Slide 1: Welcome to Investor Day 2022
okta a ane Welcome to Investor Day 2022
Slide 2: Welcome - Okta Investor Day 2022
Welcome Okta Investor Day 2022 Dave Gennarelli Senior Vice President, Investor Relations
Slide 3: Agenda
Agenda 01 Vision and Strategy Todd McKinnon 06 Break 02 Customer Identity Cloud Eugenio Pace 07 Go-to-Market Update Susan St. Ledger 03 Customer Spotlight Fifth Third Bank 08 Partner Conversation with AWS Eric Kelleher and John Podboy Susan St. Ledger and Chris Grusz 04 Workforce Identity Cloud Sagn
Slide 4: Safe harbor
Safe harbor This presentation contains “forward-looking statements” within the meaning of the personnel; global economic conditions could worsen; a network or data security “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, incident that allows unauthorized access to o
Slide 5: Vision and Strategy
Vision and Strategy Todd McKinnon CEO & Co-Founder, Okta
Slide 6: Celebrating ten years of Oktane
10 | Celebrating ten years of Oktane ‘13 '15 ‘14 ‘17 ‘16 ‘21 ‘19 ‘18 ‘20
Slide 7: Better Together
Better Together | tsauth® okta
Slide 8: Free everyone to safely use any technology
Free everyone to safely use any technology
Slide 9: Identity was siloed and not integrated
Identity was siloed and not integrated
Slide 10: Cloud Security Digital transformation
Cloud Security Digital transformation
Slide 11: 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
Slide 12: 16,400+ Customers trust Okta
State of Illinois 16,400+ Customers trust
Slide 13: Okta's Opportunity $80B
We are here* Okta’s Opportunity $80B *See Appendix for TAM calculation methodology
Slide 14: Reaching a tipping point in the identity market
Reaching a tipping point in the identity market More total worldwide identity revenue came from SaaS products (54%) than Workforce on-premises (46%) solutions for the Identity first time in 2021(1) 1) IDC, Worldwide Identity and Access Management Market Shares, 2021: Advanced Authentication Drives C
Slide 15: We've seen this before in other markets
We’ve seen this before in other Cloud CRM revenues markets exceeds on-premise revenue(1) Salesforce Revenue ~$26.4B Salesforce Revenue ~$5.4B Salesforce Revenue ~$1.3B 2010 2015 2022 1) State of CRM market 2017, Prospect, 2017
Slide 16: Customer Identity
Customer Identity a sour ttaen aight okta
Slide 17: Workforce Identity Cloud and Customer Identity Cloud
Workforce Customer Identity Cloud Identity Cloud Consumer Apps and • SaaS Apps Employees • Contractors • Business Partners Digital Experiences Okta Identity Platform
Slide 18: Ecosystem of choice vs monolithic platforms
Monolithic Ecosystem of choice platforms
Slide 19: Independence + Neutrality = Choice
Independence + Neutrality = Choice
Slide 20: Okta Integration Network
7,000+ Okta Integration Network
Slide 21: Integration Network
okta Integration Network
Slide 22: Integration Network
Workforce Customer Identity Cloud Identity Cloud Employees • Contractors • Business Partners Integration Network Consumer Apps and Digital Experiences • SaaS Apps
Slide 23: Two clouds, one okta
Two clouds, one okta Building the leading identity platform to address every use case Moving the industry standard forward Enabling the future of innovation Positioning Okta as a primary cloud and strategic vendor Okta Identity Platform
Slide 24: Who you'll hear from today
Who you’ll hear from today Eugenio Pace Sagnik Nandy Susan St. Ledger Brett Tighe President, Okta Customer President and Chief Development President of Worldwide Chief Financial Officer Identity and Auth0 Co-founder Officer, Workforce Identity Field Operations
Slide 25: Guest speakers
Guest speakers John Podboy Kim Huffman Chris Gruscz SVP Cybersecurity Chief Information Officer General Manager, WW ISV at Fifth Third Bank at TripActions Alliances & Marketplace at AWS
Slide 26: Customer Identity Cloud
Customer Identity Cloud Eugenio Pace President, Okta Customer Identity and Auth0 Co-founder
Slide 27: Workforce Identity Cloud and Customer Identity Cloud
Workforce Customer Identity Cloud Identity Cloud Employees • Contractors Consumer Apps and Digital Experiences • Business Partners • SaaS Apps
Slide 28: Customer Identity Cloud
Customer Identity Cloud Consumer Apps and Digital Experiences SaaS Apps
Slide 29: Customer Identity is a $30B Opportunity
Opportunity Millions of organizations worldwide2 Customer Identity is a Predominantly build-it-yourself and 30B greenfield opportunity $ 48K active free subscriptions and 17K paying self-service subscriptions on Auth0 platform3 Market1 45% of new Auth0 logos added in 1H FY23 came from self-service c
Slide 30: Global Customer Base Through Product Led Growth
Global Customer Base Through Product Led Growth Retail & Finance, Argentina Media, Sweden SaaS, Thailand “WABI is scalable and we need “We’ve been growing nearly 2x “We also save significant a partner that is, too. We believe every year, and we needed a better resources on maintaining and [Okta] Aut
Slide 31: Consumer Apps & Digital Experiences
Consumer Apps & Digital Experiences
Slide 32: We Can No Longer Compromise
We Can No Longer Compromise SECURITY PRIVACY CONVENIENCE
Slide 33: Customer Identity Cloud: Consumer Apps announcements
Key announcements Customer Identity for Digital Teams Secure Passwordless Login via Passkey Customer Identity Cloud Strong Customer Authentication Consumer Apps for Highly Regulated Industries Security Center
Slide 34: SaaS Apps
Saas Apps okta
Slide 35: Customer Identity Cloud: SaaS Apps announcements
Key announcements Enterprise Readiness Customer Identity Cloud + Okta Enterprise Connection Customer Identity Cloud Fined Grained Authorization SaaS Apps Future Vision: 1 Click SaaS Publication into OIN
Slide 36: Customer Identity Cloud For Developers
Customer Identity Cloud For Developers
Slide 37: Okta's Developer Ecosystem
Okta's Developer Ecosystem Customer Identity Cloud
Slide 38: Okta's Developer Ecosystem
Okta's Developer Ecosystem Customer Identity Cloud
Slide 39: Okta Enterprise Connection
Okta Enterprise Connection Now free for Customer Identity Cloud customers Enterprise Identity Benchmark Available on Okta.com Customer Identity Cloud Consumer Apps and SaaS Apps Digital Experiences Okta Identity Platform
Slide 40: Customer Identity Cloud summary
Customer Identity Cloud Consumer Apps and Digital Experiences SaaS Apps The leader in an under- Expanding our capabilities Reaching key buyers on penetrated market with a to win Consumer and both sides of Workforce large TAM SaaS builders and Customer Identity
Slide 41: Customer Spotlight: Fifth Third Bank
Customer Spotlight John Podboy Fifth Third Bank SVP Cybersecurity, Fifth Third Bank Okta Products: Workforce Identity Cloud & Customer Identity Cloud Eric Kelleher Chief Customer Officer, Okta © Okta and/or its affiliates. All rights reserved.
Slide 42: Workforce Identity Cloud
Workforce Identity Cloud Sagnik Nandy President and Chief Development Officer, Workforce Identity
Slide 43: Workforce Identity Cloud and Customer Identity Cloud
Workforce Customer Identity Cloud Identity Cloud Employees • Contractors Consumer Apps and Digital Experiences • Business Partners • SaaS Apps
Slide 44: Connect everything in a boundaryless world
Connect everything in a boundaryless world Employees • Contractors • Business Partners
Slide 45: Thousands of corporate employees, 7,000+ retail stores
Thousands of corporate employees 7,000+ Retail Stores 100,000+ retail, wholesale, and call center partners Reduced number of daily auth events per user by 90%
Slide 46: Workforce Identity is a $50B Market
Core Workforce Identity market opportunity of $35B(1) Workforce Identity is a Identity Governance & Administration 50B and Privileged Access Management $ market opportunity of $15B(1) 1 billion knowledge workers(2) and 3.3 billion total workers worldwide(3) Market 82% of cyber security breaches can
Slide 47: A Track Record of Customer Focused Innovation
A Track Record of Customer Focused Innovation Privileged Access Okta Product Innovation Identity Governance Device Trust Identity Engine FastPass Workflows Access Advanced Gateway Server Access 2018 2019 2020 2021 2022 2023
Slide 48: FastPass advanced phishing resistance
Any user. Any device. Any resource. FastPass advanced WebAuthn Passkey phishing resistance enhanced control management Generally available Q1 2023 Early access Q1 2023 Early Access Now
Slide 49: Okta Identity Governance
Okta Identity Governance Access Access Entitlement Available now in North America Requests Reviews Management And globally in Q4 of 2022
Slide 50: Okta Privileged Access
Zero Trust access to infrastructure Okta Privileged Access Cloud vault Privileged Available in early access governance Servers Kubernetes Q2 of 2023
Slide 51: One Unified Workforce Identity Solution
One Unified Workforce Access Management Identity Solution Workforce Identity Privileged Identity Access Governance
Slide 52: Unified identity solution customer quote
“Okta’s unified identity solution is a Retiring 22 independent identity services big part of how we make access Reduced FOUR identities per and governance simple and secure employee to only ONE across our IT estate and more than Reduced Identity provisioning 90,000 employees.” from ~5 days to hours
Slide 53: Okta Workflows
New security Connector templates Builder Generally available now Okta Generally available in Q1 of 2023 Workflows
Slide 54: Better Together
Better Together Workforce Customer Identity Cloud Identity Cloud Employees • Contractors Consumer Apps and • Business Partners Digital Experiences • SaaS Apps Okta Identity Platform
Slide 55: Workforce Identity Cloud summary
Workforce Identity Cloud Employees • Contractors • Business Partners Connect everything in a Innovating to solve the Reaching key buyers on boundaryless world biggest workforce identity both sides of Workforce challenges and Customer Identity
Slide 56: Customer Spotlight: TripActions
Customer Spotlight Kim Huffman TripActions Chief Information Officer, TripActions Okta Products: Workforce Identity Cloud & Customer Identity Cloud Eric Kelleher Chief Customer Officer, Okta © Okta and/or its affiliates. All rights reserved.
Slide 57: Go-To-Market Update
Go-To-Market Update Susan St. Ledger President of Worldwide Field Operations
Slide 58: Integration Progress, Market Evolution, GTM Strategy
Integration Progress Market Evolution Why the Market is Coming to Us GTM Strategy
Slide 59: Integration Progress
Integration Progress Market Evolution Why the Market is Coming to Us GTM Strategy
Slide 60: Integration Progress
Integration Progress Unified CRM systems Unified Product Marketing Teams Sales Enablement Sales Incentives Slowed Hiring Meaningful Attrition Improvement
Slide 61: Market Evolution
Integration Progress Market Evolution Why the Market is Coming to Us GTM Strategy
Slide 62: Large Addressable Market
Large Addressable Market Total Workforce $50B IGA + PAM $15B Expanded use cases Workforce Identity $35B Workforce Identity Customer Identity Total TAM of $30B $30B $80B See Appendix for TAM calculation methodology.
Slide 63: Customer logos
fff crusnus Linked ff amazon NETFLIX SZ are a PELOTON GILT DIRECTV a& slack Uber EX¥TRADE TONAL
Slide 64: Everybody needs Okta
Everybody needs Okta
Slide 65: Why the Market is Coming to Us
Integration Progress Market Evolution Why the Market is Coming to Us GTM Strategy
Slide 66: Workforce Identity Drivers: Employee Experience
+ Workforce Employee Experience Identity Drivers + +
Slide 67: Customer Identity Drivers: Customer Experience
+ Customer Customer Experience Identity Drivers + +
Slide 68: SaaS Market 27.5% CAGR
+ SaaS Market has a forecasted Customer Experience 27.5% CAGR during 2021-2028 + Fortune Business Insights | Software as a Service (SaaS) Market Research + Report | Jan. 2022
Slide 69: Creating seamless omnichannel experiences
Creating seamless omnichannel experiences Centralizing the login experience Decreasing friction to acquire and convert Unifying loyalty benefits
Slide 70: Customer Identity Drivers: Customer Experience
+ Customer Customer Experience Identity Drivers + +
Slide 71: Cloud-native platforms to serve as foundation by 2025
+ By 2025, cloud-native platforms will serve as the Customer foundation for more than 95% of new digital Identity initiatives — up from less Drivers than 40% in 2021. + + Source: Top Strategic Technology Trends for 2022 Published October 2021, by Analyst: David Groombridge, et al, Gartner
Slide 72: What application components take the most time to build
What application components take the MOST most time and work Payment Processing to build and maintain in-house? Authentication Source: How Development Teams Purchase SaaS Oct 2020 Data Management and Storage DevOps Tooling and Automation Monitoring LEAST
Slide 73: GTM Strategy
Integration Progress Market Evolution Why the Market is Coming to Us GTM Strategy
Slide 74: Better Together
Better Together Workforce Customer Identity Cloud Identity Cloud Employees • Contractors Consumer Apps and • Business Partners Digital Experiences • SaaS Apps Okta Identity Platform
Slide 75: Powerful Land and Expand Model
Powerful Land and Expand Model Technology customer example Total Lifetime Spend ~$8M Renewal & Expand $2.5M Renewal & Expand $2.1M Upsell $158K Upsell $599K Renewal & Expand Upsell $538K $138K Land $152K Land $918K Workforce Identity Cloud Upsell $915K Customer Identity Cloud FY 2018 Note: Circles i
Slide 76: Workforce and Customer Identity Cloud
Workforce Customer Identity Cloud Identity Cloud Employees • Contractors Consumer Apps and Digital • Business Partners Experiences • SaaS Apps
Slide 77: Decision Makers and Champions by Cloud
Workforce Customer Identity Cloud Identity Cloud Decision Makers Decision Makers CISO / CIO CDO / CMO / CTO / CPO Champions Account Influencers Director of Identity / Executives CISO / CIO Administrators Champions Developers Sales Sales Engineers Engineers
Slide 78: Partner Ecosystem
Service Providers Cloud Service (MSP, MSSP & Providers Embedded) (CSPs) Systems Partner Ecosystem Technology Integrators Partners & (GSI & Integrators Boutique) Resellers & Distributors
Slide 79: AWS and Okta
Slide 80: Partner Conversation: Amazon Web Services (AWS)
Partner Conversation Chris Grusz Amazon Web General Manager, WW ISV Alliances & Marketplace, AWS Services (AWS) Susan St. Ledger President, WW Field Operations, Okta © Okta and/or its affiliates. All rights reserved.
Slide 81: Financial Update
Financial Update Brett Tighe Chief Financial Officer
Slide 82: Key Takeaways
Key Takeaways Strong foundation for durable long-term growth at scale Attractive long-term financial profile
Slide 83: Solid foundation built over the years
Solid foundation built over the years Q2FY23 at a glance $1.5B $2.8B 16,400+ Current Remaining Performance Total RPO Total Customers Obligations (cRPO) 96% 80% 122% Non-GAAP Subscription TTM Dollar-based Net Subscription Revenue Gross Margin1 Retention Rate 1. See appendix for non-GAAP reconciliatio
Slide 84: Strong net retention driven by strong gross retention
Strong net retention driven by strong gross retention Gross retention consistently in mid-90s 123% 124% 122% 124% 123% 122% 121% 121% 121% 120% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23
Slide 85: Healthy expansion across entire customer base
Healthy expansion across entire customer base Total Growth of Initial ACV(1) 142% 185% 198% 219% 235% 249% 307% 350% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1) While the Auth0 acquisition closed on May 3, 2021, all periods shown include Auth0 to illustrate a like-for-like comparison.
Slide 86: Continued progress winning large customers
Continued progress winning large customers FY20 FY21 FY22(1) Q2FY23(2) >$100K ACV Customers 1,467 1,950 3,100 3,525 Y/Y Growth 41% 33% 59% 35% >$500K ACV Customers 243 369 597 697 Y/Y Growth 59% 52% 62% 42% >$1M ACV Customers 83 125 197 241 Y/Y Growth 38% 51% 58% 47% (1) Includes the addition of Aut
Slide 87: Success with Fortune 500
Success with Fortune 500 >50% penetration of the Fortune 500* *As of Q2FY23
Slide 88: Success with Fortune 100 and Fortune 500
Success with Success with Fortune 100 Fortune 500 >70% >50% penetration of the penetration of the Fortune 100* Fortune 500* *As of Q2FY23 *As of Q2FY23
Slide 89: Significant room to expand with large customers
Significant room to expand with large customers Global 2000 Success with Success with Traction Fortune 100 Fortune 500 ~33% >70% >50% penetration of the penetration of the penetration of the Global 2000* Fortune 100* Fortune 500* ~7x company average ACV *As of Q2FY23 *As of Q2FY23 *As of Q2FY23
Slide 90: Top 25 Customers Land and Expand
Top 25 Customers Land and Expand Initial purchase Incremental ACV ACV increased to over $1M Initial land across industries FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Listed By Initial Purchase Date Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 91: Top 25 Customers Land and Expand
Top 25 Customers Land and Expand Initial purchase Incremental ACV ACV increased to over $1M Multiple expansions increase ACV FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Listed By Initial Purchase Date Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 92: Top 25 Customers Land and Expand
Top 25 Customers Land and Expand Initial purchase Incremental ACV ACV increased to over $1M Reaching >$1M ACV earlier FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Listed By Initial Purchase Date Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 93: Top 10 Industries by ACV
Top 10 Industries Banking Healthcare by ACV Consulting Insurance No industry greater than 10% of total ACV(1) Electronics Manufacturing Finance Retail Government Technology 1) As of Q2FY23 Listed in alphabetical order
Slide 94: Improving profitability and free cash flow
Improving profitability and free cash flow Applying greater overall financial discipline, moderating headcount growth, and right- sizing real estate footprint Remain above Rule of 40 for FY23, which includes a free cash flow margin in the low single digits Commit to improve free cash flow margin and
Slide 95: Focusing on reduction of dilution and SBC over the long-term
Focusing on reduction of dilution and SBC over the long-term Dilution Stock-based Compensation (SBC) Net burn has been 2-3% historically Prior to Auth0, SBC was in the low 20% range Dilution to increase a few points in the near- Auth0 added 17 percentage points of SBC as a term given stock price com
Slide 96: Capital Allocation Priorities
Capital Allocation Priorities Maintain strong balance sheet Invest in the business Tuck-in M&A
Slide 97: Advancements in ESG
Advancements in ESG UNIVERSAL DECLARATION OF HUMAN RIGHTS Science Based Targets Human Rights Impact ESG Fact Sheet Announced Assessment Published
Slide 98: Key Takeaways
Key Identity is critically important and a massive market opportunity Takeaways Okta is the most comprehensive identity platform in the market with two purpose- built clouds: Workforce Identity Cloud and Customer Identity Cloud We’ve built a strong foundation for durable long-term growth that transl
Slide 99: (© Okta andjor ts afiates Alrights reserved.
(© Okta andjor ts afiates Alrights reserved.
Slide 100: Thank you!
Thank you! 2 © kta aor teats A ghia osoved okta
Slide 101: Appendix
a okta Appendix
Slide 102: 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 103: 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 104: 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 Q2 FY23 FY23 YTD GAAP subscription gross profit $ 136,624 $ 151,188 $ 161,981 $ 176,725 $ 626,518 $ 187,660 $ 218
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