniting growth and driving spend efficiencies and cash flow.

Speaker Change: We've demonstrated exceptional leverage in our model and remain positioned to deliver profitable growth for years to come.

Speaker Change: We're excited about the adoption of new products. The rapid pace of innovation and are confident that okta is positioned to lead the identity industry with that I'll turn it back to Dave for Q&A Dave.

Dave Gennarelli: With that, I'll turn it back to Dave for Q&A. Dave? Thanks, Brett. I see there are quite a few hands raised already, and I'll take them in order until the top of the hour. In the interest of time, please limit yourself to one question.

Dave: Thanks, Brett and I see there are quite a few hands raised already and I'll take them in order until the top of the hour and the interest of time, please limit yourself to one question.

Brad Zelnick: With that, we'll go to the first question from Brad Zelnick, followed by Eric Heath. Great. Thanks so much for taking the question. Nice to see everybody.

Speaker Change: And with that we will go to the first question from Brad Zelnick, followed by Eric Heath.

Speaker Change: Great. Thanks, so much for taking my question nice to see everybody and.

Speaker Change: Q1 is is the beginning of the year. So always interesting dynamics, maybe just to kick it off you've layered in this additional conservatism into your guide what is it that you saw in the quarter now you have two layers of conservatism for the specialized go to market, adding in what your thoughts are on the macro can you.

Todd Mckinnon: And Q1 is the beginning of the year. So always interesting dynamics. Maybe just to kick it off, you've layered in this additional conservatism into your guide. What is it that you saw in the quarter? Now you have two layers of conservatism for the specialized go-to-market, adding in what your thoughts are on the macro. Can you talk more about what the combination of those two factors, how much of the impact of Q1 and how to think about them going forward?

Speaker Change: Talk more about what the combination of those two factors how much they impacted Q1, and how to think about them going forward. Thanks.

Todd Mckinnon: Thanks. Yeah, I'll start.

Brad Buehler: Yeah, I'll start nice to see you Brad.

Todd Mckinnon: Nice to see you, Brad. I think that Q1, we're very happy with Q1. We're really on track for the year. And we made a lot of great progress in the quarter. I think there's the qualitative metrics we talked about, and we've talked about so far on the call. But then there's just the conversations we're having with customers about how important what we do is to them, and how much they're investing in everything from the traditional things we've helped them with, cloud transformation, of course, security. But now, with what's going on with all these AI projects, and moving from POCs to production, and how we can help with that, and how we can help them build off for gen AI applications.

Speaker Change: I think the Q1, we're very happy with Q1.

Brad Buehler: We're really on track for the year and we made a lot of great progress in the in the quarter I think there's the qualitative metrics we talked about.

Brad Buehler: And we've talked about so far on the call, but then theres just the conversations we're having with customers about how important what we do is to them and how much they're investing in everything from the traditional things we've helped them with cloud transformation and of course security, but now with what's going on with all these AI projects and moving from P O.

Brad Buehler: <unk> to production and how we can help with that and how we can help them build off Virgin AI applications and so it's all very very exciting I think we can talk about the guidance and the forward look for we look at some of our thoughts there but.

Todd Mckinnon: And so it's all very, very exciting.

Todd Mckinnon: I think we can talk about the guidance and the forward look forward look at some of our thoughts there. But it's kind of the base and the foundation is a company that's really on track for the year and very optimistic about the future.

Brad Buehler: But it's kind of the base and the foundation is a company that's really on track for the year and very optimistic about the future.

Brett Tighe: Thanks, Brad. Yeah, Brad, I can just add there on the guidance in terms of you're asking, did we see the macro and Q1 versus how are we thinking about in the future, I think was one of your questions. In terms of the macro side of things, you know, we did not see any impact in the in Q1. Relative to what the macro we were seeing for the prior quarters, you know, we've heard, you've heard us talk a lot about that over the last couple years.

Speaker Change: Yeah, Brad I can just add there on the guidance in terms of you're asking did we see the macro in Q1 versus how are we thinking about in the future I think it was one of your questions in terms of the macro.

Brad Buehler: Lot of things.

Brad Buehler: We do not see any impact in Q1 relative to what the macro we're seeing for the prior quarters. You know we've heard you've heard us talk a lot about that over the last couple of years.

Brad Buehler: But incrementally different than what it has been we have not seen a well we are putting in is thinking about it going forward just because we.

Brett Tighe: But incrementally different than what it has been, we have not What we are putting in is thinking about it going forward just because we just a feeling in the environment, if you will, Brad. I don't have a lot of quants to back up what I'm saying. It's more based on customer conversations, reading the news, talking to the sales teams. It's just, it's out there, and we're just, the tone feels like it's changed. We're not saying it's absolutely certain, but what we're saying is that we're putting it into the guidance.

Speaker Change: Can you just a feeling in the environment. If you will Brad I don't have a lot of clubs to like backup what I'm, saying, it's more based on customer conversations reading the news.

Speaker Change: You know talking to the sales teams. It's just it's out there and we're just the tone is feels like it's changed we're not saying, it's absolutely certain but what we're saying is that where we're putting it into the guidance.

Brett Tighe: But to be very clear, as we talked about a couple quarters ago, and I've said every quarter since, is that the guidance philosophy has changed. We do not have as much conservatism in there. Regardless that we did add a new factor in there, it doesn't mean that we've all of a sudden gone back to the old model. There is still less conservatism in there.

Speaker Change: But to be very clear as we talked about a couple quarters ago and I've set every quarter census is the guidance the guidance philosophy.

Speaker Change: Has changed we do not have as much conservatism in there regardless that we did add a new factor in there. It doesn't mean that we are all sudden gone back to the old model. There is still less conservatism in there.

Brett Tighe: Now we're adding, like I said, we're adding in a little bit for macro, but the go-to-market specialization factor is the same as what it was at the beginning of Q1, because you heard what Todd just talked about, is we feel like it's, we're on track, and we're headed in the right direction, and we feel good with where we are.

Speaker Change: Now we're at like I said routing and a little bit for macro but the go to market specialization factor is the same as what it was at the beginning of Q1, because you heard what Todd just talked about.

Speaker Change: We feel like it's we're on track and we're headed in the right direction and we feel good with where we are right now.

Speaker Change: Okay. Thank you.

Speaker Change: Yeah.

Eric Heath: Next up is Eric Heath followed by Jonathan Ho. Thanks, Dave. Just to maybe follow on that line of questioning. I mean, CRPO, subseasonally, subseasonal growth in one cue here a little bit. And we've heard some other security peers talk about April being a very challenging month in particular, maybe getting better in May. So is there anything that might have been a little bit softer in the quarter? I saw international decelerated a little bit more than US. So just anything that might have been on the margin a little bit softer than you might expect? We had a, there was no softness in April.

Speaker Change: Next up is Eric Heath, followed by Jonathan Ho.

Speaker Change: Thanks Ted.

Speaker Change: Maybe follow on that line of questioning I mean sure P O S, which easily sub seasonal growth in <unk> very little button.

Speaker Change: Or at some other security peers talked about April being a very challenging month in particular, maybe getting better in may.

Speaker Change: Is there anything that might have been a little bit soft in the quarter I saw international decelerated, a little bit more than U S.

Speaker Change: Anything that might have been on the margin a little bit softer than you might expect we we had a.

Todd Mckinnon: It was very predictable. We, and this is coming off the Q4, where we had a real blowout Q4, and we ran the table. And even despite that, we had solid performance in Q1, including through April. So we didn't see that at all. I heard some of those calls and have heard that chatter as well about the industry seeing some softness in April. We didn't see that. So yeah, when you look at the numbers, it was a solid start to the year.

Speaker Change: And there was no softness in April it was very predictable.

Speaker Change: We and this is coming off the Q4, where we had a real blow out Q4, and we ran the table and even despite that we had solid performance in Q1, including through April. So we didn't see that at all I heard some of those calls and I've heard that chatter as well about the industry is seeing some softness in April we didn't see that.

Speaker Change: So when you look at the numbers it was a solid start to the year and I think our when Brent talks about the conservatism and that's factoring in uncertainty in the macro going forward is it's definitely going forward then.

Eric Heath: I think our, when Brett talks about the conservatism and us factoring in uncertainty in the macro going forward, it's definitely a going forward thing.

Speaker Change: Understood. Thanks.

Speaker Change: Yeah.

Jonathan Ho: It will go to Jonathan Ho followed by Shrenik Kothari. Great, good afternoon. When we look at the go to market specialization, where are we in that process?

Speaker Change: And we'll go to Jonathan Ho followed by shrink authority.

Speaker Change: Great good afternoon.

Speaker Change: When you look at the go to market specialization, where are we in that process and can you maybe share with us what some of your most impactful learnings have been and maybe the progress that's been seen.

Eric Heath: And can you maybe share with us what some of your most impactful learnings have been and maybe the progress that's been seen on that business side?

Eric Heath: Thank you. Thanks, Jonathan. Yeah, we're off to a solid start.

Speaker Change: That business side. Thank you.

Jonathan: Thanks, Jonathan Yeah, we're off to a solid start.

Eric Heath: As you know, in our business in Q1, there's normally a lot of territory replanning and reassignment and so forth. And as I've mentioned before, this year with our switch with our shift to specialization for sellers for the Auth0 platform and the Okta platform, we had incrementally more change to that normal motion as we do every year. And so with that comes the cost of change to some degree. But Q1 was a solid start. We saw very strong performance on the Auth0 side, which you would expect with more specialization. And we've seen strong pipeline build throughout the quarter as well.

Jonathan: As you know in our business in Q1, there's normally a lot of territory replanting and reassignment and so forth and as I've mentioned before this year with our switch with our shift to specialization for sellers for the odds zero platform in the Okta platform, we had incrementally more change to that normal motion as we do.

Jonathan: Do every year and so with that comes the cost of change to some degree, but Q1 was a solid start we saw a very strong performance on the at zero side, which you would expect with more specialization and we have seen strong pipeline build throughout the quarter as well and even if you look at the last.

Eric Heath: And even if you look at the last, you know, first few weeks of Q2, those trends continue.

Jonathan: First few weeks of Q2 those trends continue so we're optimistic but it's Ah if you'd look at the overall year, it's a relatively small part of the year.

Eric Heath: So we're optimistic, but it's a, you know, if you look at the overall year, it's a relatively small part of the year. So we have to keep executing well. And the strength in new products on the Okta side as the growth there is actually very encouraging as well. We mentioned the success of the governance business and privilege access and device access and identity threat protection. There's quite a portfolio of identity security tools there. And that sales team on the Okta side is really digging into that and able to, I think, have broader conversations with customers and help really convey how we can help everything from non-human identities and AI workloads all the way to, you know, a lot of companies still, the basics of passwordless phishing resistant authentication for people is still something they're invested in.

Jonathan: So we have to keep executing well and the strength in new products on the auto side is the growth there is actually very encouraging as well we mentioned the success of the governance business in privilege access and device device access and threat protection Theres quite a portfolio of identity security tools, there and that sales team on the auto side is really.

Jonathan: Dig into that enable to I think have broader conversations with customers and help really convey how we can help everything from nonhuman identities and AI workloads all the way to you know a lot of companies still the basics of password less fishing resistant authentication for people is still something they're invested in so we can help them across that broad spectrum.

Eric Heath: So we can help them across that broad spectrum.

Eric Heath: Jonathan, you asked also some lessons learned through this. I think a couple things to add to Todd's commentary. One is we've learned specialization works. As Brett talked about in his opening comments, this is really our third wave of go-to-market specialization, our first being PubSec from several years back. And you've heard us talk in recent quarters about the success we've had in public sector overall with that team. It's been a very high performing team for us. Last year, we rolled out Hunter Farmer for our US commercial business as well. And we've talked about how pleased we were with how we closed out the year with the results of that change.

Jeff: Yes, Jeff.

Jeff: You asked also some lessons learned to this I think a couple of things to add to Todd's commentary one as we've learned specialization works.

Jeff: As Brad talked about in his opening comments. This is really our third wave of go to market specialization. Our first thing Jack from several years back and you've heard US talk in recent quarters about the success you've had in public sector overall with that team has been a very high performing team for us last year, we rolled out higher farmer for our U S commercial business as well.

Jeff: We've talked about how please be aware with having closed out the year with the results of that change and the third thing. We've learned is narrower than the Oct inacio platform specialization.

Eric Heath: And the third thing we've learned is, and now we're doing the Okta non-zero platform specialization. So we know it works. We're confident it works. We also have learned that it takes time. And to Todd's commentary a moment ago, we are just finishing up our first quarter. We had February as the time when we re-carved territories and reassigned. We can now speed up enablement because we're able to focus our reps on individual buyers and focus them on individual platforms. And so we've executed well in the quarter. We're on track as Brett and Todd have mentioned, and we've got three quarters ahead of us.

Jeff: So we know it works we're confident it works. We also have learned that it takes time and add to it.

Jeff: Todd's commentary a moment ago, we are just finishing up our first quarter. We had in February at the time, when we recap territories reassigned we can now speed up enablement, because we are able to focus our reps on individual buyers and focused them on individual platforms and.

Jeff: And so we've executed well in the quarter were on track as Brett and Todd mentioned.

Eric Heath: So we're not sitting idle. We've got a lot more work to do, but we're very confident in the strategy we're on.

Jeff: And we've got three quarters out of us. So we're not we're not sitting idle we've got a lot more work to do but we're very confident in the strategy well.

Shrenik Kothari: Thanks, Eric.

Speaker Change: Thanks, Eric next up we'll go to shrink authority, followed by Andy Nowinski.

Shrenik Kothari: Next up, we'll go to Shrenik Kothari, followed by Andy Nowinski. Great, thanks for taking my question. So just given your previous commentary around the seed headwinds abating, which implies easier second half comps, just how should we interpret the embedded kind of seed expansion and recovery curve going into the second half? And just what is this kind of guidance conservatively assuming on that front? Are there any kind of embedded assumptions around kind of new business recovery potentially being offset because of any macro consent you have, which is you're not seeing it yet, but anything that you're embedding there?

Speaker Change: Great. Thanks for taking my question. So just given your previous commentary around that.

Speaker Change: The feed headwinds abating implies easier second half comps just how should we interpret.

Speaker Change: The embedded kind of feed expansion a recovery curve going into the second half and just what is this all kind of guidance conservatively assuming on that front are there any kind of embedded assumptions around kind of new business recovery potentially be an offset.

Speaker Change: Cause of any macro concerns you have which is we're not seeing it yet but anything like that.

Speaker Change: <unk> yeah.

Shrenik Kothari: Yeah, absolutely. So, Shrenik, just, you know, a refresher for everybody on the call, because I know you know this, which is, yeah, we talked about NRR having those headwinds, you talked about seed up cells at renewal or during midterm, mid contract, right? That being facing a little bit of a headwind. We think that still lasts through the first half of FY26. Now, look, if the economy does turn one direction or the other, maybe it goes a little faster one way or the other, right? I mean, it's definitely a potential for it to impact. I think what you're really kind of asking about is really NRR and how that's going to trend.

Speaker Change: Yeah, absolutely so Jack just a refresher for everybody on the call because I know you notice, which is yeah, we talked about.

Speaker Change:

Speaker Change: Route and are are having those headwinds you talked about seed upsells.

Speaker Change: At renewal or during mid midterm mid contract rate that being facing a little bit of ahead. When we think that's still lasted through the first half of FY 'twenty six.

Speaker Change: Now look if the economy does turn one direction. The other maybe maybe Google goes a little faster one way or the other Reg I mean, it's definitely a potential for for it to impact I think what you're really kind of asking matters really an IRR and how that's going to trend.

Shrenik Kothari: You know, right now, we think it's going to travel in this range plus or minus a little bit from here. But like I said, if the macro does turn negative for us, there is a potential that does hit that as well. So, we don't have a specific number in our guidance for you, but it is embedded in there. Yeah, I've got it.

Speaker Change: Right now we think it's going to travel in this range plus or minus a little bit from here, but like I said, if the macro does turn negative for US there is a potential that does that does hit that as well so that.

Speaker Change: We don't have a specific number in our guidance for you, but it is it is embedded in there.

Speaker Change: So if that answers your question.

Brian: Got it thanks, Brian.

Andy Nowinski: And next up, Andy Nowinski followed by Matt Hedberg. Okay, great. Thank you very much for taking the question. Um, you know, getting a lot of questions on CRPO. So I just, you know, your CRPO guidance for Q2 suggests a sequential decline for the second consecutive quarter, you know, which has never happened before. And I know you're factoring in some uncertainty for the macro, but You know, given some of the historical results we've seen when, you know, Okta has grown your CRPO sequentially in Q1 and Q2, when the macro has been much, much worse with whether it's COVID or massive inflation, it seems like the macro is certainly better than those periods.

Speaker Change: And next up Andy Nowinski, followed by Matt Hedberg.

Speaker Change: Okay, great. Thank you very much for taking the question.

Speaker Change: I'm getting a lot of questions on CRP Oh. So I just you know you see European no guidance for Q2 suggests a sequential decline for the second consecutive quarter.

Speaker Change: Which has never happened before and I know you're factoring in some uncertainty for the macro but.

Speaker Change: Given some of the historical results we've seen one.

Brian: Okta has grown your CRP Oh sequentially in Q1 and Q2 when the macro has been much much worse with whether it's COVID-19 or massive inflation. It seems like the macro is certainly better than those periods and yet.

Brett Tighe: And yet, you're looking for this sort of sequential decline again for the second consecutive quarter. So I'm wondering, you know, is there anything you can just give us? Was there any sort of pull forward that happened in Q4 or was there any other factors that might make this period look a little bit different from what we've seen over the last three to four years?

Brian: You're you're looking for this sort of sequential decline again for the second consecutive quarter. So I'm wondering.

Brian: Is there anything you can just give us it was there any sort of pull forward that happened in Q4 or was there any other factors that might make this period look a little bit different from what we've seen over the last three or four years yeah.

Brett Tighe: Yeah, I would say that probably the one thing relative to the period you just mentioned, we were growing at a faster clip than that, than we are today, right based on the guidance. But the one thing I would also caution everyone against, or at least maybe it'd give you some advice around how to model CRPO. You've heard me talk about current RPO coverage ratio, right? On the annual, in an annual term, right? You've heard me talk about it last quarter, the quarter before that. Well, if you bite-size chunk that down into quarters, what you'll notice is that you'll see a trend that reveals itself.

Brian: Yeah, I would say the rather the one thing relative to the periods. You. Just mentioned we are growing at a faster clip than that than we are today, Greg based on the guidance.

Brian: But the one thing I would also.

Brian: Caution everyone against or at least maybe I'd give you some advice around how to model CRP Oh, you know you've heard me talk about current IPO coverage ratio right on the annual in an annual term right. You've heard me talked about it last quarter the quarter before that well if you bite sized chunk that down in the quarters, what you'll notice is that youll see a trend.

Brian: That reveal reveals itself. So when we gave you the guidance for subscription revenue last quarter.

Brett Tighe: So when we gave you the guidance for subscription revenue last quarter. You probably would have seen this decline, or at least somewhere in this range of 2.2 billion in terms of a current RPO expectation. To be very specific, what's the math that I'm doing? Because I know you guys are going to ask these questions. Look at current RPO, and then look at the subscription revenue in the very next quarter. Divide the subscription revenue divided by the total current RPO number, and you'll see what I'm talking about. You'll see if you applied FY24 seasonality, you apply FY25 seasonality, this is roughly the number that should have been kicked out.

Brian: You probably would've seen this decline or at least somewhere in this range of $2 2 billion.

Brian: In terms of our current RP O expectation, we want to be very specific what's the math that I'm doing. So now you guys can ask these questions Luca current Rps and then look at the subscription revenue and the very next quarter divide the subscription revenue divided by the divided by the total <unk>.

Brian: Current RPI number and you'll see what I'm talking about and you'll see if you applied FY 'twenty for seasonality you fly Fi twenty-five seasonality.

Brian: This is roughly the number we use that should've been kicked out actually probably would've kicked out a little bit lower number than the 2.205 billion that we've given you here today so.

Brett Tighe: Actually, probably would have kicked out a little bit lower number than the 2.205 billion that we've given you here today. It's fundamentally what current RPO does. We know it's highly correlated between subscription revenue and the total value, so you just really need to take those factors into account when you're thinking about how to model current RPO.

Brian: It's just a it's it's fundamentally what current IPO does right. We know it's highly correlated between one quarter between subscription revenue and the total value. So you just really need to take those factors into account when you're thinking about how to model cornacchia.

Brown: Okay. Thank you brown.

Matt Hedberg: Let's go to Matt Hedberg followed by Brian Essex. Thanks, Dave. Thanks for the question, guys.

Speaker Change: Let's go to Matt Hedberg, followed by Brian Essex.

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

Todd Mckinnon: You know, I wanted to double click back on the go-to-market, the specialization. It sounds like you guys are happy with the results there. And, you know, Todd, you mentioned OIG a number of times on the call. I'm curious, you know, in this Q1, have you experimented with some additional bundles to kind of drive cross-sell? I mean, we're hearing about more of that in our checks. Just kind of curious on how you kind of thought about that for Q1 and how that might benefit the remainder of the year. Yeah, we have what we call suite-based pricing for the Okta platform now.

Brian: Doubleclick back on the go to market the specialization. It sounds like you guys are happy with the results there and Todd you mentioned <unk> a number of times on the call. I'm curious you know in Q1 have you have you experimented with some additional bundles to kind of drive cross sell I mean, we're hearing a lot more of that in our checks just kind of curious on how you kind of thought about that for Q1, and how that might benefit the remainder of the year.

Brian: Yeah, we have what we call suite based pricing for the acre platform now and we introduced that Q1 is the first quarter of that and again, we're seeing positive results there with people wanting to buy multiple products and basically good better best configurations. The best configuration has all the products in.

Todd Mckinnon: And we introduced that Q1 as the first quarter of that. And, again, we're seeing positive results there with people wanting to buy multiple products in basically good, better, best configurations. The best configuration has all the products, and the first – the initial good suite has, you know, just some of the basic products. So, we're seeing that motion. It's made good progress in Q1, but we still think it has a lot to run because we're positioned well in terms of the market here. We're the only independent, neutral identity platform that has this broad array of products across governance, privilege, threat protection, device access, access management.

Speaker Change: The first the initial good suite has just some of the basic products. So we're seeing that motion it's.

Speaker Change: Made good progress in Q1, but we still think it has a lot to run because we're.

Brian: We're positioned well in terms of the market here, we're the only independent neutral at any platform that has this brought away at a broad array of products across governance privileged threat protection device access access management. So we're very excited about that bundle opportunity and also when I talk to customers they want.

Todd Mckinnon: So, we're very excited about that bundle opportunity. And also, when I talk to customers, they want – customers are picking the strategic points of consolidation. So, they're looking at their landscape and saying, We can't consolidate everything, but we want to consolidate at the right points. And our pitch to them, which is resonating, which is you should consolidate around identity and make sure it's independent and neutral, but you can take costs out of the business, you can get multiple capabilities from one vendor, and you're not going to forego choice. You're not going to be locked into a certain ecosystem, a certain cloud environment, a certain collaboration environment, even a certain set of security tools.

Brian: Customers are picking the strategic points of consolidation so they're looking at their landscape insane.

Brian: We can't consolidate everything but we Wanna.

Brian: Consolidated at the right points in our pitch to them, which is resonating which is you should consolidate around identity and make sure. Its independent neutral, but you can take cost out of the business you can get multiple capabilities from one vendor and youre not going to forego a choice youre not going to be locked into a certain ecosystem of certain cloud environment certain collaboration environment, even a certain set of security tools.

Todd Mckinnon: You get choice around the identity, but you still get those benefits of consolidation. And that's our sweet space pricing. That was the motivation behind that.

Brian: Get choice around the identity, but you still get those benefits of consolidation and that's our.

Brian: Our suites based pricing that was the motivation behind that.

Todd Mckinnon: Yeah, and I would just add a good day for that I was working actually in Q format. The biggest deal we did was a workforce suite.

Speaker Change: Yeah, and I would just add a good data for that it was working actually in Q4, Matt. The biggest deal. We did was work for suites deal.

Brian Essex: Ok, next we'll go to Brian Essex followed by Gabriela Borges.

Speaker Change: Okay and next we'll go to Brian Essex, followed by Gabriella gorgeous.

Brian Essex: Hi, good afternoon. Thank you for taking the question.

Brian Essex: Hi, good afternoon, and thank you for taking the question I guess Todd for you on the developer side.

Todd Mckinnon: I guess Todd, for you, on the developer side, curious to see if you're beginning to see demand for, you know, OAuth for MCP authentication, and how should we think about the way that Okta may be levered to agentic demand there? Yeah, it's super exciting. I mean, it's almost you hear it all the time, all the super exciting developments in AI. And we have our Auth4Gen AI capability, which you can think about it as a lot of very strategic additions to the Auth0 platform that are very purpose built for someone building AI agents and agentic workflows.

Brian Essex: Curious to see if you're beginning to see demand for off for MCP, author authentication and how should we think about.

Brian Essex: The way that after maybe levered to agenda demand there yeah.

Brian Essex: Yeah, it's super exciting I mean, it's almost you.

Brian Essex: You hear it all the time all the Super exciting developments in and we have our author Virginia.

Brian Essex: Capability, which you can think about it as.

Brian Essex: A lot of very strategic additions to the zero platform that are very purpose built for someone building AI agents in our agenda workflows, that's off Virginia and that's in developer preview now and that's going to go generally available very shortly here and we're excited about that it's basically going to mean, there's more reasons to buy asaro and more reasons to buy.

Todd Mckinnon: That's Auth4Gen AI. And that's in developer preview now. And that's going to go generally available very shortly here. And we're excited about that. It's basically going to mean there's more reasons to buy Auth0 and more reasons to buy more of Auth0 in terms of monthly active users there.

Brian Essex: Moreover, zero in terms of.

Brian Essex: Monthly active users there now.

Todd Mckinnon: Now, the MCP is a big deal, as you all know, and the way I think about it is, it's basically a way to, it's almost like a new Internet. It's a new way to communicate with tools and technology in a way that these LLMs and these emerging set of browsers and user agents on the AI Internet can use all these resources. And that's very exciting. People forget that if you look at the internals of the web, HTTP, the tag for a browser is actually called a user agent, and it uses HTTP to connect to web resources.

Brian Essex: Now the M. C. P is a big deal as you all know and the way I think about it is.

Brian Essex: It's basically a way to to it's almost like a new internet, it's a new way to communicate with.

Brian Essex: Tools and technology in a way that these <unk> in these.

Brian Essex: These emerging set of browsers and user agents on the AI Internet can use all these resources and that's very exciting people don't people forget that if you look at the internals of Av.

Brian Essex: The web http.

Brian Essex: The the way the the tag for a browser is actually called the user agent and it uses the http to connect our web resources well M. C. P. It could be a new kind of internet, where the clients are actually AI agents not user agents and they can talk to these MCP servers. So it's very exciting from a shifting of the industry and a shift.

Todd Mckinnon: Well, MCP could be a new kind of Internet where the clients are actually AI agents, not user agents, and they can talk to these MCP servers.

Todd Mckinnon: So it's very exciting from a shifting of the industry and a shifting of the capabilities of what these kinds of software systems could do, but it's also very early. We're talking about a protocol that was announced, I think, six weeks ago, and everyone's running around adding MCP servers to their capabilities, and developers are experimenting with what this means. We're very excited about the ability to work with the standards bodies in the community to add the actual OAuth to the MCP, so authentication and OAuth protocol to the MCP. Ltd.

Brian Essex: And the capabilities of what these kinds of software systems could do but it's also very early we're talking about a protocol that was announced.

Brian Essex: Announced I think six weeks ago, and everyone's running around adding M. C. P servers to their capabilities and developers are or experiment with what this means we're very excited about the ability to work with work with the standards bodies in the community to add the actual oh off to the M. C. P. So authentication and a loss prone.

Brian Essex: A call to the M C P.

Brian Essex: <unk>.

Brian Essex: Protocol and handshake, there that's a very exciting.

Brian Essex: Specific example, but the main takeaway for the group here is that it's a very exciting this layer of software as a huge opportunity and it's also very early and we're working hard to play a big part of that and help the industry and help our customers take advantage of all of all of these capabilities and customers are excited about it too it's not just vendors, it's everyone I talk to.

Todd Mckinnon: Inquisite Data, footprint of industry data recovery People New York New York congregations How important identity is in this model? We will work hard to make sure we are a big part of that.

Speaker Change: I'm from Washington to Europe to New York everyone's very excited about what can happen here and how important identity is in this model and we're going to work hard to make sure. We're a big part of that any indications on pricing is it a volume per.

Todd Mckinnon: Any indications on pricing? Is it a volume per agent based pricing model? Specifically off for Gen AI is a usage based pricing model. It is the number of requests to Auth0. It is monetized in a similar way as Auth0 is now.

Brian Essex: <unk> agent based pricing model, yeah. So the specifically off Virgin AI is a usage based pricing model. So it's the number of requests to ask euro. So it's monetized in a similar way to the way author who is now the way M. C. P will be monetize and how if if we add product capabilities to extend what an authentication handshake is.

Todd Mckinnon: The way MCP will be monetized if we add product capabilities to extend what an authentication handshake is to an MCP server. We have not built that yet. We will be talking about that more later this year. Off for Gen AI is monetized in the normal Auth0 pricing model.

Brian Essex: Two in MCP server that we havent built that yet and we haven't released that yet so that'll be TBD there, we'll be talking about that more later this year.

Speaker Change: But off Virginia is monetized in the normal off zero pricing model awesome. Thank you.

Gabriela Borges: Next question from Gabriela Borges followed by Saket Kalia. Hey, good afternoon, thank you. For Eric and Brett, I'm wondering if there is a way to think about to what extent some of the cross cells can impact the growth algorithm going forward. So I guess, did you see a negative impact in 1Q and productivity from the growth marker changes? And then going forward, how do you think about when we would start to see growth marker Positive Contribute to the World Lab, or the NRIR. I'll take a crack at it and Eric can fill in where I leave something out.

Speaker Change: Next question from Gabrielle Abortus, followed by a second carrier.

Brian Essex: Hey, good afternoon.

Eric Heath: Eric I'm sorry.

Brian Essex: Alright.

Brian Essex: So why now.

Speaker Change: And impactful blah blah blah blah blah, So I guess did you Ian.

Brian Essex: And once a little patchy.

Brian Essex: Okay.

Brian Essex: Good morning.

Brian Essex: How do you think about wahoo.

Brian Essex: Michael.

Brian Essex: Part of it.

Brian Essex: Sure.

Brian Essex: And Oh, we have a quite well.

Brian Essex: What do you think about this transaction.

Brian Essex: No.

Brian Essex: Okay.

Brian Essex: Thank you.

Brian Essex: Thank you.

Speaker Change: It'd take Greg on the American can fill in where I where I.

Speaker Change: Leave something out so from an overall Q1 perspective, one of the reasons why we're saying we're on track not just looking at all of the quantitative numbers, but also if you look at the amount of change in the field for Q1, there was more from the from further specialize in the field from a number of reps theres more rest being specialized than there was last Q1.

Brett Tighe: So from an overall Q1 perspective, one of the reasons why we're saying we're on track, not just looking at all the quantitative numbers, but also if you look at the amount of change in the field for Q1, from further specialized in the field, from a number of reps, there's more reps being specialized than there was last Q1. And if you look at a lot of the stats, some of the stats you just mentioned, they're as good or better than they were last Q1. So that is a really good sign because if you changed more in Q1 than you did last quarter and the numbers are fairly similar, that's a really good sign.

Speaker Change: And if you look at a lot of the stats some of the stats you just mentioned there as good or better than they were last Q1. So that is a really good sign because if you changed more in Q1 than you did last quarter and the numbers are fairly similar that's a really good sign in terms of your question around.

Eric Heath: In terms of your question around additives or having upsell be additive to NRR as a result of specialization, that's one of the reasons we're doing specialization. Because we know that the product portfolios are so deep that it's hard for someone to be a generalist across the entire portfolio, that we want to give them the opportunity to focus and be able to spend more time on a specific product, which then should in the long run make them better at selling that product, which then in the long run should be a better upside to NRR. These changes that we're making are not about just Q1 or Q2, they're about setting us up to execute in whatever macroeconomy presents itself.

Speaker Change: Yeah.

Speaker Change: Additives or having that that'll be additive to enter our in the in as a result of specialization. That's one of the reasons, we're doing specialization because we know that the product portfolios are so deep that is hard for someone to be a generalist across the entire portfolio that we want to give them the opportunity to focus and be able to spend more time on a specific.

Speaker Change: Product, which then should in the long run make them better at selling that product, which then in the long run it should be a better.

Speaker Change: Upside to enter or are these.

Speaker Change: These changes that we're making are out about just Q1 or Q2, there about setting us up to execute and whatever macro economy presents itself. So there's a lot of reasons to do specialization and it's just more signs of how we're feeling.

Brett Tighe: So there's a lot of reasons to do specialization and it's just more signs of how we're feeling. Confident and excited about the future given the changes that we've made here today or made in Q1.

Speaker Change: Confident and excited about the future given the changes that we've made here today were made in Q1.

Eric Heath: I would agree with Brett's comments. What I would add to that is it's also a win for our customers, as our customers now have the opportunity to work with go-to-market teams that are really focused on the platform that's relevant to those customers. So to your question about cross-sell and up-sell, we are confident that with focus on the platform, our individual sellers and our pre-sales teams and our technical account managers will be able to go deeper on the specific capabilities and learn more about them faster. And that's particularly important as we've, in recent years, increased our pace of product innovation.

Speaker Change: And I argued with Brad's comments, what I would add to that is it's also a win for our customers as our customers.

Speaker Change: I'll have the opportunity to work with go to market teams that are really focused on the platform and that is relevant to those customers. So to your question about cross sell and up sell.

Speaker Change: We are confident that with focus on the platform are individual sellers in our pre sales teams and our technical account managers will be able to go deeper on the specific capabilities and learn more about them faster and is particularly important as we have in recent years increased our pace of product innovation. So just on the auto platform in recent quarters, you've heard us talk about.

Eric Heath: So just on the Okta platform in recent quarters, you've heard us talk about identity threat protection with Okta AI, identity security posture management, Okta Identity Governance, Okta Privileged Access. We have a whole host of new capabilities that we're bringing to market, and our sellers need to stay abreast of these changes so that they can help our customers stay abreast of these changes and understand what new value that we can provide for them. And then we have a very parallel opportunity on the Auth0 side. Todd just talked about Auth1gen AI, and we just announced that at our showcase event last month.

Speaker Change: And identity theft protection with Okta, AI or data security posture management auditing any governance occupier list access we have a whole host of new capabilities that we're bringing to market and our sellers need to stay abreast of these changes so that they can help our customers stay abreast of these changes and understand what new value that we can provide for them and then we have a very parallel.

Speaker Change: <unk> opportunity on the austere side, Todd just talked about offer Gen AI and AR that we just announced that at our showcase event last month. So we believe specialization is going to help us move faster and will help us stay focused it will accelerate our enablement for these teams and ultimately that will help us provide a better experience for our customers and get more value faster as well, yeah, I think I would.

Todd Mckinnon: So we believe specialization is going to help us move faster. It will help us stay focused. It will accelerate our enablement for these teams. And ultimately, it will help us provide a better experience for our customers and get more value with us faster as well. Yeah, I think Eric made me think of something, which is focus works. Just like what Eric said earlier, focus works. A good example of that in the hunter-farmer regions that Eric talked about earlier, we had a really nice new business, Hunter, new business quarter. Q1, we had a really nice new business quarter.

Eric Heath: Eric maybe you think somebody wishes.

Speaker Change: Focus works just like what Eric said earlier focus works a good example of that in the Hunter farmer regions that Eric talked about earlier, we had a really nice new business Hunter New business quarter Q1, we had a really nice new business quarter.

Todd Mckinnon: The majority of the top 10 deals in Q1 were new business. So we've got... Like we feel like the focus is really going to make a difference. It's making a difference in areas that have been specialized already, but we think it's going to make a difference in the long run. So that's why you hear the positivity coming out of us.

Speaker Change: The majority of the top 10 deals in Q1, new business. So we've got.

Speaker Change: Like we feel like the focus is really making it is going to make a difference it's making a difference in areas that have been been specialized array, but we think it's going to make a difference in the long run. So that's why you hear the positivity coming out of us.

Speaker Change: Okay.

Brett Tighe: Yeah, another key positive trend is rep tenure and repetition. We're very pleased with the way that's trending, which is something we've talked about over the years as a real health indicator. And so I think when you look at why we're saying that we're on track, and we're optimistic about the quarters ahead, that's a key data point as well.

Speaker Change: Another key positive trend as our Rep tenure and Rep attrition, we're very pleased with the way that's trending which is something we've talked about.

Speaker Change: Over the years as a as a real health indicator and so I think when you look at why we're saying that we're on track and we are optimistic about the quarters ahead.

Speaker Change: That's a key data point as well.

Speaker Change: Thanks.

Saket Kalia: Next question from Saket followed by Gray Powell. Okay, great. Hey, guys, thanks for taking my question here.

Speaker Change: Next question from second followed by Gray Powell.

Gray Powell: Great Hey, guys. Thanks for taking my question here Todd maybe for you just on that last line.

Todd Mckinnon: Todd, maybe for you just on on that last line of questioning, can you just talk a little bit about the new logo pipeline for the rest of the year, particularly in the workforce business, and maybe relatedly, how you feel competitively there as you offer more of a platform? I feel very optimistic and positive about both of those points competitively and new logos and that's because we talk a lot about, you know, this idea of a platform sell and how much revenue we're going to drive from new products like governance, which is over 400 million now, privilege access, which is ramping nicely, identity security posture management, which has awesome capabilities.

Speaker Change: Of questioning.

Speaker Change: Can you just talk a little bit about the new logo pipeline for the rest of the year, particularly in the workforce business and maybe Relatedly, how you feel competitively there as you all from more of a platform.

Speaker Change: I feel very optimistic and positive about both of those points competitively and new logos and that's because we talk a lot about this idea of a platform so and how much revenue, we're gonna drive from new products like governance, which is over 400 million now.

Speaker Change: Privilege access, which is ramping nicely and then your security posture management, which has awesome capabilities. So we talk about it as like this collective thing and we talk about the suites in pricing, but also all of these new products are a great point way to land new customers the amount of interest in the conversations we're having around identity security posture management.

Todd Mckinnon: So we talk about it as like this collective thing and we talk about the suites and pricing, but also all these new products are a great point way to land new customers. The amount of interest in the conversations we're having around identity security posture management is incredible. This product is qualitatively different than anything we've ever had. It actually scans a customer's environments and proactively alerts them about all these identity security posture issues, including NHIs, including these non-human identities, which is something almost no company has a good handle on. And that, in a lot of cases, can be an entry point to a whole new customer.

Speaker Change: It is incredible this product is qualitatively different than anything we've ever had and actually scans of customer environments and proactively alerts them about all these identity security posture issues, including NHI is including these nonhuman identities, which is something almost no company has a good handle on that and a lot of <unk>.

Speaker Change: Cases can be an entry point to a whole new customer of course, we can then.

Todd Mckinnon: Of course, we can then... Land New Customer. So the the product offering and it's it's unmatched. I mean, no one in the industry has both. Independence Neutrality, the robust, scalable, reliable, cloud-based architecture we have, plus the breadth of products. Go down the list. No one has it. No one has access management, governance, privilege access management, posture management, device access, threat protection, on and on and on. Plus, none of them are integrated like we are. 8,000 integrations, and all the work we've done there, leading the industry in this march toward independent neutral identity, it's unmatched. So there's a lot to be optimistic about.

Speaker Change: Be a bigger part of their <unk>.

Speaker Change: Identity security fabric over time with more of the products, but these new products arent, just upsells to existing customers or a way to.

Speaker Change: Land new customers, so the product offering and it's it's unmatched I mean, no one in the industry has both.

Speaker Change: Independents neutrality, the robust scalable reliable cloud based architecture, we have plus the breath of products go down the list no. One has that no. One has access management governance privilege access management posture management device access threat protection and on and on and on plus none of them are integrated like we are 8000 integrations and.

Speaker Change: All the work we've done there leading the industry in this in this march toward independent neutral identity is unmatched. So there's a lot to be optimistic about it and I think you've seen the numbers. The last couple of quarters really back that up now it's up to us to make sure that translates into very strong success over the rest of the year and beyond.

Todd Mckinnon: And I think you've the last couple of quarters really backed that up. Now it's up to us to make sure that translates into very strong success over the rest of the year and beyond.

Speaker Change: Super helpful. Thanks.

Gray Powell: Let's go to Gray Powell followed by Mike Cikos. Okay, great. Um, thanks for thanks for taking the question. Maybe it's a follow up one on guidance, if it's okay. So I'm just looking at the numbers for your revenue guidance calls for nine to 10% growth, you grew closer to 12% in Q1, you beat numbers by a little bit in Q1, which is good. Just how should we think about the exit rate in Q4? And I know you don't want to get too granular, but something in the 8% range seem about right. And then and then what factors or products have the best chances of just driving upside as as the rest of the year plays out?

Speaker Change: Now, let's go to Gray Powell, followed by Mexico.

Speaker Change: Okay great.

Speaker Change: Thanks for thanks for taking the question.

Speaker Change: Maybe just a follow up one on guidance if it's okay. So I'm just looking at the numbers full year revenue guidance calls for 9% to 10% growth you grew closer to 12% in Q1, you beat numbers by a little bit in Q1, which is good.

Speaker Change: How should we think about the exit rate in Q4, and I know you don't want to get too granular, but there's something in the 8% range seem about right and then what factors or products have the best chances of them just driving upside as the rest of the year plays out well I can start with some.

Brett Tighe: Well, I can start with some high level thoughts. And then in terms of like exit run rates, and so forth, I'm sure Brett will have some thoughts there. But I think the the biggest opportunity for us is large enterprise. You've seen this over the last few quarters, this past quarter, Q1, that the number of customers a million dollars higher grew 20%. And we still are have tons of room to grow inside the global 2000. And really, the top 5000 biggest company companies and organizations in the world is a tremendous opportunity for us. A lot of those organizations are invested a lot in on premise technology and a lot in on premise identity with big identity teams that they spend a lot of money on a lot of costs there.

Brad Buehler: High level thoughts and then in terms of like exit run rates and so forth I'm sure Brad will have some thoughts there, but I think the biggest opportunity for us is large enterprise.

Speaker Change: You've seen this over the last few quarters. This past quarter Q1, but that the number of customers a million dollars are are in higher grew 20%.

Speaker Change: And we are still or have tons of room to grow inside the global 2000, and really the top 5000 biggest company.

Speaker Change: He is an organizations in the world is a tremendous opportunity for us a lot of those organizations are in.

Speaker Change: Invested a lot in on premise technology and a lot in on premise identity with big identity teams that they spent a lot of money on a lot of cost there and those companies are with all the change around cloud migration, which has been going on for years and years years and the focus on security and now with all of them trying to take advantage of the.

Todd Mckinnon: And those companies are with all the change around cloud migration, which has been going on for years and years and years and the focus on security. And now with all of them trying to take advantage of the AI revolution, there's another catalyst for them to change and upgrade their identity system. And our pitch is basically use this independent neutral identity fabric, we have all these products, we have all this capability, do it with us. And the opportunity there is tremendous. It's, you know, it's a combination of catalysts for change in that segment that's driving the momentum.

Speaker Change: Air evolution, there's another catalyst for them to change and upgrade their identity system in our pitches basically use this independent neutral identity fabric. We have all these products. We have on this capability do with us and the opportunity. There is tremendous it's you know it's it's a combination.

Speaker Change: <unk> of catalysts for change in that segment, that's driving the momentum. It's also the products are much better I mentioned, the breath of products I mentioned, the maturity and the scalability and security there are reliability.

Todd Mckinnon: It's also the products are much better. I mentioned the breadth of products, I mentioned the maturity and the scalability and security, the reliability. And you know, the proven success when you look at our roster of customers and large organizations from large government agencies and healthcare and financial services and the success some of these big companies are having with Okta, not only in each individual product, but buying a breadth of products from us, it speaks for itself.

Speaker Change: And you know the proven success when you look at our roster of customers in large organizations from large government agencies and health care and.

Speaker Change: Financial services and the success some of these big companies are having with doctor not only in the each individual product but.

Speaker Change: Buying a breadth of products from us it speaks for itself.

Todd Mckinnon: In terms of the guidance, let us get through a few more quarters before I start answering questions about FY27. We got a long ways to go. You know, like we've talked about, Q1 is our smallest, our seasonally smallest quarter of the year. So we're not going to take too many takeaways away from Q1. Like we've talked about, we're on track. We feel good with where we are, but we have to go execute well in Q2, Q3, and Q4 before we start talking about it. You know, really sizes of what we're going to talk about in 20 All right, fair enough.

Speaker Change: In terms of the guidance, let us get through a few more quarters before I start answering questions about FY 'twenty seven we've got a long ways to go.

Speaker Change: We've talked about Q1 is our smallest.

Speaker Change: Seasonally smallest quarter of the year. So we're not going to take too many takeaways away from Q1 like we've talked about we're on track we feel good with where we are but we have to go execute.

Speaker Change: Well in Q2, Q3, and Q4 before we start talking about.

Speaker Change: You know really sizes of what we're going to talk down towards them.

Speaker Change: Fair enough. Thanks, Brett Thanks, Todd.

Mike Cikos: Thanks, Todd. And next up, let's go to Mike, followed by Rob Owens.

Speaker Change: And next up let's go to Mike followed by Rob Owens.

Speaker Change: Great. Thanks, guys.

Speaker Change: A question for Brett I know where the.

Speaker Change: We're talking about this incremental conservatism you're baking in just based on the tone of conversations et cetera. Can you. Just further qualify that is it more tied to new logos or and or is it across the business as it pub SEC like her.

Speaker Change: How did you guys think about that.

Speaker Change: That incremental prudence, we're talking to all of the above Mike.

Speaker Change: And I know there is definitely some.

Speaker Change: If you think about the macro umbrella there is definitely some prudence around.

Rob Owens: Igor Kledov, Riyan Drysstoefer, WordPress, 2009. Can you work on mandatory import禁� because the t98 full checkpoint 禁备禁止禁止禁止禁止禁止不了禁止禁止禁止禁止禁止禁止 you can move toceksinjohn.com You know, if you've heard us talk about over the last couple of years about the headwinds that we faced in terms of NRR. I don't think that those headwinds would be any different than what we've what we would expect to see if the macro did turn negative as we go through the full fiscal year.

Speaker Change: The federal vertical right, although it's not a huge part of our business you guys. All know it does renew itself every year because of the one year contract mandates that the U S. Federal government has so that would be a kind of like a subset of the total macro but in general it's across the board.

Speaker Change: If you've heard us talk about over the last couple of years about the headwinds that we faced in terms of enter our I don't think that those headwinds would be any different than what we've.

Speaker Change: Well, we would expect to see if the macro did turned negative as we get through go through the full fiscal year.

Brett Tighe: Adam. Thanks. Yeah, and one one thing too, as I hear the conversation here and think about it, you can look at what we're doing, like we're not changing our investment level. We're still investing in this opportunity. And we're not the forward looking macro is I would say cautionary. And, you know, we're being a little bit prudent. But if you just look at the numbers, they're good. Q1 was very solid. If you look at the pipelines going into Q2, they're building and we're very pleased with them. So it's a little bit of a call on I would also add that one of the reasons to do the specialization or further specialize is to execute as well as possible.

Speaker Change: Got it thanks, Yeah, and one thing too as I hear the conversation here and think about it.

Speaker Change: You can look at what we're doing like we're not changing our investment level, we're still.

Speaker Change: Investing in this opportunity.

Speaker Change: And we're not.

Speaker Change: The forward looking macro is I would say cautionary and we're being a little bit prudent, but if you just look at the numbers they are good.

Speaker Change: Q1 was very solid if you look at the pipelines going into Q2 their building and we're very pleased with them. So it's a little bit of a call on.

Speaker Change: How you want to be prudent in your guidance, but we're not changing how we're investing and how we're executing and how we're staffing to take advantage of this opportunity. So that's something that's probably relevant for everyone to think about too.

Speaker Change: I would also add that one of the reasons to do the specialization of further specialize is to execute as well as possible.

Brett Tighe: In any macro environment, right, it's going to allow us to execute.

Speaker Change: In any macro environment right, it's going to allow us to execute better.

Speaker Change: Then if we hadn't done.

Speaker Change: Thank you.

Rob Owens: Next question from Rob Owens followed by Shaul Eyal.

Speaker Change: Next question from Rob Owens, followed by US all year.

Shaul Eyal: Great. Thanks, Dave.

Speaker Change: Great. Thanks, Dave and thank you guys for taking my questions.

Shaul Eyal: And thank you guys for taking my questions. Since DiFucci hasn't gone yet, I guess I will focus on CRPL a little bit here. Come on, Robbie's had like five questions on CRPL already. I know, but I'm sure John will drill in because you guys come up a record quarter last quarter. I think you've called it a blowout a couple times, and it increases by $186 million.

Speaker Change: Since the Fuji hasn't gone, yet I guess I will focus on CRP O a little bit here and there.

Speaker Change: We're like five questions on CRE.

Speaker Change: I know, but I'm sure John Wilder, we'll drill in because you guys come off a record quarter last quarter I think you've called it a blow out a couple of times and it increases by $186 million, but I look at subscription revenue up 3 million quarter over quarter I know, it's not a perfect metric and Theres a lot of puts and takes but the 3 million sequential increase in subscription.

Brett Tighe: But I look at subscription revenue up $3 million quarter over quarter, and I know it's not a perfect metric, and there's a lot of puts and takes, but the $3 million sequential increase in subscription revenue is the lowest that I have in your model since back when you guys went public. And so just help me understand a little bit what some of those puts and takes are and why that number just doesn't look a little bit more robust here in the first quarter, given that a blowout should lend to maybe a little bit more subscription revenue this quarter.

Speaker Change: Revenue is the lowest that I have in your model since back when you guys went public and so just help me understand a little bit what some of those puts and takes are and why that number just doesn't look a little bit more robust year in the first quarter given that a blowout should lens you may be a little bit more subscription revenue this quarter. Thanks.

Brett Tighe: Thanks. Yes, that's a good question, Rob. So first and foremost, every year it's had a higher growth rate, so that higher growth rate masks the 89 days versus 92 days. And remember, last year it was a leap year, so there were 90 days in Q1, so that's a tougher compare. The other factor is, if you remember what I said for the last two quarters, our guidance philosophy has less conservatism in it, so the beat's not going to be as large, and so you see that come to fruition here. You can see it in the annual guidance that we've given here today, which is we've held flat despite a beat.

Rob: Yes, that's a good question, Rob So first and foremost.

Rob: Every year its at a higher growth rate, so that higher growth rate masks. The 89 days versus 92 days and remember last year. It was a leap year. So there were 90 days in Q1, so that's a tougher compare the.

Rob: The other factor is if you remember what I've said for the last two quarters, our guidance philosophy has less conservatism in it. So the beat is not going to be as large and so you see that come to fruition here you can see it in the annual guidance that we've given here today, which is we've held flat despite a b there would've been a different mechanic.

Brett Tighe: There would have been a different mechanic that would have happened in prior years. Because we had more conservatism in the model. So those are the two main reasons, Rob. All right.

Rob: That would have happened in prior years.

Speaker Change: Because we had more conservatism in the model. So those are the two main reasons Rob.

Speaker Change: Hopefully that's helpful.

Speaker Change: Alright, Thank you Rob.

Shaul Eyal: Thank you, bro.

Shaul Eyal: Okay, next question from Shaul and followed up by Young Kim. Thank you guys. Hi, good afternoon. Maybe to continue and beat a dead horse on that tobacco front, you did call out a strong March and a strong April, kind of deviating, you know, from some other companies who called out a little bit of a pause, just a little bit of a pause during April, with May coming to an end in a handful of days. And I understand the linearity within the quarter, between the month of the quarter. How would you characterize the first month of the quarter?

Speaker Change: And our next question from Joe and followed up by Yung Kim.

Speaker Change: Thank you guys and I get afternoon.

Speaker Change: Maybe to continue on and beat a dead horse on the macro front.

Speaker Change: You did call out a strong March and a strong April.

Speaker Change: Kind of deviating from some other companies have called out a little bit of a pause just a little bit of a pause during April.

Speaker Change: With me coming to an end in a handful of updates.

Speaker Change: And I understand that linearity within the quarter.

Speaker Change: Between the months of the quarter, how would you characterize the first month over the quarter did it build it continue building on the strength you've seen.

Todd Mckinnon: Did it build, did it continue building on the strength you've seen during March and April? Yeah, it's a good question. I think the conversations and the feelings got more negative in terms of like what we're thinking about going forward. But the numbers didn't. If you just look at pipeline and performance, the numbers stayed consistent with what we saw in Q1. So a little bit of a, I would say, conversation. And part of that, too, is I'm sure, you know, we're like everyone else on the call. We hear what other companies say, too. We hear other companies say that, oh, you know, the business was a little soft in March and April.

Speaker Change: During March and April.

Speaker Change: Yeah, It's a good question.

Speaker Change: Oh, I think the conversations and the feelings got more negative in terms of like what we're thinking about going forward, but the numbers didn't if you just look at pipeline and performance. The numbers stayed consistent with what we saw in Q Q1, So a little bit of a I would say Congress and I'm part of that too as I'm sure you know.

Speaker Change: We're like everyone else on the call we hear what other companies say too we hear other companies say that Oh, you know the business was a little soft in.

Speaker Change: March and April and we hear that and we've talked to customers and customers probably hear that too. So it's possible that this could be a little bit of an echo.

Todd Mckinnon: And we hear that and we talk to customers and customers probably hear that, too. So it's possible that this could be a little bit of an echo chamber and we shouldn't all be this concerned. But I think it warrants, you know, being a little prudent here, while at the same time, we're still investing and still executing aggressively. And it's really not showing up in the numbers at this point. Yeah, and keep in mind, guys, like what Saul was saying, we are a back-end loaded quarter. You know, first months are not normally very indicative one way or the other.

Speaker Change: Oh Chamber and we Shouldnt Army, there's concern, but I think it warrants being a little prudent here while at the same time, we're still investing in still executing aggressively and it's really not showing up in the numbers at this point.

Speaker Change: And keep in mind, guys, Doug would sort of saying we are a backend loaded quarter.

Speaker Change: First months are not normally.

Speaker Change: Very indicative one way or the other.

Todd Mckinnon: We need to, you know, get into June and July and then we'll have a better sense of how things are going.

Speaker Change: We need to get into June and July and then we'll have a better sense of how things are going so clearly we can cover that on our next earnings call.

Todd Mckinnon: So clearly we can cover that on the next earnings call. Thank you.

Speaker Change: Thank you.

Young Kim: Next question from Young Kim, followed by Greg Mast . The customer identity business is going well, specifically on Auth0. Auth0 had a strong Q1, and like a lot of the business, it was one of the most successful customer cohorts as the large customer cohort, and that was no different for Auth0 and Q1.

Speaker Change: Next question from Yung, Kim followed by Greg Moscowitz.

Speaker Change: Alright. Thank you so it sounds like the customer identity side of the business performed well was that more broad based or was it driven by few large deals.

Speaker Change: But I believe one of your high profile file native customers.

Speaker Change: He has got a viral event this past quarter I wouldnt event like that translate into a new potentially new light renewal and what is the typical timeframe associated.

Speaker Change: Associated with that job.

Speaker Change: Like many of them.

Speaker Change: The customer identity business is as is going well specifically on Arthur zero, the Alterra had a strong Q1 and the.

Speaker Change: You know like a lot of the business. It was it was one of the most successful customer cohorts is the large customer cohort and that was no different for Ontario in Q1.

Young Kim: It'll be interesting to see, as we move forward, how the Gen AI space and Auth4Gen AI plays out. I think that space is – there are big companies building things that could be taking advantage of Auth4Gen AI, but it's also a lot of smaller companies, too. Every small company startup is trying to innovate around AI agents, and I know a lot of the interest in the developer preview around Auth4Gen AI has been from small companies. So, I think while in Q1, I think Auth0 had a strong big deal quarter. I think we're optimistic for the rest of the year to be – that success to be quite broad-based.

Speaker Change: It'll be interesting to see as we move forward, how the journey I spacing off Virginia I plays out I think that space is there.

Speaker Change: There are big companies building things that could be taken advantage of off Virginia, but it's also a lot of smaller companies to every small company startups trying to innovate around AI agents and I know a lot of interest in the developer preview around off Virginia has been from small companies. So I think while in Q1, I think a zero had a strong big deal quarter.

Speaker Change: I think we're optimistic for the rest of the year to be that success to be quite broad based.

Todd Mckinnon: Yeah, I would just add to that the biggest deal in the quarter was actually an AusZero deal from a specialized team. So we feel pretty good about, especially feel good about, because you heard Todd talk about it earlier, which is.

Speaker Change: Yes, I would just add to that the biggest deal in the quarter was actually in Algeria deal from a specialized team.

Speaker Change: So we feel pretty good about especially feel good about because you heard Todd talked about earlier, which is that.

Speaker Change: They had a really good Q4 sort of back it up with another nice Q1 really shows.

Speaker Change: The fruits of our labor if you will over the last couple of years.

Speaker Change: Where we've really been focusing a lot on ontario, and selling into that buyer and making progress there. So.

Speaker Change: It was big deals, but there is also a lot of other deals as well so we feel good about where we're trending there.

Speaker Change: And look forward to the T mobile will execute for the balance of the fiscal year.

Speaker Change: Okay, great. Thank you.

Todd Mckinnon: And next we'll go to Greg Moskowitz followed by Ittai Kidron. You hit the nail on the head. I think where the industry is, is we're starting to go from POCs to production, and it's just starting. And I think you're right. Only the most advanced, forward-leaning enterprises are actually doing production AI right now, and use cases at scale where they're seeing tangible business benefit at scale and production. Now, when you look at agentic workflows and these agentic systems, they're amazing, but what they really do as well is they magnify this existing problem that's been around for a long time with non-human identities.

Speaker Change: And next we'll go to Greg Moscowitz, followed by E <unk> Kidron.

Greg Moscowitz: Okay. Thank you maybe a follow up on AI for tires, so adoption of <unk> starting to take off at least among bleeding edge enterprise it but a lot of investors still struggle with when will the rubber meets the road freight than any security can be implemented to protect these agents now if I look at Okta as you said earlier in obviously.

Greg Moscowitz: For Gen AI, only and develop our previous will be out fairly shortly but from a customer adoption standpoint, how do you see all of this playing out for okta come here.

Greg Moscowitz: You hit the nail on the head I think where the industry is as we're starting to go from <unk> to production and it's just starting and I think youre right. The only the most advanced forward leaning enterprises are actually doing production AI right now and use cases at scale, where they're seeing tangible business benefit at scale in production now when.

Greg Moscowitz: You look at.

Greg Moscowitz: The agenda workflows and ease of Gentex systems. They are there.

Speaker Change: They're amazing, but what they really do as well as they magnify. This existing problem that's been around for a long time with nonhuman of days, there's been nonhuman identities in companies and tokens tokens.

Todd Mckinnon: There's been non-human identities in companies and tokens used to access systems and APIs and service accounts forever. And it's been a problem that not a lot of companies have done a great job addressing. And so that's why we've been really focused on that layer. It's not AI-specific, but it's exacerbated by AI. So when you look at our identity security posture management, its ability to detect these NHI, and you look at our privilege solution and our general access management solution, which allows companies to secure those non-human identities, it's very relevant for a company, even if they're just POC.

Speaker Change: Tokens used to access systems and API is in service accounts forever and it's been a problem that not a lot of companies that have done a great job of dressing and so that's why we've been really focused on that layer, it's not AI.

Speaker Change: Civic, but it's it's exacerbated by AI. So when you look at our identity security posture management its ability to detect these NHI and you look at our published solution and our general access management solution, which allows companies to secure those nonhuman identities.

Speaker Change: It is very relevant for a company, even if theyre just POC and these agents and doing a proof of concept, they're not really in production, but it just puts us shines a light on this problem as they think about moving to production. So that's a very important.

Todd Mckinnon: These agents, they're in a proof of concept. They're not really in production. It just shines a light on this problem as they think about moving to production. So that's a very important aspect of this dynamic in the market. Now, we do think as more of these projects move into production, it's really, really going to force this issue even more. And so I think we're going to see further acceleration as more and more companies move into production.

Speaker Change: Aspect of this dynamic in the market now we do think as more of these projects move into production, it's really really going to force. This issue even more and so I think we're going to see further acceleration as more and more companies move into production.

Speaker Change: Thank you.

Ittai Kidron: And next we'll go to Ittai followed by Adam Tindle. Thanks, Dave. A couple of questions for you, Brett.

Speaker Change: And next we'll go to Ito, followed by Adam Tindle.

Speaker Change: Thanks, Dan a couple of questions for you breath.

Brett Tighe: As you look at the mix of contribution this quarter between seats, new products, cross sale, can you tell me how it came out relative to your plan and what areas you think you did a little bit better and what areas perhaps not as good? And also, I think last quarter you gave some details on new products as percent of bookings. Can you refresh our minds? Where do we stand right here right now? How the momentum and trajectory is looking there?

Speaker Change: As you look at the mix of contribution this quarter between seats new products Cross sale.

Speaker Change: Can you tell me how long how it came out relative to your plan and what areas do you think you need a little bit better what areas, perhaps not as good and also I think last quarter. You gave some details on new products as a percent of bookings can you refresh our minds, where do we stand right here right now the momentum and trajectory is looking there for new products.

Brett Tighe: Yeah, for new product, we'll start by answering backwards. So, NPI new products, which include a lot of the products we've been talking about a lot on this call, had another nice quarter. In terms of the mix of new business versus upsell versus cross sell, we had a nice new business quarter, one of the better ones we've had in a few quarters, which is good. But to be clear, the pipeline is still more tilted toward upsell than it historically has been. And when I say upsell, I mean upsell and cross sell. We did a nice job on cross sell, and we actually did nicely as well on the seat upsells as well.

Speaker Change: We'll start we'll answer them backwards, though NPI new products, which include a lot of the products. We've been talking about a lot on this call had another nice quarter.

Speaker Change: In terms of the mix of new business versus upsell versus cross sell we had a nice new business quarter one.

Speaker Change: One of the better ones we've had in our.

Speaker Change: In a few quarters, which is good.

Speaker Change: But to be clear the pipeline is still more tilted toward upsell than it historically has been and when I say upsell I mean, upsell and cross sell.

Speaker Change: We had a nice Joe when do we did a nice job on cross sell and we actually did necessary as well on the on the seat ourselves as well so all in all.

Brett Tighe: So, all in all, this is why we're saying we feel like we're on track. We had a nice quarter, and the team executed very well to be able to hit the marks.

Speaker Change: This is why we're saying we feel like we're on track for the next quarter.

Speaker Change: The team executed very well the ability at the marks.

Brett Tighe: Can you put a percentage of the new products in the bookings, as you did a quarter ago?

Speaker Change: And to put a percentage on the new products on the bookings as you know.

Speaker Change: The point is it's in the ZIP code as the last few.

Brett Tighe: It's in the zip code, it's the last few. Okay, thank you.

Speaker Change: Okay. Thank you.

Adam Tindle: And next we'll go to Adam Tindle, followed by Rudy Kessinger.

Speaker Change: And next we'll go to Adam Tindle, followed by Rudy Kissinger.

Brett Tighe: Okay, thanks, Dave. Brett, the CRPO color from earlier was helpful. I just wanted to build on that coverage ratio that you talked about. If I hold that metric to typical seasonality, obviously, CRPO is going to decline again sequentially in Q2. But I think it actually starts to grow sequentially in Q3 and Q4, if I did the math correctly. And I hate to beat a dead horse, but the context here is we obviously had that as a key metric. CRPO was down this quarter, your guidance implies it's down next quarter. And there's a fear that the this is just going to be a sequential decline persisting where new bookings are in perpetual decline.

Speaker Change: Okay.

Speaker Change: Brett.

Speaker Change: Yellow color from earlier was helpful. I just wanted to build on that coverage ratio that you talked about.

Speaker Change: All of that metric to typical seasonality, obviously CRP was going to decline again sequentially in Q2, I think it actually starts to grow sequentially in Q3, and Q4, if I did the math correctly I hate to beat a dead horse, but the context heroes, we obviously had that as a key metric as your appeal was down this quarter and you're guiding surprises down next.

Speaker Change: Quarter, and there's a fear that this is just going to be a sequential decline persisting, where new bookings are in perpetual decline, but I think that metric that you can talk about on coverage ratios as refuting that so if you could maybe just touch on the color other shape on CRP off of the year.

Brett Tighe: But I think that metric that you talked about on coverage ratio is refuting that.

Brett Tighe: So if you could maybe just touch on the color of the shape of CRPO for the year, because I think Q2 might actually be the bottom if I'm getting this right. Yeah, in terms of dollars, that's that's probably roughly correct. I haven't done the exact math off the guides, but it is, you know, in the zip code likely. But let's get through Q2 and Q3, and Q2 will give you an update there, but I think that's, I think that's probably all right.

Speaker Change: Because I think Q2 might actually actually be the bottom if I'm getting this right.

Speaker Change: Yeah in terms of dollars, that's that's probably roughly correct Ivan.

Speaker Change: Done the exact math off the guidance, but it is zika.

Speaker Change: Likely.

Speaker Change: But let us get through Q2, and Q3 and Q2 will give you an update there, but I think that's I think that's probably right.

Speaker Change: Based on what you're saying.

Rudy Kessinger: Okay, next question going to Rudy, followed by John DiFucci.

Speaker Change: Okay. Next question go into Rudy followed by agenda Fuji.

Brett Tighe: Great, thanks, guys. So your CRPO growth has been 13 to 15% year over year the last five quarters. If we look at your subscription revenue growth versus CRPO growth on a one to two quarter lag, it's been very tight the last couple And so why shouldn't subscription revenue growth be in that 13 to 15% range the next couple quarters? because we're telling you it's not. No, I'm just joking.

Speaker Change: Great. Thanks, guys. So your <unk> growth has been 13% to 15% year over year in the last five quarters. If we look year subscription revenue growth versus CRT outgrowth kind of one to two quarter lag. It's been very tight the last couple of years and so why shouldn't the subscription revenue growth be in that 13 to 15.

Speaker Change: 10% range the next couple of quarters.

Speaker Change: Because we're telling you it's not no I'm just joking, but.

Brett Tighe: But ultimately, if you don't look, I just think it's a it's a fool's errand to get into the growth conversation. I've told you guys I don't know how many times at this point. Look at the coverage ratios. That is like I don't know what the correlation is, but the R squared has got to be like 0.9 or 0.95. So like, we got to stop looking at percentages and look at the actual dollars, because that's the mechanics of how the math works through the system. So use the dollars forecast like I've told you either the annual or the current quarter one that Adam was just bringing up.

Speaker Change: Ultimately if you don't look I just think it's a it's a fool's errand to get into the growth conversation towards you guys. I don't know how many times at this point look at the coverage ratios that is like.

Speaker Change: I don't know what the correlation is that the R. Squared is got to be like nine or <unk> 95.

Speaker Change: So like we got to start looking at percentages and look at the actual dollars because that's the mechanics of how the math worked through the financials.

Speaker Change: So use the dollars forecast like I've told you either the annual or the current quarter, one that Adam was just bring it up.

Brett Tighe: and I would just highly recommend going. There's there's only one way to do it.

Speaker Change: And I would just highly recommend going down that path.

Speaker Change: There's only one way to do it.

Brett Tighe: I don't think we need to like innovate on how to do revenue accounting. You know, let's stick with how it is.

Speaker Change: And I think we need to like innovate on how to do revenue accounting.

Speaker Change: Let's stay without us.

John DiFucci: Or how I've Good time for a question from John DiFucci, followed by Josh Tilton.

Speaker Change: Or how I describe it.

John Fucci: Good time for a question from John Fucci, followed by just Hilton.

John DiFucci: Thanks, Dave. I'm not going to hit that. You know what I think of that.

John Fucci: Thanks, Dave.

John Fucci: Yeah.

John Fucci: I'm not going to hit that.

John Fucci: You know, what I think of that but anyway.

Brett Tighe: But anyway. Brett, you previously talked about the C and MAU upsell headwinds mid-contractor a time of renewal for some of your older customer cohorts, but you're doing well with new products, it really does. And we hear that too in the field. So is that headwind still why NRR declined for the fourth consecutive quarter? And do you still expect to see that alleviate sometime in the near future? Or is the macro backdrop giving you signs that this may persist? It sounds like it might be the latter. Yes, we do expect it to travel in this range.

Speaker Change: Bret you've previously talked about the seat and Miu upsell headwinds mid contract are you at a time of renewal for some of your older customer cohorts.

Speaker Change: Well with new products, it really does and we hear that too in the field. So is that headwind still why NR declined for the fourth consecutive quarter and do you still expect to see that alleviate sometime in the near future or is the macro backdrop given your size at this may persist it sounds like it might be the ladder. You said, yes, we do expect it to travel.

Speaker Change: And this range and yes. Your answer of your first question was also yes, but yes, if the macro does deteriorate deteriorate significantly it will have a headwind on there are just.

Brett Tighe: And yes, your answer to your first question was also a yes. But yeah, if the macro does deteriorate significantly, it will have a headwind on that. It will make it harder to do new business as well. It's not like it's going to just be relegated to one side of the business. Um, so yeah, I think that's Yeah, that's the best answer I got for you, Jon.

Speaker Change: Just by default.

Speaker Change: It will make it harder to do new business as well, it's not like it's going to just be relegated to one side of the business.

Speaker Change: So yes, I think that's.

Speaker Change: Yeah, that's the best answer I got for you John.

Brett Tighe: Okay, but so far, because it's come down the last four quarters, it should like Okay, so I'm going to be a little bit more specific. And I'm at the bottom here. Well, what we talked about, if you remember what I talked about last quarter, looking at the full fisc year based on our expectations and being methodical with our approach about go to market specialization, we said it was going to go plus or minus a little bit, right. We still think it's plus or minus a little bit from here. Okay, I don't have an exact number for you, John.

Speaker Change: Okay, but so far because it's come down in the last four quarters it should like.

Speaker Change: Bottom here are well well, we talked about if you remember what I talked about last quarter I'm looking at the full fiscal year based on our expectations and being methodical with our approach of our go to market specialization.

Speaker Change: We said it was going to go plus or minus a little bit we still think it's plus or minus a little bit from here.

Speaker Change: I have an exact number for you John but its little travel in a channel here.

Brett Tighe: But it's, you know, little travel in a channel here. Unless there is something big that happens like a macro adjustment Okay, then we'll obviously update you then and we'll tell you how it's going as a result.

Speaker Change: Unless there is something big that happens like a macro adjustment out there okay.

Speaker Change: Then we will we'll obviously update you then and we'll tell you how it's going as a result of that.

Josh Tilton: Thank you. We have about four minutes left. We'll go to Josh Tilton followed by Keith Bachman. Todd, maybe one for you. When you first started talking about the customer identity opportunity, I think to us it kind of made a lot of sense why your customers would choose to buy this stuff instead of building it out of the box. That was, I guess, more for the traditional SaaS world. So what I'm trying to understand is there seems to be a lot of newfound excitement on the customer identity side as we head into this agentic world. Is there anything about a future of agent-based apps that is going to make it even more of a no-brainer?

Speaker Change: Thank you from where.

Speaker Change: We have about four minutes left we'll go to Josh Tilton, followed by Keith Bachman.

Speaker Change: Thank you guys.

Speaker Change: Maybe one for you.

Speaker Change: When you first started talking about.

Speaker Change: About the customer identity opportunity I think the us economy, and a lot of sense why your customers who choose to buy the stock instead of.

Speaker Change: Building it out of the box.

Speaker Change: That was I guess lower for the traditional SaaS squirrels, so what I'm trying to understand is there seems to be a lot of newfound excitement on the customer identity side as we head into this agentic world is there anything about the future of agent based apps that is going to make it even more of a no brainer to go with buying this out of the box from you guys on the customer identity side instead of trying to.

Todd Mckinnon: To go with buying this out of the box from you guys on the customer identity side instead of trying to develop it themselves compared to maybe the old-school SaaS world? I think it's, I think in general, the trend is toward more buy less build. And I think AI probably is, I'm not sure it's a huge accelerant of that. I think it's probably on trend. Just because I think it's mostly like, the solutions are getting better. If you go 10 years ago, there wasn't really good customer identity solutions that were, you know, easy to use, reliable, scalable.

Speaker Change: Develop it themselves compared to maybe the old school sales world.

Speaker Change: I think it's I think in general the trend is toward.

Speaker Change: More by less build and I think AI, probably is I'm not sure. It's a huge accelerant of that I think it's probably on trend.

Speaker Change: Just because I think it's mostly like are the solutions, they're getting better.

Speaker Change: So 10 years ago, there wasn't really good customer identity solutions that were.

Speaker Change: You know easy to use reliable scalable and now with our zero had amazing developer experience emerge easy to start using in the nutshell overtime and that continues and I think our I think the the move into the world of AI and agents and.

Todd Mckinnon: And now with Auth0, had an amazing developer experience. And we're easy to start using and then upsell over time. And that continues. And I think, I think the moving to the world of AI and agents and embedding customer identity inside of those apps, I don't, I don't know if it's material, material different, but it's on a trend line that's, you know, toward buying these solutions versus building, which is one of the reasons why we're so bullish on this business.

Speaker Change: Embedding customary ginnie inside of those apps I don't I don't know if it's materially material different but it's on a trend line that's toward buying these solutions versus building, which is one of the reasons why we're so bullish on this business.

Todd Mckinnon: Thank you. It will go to Keith Bachman and take the final question from Roger Boyd. Hi, thank you very much. Good evening. Good afternoon. Todd, I wanted to direct this back to you in the follow up on, as you say, the non-human side of the business. And the broader question is, why do you think Okta will win in that environment? And I think a lot of investors assume it is going to be a big market, pricing may be different. But why does Okta win versus, you know, when we were at RSA talking to CyberArk or SailPoint or Savian, whoever it is, all think that they're in a position to win, particularly since our take, it sounds like governance will be part of Identity with agent It's a question we get a lot more so than just access, but maybe just kind of run through if the market develops as investors think it will, why does Okta win in the agent world or nonhumans?

Speaker Change: Thank you.

Speaker Change: We have a go to Keith Bachman and take the final question from Roger Borden.

Roger Borden: Hi, Thank you very much good evening good afternoon, Todd I wanted to direct this back to you and to follow up on as you say the nonhuman side of the business and the broader question is why do you think okta will win in that environment and I think a lot of investors assume it is going to be a big market.

Speaker Change: <unk> may be different.

Speaker Change: But why does okta win versus you know when we were at RSA talking to cyber Ark or sell point are savvy and whoever it is all think that they're in a position to win particularly sense.

Speaker Change: Or take it sounds like governance will be part of.

Speaker Change: Identity with agents.

Speaker Change: More so than say just access, but but maybe just kind of run through if the market develops as investors thinking well why does okta win in the in the agent world or non humans.

Todd Mckinnon: Well I think today it's because we're the only one with a complete solution. And we have this breadth of products that can help solve this problem from detection to vaulting to governance workflows. And I'm talking specifically about NHIs. And I think, but that's, I mean, that's only kind of entry to the race. Now we have to execute well, and we have to keep innovating. And this whole, by the way, this whole agentic revolution and agents working on your behalf, I think that's a whole other set of capabilities and products that we're thinking about and building.

Speaker Change: I think today, it's because we're the only one with a complete solution.

Speaker Change: And we have this breadth of products that can help solve this problem from detection to the vault into governance workflows and I'm I'm talking specifically about about Nhi's yep.

Speaker Change: And I think but that's I mean, that's only kind of entry into the race now we have to execute well and we have to keep innovating in this whole by the way this whole agenda Revolution and agents working on your behalf I think that's a whole other set of capabilities and products that we're thinking about and building and we haven't released it in.

Todd Mckinnon: And we haven't released and announced them yet, but there's a whole layer on top of what we talk about service accounts and tokens and API access that's actually tracking the agent and knowing what that means and knowing what security posture you want and what governance life cycles, et cetera, et cetera. So I think we have a lead in this market today. And I think we have a trusted brand that gives us a right to play and a right to help define this market, but we have to execute. It's going to be a big opportunity. I fully agree with that, but we have to keep executing and keep innovating and keep delivering to our customers in the way we have for many years to earn that win long-term.

Speaker Change: Ounce to them, yet, but there's a whole layer on top of what we talk about service accounts and tokens and API access that's actually tracking the agent and knowing what that means in knowing what security posture, you want and what what governance lifecycle is etcetera etcetera. So I think we have a lead in this market today.

Speaker Change: And I think we have a trusted brand that gives us a right to play and a right to help define this market, but we have to execute its going to be a big opportunity I fully agree with that but we have to keep executing and keep innovating and keep delivering to our customers and the way we have for many years to earn during that way and long term.

Unknown Executive: Alright, many thanks. Thank you. Thanks, Keith.

Speaker Change: Alright, many thanks.

Speaker Change: Thank you Thanks, Keith and we'll take our final question from Roger Board.

Roger Boyd: And we'll take our final question from Roger Boyd.

Roger Boyd: Awesome.

Roger Board: Awesome. Thanks for squeezing me in maybe just to come back to the outlook I know Prudence is the name of the game here, but when you think about the adjustment you're making around the U S. Public sector does any part of that work more material than just prudent and I know, it's not a huge vertical when you call out some key one key wins, there, but our conversations with federal customers.

Todd Mckinnon: Thanks, Dave, for squeezing me in. Maybe just to come back to the outlook on, I know prudence is the name of the game here. But when you think about the adjustment you're making around the US public sector, does any part of that look more material than just prudent? And I know it's not a huge vertical when you call it some key one key wins there. But are conversations with federal customers sounding any different than what you're hearing with the private sector? Thanks. And we can make a huge difference there. And that's why you're seeing our success there.

Speaker Change: Any different than what you're hearing with the private sector.

Speaker Change: Zinc federal I think in general customer conversations and people in the market you know, it's about uncertainty in tariffs and not sure not not knowing what that means for the overall economy. Federal is different you also have this government efficiency and federal agencies are looking to rationalize.

Speaker Change: Justify efficiency.

Speaker Change: And the I guess the glass half empty view on this is that there's conversations where they're making sure. They justify investments in act efficiently the glass half full.

Speaker Change: A description of this or what we're seeing is that okta is very justifiable and we can do things that are more capable and cheaper to run a more efficient than the alternatives, especially some of the legacy solutions out there that are cost in these government agencies real money and we can make a huge difference there and that's why you're seeing our success there we mentioned.

Todd Mckinnon: We mentioned the public sector four out of the top 10 deals in the quarter, two out of the top three.

Speaker Change: The public sector four out of the top 10 deals in the quarter or two out of the top three I was in Washington D. C. In the quarter talking to the department of defense and many other really important strategic customers and <unk>.

Todd Mckinnon: You know, I was in Washington, D.C. in the quarter talking to Department of Defense and many other really important strategic customers and partners of Okta. And we can really help in this business. So it is, I think, with the efficiency work there, there is another layer of there is another layer of concern and conversations beyond the general economic uncertainty conversations. But I think over the test of time, I'm very confident that we're going to continue to see huge success there like we have in Q1. And, you know, hopefully in Q2 and Q3 and Q4, we'll keep the ball rolling to a high degree.

Speaker Change: <unk> of Okta, and we can really helping this business. So it is I think with the efficiency work. There there is another layer of.

Speaker Change: There is another layer of concern in conversations beyond the general economic uncertainty conversations, but I think over the test of time I'm very confident that we're going to continue to see huge success. There like we have in Q1 and hopefully in Q2, and Q3 and Q4 will keep the ball rolling to a high degree.

Todd Mckinnon: And you'll see super strong success and growth there like we've seen in the past couple of years.

Speaker Change: You'll see Super strong success and growth there like we've seen in the past couple of years.

Dave Gennarelli: Thanks, Todd. Great, thanks guys.

Speaker Change: Thanks Pat.

Speaker Change: Great. Thanks, guys apologize that we didn't get to all the questions I just wanted to let you know before we go that in addition to hosting several onsite and virtual bus tours. This quarter, we will be attending the Baird Tech conference in New York on June 3rd the F B and virtual conference on June 4th and the BMO Virtual conference on June 10th and we hope to see you at one.

Apologize that we didn't get to all the questions and just want to let you know before we go that in addition to hosting several onsite and virtual bus tours this quarter, we'll be attending the Bayer Tech Conference in New York on June 3rd, the FBN Virtual Conference on June 4th, and the BMO Virtual Conference on June 10th. And we hope to see you at one of those events. Thank you.

Speaker Change: Those events. Thank you.

Speaker Change: Yeah.