Slide 1: Q3 FY23 Investor Presentation
Q3 FY23 Investor Presentation November 30, 2022
Slide 2: 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 3: Agenda
Agenda 01 Company Overview 02 Q3 FY23 Financial Review & Financial Outlook 03 Appendix 3
Slide 4: Company Overview
Company Overview 4
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 17,050 46% Total customers CAGR from FY20- FY23E $2.85B Remaining performance obligations (RPO) ($ in mil.) 122% TTM Dollar-based net retention rate(1) at October 31, 2022 $586 $835 $1,300 $1,836 - $1,838 (1) Trailing Twelve Months (TTM) dollar-based net retention rate
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
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
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
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
Slide 11: One Unified Identity Solution
One Unified Identity Solution Access Management Privileged Identity Access Governance 11
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
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
Slide 14: Okta's Opportunity $80B
We are here* Okta’s Opportunity $80B *See Appendix for TAM calculation methodology 14
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
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
Slide 17: Environmental, Social and Governance
Environmental, Social and Governance Environmental Social Governance Science Based Targets Completed first corporate-wide Updated ESG Fact Sheet, approved by the Science human rights impact assessment which summarizes key ESG Based Targets initiative disclosures Learn more at https://www.okta.com/re
Slide 18: Q3 FY23 Financial Review & Financial Outlook
Q3 FY23 Financial Review & Financial Outlook 18
Slide 19: Q3 FY23 Financial Highlights
Q3 FY23 Financial Highlights(1) Q3 FY23 vs. Q3 FY22 Total Revenue $481M + 37% Subscription Revenue $466M + 38% Remaining Performance Obligations (RPO) $2,853M + 21% Current Remaining Performance Obligations (cRPO) $1,579M + 34% Total Calculated Billings(2) $532M + 37% TTM Dollar Based Net Retention
Slide 20: Total Revenue Up 37% Y/Y; Subscription Revenue Up 38% Y/Y
Total Revenue Up 37% Y/Y; Subscription Revenue Up 38% Y/Y Quarterly Revenue(1) $481 ($ in millions) $452 $415 $383 $351 $316 $251 $235 97% $217 96% $200 96% $183 96% 96% 96% 96% 96% 95% 95% 95% 5% 5% 5% 4% 4% 4% 4% 4% 4% 4% 3% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1FY23 Q2
Slide 21: International Revenue Up 39% Y/Y
International Revenue Up 39% Y/Y Quarterly Revenue(1) $481 ($ in millions) $452 $415 $383 $351 $316 78% $251 78% $235 78% $217 78% $200 $183 79% 79% 84% 83% 84% 84% 84% 22% 22% 22% 21% 21% 22% 16% 16% 16% 16% 17% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23
Slide 22: RPO Up 21% Y/Y; Current RPO Up 34% Y/Y
RPO Up 21% Y/Y; Current RPO Up 34% Y/Y Quarterly RPO $2,853 $2,790 ($ in millions) $2,694 $2,710 $2,350 $2,236 $1,890 $1,797 $1,582 $1,427 $1,240 $1,497 $1,579 $1,351 $1,413 $1,098 $1,180 $842 $899 $685 $753 $619 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23
Slide 23: Total Calculated Billings Up 37% Y/Y
Total Calculated Billings(1) Up 37% Y/Y Quarterly Total Calculated Billings(3) ($ in millions) Q1 FY22 calculated billings of $256M(2) when comparing on a like-for-like basis to Q1 FY23 $603 $532 $491 $364 $362 $389 $389 $316 $252 $210 $198 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4
Slide 24: Calculated Billings Supplemental Modeling Details
Calculated Billings Supplemental Modeling Details(1) Table 1: Like-for-like view of FY21 for modeling FY22 ($ in millions) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 (2) Calculated billings excl. process improvements $293 $345 $387 $540 $1,565 Billings process improvements impact as implemented at the end
Slide 25: TTM Dollar-based Net Retention Rate of 122%
TTM Dollar-based Net Retention Rate of 122% TTM Dollar-based net retention rate 123% 124% 122% 124% 123% 122% 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 Q3 FY23 25
Slide 26: Non-GAAP Total Gross Margin Up 110 bps Y/Y
Non-GAAP Total Gross Margin Up 110 bps Y/Y(1) Non-GAAP Subscription Gross Margin Up 40 bps Y/Y Quarterly Non-GAAP Gross Margins(2) 82.8% 82.1% 82.1% 81.8% 81.9% 80.5% 80.9% 80.0% 79.9% 79.3% 80.0% 78.9% 78.3% 78.4% 78.1% 77.5% 78.0% 76.5% 76.9% 76.8% 76.1% 76.8% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY
Slide 27: Non-GAAP Operating Margin Up 280 bps Y/Y; Free Cash Flow Margin Down 830 bps
Non-GAAP Operating Margin Up 280 bps Y/Y; Free Cash Flow Margin Down 830 bps Y/Y Quarterly Non-GAAP Operating Margin(1) Quarterly Free Cash Flow Margin(1)(2) 3.2% 3.4% 21.0% 2.5% 19.1% 16.3% 0.1% 13.8% (2.7)% 9.5% (3.3)% 3.4% (6.2)% 2.7% (6.7)% (6.3)% 1.3% 1.2% (7.8)% (1.2)% (9.9)% (5.3)% Q1 Q2 Q3 Q
Slide 28: 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% 59% 56% 56% 57% 54% 55% 54% 50% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 (1) See appendix for non-GAAP reconciliation.
Slide 29: Total Customers Up 22% Y/Y
Total Customers Up 22% Y/Y Total customers(1) 17,050 16,400 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 Q2 FY23 Q3 FY23 (1) Includes one time addition of 1,650 customers from Auth0 in Q2 FY22. 29
Slide 30: Customers with >$100K Annual Contract Value Up 32% Y/Y
Customers with >$100K Annual Contract Value Up 32% Y/Y Customers with >$100K ACV(1) 3,740 3,525 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 Q2 FY23 Q3 FY23 (1) Includes one time addition of 375 >$100K ACV customers fro
Slide 31: Financial Outlook
Financial Outlook(1) Q4 FY23 Fiscal 2023 (January 31, 2023) (January 31, 2023) Total Revenue $488M to $490M $1,836M to $1,838M Total Revenue Growth (Y/Y) 27% - 28% 41% Current Remaining Performance Obligations $1,630M to $1,640M N/A cRPO Growth (Y/Y) 21% Non-GAAP Operating Income (Loss)(2) $15M to $
Slide 32: Key Takeaways
Key Strong foundation for growth at scale Takeaways Large addressable markets with multiple growth vectors Attractive long-term financial profile 32
Slide 33: Appendix
Appendix 33
Slide 34: 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
Slide 35: 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 36: Condensed Consolidated Statements of Operations - Fiscal Quarters
Condensed Consolidated Statements of Operations - Fiscal Quarters (in thousands, except per share data)
Slide 37: Non-GAAP Condensed Consolidated Statements of Operations - Fiscal Quarters
Non-GAAP Condensed Consolidated Statements of Operations - Fiscal Quarters (in thousands, except per share data)
Slide 38: Condensed Consolidated Balance Sheets - Fiscal Quarters
Condensed Consolidated Balance Sheets - Fiscal Quarters (in thousands, except per share data)
Slide 39: Condensed Consolidated Balance Sheets - Fiscal Quarters
Condensed Consolidated Balance Sheets - Fiscal Quarters (in thousands, except per share data)
Slide 40: Condensed Consolidated Statements of Cash Flows - Fiscal Quarters
Condensed Consolidated Statements of Cash Flows(1) - Fiscal Quarters (in thousands)
Slide 41: Condensed Consolidated Statements of Cash Flows - Fiscal Quarters
Condensed Consolidated Statements of Cash Flows(1) - Fiscal Quarters (in thousands)
Slide 42: Condensed Consolidated Statements of Cash Flows - Fiscal Quarters
Condensed Consolidated Statements of Cash Flows(1) - Fiscal Quarters (in thousands)
Slide 43: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data)
Slide 44: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data)
Slide 45: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data)
Slide 46: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data)
Slide 47: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters (in thousands, except percentages and per share data)
Slide 48: 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)
Slide 49: 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)