Okta, Inc. · NASDAQ:OKTA

Okta — Investor Day (April 2021)

112 slides from Okta's investor day presentation, Apr 7, 2021

Slide 1: Investor Day FY22 Welcome
Investor Day FY22 Welcome Dave Gennarelli Vice President, Investor Relations April 7, 2021
Slide 2: Investor Day Agenda
Investor Day Agenda Topic Presenter Welcome Dave Gennarelli, Vice President, Investor Relations Identity as a Primary Cloud Todd McKinnon, Chief Executive Ofﬁcer & Co-Founder Okta & Auth0 Fireside Chat Todd McKinnon, CEO & Co-Founder + Eugenio Pace, CEO & Co-Founder, Auth0 Product Update Diya Jolly,
Slide 3: Safe harbor
Safe harbor This presentation contains "forward-looking statements" within a network or data security incident that allows unauthorized the meaning of the "safe harbor" provisions of the Private access to our network or data or our customers’ data could Securities Litigation Reform Act of 1995, incl
Slide 4: Identity as a Primary Cloud
Investor Day FY22 Identity as a Primary Cloud Todd McKinnon Chief Executive Officer & Co-Founder April 7, 2021
Slide 5: eae
eae —*ewivigieee °
Slide 6: Key areas C-suite cares most about
1 2 Driving Reducing Okta addresses innovation costs Key areas C-suite cares 3 4 Simplifying Accelerating most about operations growth 5 6 Mitigating the Future risk of breaches proofing
Slide 7: More than 10,000 of the world's most valued global brands trust Okta
More than 10,000 of the world’s most valued global brands trust Okta
Slide 8: Enable everyone to safely use any technology
Okta’s Vision Enable everyone to safely use any technology
Slide 9: Okta powers identity for the internet
Okta powers identity for the internet
Slide 10: Platform
P A C K A G E D PRODUCTS Platform P R O G R A M M A B L E COMPONENTS P L A T F O R M SERVICES
Slide 11: The new primary cloud
The new primary cloud Infrastructure ERP CRM Collaboration HR
Slide 12: The new primary cloud solves even more identity challenges
The new primary cloud Solves even more identity challenges
Slide 14: Okta's large addressable market $80B
Okta’s large addressable market Total Workforce $50B IGA + PAM $15B Workforce Identity Total TAM of Workforce $35B $30B Identity Customer Identity $Customer Identity $30B $80B 25B See Appendix for TAM calculation methodology.
Slide 15: Today's speakers
Today’s speakers Auth0 Fireside Chat Product Update Go-to-Market Update Financial Update Eugenio Pace Diya Jolly Susan St. Ledger Mike Kourey CEO & Co-Founder Chief Product Officer President, WW Field Ops Chief Financial Officer Customer Success Zoom Fox Engie Frederic Kerrest Harry Moseley Paul Che
Slide 16: Investor Day FY22 Product Update
Investor Day FY22 Product Update Diya Jolly Chief Product Ofﬁcer April 7, 2021
Slide 20: Traditional Workforce and Customer Identity
TRADITIONAL TRADITIONAL Workforce Identity Customer Identity Resource-intensive and An afterthought solved non-scalable solutions by homegrown solutions © Okta and/or its afﬁliates. All rights reserved.
Slide 21: Digital disruptions have transformed our lives
Digital disruptions have transformed our lives Websites Mobile Social platforms Business Apps Dev Apps Collaboration Productivity Apps Apps © Okta and/or its afﬁliates. All rights reserved.
Slide 22: Identity is part of every digital touchpoint
Identity is part of every digital touchpoint Websites Mobile Social platforms Business Apps Dev Apps Collaboration Productivity Apps Apps IDENTITY © Okta and/or its afﬁliates. All rights reserved.
Slide 23: Identity has dramatically transformed into a primary consideration
Identity has dramatically transformed into a primary consideration HIGHER PRODUCTIVITY CONSISTENT AND SECURE ACCESS FRICTIONLESS EXPERIENCES © Okta and/or its afﬁliates. All rights reserved.
Slide 27: Delivering a secure and frictionless Workforce experience
Delivering a secure and frictionless Workforce experience Managed Device User Risk Signal Just-in-Time Automated User Authentication Evaluation Account Application Behaviour Provisioning Onboarding Analytics Email Unmanaged Device © Okta and/or its afﬁliates. All rights reserved.
Slide 28: Delivering a secure and frictionless Customer experience
Delivering a secure and frictionless Customer experience Real-time identity events synced to Okta workﬂows kicks off an security and email marketing campaign marketing tools Customer adds Gets a marketing Frictionless Transaction Multiple items to the cart email reminder sign in secured through back
Slide 29: Primary clouds address huge markets
Primary clouds address huge markets INITIAL MASSIVE Core Addressable Market Adjacent Addressable Market PRIMARY CLOUD © Okta and/or its afﬁliates. All rights reserved.
Slide 30: 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 Secu
Slide 32: Packaged products, programmable components, platform services
PACKAGED PRODUCTS Workforce and CIAM PROGRAMMABLE COMPONENTS PLATFORM SERVICES Insights Identity Engine Devices Directories Integrations Workﬂows © Okta and/or its afﬁliates. All rights reserved.
Slide 36: Okta Privileged Access
Okta Privileged Access － Just-in-time access for PolicySync Linux & Windows servers Core Privilege Services － Flexible least privilege access policy model Just-in-time access controls － Session capture and logging for SSH & RDP Servers Databases Containers － Planned support for databases, and Kubern
Slide 37: Okta Identity Governance
Okta Identity Manage Governance Review Identity Lifecycle and Certify － Lifecycle Management Identities Set Access － Access Requests Report Rules and and Audit Policies － Access Certiﬁcations Resources － Audit Reporting Request and Provision Approve Access and Fulﬁll © Okta © Okta and/or its afﬁliat
Slide 39: Okta Developer Experience: simple and frictionless
SDKs Okta Developer Experience: Tools simple and Integrations frictionless Documentation & Best Practice Okta’s platform and APIs ensure the easy way is the fast and right way Standards © Okta and/or its afﬁliates. All rights reserved.
Slide 42: A rich Okta Integration Network for complex Customer Identity use cases
A rich Okta Integration Network for complex Customer Identity use cases CRM Privacy Social Providers Data Integrations Marketing Tech Analytics Ecommerce Customer Data Platform © Okta and/or its afﬁliates. All rights reserved.
Slide 43: Connect to the fraud and risk ecosystem with the Risk Ecosystem API
Connect to the fraud and risk ecosystem with the Risk Ecosystem API OKTA’S SIGNALS Threat Insight - IP Threat Level User context Device context Okta’s Risk Engine CIAM SIGNAL IP Bot Mitigation Anomalous in-app Transactional Custom Risk Engines CATEGORIES reputation and WAF user behavior Fraud Partne
Slide 44: Okta Workflows for Customer Identity
Okta Workﬂows for Customer Identity Registration & Sync & Administrative Identity Creation Provisioning Operations © Okta and/or its afﬁliates. All rights reserved.
Slide 46: Building the Okta economy: Today Tomorrow
BUILDING THE OKTA ECONOMY Today Tomorrow New Templates Business Automation System SaaS Apps Integrations Management Apps SIEM Apps Security New Apps Connectors Analytics Apps and more... Proactive © Okta and/or its afﬁliates. All rights reserved.
Slide 47: Harry Moseley Frederic Kerrest
Harry Moseley Frederic Kerrest Global Chief Information Officer Executive Vice Chairman, COO & Co-Founder WORKFORCE IDENTITY STRATEGIES PROJECTS PRODUCTS - Deliver agility & flexibility across cloud and - Apply secure access controls to servers Single Sign-On on-prem environments - Deploy MFA to glo
Slide 48: Go-To-Market Update
Investor Day FY22 Go-To-Market Update Susan St. Ledger President, Worldwide Field Operations April 7, 2021
Slide 49: Why I joined Okta
Why I joined Okta 01 02 03 Market opportunity: Customer centricity: High-growth: Identity is the new “Love our customers” To $2 billion primary cloud is Okta’s #1 and beyond corporate value © Okta and/or its afﬁliates. All rights reserved.
Slide 50: Strong revenue growth
Strong revenue growth Total Revenue $1,200 $1,000 40% CAGR from FY19-22E $800 ($ in mil.) $600 $400 $200 $399 $586 $835 $1,080 – $1,090 $0 FY19 FY20 FY21 FY22E © Okta and/or its afﬁliates. All rights reserved.
Slide 52: Win with Okta as the world's most valuable identity platform
Win with Okta as the world’s most valuable identity platform Uniﬁed | Extensible | Integrated © Okta and/or its afﬁliates. All rights reserved.
Slide 55: Go-to-market strategy
Go-to-market strategy Innovation in new areas New logo Expand with International acquisition existing customers growth Customer success © Okta and/or its afﬁliates. All rights reserved.
Slide 58: Legacy environment and digital native customers
Legacy environment Legacy environmentand anddigital native digital customers native customers Legacy environment Digital native © Okta and/or its afﬁliates. All rights reserved.
Slide 66: Customers across industries
Customers across Customers across industries industries Health Technology Finance Manufacturing + Energy Transportation Media © Okta and/or its afﬁliates. All rights reserved.
Slide 68: Land and expand model: public sector example
Land and expand model Public sector customer example Total Lifetime Spend: ~$4.6M Workforce + Customer Identity Land Expand $1.3M $1.0M Workforce Identity Customer Identity Expand Expand $2.1M $245K FY 2021 Note: Circles indicate total contract value. Graph not drawn to scale. © Okta and/or its afﬁl
Slide 69: Land and expand model: technology customer example
Land and expand model Technology customer example Renewal & Total Lifetime Expand Spend: ~$17.1M $2.3M Workforce + Customer Identity Expand Expand $855K $2.5M Workforce Expand Identity $791K Expand Renewal & $116K Expand Land $9.8M $465K Customer Identity Expand $300K FY 2013 FY 2021 Note: Circles i
Slide 70: Go-to-market strategy
Go-to-market strategy Innovation in new areas New logo Expand with International acquisition existing customers growth Customer success © Okta and/or its afﬁliates. All rights reserved.
Slide 73: Accelerating our growth with new leadership
Accelerating our growth with new leadership Steve Rowland, Kendall Collins, Chief Revenue Ofﬁcer Chief Marketing Ofﬁcer © Okta and/or its afﬁliates. All rights reserved.
Slide 75: Paul Cheesbrough Frederic Kerrest
Paul Cheesbrough Frederic Kerrest Chief Technology Officer & President of Digital Executive Vice Chairman, COO & Co-Founder WORKFORCE + CUSTOMER IDENTITY STRATEGIES PROJECTS PRODUCTS - Deploy Adaptive MFA company wide Single Sign-On, Adaptive Multi-Factor - Adopt a Zero Trust security model Authenti
Slide 76: Claude Pierre Frederic Kerrest
Claude Pierre Frederic Kerrest Deputy Group Chief Information Officer Executive Vice Chairman, COO & Co-Founder WORKFORCE + CUSTOMER IDENTITY STRATEGIES PROJECTS PRODUCTS Single Sign-On, Adaptive Multi-Factor - Build tailored customer experiences - Connect enterprise identities Authentication, Advan
Slide 77: Financial Update
Investor Day FY22 Financial Update Mike Kourey Chief Financial Ofﬁcer April 7, 2021
Slide 78: Why I joined Okta
Why I joined Okta Early stages of Opportunity to join a Exceptional team Identity becoming high growth, highly and culture of a Primary Cloud innovative company authenticity, transparency and winning mindset © Okta and/or its afﬁliates. All rights reserved.
Slide 79: Key takeaways
Key takeaways Strong foundation Large addressable Attractive long-term for growth at scale markets with ﬁnancial proﬁle multiple growth vectors © Okta and/or its afﬁliates. All rights reserved.
Slide 81: Strong foundation for growth
Strong foundation for growth Consistent execution at scale 43% 49% 121% Revenue y/y growth1 Total RPO y/y growth1 TTM dollar-based net retention rate1,2 78% 13% 10,000 FY21 total non-GAAP gross margin, FY21 free cash ﬂow margin, Customers at FY21-end, up >2,000 y/y up 110 bps y/y3 up 710 bps y/y3 1.
Slide 82: Remaining performance obligations
Remaining performance obligations 1 Remaining Performance Obligations (RPO): RPO provides clear view of revenue to be recognized (i.e., backlog) Noncancellable customer subscription backlog, both billed 2 and unbilled Current RPO removes effect of billings duration and timing Current RPO: 3 Portion
Slide 83: Reiterating financial outlook
Reiterating ﬁnancial outlook1 Q1 FY22 Fiscal 2022 (April 30, 2021) (January 31, 2022) Total Revenue $237M to $239M $1,080M to $1,090M Total Revenue Growth (Y/Y) 30% to 31% 29% to 30% Non-GAAP Operating Loss2 $27M to $28M $55M to $61M Non-GAAP Net Loss Per Share2,3 $0.20 to $0.21 $0.44 to $0.49 1. Ou
Slide 86: Okta's large addressable market $80B
Okta’s large addressable market Total Workforce $ 50B IGA + PAM $ 15B Expanded use cases Higher utilization Workforce Identity Total TAM of $Workforce Identity $35B 30B Customer Identity $Customer Identity $30B $80B 25B See Appendix for TAM calculation methodology. © Okta and/or its afﬁliates. All r
Slide 87: Okta's multiple growth vectors
Okta’s multiple growth vectors Innovation in platform Landing and expanding in International expansion Growing partner channel and network large enterprise © Okta and/or its afﬁliates. All rights reserved.
Slide 88: 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.
Slide 89: Landing and expanding in large enterprise
Landing and expanding in large enterprise Consistently strong TTM dollar-based net retention rate Key Drivers Strong gross retention rates Consistently robust upsell and expansion New product introductions © Okta and/or its afﬁliates. All rights reserved.
Slide 90: Landing and expanding in large enterprise
Landing and expanding in large enterprise $500K and $1 million ACV customer cohorts grew over 50% last year FY20 FY21 >$1M Customers 83 125 Y/Y Growth 51% >$500K Customers 243 369 Y/Y Growth 52% >$100K Customers 1,467 1,950 Y/Y Growth 33% © Okta and/or its afﬁliates. All rights reserved.
Slide 91: Global 2000 traction
Global 2000 traction ~25% ~6x penetration of the Global 20001 company average ACV2 1. As of Q4 FY21 2. Annual Contract Value © Okta and/or its afﬁliates. All rights reserved.
Slide 95: Large opportunity internationally within Global 2000
Large opportunity internationally within Global 2000 Location of companies Americas EMEA APAC Okta1 61% 21% 18% Global 20002 35% 25% 40% (1) Based on Okta customers that are part of the Global 2000 as of January 31, 2021 © Okta and/or its afﬁliates. All rights reserved. (2) Fortune Magazine 19
Slide 99: Significant synergy opportunities with Auth0
Signiﬁcant synergy opportunities with Auth0 Accelerated Complementary International Cross sell Channel TAM penetration products reach synergies © Okta and/or its afﬁliates. All rights reserved.
Slide 101: Long-term financial profile pillars
Long-term ﬁnancial proﬁle pillars High growth in Proﬁtable customer Disciplined capital recurring subscription economics allocation business © Okta and/or its afﬁliates. All rights reserved.
Slide 102: Attractive long-term customer economics
Attractive long-term customer economics FISCAL 2018 COHORT CONTRIBUTION MARGIN Customer economics and margins improve signiﬁcantly in land and expand model © Okta and/or its afﬁliates. All rights reserved.
Slide 103: Capital allocation priorities
Capital allocation priorities Maintain strong Invest in the business to balance sheet extend market leadership, ($2.6B cash and equivalents at both organically and Jan. 31, 2021) inorganically © Okta and/or its afﬁliates. All rights reserved.
Slide 104: Key areas of investment
Key areas of investment Go-to-Market International Innovation & R&D Scale Increasing capacity— Increasing global Investments in headcount Investments in systems expand quota-carrying footprint by expanding and infrastructure to and processes to support sales and sales international sales and support
Slide 105: Long-term durable growth
Long-term durable growth 30-35% Organic Revenue CAGR Greater than 35% FY20 through FY24* Revenue Growth Workforce Identity Customer Identity * Based on current projections. © Okta and/or its afﬁliates. All rights reserved.
Slide 106: Environmental, Social and Governance topics a priority
Environmental, Social and Governance topics a priority Achieved in Fiscal 2021 April 2021 Announcement Launched Conducted and Released ﬁrst Commit to achieving centralized ESG disclosed results Diversity & web page of ﬁrst GHG Inclusion report 100% renewable highlighting our emissions progress inven
Slide 107: 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.
Slide 108: Appendix
Appendix
Slide 109: 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 110: 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 111: Non-GAAP Reconciliations
Non-GAAP Reconciliations FY20 FY21 GAAP total gross proﬁt 426,685 617,743 Stock-based compensation 20,087 29,978 Amortization of acquired intangibles 5,488 6,373 Non-GAAP total gross proﬁt 452,260 654,094 Non-GAAP total gross margin 77.2% 78.3% FY20 FY21 Free cash ﬂow and margin Net cash provided by
Slide 112: Appendix
Appendix

Okta — Investor Day (April 2021) on 6ix

Okta — Investor Day (April 2021)

Slide 1: Investor Day FY22 Welcome

Slide 2: Investor Day Agenda

Slide 3: Safe harbor

Slide 4: Identity as a Primary Cloud

Slide 5: eae

Slide 6: Key areas C-suite cares most about

Slide 7: More than 10,000 of the world's most valued global brands trust Okta

Slide 8: Enable everyone to safely use any technology

Slide 9: Okta powers identity for the internet

Slide 10: Platform

Slide 11: The new primary cloud

Slide 12: The new primary cloud solves even more identity challenges

Slide 13: © Okta and/or its afﬁliates. All rights reserved.

Slide 14: Okta's large addressable market $80B

Slide 15: Today's speakers

Slide 16: Investor Day FY22 Product Update

Slide 17: Primary clouds are growth enablers

Slide 18: Primary clouds

Slide 19: The journey of identity

Slide 20: Traditional Workforce and Customer Identity

Slide 21: Digital disruptions have transformed our lives

Slide 22: Identity is part of every digital touchpoint

Slide 23: Identity has dramatically transformed into a primary consideration

Slide 24: © Okta and/or its afﬁliates. All rights reserved.

Slide 25: Identity is a primary cloud

Slide 26: An identity cloud to solve every use-case

Slide 27: Delivering a secure and frictionless Workforce experience

Slide 28: Delivering a secure and frictionless Customer experience

Slide 29: Primary clouds address huge markets

Slide 30: There is a massive future for identity

Slide 31: Okta's journey ahead

Slide 32: Packaged products, programmable components, platform services

Slide 33: Unified Extensible Integrated

Slide 34: A unified platform

Slide 35: Entering PAM and IGA markets

Slide 36: Okta Privileged Access

Slide 37: Okta Identity Governance

Slide 38: An extensible platform

Slide 39: Okta Developer Experience: simple and frictionless

Slide 40: © Okta and/or its afﬁliates. All rights reserved.

Slide 41: An integrated platform

Slide 42: A rich Okta Integration Network for complex Customer Identity use cases

Slide 43: Connect to the fraud and risk ecosystem with the Risk Ecosystem API

Slide 44: Okta Workflows for Customer Identity

Slide 45: The Okta economy

Slide 46: Building the Okta economy: Today Tomorrow

Slide 47: Harry Moseley Frederic Kerrest

Slide 48: Go-To-Market Update

Slide 49: Why I joined Okta

Slide 50: Strong revenue growth

Slide 51: The new primary cloud

Slide 52: Win with Okta as the world's most valuable identity platform

Slide 53: Customer identity opportunity

Slide 54: © Okta and/or its afﬁliates. All rights reserved.

Slide 55: Go-to-market strategy

Slide 56: New logos added in FY21

Slide 57: Expanded in FY21

Slide 58: Legacy environment and digital native customers

Slide 59: © Okta and/or its afﬁliates. All rights reserved.

Slide 60: © Okta and/or its afﬁliates. All rights reserved.

Slide 61: SMB, Enterprise and Global 2000 customers

Slide 62: © Okta and/or its afﬁliates. All rights reserved.

Slide 63: SMB, Enterprise and Global 2000 customers

Slide 64: © Okta and/or its afﬁliates. All rights reserved.

Slide 65: © Okta and/or its afﬁliates. All rights reserved.

Slide 66: Customers across industries

Slide 67: © Okta and/or its afﬁliates. All rights reserved.

Slide 68: Land and expand model: public sector example

Slide 69: Land and expand model: technology customer example

Slide 70: Go-to-market strategy

Slide 71: Continued focus on international growth

Slide 72: Growing partnerships to expand our global customer base

Slide 73: Accelerating our growth with new leadership

Slide 74: My priorities

Slide 75: Paul Cheesbrough Frederic Kerrest

Slide 76: Claude Pierre Frederic Kerrest

Slide 77: Financial Update

Slide 78: Why I joined Okta

Slide 79: Key takeaways