Okta, Inc. · NASDAQ:OKTA

Okta — Q1 FY24 Earnings Presentation

40 slides from Okta's earnings presentation, Mar 3, 2021

  1. Slide 1: Q1 FY24 Investor Presentation

    Q1 FY24 Investor Presentation May 31, 2023

  2. Slide 2: Safe harbor

    Safe harbor This presentation contains “forward-looking statements” within global economic conditions could worsen; a network or data the meaning of the “safe harbor” provisions of the Private security incident that allows unauthorized access to our network Securities Litigation Reform Act of 1995,

  3. Slide 3: Agenda

    Agenda 01 Company Overview 02 Q1 FY24 Financial Review & Financial Outlook 03 Appendix 3

  4. Slide 4: Company Overview

    Company Overview 4

  5. Slide 5: Vision: Free everyone to safely use any technology

    Vision Free everyone to safely use any technology

  6. Slide 6: Okta at a Glance

    Okta at a Glance Total Revenue 38% 18,050 CAGR from FY21- FY24E Total customers $2.94B Remaining performance obligations (RPO) ($ in mil.) 117% TTM Dollar-based net retention rate(1) at April 30, 2023 (2) (1) Trailing Twelve Months (TTM) dollar-based net retention rate is $835 $1,300 $1,858 $2,175 -

  7. Slide 7: Identity is the critical foundation for connection and trust

    Identity is the critical foundation for connection and trust between users and technology Cloud Security Digital transformation 7

  8. Slide 8: Every C-suite leader uses identity

    Every C-suite leader uses identity CMO, CDO, digital teams CEO CTO, app dev teams Business acceleration Frictionless Unifying User Conversion onboarding identity management Identity CPO, product team CIO, CISO, IT, security teams CFO Omnichannel Creating Security and Engagement access trust privacy

  9. Slide 9: The Okta Identity Cloud

    Okta Trust: Cloud security certifications with 99.99% uptime Vendor neutrality supports best-of-breed stack The Okta Identity Cloud Cloud-first, providing hybrid access from cloud to ground Delivers a unified Unified solution to secure workforce, customer and infrastructure identity identity solutio

  10. Slide 10: Better Together

    Better Together Workforce Customer Identity Cloud Identity Cloud Employees • Contractors Consumer Apps and • Business Partners Digital Experiences • SaaS Apps Okta Identity Platform 10

  11. Slide 11: One Unified Identity Solution

    One Unified Identity Solution Access Management Privileged Identity Access Governance 11

  12. Slide 12: One Platform to Secure Every Identity

    One Platform to Secure Every Identity Devices IoT Cloud Apps On-Prem Apps Infrastructure APIs + SDKs Okta Identity Cloud 12

  13. Slide 13: Delivering Measurable Customer Value

    Delivering Measurable Customer Value Mitigate Accelerate growth Reduce costs & risk & innovation streamline ops Reduced time to detect and Faster application launch Reduced operations and respond to malicious attacks and time-to-revenue maintenance costs compared with on-prem solutions 13

  14. Slide 14: Okta's Opportunity $80B

    We are here* Okta’s Opportunity $80B *See Appendix for TAM calculation methodology 14

  15. Slide 15: Multiple Growth Vectors

    Multiple Growth Vectors Innovation in platform Landing and expanding International expansion Leveraging partner and network in large enterprise ecosystem 15

  16. Slide 16: Innovation in Platform and Network

    Innovation in Platform and Network More users and integrations result in deeper signals and enhanced use cases Deeper signals More users & integrations Growing value to customers Enhanced use cases 16

  17. Slide 17: Environmental, Social and Governance

    Environmental, Social and Governance Environmental Social Governance Public commitments include Public disclosures include ESG Released 2023 Okta for Good 100% Renewable Electricity Fact Sheet, which summarizes Impact Report and Science Based Targets key ESG disclosures Learn more at https://www.okt

  18. Slide 18: Q1 FY24 Financial Review & Financial Outlook

    Q1 FY24 Financial Review & Financial Outlook 18

  19. Slide 19: Q1 FY24 Financial Highlights

    Q1 FY24 Financial Highlights Q1 FY24 vs. Q1 FY23 Total Revenue $518M + 25% Subscription Revenue $503M + 26% Remaining Performance Obligations (RPO) $2,942M + 9% Current Remaining Performance Obligations (cRPO) $1,701M + 20% TTM Dollar Based Net Retention Rate 117% - 6 pts Non-GAAP Gross Margin(1) 78

  20. Slide 20: Total Revenue Up 25% Y/Y; Subscription Revenue Up 26% Y/Y

    Total Revenue Up 25% Y/Y; Subscription Revenue Up 26% Y/Y Quarterly Revenue(1) $510 $518 ($ in millions) $481 $452 $415 $383 $351 $316 $251 97% 97% 97% 96% 96% 96% 96% 96% 96% 4% 4% 4% 4% 4% 4% 3% 3% 3% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Professional services & o

  21. Slide 21: International Revenue Up 23% Y/Y

    International Revenue Up 23% Y/Y Quarterly Revenue(1) ($ in millions) $510 $518 $481 $452 $415 $383 $351 $316 79% 79% 78% $251 78% 78% 78% 79% 79% 83% 22% 22% 22% 21% 21% 21% 21% 22% 17% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 International U.S. (1) Includes $38M, $46

  22. Slide 22: RPO Up 9% Y/Y; Current RPO Up 20% Y/Y

    RPO Up 9% Y/Y; Current RPO Up 20% Y/Y Quarterly RPO $3,007 ($ in millions) $2,942 $2,853 $2,790 $2,694 $2,710 $2,350 $2,236 $1,890 $1,579 $1,684 $1,701 $1,413 $1,497 $1,351 $1,098 $1,180 $899 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Current RPO Non-Current RPO 22

  23. Slide 23: TTM Dollar-based Net Retention Rate of 117%

    TTM Dollar-based Net Retention Rate of 117% TTM Dollar-based net retention rate 124% 122% 124% 123% 122% 122% 120% 120% 117% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1FY24 23

  24. Slide 24: Non-GAAP Total Gross Margin Up 280 bps Y/Y

    Non-GAAP Total Gross Margin Up 280 bps Y/Y(1) Non-GAAP Subscription Gross Margin Up 220 bps Y/Y Quarterly Non-GAAP Gross Margins(2) 81.9% 81.6% 81.5% 80.5% 80.9% 80.0% 79.9% 79.3% 80.0% 78.9% 78.9% 78.1% 78.0% 76.5% 76.9% 76.8% 76.8% 76.1% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 F

  25. Slide 25: Non-GAAP Operating Margin Up 17.0 pts Y/Y; Free Cash Flow Margin Up 21.3 pts

    Non-GAAP Operating Margin Up 17.0 pts Y/Y; Free Cash Flow Margin Up 21.3 pts Y/Y Quarterly Non-GAAP Operating Margin(1) Quarterly Free Cash Flow Margin(1)(2) 9.0% 7.1% 24.0% 21.0% 0.1% 14.1% (2.7)% 9.5% (3.3)% (6.2)% (6.3)% 2.7% (7.8)% 1.3% 1.2% (1.2)% (9.9)% (5.3)% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2

  26. Slide 26: Total Customers Up 14% Y/Y

    Total Customers Up 14% Y/Y Total customers(1) 18,050 17,600 17,050 16,400 15,800 15,000 14,000 13,050 10,650 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 (1) Includes one time addition of 1,650 customers from Auth0 in Q2 FY22. 26

  27. Slide 27: Customers with >$100K Annual Contract Value Up 23% Y/Y

    Customers with >$100K Annual Contract Value Up 23% Y/Y Customers with >$100K ACV(1) 4,080 3,930 3,740 3,525 3,305 3,100 2,825 2,610 2,075 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 (1) Includes one time addition of 375 >$100K ACV customers from Auth0 in Q2 FY22. 27

  28. Slide 28: Financial Outlook: Q2 FY24

    Financial Outlook(1) Q2 FY24 (July 31, 2023) Total Revenue $533M to $535M Total Revenue Growth (Y/Y) 18% Current Remaining Performance Obligations $1,710M to $1,720M cRPO Growth (Y/Y) 14% - 15% Non-GAAP Operating Income $36M to $38M Non-GAAP Net Income Per Share(2) $0.21 to $0.22 Diluted Weighted Av

  29. Slide 29: Financial Outlook: Fiscal 2024

    Financial Outlook(1) Fiscal 2024 (January 31, 2024) Total Revenue $2,175M to $2,185M Total Revenue Growth (Y/Y) 17% - 18% Non-GAAP Operating Income $161M to $170M Non-GAAP Net Income Per Share(2) $0.88 to $0.93 Diluted Weighted Average Share Count(3) 180 million Non-GAAP Free Cash Flow Margin ~ 12%

  30. Slide 30: Key Takeaways

    Key Strong foundation for growth at scale Takeaways Large addressable markets with multiple growth vectors Positioned for profitable growth(1) (1) Non-GAAP basis. 30

  31. Slide 31: Appendix

    Appendix 31

  32. Slide 32: Total Addressable Market Calculation Methodology

    Total Addressable Market Calculation Methodology Workforce Identity and Identity Governance and Administration (IGA) TAM based on over 50,000 U.S. businesses with more than 250 employees (per 2019 U.S. Bureau of Labor Statistics) multiplied by 12-month ARR assuming adoption of all our current produc

  33. Slide 33: Statement Regarding Use of Non-GAAP Financial Measures

    Statement Regarding Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures and other metrics. This appendix contains our reconciliation of those non-GAAP measures and other financial metrics. This presentation may reference one or more of the following non-

  34. Slide 34: GAAP to Non-GAAP Reconciliations - Fiscal Quarters

    GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 GAAP subscription gross profit $ 188 $ 219 $ 246 $ 267 $ 920 $ 287 $ 318 $ 349 $ 376 $ 1,330 $ 381 Stock-based compensation 7 13 13 16 49 17 1

  35. Slide 35: GAAP to Non-GAAP Reconciliations - Fiscal Quarters

    GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 GAAP research and development expense $ 69 $ 122 $ 131 $ 147 $ 469 $ 162 $ 156 $ 148 $ 154 $ 620 $ 163 Stock-based compensation 20 53 57 63 19

  36. Slide 36: GAAP to Non-GAAP Reconciliations - Fiscal Quarters

    GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 GAAP total operating expenses $ 276 $ 478 $ 440 $ 478 $ 1,672 $ 524 $ 522 $ 550 $ 528 $ 2,124 $ 536 Stock-based compensation 55 172 139 139 50

  37. Slide 37: GAAP to Non-GAAP Reconciliations - Fiscal Quarters

    GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions, shares in thousands, except per share data) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 GAAP net loss $ (109) $ (277) $ (221) $ (241) $ (848) $ (243) $ (210) $ (209) $ (153) $ (815) $ (1

  38. Slide 38: GAAP to Non-GAAP Reconciliations - Fiscal Quarters

    GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions, shares in thousands, except per share data) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 GAAP net loss per share, diluted $ (0.83) $ (1.83) $ (1.44) $ (1.56) $ (5.73) $ (1.56) $ (1.34) $

  39. Slide 39: Calculations of Key and Other Selected Metrics - Fiscal Quarters

    Calculations of Key and Other Selected Metrics - Fiscal Quarters(1) (dollars in millions, except headcount data) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Free Cash Flow and Margin Net cash provided by (used in) operating activities $ 56 $ (3) $ 37 $ 14 $ 104

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