Slide 1: Investor Presentation Q1 FY23
Investor Presentation Q1 FY23 June 2, 2022
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” within the experience interruptions or performance problems associated with our meaning of the “safe harbor” provisions of the Private Securities technology, including a service outage; we may not be able to pay off our Litigation R
Slide 3: Company Overview; Q1 FY23 Financial Review & Outlook; Appendix
01 Company Overview 02 Q1 FY23 Financial Review & Financial Outlook 03 Appendix Includes historical financial statements, reconciliations, and other select metrics 3
Slide 4: Company Overview
Company Overview okta
Slide 5: Okta's vision: Free everyone to safely use any technology
Okta’s vision Free everyone to safely use any technology. 5
Slide 6: Okta at a Glance
Okta at a Glance Total Revenue $2,000 $1,800 46% 15,800 $1,600 CAGR from FY20- FY23E Total customers $1,400 $2.71B $1,200 ($ in mil.) $1,000 Remaining performance obligations (RPO) $800 123% $600 TTM Dollar-based net retention rate(1) $400 at April 30, 2022 $200 $586 $835 $1,300 $1,805 - $1,815 $0 (
Slide 7: Macro Trends Driving Growth in Identity
Macro Trends Driving Growth in Identity Identity is the critical foundation for connection and trust between users and technology Cloud adoption Digital Zero Trust and Hybrid IT transformation security 7
Slide 8: 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 identity solution infrastructure identit
Slide 9: Why Okta: Secure and frictionless Workforce experience
Why Okta: Delivering a secure and frictionless Workforce experience © Okta and/or its affiliates. All rights reserved. 9
Slide 10: Why Okta: Support for customer-facing initiatives
Why Okta: Get support for your most important customer-facing initiatives © Okta and/or its affiliates. All rights reserved. 10
Slide 11: Okta + Auth0: Addressing Broadest Range of Customers & Users
Okta + Auth0: Addressing Broadest Range of Customers & Users Personas Go To Market Developer CIO / CSO Direct Customers Self Product IT Admins Sales Service Manager Chief CTO Digital Officer VP Eng Inside Global Mid SIs Global Sales Market 2000 Marketplace Technology (e.g. AWS) Partnerships SMB Larg
Slide 12: 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 12
Slide 13: Unifying Identity with One Control Plane
Unifying Identity with One Control Plane © Okta and/or its affiliates. All rights reserved. 13
Slide 14: 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 14
Slide 15: There is a Massive Future for Identity
There is a Massive Future for Identity MASSIVE Adjacent Addressable Market Identity Proofing & Affirmation Anti-Fraud Analytics & Insights Identity Proofing Security Analytics Background Check Identity Behavioral Biometrics Workforce Identity Identity Governance Customer Identity Privileged Access S
Slide 16: Attractive Long-Term Financial Profile
Attractive Long-Term Financial Profile © Okta and/or its affiliates. All rights reserved. 16
Slide 17: Large Addressable Market $80B
Large Addressable Market Total Workforce $50B IGA + PAM $15B Expanded use cases Higher utilization Total TAM Workforce Identity of Workforce Identity Customer Identity 35B $80B $ $30B $Customer Identity 30B $25B See Appendix for TAM calculation methodology. © Okta and/or its affiliates. All rights r
Slide 18: Multiple Growth Vectors
Multiple Growth Vectors Innovation in platform Landing and expanding International expansion Leveraging partner and network in large enterprise ecosystem © Okta and/or its affiliates. All rights reserved. 18
Slide 19: 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 © Okta and/or its affiliates. All rights reserved. 19
Slide 20: Long-Term Durable Growth
Long-Term Durable Growth At least $4B Revenue and 20% FCF Margin Target in FY26 $4B+ Growth of at least Key drivers of growth 35% each year • Faster penetration of CIAM opportunity with Auth0 • Continued growth at large $1.805 - $1.815B enterprise customers • Expanding partnerships • International e
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance Environmental Social Governance Achieved 100% renewable Published our second Okta for Published our ESG Fact electricity for our global Good Impact Report, which looks Sheet, which summarizes our offices AND employee work at the organizations and key ESG disclosu
Slide 22: Q1 FY23 Financial Review & Financial Outlook
Q1 FY23 Financial Review & Financial Outlook 22
Slide 23: Q1 FY23 Financial Highlights
Q1 FY23 Financial Highlights(1) Q1 FY23 vs. Q1 FY22 Total Revenue $415M + 65% Total Revenue - Okta Standalone $349M + 39% Subscription Revenue $398M + 66% Remaining Performance Obligations (RPO) $2,710M + 43% Current Remaining Performance Obligations (cRPO) $1,413M + 57% Total Calculated Billings(2)
Slide 24: Total Revenue Up 65% Y/Y; Subscription Revenue Up 66% Y/Y
Total Revenue Up 65% Y/Y; Subscription Revenue Up 66% Y/Y Okta Standalone Total Revenue Up 39% Y/Y Quarterly Revenue(1) $415 ($ in millions) $383 $351 $316 $251 $235 $217 $200 96% $183 96% 96% 96% 96% 95% 96% 95% 95% 5% 5% 5% 4% 4% 4% 4% 4% 4% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22
Slide 25: International Revenue Up 118% Y/Y
International Revenue Up 118% Y/Y Quarterly Revenue(1) $415 ($ in millions) $383 $351 $316 $251 $235 78% $217 78% $200 $183 79% 79% 83% 84% 84% 84% 84% 21% 22% 22% 21% 16% 16% 16% 16% 17% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 International U.S. (1) Includes $38M, $4
Slide 26: RPO Up 43% Y/Y; Current RPO Up 57% Y/Y
RPO Up 43% Y/Y; Current RPO Up 57% Y/Y Quarterly RPO $2,694 $2,710 ($ in millions) $2,350 $2,236 $1,890 $1,797 $1,582 $1,427 $1,240 $1,351 $1,413 $1,098 $1,180 $842 $899 $685 $753 $619 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Current RPO Non-Current RPO 26
Slide 27: Total Calculated Billings Up 7% Y/Y
Total Calculated Billings(1) Up 7% Y/Y Up 52% Y/Y on a Like-for-like Basis(2) Quarterly Total Calculated Billings(3) ($ in millions) Q1 FY22 calculated billings of $256M(2) when comparing on a like-for-like basis to Q1 FY23 $603 $389 $389 $364 $362 $316 $252 $210 $198 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21
Slide 28: Calculated Billings Supplemental Modeling Details
Calculated Billings Supplemental Modeling Details(1) (1) Supplemental details provided for modeling purposes only. There is no operational impact. (2) Assumes there was no change to the billings policy in FY22. Provided to show a like-for-like comparison between FY21 and FY22 for modeling purposes.
Slide 29: TTM Dollar-based Net Retention Rate of 123%
TTM Dollar-based Net Retention Rate of 123% TTM Dollar-based net retention rate 123% 124% 122% 124% 123% 121% 121% 121% 120% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 29
Slide 30: Non-GAAP Total Gross Margin Down 200 bps Y/Y
Non-GAAP Total Gross Margin Down 200 bps Y/Y(1) Non-GAAP Subscription Gross Margin Down 260 bps Y/Y Quarterly Non-GAAP Gross Margins(2) 82.8% 81.8% 82.1% 82.1% 81.9% 80.0% 80.5% 79.9% 78.9% 79.3% 78.3% 78.4% 78.1% 77.5% 76.9% 76.5% 76.8% 76.1% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22
Slide 31: Non-GAAP Operating Margin Down 360 bps Y/Y
Non-GAAP Operating Margin Down 360 bps Y/Y Free Cash Flow Margin Down 1830 bps Y/Y Quarterly Non-GAAP Operating Margin(2) Quarterly Free Cash Flow Margin(1)(2) 21.0% 3.2% 3.4% 2.5% 19.1% 16.3% (2.7)% 13.8% 9.5% (6.2)% (6.3)% 2.7% (6.7)% 3.4% (7.8)% 1.3% (9.9)% (1.2)% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2
Slide 32: TTM Total Revenue Growth Plus Free Cash Flow Margin (Rule of 40)
TTM Total Revenue Growth Plus Free Cash Flow Margin (“Rule of 40”) TTM total revenue growth plus free cash flow margin(1) 65% 62% 60% 56% 56% 57% 54% 55% 54% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 (1) See appendix for non-GAAP reconciliation. 32
Slide 33: Total Customers Up 48% Y/Y
Total Customers Up 48% Y/Y Total customers(1) 15,800 15,000 14,000 13,050 10,650 10,000 9,400 8,950 8,400 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 (1) Includes one time addition of 1,650 customers from Auth0 in Q2 FY22. 33
Slide 34: Customers with >$100K Annual Contract Value Up 59% Y/Y
Customers with >$100K Annual Contract Value Up 59% Y/Y Customers with >$100K ACV(1) 3,305 3,100 2,825 2,610 2,075 1,950 1,780 1,685 1,580 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 (1) Includes one time addition of 375 >$100K ACV customers from Auth0 in Q2 FY22. 34
Slide 35: Financial Outlook
Financial Outlook(1) Q2 FY23 Fiscal 2023 (July 31, 2022) (January 31, 2023) Total Revenue $428M to $430M $1,805M to $1,815M Total Revenue Growth (Y/Y) 36% 39% - 40% Current Remaining Performance Obligations $1,480M to $1,490M cRPO Growth (Y/Y) 35% - 36% Non-GAAP Operating Loss(2) $44M to $43M $167M
Slide 36: Key Takeaways
Key Takeaways Strong foundation Large addressable Attractive long-term for growth at scale markets with multiple financial profile growth vectors © Okta and/or its affiliates. All rights reserved. 36
Slide 37: Appendix
Appendix okta
Slide 38: Total Addressable Market Calculation Methodology
Appendix 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 curre
Slide 39: 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-
Slide 40: Condensed Consolidated Statements of Operations - Fiscal Quarters
Condensed Consolidated Statements of Operations - Fiscal Quarters (in thousands, except per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Revenue: Subscription $ 173,781 $ 190,689 $ 206,743 $ 225,400 $ 796,613 $ 240,058 $ 303,121 $ 336,702 $ 369,329 $
Slide 41: Non-GAAP Condensed Consolidated Statements of Operations
Non-GAAP Condensed Consolidated Statements of Operations - Fiscal Quarters (in thousands, except per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Revenue: Subscription $ 173,781 $ 190,689 $ 206,743 $ 225,400 $ 796,613 $ 240,058 $ 303,121 $ 336,702 $ 3
Slide 42: Condensed Consolidated Balance Sheets - Fiscal Quarters
Condensed Consolidated Balance Sheets - Fiscal Quarters (in thousands, except per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Assets Current assets: Cash and cash equivalents $ 619,221 $ 957,234 $ 409,769 $ 434,607 $ 659,886 $ 225,265 $ 372,372 $ 260,134 $ 194
Slide 43: Condensed Consolidated Balance Sheets - Fiscal Quarters
Condensed Consolidated Balance Sheets - Fiscal Quarters (in thousands, except per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 8,021 $ 4,726 $ 5,114 $ 8,557 $ 9,542 $ 9,414 $ 11,547 $
Slide 44: Condensed Consolidated Statements of Cash Flows - Fiscal Quarters
Condensed Consolidated Statements of Cash Flows - Fiscal Quarters (in thousands) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Operating activities: Net loss $ (57,662) $ (60,100) $ (72,764) $ (75,806) $ (266,332) $ (109,232) $ (276,682) $ (221,311) $ (241,186) $
Slide 45: Condensed Consolidated Statements of Cash Flows - Fiscal Quarters
Condensed Consolidated Statements of Cash Flows - Fiscal Quarters (in thousands) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Investing activities: Capitalization of internal-use software costs (1,000) (1,326) (1,204) (629) (4,159) (10) (368) (1,970) (1,988) (4,3
Slide 46: Condensed Consolidated Statements of Cash Flows - Fiscal Quarters
Condensed Consolidated Statements of Cash Flows - Fiscal Quarters (in thousands) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Financing activities: Proceeds from issuance of convertible senior notes, net of issuance costs — 1,135,418 (577) — 1,134,841 — — — — — —
Slide 47: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 GAAP subscription gross profit $ 136,624 $ 151,188 $ 161,981 $ 176,725 $ 626,518 $ 187,660 $ 218,664 $ 245,654 $
Slide 48: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 GAAP research and development expense $ 48,494 $ 53,866 $ 58,150 $ 62,316 $ 222,826 $ 68,863 $ 122,407 $ 130,535
Slide 49: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 GAAP total operating expenses $ 186,572 $ 194,687 $ 212,447 $ 228,196 $ 821,902 $ 275,564 $ 477,834 $ 439,562 $ 4
Slide 50: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 GAAP net loss $ (57,662) $ (60,100) $ (72,764) $ (75,806) $(266,332) $(109,232) $(276,682) $(221,311) $(241,186)
Slide 51: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 GAAP net loss per share, diluted $ (0.47) $ (0.48) $ (0.56) $ (0.58) $ (2.09) $ (0.83) $ (1.83) $ (1.44) $ (1.56)
Slide 52: Calculations of Key and Other Selected Metrics - Fiscal Quarters
Calculations of Key and Other Selected Metrics - Fiscal Quarters (in thousands, except percentages and headcount data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Calculated Billings Total revenue $ 182,859 $ 200,446 $ 217,379 $ 234,740 $ 835,424 $ 251,006 $ 315
Slide 53: Calculations of Key and Other Selected Metrics - Fiscal Quarters
Calculations of Key and Other Selected Metrics - Fiscal Quarters (in thousands, except percentages and headcount data) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Free Cash Flow and Margin Net cash provided by (used in) operating activities $ 38,697 $ 10,930 $ 4
Slide 54: okta
okta