Slide 1: Q1 FY25 Investor Presentation
Q1 FY25 Investor Presentation May 29, 2024 © Okta and/or its affiliates. © OktaAll and/or rightsitsreserved. affiliates. All rights reserved. Confidential Information of Okta – For Recipient’s Internal Use Only.
Slide 2: Safe harbor
Safe harbor This presentation contains "forward-looking statements" within customer growth has slowed in recent periods and could continue the meaning of the "safe harbor" provisions of the Private to decelerate in the future; we could experience interruptions or Securities Litigation Reform Act of
Slide 3: Agenda
Agenda 01 Company Overview 02 Q1 FY25 Financial Review 03 Q2 FY25 and FY25 Financial Outlook 04 Appendix © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient’s Internal Use Only. 3
Slide 4: Company Overview
Company Overview © Okta and/or its affiliates. All rights reserved. 4
Slide 5: Vision: Free everyone to safely use any technology
Vision Free everyone to safely use any technology © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient’s Internal Use Only. 5
Slide 6: Okta at a Glance
Okta at a Glance Total Revenue 25% 19,100 CAGR from FY22- FY25E Total customers $3.364B $2,263 $2,530 - $2,540 ($ in mil.) Remaining performance obligations (RPO) $1,858 111% $1,300 TTM Dollar-based net retention rate(1) at April 30, 2024 (1) Trailing Twelve Months (TTM) dollar-based net retention r
Slide 7: FY25 Priorities
FY25 Priorities Security Reignite Scale growth Okta © Okta and/or its affiliates. All rights reserved. 7
Slide 8: Okta Secure Identity Commitment
Okta Secure Identity Commitment To lead the industry in the fight against identity attacks Provide market- Harden our Champion Elevate our leading secure corporate customer best industry to be identity infrastructure practices to help more protected products and ensure they are from identity services
Slide 9: 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 © Okta and/or its affiliates. All rights reserved. 9
Slide 10: 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 Creating Security and Omnichannel Engagement trust privacy access
Slide 11: Better Together
Better Together Workforce Customer Identity Cloud Identity Cloud Employees • Contractors Consumer Apps and • Business Partners Digital Experiences • SaaS Apps © Okta and/or its affiliates. All rights reserved. Okta Identity Platform 11
Slide 12: One Unified Identity Solution
One Unified Identity Solution Access Management Privileged Identity Access Governance © Okta and/or its affiliates. All rights reserved. 12
Slide 13: Identity Threat Protection with Okta AI
Identity Threat Protection… …with Okta AI © Okta and/or its affiliates. All rights reserved. 13
Slide 14: Okta's unique multilayered approach to identity security
Okta’s unique multilayered approach to identity security © Okta and/or its affiliates. All rights reserved. 14
Slide 15: Okta's Opportunity $80B
We are here* Okta’s Opportunity $80B * See Appendix for TAM calculation methodology. Figure not drawn to scale. © Okta and/or its affiliates. All rights reserved. 15
Slide 16: 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. Confidential Information of Okta – For Recipient’s Internal Use Only. 16
Slide 17: Okta is the superior choice vs. Microsoft - every time
Okta is the superior choice vs. Microsoft - every time Enterprise Reliability & Ease of Use & Time Executing on Identity Okta Integration Mitigate Commercial Agility Performance to Value for the Best Challenges Network and Operational Risk Outcomes Okta accelerates identity for Okta protects custome
Slide 18: Environmental, Social and Governance
Environmental, Social and Governance Okta signs on to CISA's Secure By Design Pledge >$7M In cash contributed by the Okta for $6M In technology and services Good Fund, Okta, Inc., and Okta donated employees Okta releases 88% Employee participation in Okta $50M Philanthropy commitment over the latest
Slide 19: Q1 FY25 Financial Review & Financial Outlook
Q1 FY25 Financial Review & Financial Outlook © Okta and/or its affiliates. All rights reserved. 19
Slide 20: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights Q1 FY25 vs. Q1 FY24 Total Revenue $617M + 19% Subscription Revenue $603M + 20% Remaining Performance Obligations (RPO) $3,364M + 14% Current Remaining Performance Obligations (cRPO) $1,949M + 15% TTM Dollar Based Net Retention Rate 111% - 6 pts Non-GAAP Gross Margin(1) 8
Slide 21: Total Revenue Up 19% Y/Y; Subscription Revenue Up 20% Y/Y
Total Revenue Up 19% Y/Y; Subscription Revenue Up 20% Y/Y Quarterly Revenue(1) $617 $605 ($ in millions) $584 $556 $510 $518 $481 $452 $415 98% 98% 97% 97% 97% 97% 96% 97% 96% 4% 4% 3% 3% 3% 3% 3% 2% 2% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Professional services & o
Slide 22: cRPO is a Leading Indicator for Future Subscription Revenue
cRPO is a Leading Indicator for Future Subscription Revenue cRPO (subscription backlog Quarterly Bookings ≤ 12 months) New Customers Dollar amount added to cRPO is impacted by Upsells(1) factors such as the cRPO moves to Future Components that quarterly number of customers, subscription add to cRPO
Slide 23: RPO Up 14% Y/Y; Current RPO Up 15% Y/Y
RPO Up 14% Y/Y; Current RPO Up 15% Y/Y Quarterly RPO $3,385 $3,364 ($ in millions) $3,007 $3,027 $3,073 $2,942 $2,790 $2,853 $2,710 $1,826 $1,952 $1,949 $1,684 $1,701 $1,772 $1,497 $1,579 $1,413 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Current RPO Non-Current RPO © Okt
Slide 24: TTM Dollar-based Net Retention Rate of 111%
TTM Dollar-based Net Retention Rate of 111% TTM Dollar-based net retention rate 123% 122% 122% 120% 117% 115% 115% 111% 111% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 © Okta and/or its affiliates. All rights reserved. 24
Slide 25: Strong Non-GAAP Gross Margins
Strong Non-GAAP Gross Margins Non-GAAP Gross Margins(1) 82.8% 83.5% 80.5% 80.5% 80.4% 81.5% 77.0% 77.6% FY22 FY23 FY24 Q1 FY25 Total Gross Margin Subscription Gross Margin (1) See appendix for non-GAAP reconciliation. © Okta and/or its affiliates. All rights reserved. 25
Slide 26: Efficiency and Reduced Cost Structure Yielding Significant Margin Improvement
Efficiency and Reduced Cost Structure Yielding Significant Margin Improvement Non-GAAP Operating Margin(1)(2)(3) Free Cash Flow Margin(1)(2)(3) ~22% 21.6% ~19 – 20% 13.7% 6.7% (0.5)% 3.5% (5.7)% FY22 FY23 FY24 FY25E FY22 FY23 FY24 FY25E (1) See appendix for non-GAAP reconciliation. (2) FY22 includes
Slide 27: 19,100 Total Customers
19,100 Total Customers Total customers(1) 18,950 19,100 17,600 15,000 FY22 FY23 FY24 Q1 FY25 (1) Includes one time addition of 1,650 customers from Auth0 in Q2 FY22. © Okta and/or its affiliates. All rights reserved. 27
Slide 28: Customers with >$100K Annual Contract Value
Customers with >$100K Annual Contract Value Customers with >$100K ACV(1) 4,485 4,550 3,930 3,100 FY22 FY23 FY24 Q1 FY25 (1) Includes one time addition of 375 >$100K ACV customers from Auth0 in Q2 FY22. © Okta and/or its affiliates. All rights reserved. 28
Slide 29: Financial Outlook for Q2 FY25
(1) Financial Outlook for Q2 FY25 Q2 FY25 (July 31, 2024) Total Revenue $631M to $633M Total Revenue Growth (Y/Y) 13-14% Current Remaining Performance Obligations $1,955M to $1,960M cRPO Growth (Y/Y) 10-11% Non-GAAP Operating Income $123M to $125M Non-GAAP Operating Margin 19-20% Non-GAAP Diluted Ne
Slide 30: Financial Outlook for FY25
(1) Financial Outlook for FY25 Fiscal 2025 (January 31, 2025) Total Revenue $2,530M to $2,540M Total Revenue Growth (Y/Y) 12% Non-GAAP Operating Income $490M to $500M Non-GAAP Operating Margin 19-20% Non-GAAP Diluted Net Income Per Share(2) $2.35 to $2.40 Diluted Weighted Average Share Count(3) 182
Slide 31: Key Takeaways
Key Strong foundation for growth at scale Takeaways Large addressable markets with multiple growth vectors (1) Positioned for profitable growth (1) Non-GAAP basis. © Okta and/or its affiliates. All rights reserved. 31
Slide 32: Appendix
Appendix © Okta and/or its affiliates. All rights reserved. 32
Slide 33: 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 34: Sources: Okta is the superior choice vs. Microsoft
Sources: Okta is the superior choice vs. Microsoft 1 News Corp transforms media. Okta helps all 25,000 global employees connect., Okta. 2 Microsoft 365 outage blocks access to web apps and services, BleepingComputer (Apr 2023) 3 Global Azure AD outage affecting Microsoft 365 Services, Exoprise (Dec
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-GA
Slide 36: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) © Okta and/or its affiliates. All rights reserved. 36
Slide 37: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) © Okta and/or its affiliates. All rights reserved. 37
Slide 38: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) © Okta and/or its affiliates. All rights reserved. 38
Slide 39: 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) © Okta and/or its affiliates. All rights reserved. 39
Slide 40: 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) © Okta and/or its affiliates. All rights reserved. 40
Slide 41: 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) Amounts reported in millions are rounded based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions
Slide 42: © Okta and/or its affiliates. All rights reserved.
© Okta and/or its affiliates. All rights reserved.