Slide 1: Q4 FY23 Investor Presentation
> sie Q4 FY23 Investor Presentation March 1, 2023 okta
Slide 2: Safe harbor
Safe harbor This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, long-term financial plans, product development, bu
Slide 3: Agenda
Agenda O1 Company Overview O2 Q4FY23 Financial Review & Financial Outlook 03 Appendix a ota ane Wo. red ; okta
Slide 4: Company Overview
Company Overvi
Slide 5: Free everyone to safely use any technology
WAR Free everyone to safely use any technology —
Slide 6: FY21 to FY24e growth
Fv2i FY22 FY23 Fy24e
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 Qs Digital transformation Si okta
Slide 8: Identity value for CMO, CPO, CTO, CFO, CISO teams
CMO, CDO, digital teams ia) $ JIN Frictionless Conversion onboarding CPO, product team CEO 000 (e) Tr. Engagement Omniehannel Business acceleration CFO CTO, app dev teams fe) 20 la R Unifying User identity management ClO, CISO, IT, security teams Revenue growth Y © Creating Security and trust privac
Slide 9: Okta Trust: Cloud security certifications with 99.99% uptime
Okta Trust: Cloud security certifications with 99.99% uptime Vendor neutrality supports best-of-breed stack The Okta | d entity Cl ou d Cloud-first, providing hybrid access from cloud to ground Delivers a unified Unified solution to secure workforce, customer and infrastructure identity identity sol
Slide 10: Better Together
Better Together Customer Identity Cloud Consumer Apps and Digital Experiences * SaaS Apps Workforce Identity Cloud Employees « Contractors * Business Partners @authe a ee ee eo
Slide 11: One Unified Identity Solution
One Unified Identity Solution okta
Slide 12: One Platform to Secure Every Identity
One Platform to Secure Every Identity O oO vane Komen: BS oo —_ | Devices | | loT | | Cloud Apps On-Prem Apps Infrastructure Okta Identity Cloud a © Ota anor ts atiats. Aight rosorved ° okta | APIs + SDKs
Slide 13: Delivering Measurable Customer Value
Delivering Measurable Customer Value IA -_ 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 a 5 Ort
Slide 14: We are here: Okta's Opportunity
We are here* Okta’s Opportunity S80B *See Appendix for TAM calculation methodology okta
Slide 15: Multiple Growth Vectors
Multiple Growth Vectors {fx KA K_/ jul BON AA NS Innovation in platform Landing and expanding and network in large enterprise 6 International expansion Leveraging partner ecosystem okta
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 a 5 Orta and tos Alrghsoseved mn okta
Slide 17: Environmental, Social and Governance
Environmental, Social and Governance WF Environmental Science Based Targets approved by the Science Based Targets initiative 200, = Social Governance Released 2023 Okta for Good Updated ESG Fact Sheet, Impact Report which summarizes key ESG disclosures Learn more at https://www.okta.com/responsibili
Slide 18: Q4 FY23 Financial Review & Financial Outlook
Q4 FY23 Financial Review & Financial Outlook
Slide 19: Q4 FY23 Financial Highlights
Q4 FY23 Financial Highlights Q4 FY23 vs. Q4 FY22 Total Revenue S510M + 33% Subscription Revenue $495M + 34% Remaining Performance Obligations (RPO) $3,007M +12% Current Remaining Performance Obligations (cRPO) $1,684M + 25% Total Calculated Billings“ $710M +18% TTM Dollar Based Net Retention Rate 12
Slide 20: Total Revenue Up 33% Y/Y; Subscription Revenue Up 34% Y/Y
Total Revenue Up 33% Y/Y; Subscription Revenue Up 34% Y/Y Quarterly Revenue (S in millions) ae $183 QiFY21 0) $200 Q2 FY21 $217 Q3 FY21 $235 Q4FY21 $351 $316 $251 $383 QiFY22 Q2 FY22 Q3 FY22 Q4 FY22 = Professional services & other = Subscription Includes $38M, $46M, S56M, and $66M from Auth0 in Q2,
Slide 21: International Revenue Up 32% Y/Y
International Revenue Up 32% Y/Y Quarterly Revenue (S in millions) $383 $351 $316 son $235 $251 - : : : QU FY21 Q2 FY21 Q3 FY21 Q4 FY21 QU FY22 Q2 FY22 Q3 FY22 Q4 FY22 ulnternational ™U.S. (1) __ Includes $38M, $46M, S56M, and S66M from AuthO in Q2, Q3, and Q4 of FY22, and Qi of FY23, respectively.
Slide 22: RPO Up 12% Y/Y; Current RPO Up 25% Y/Y
RPO Up 12% Y/Y; Current RPO Up 25% Y/Y $3,007 Qu arte rly RPO $2790 $2,853 ($ in millions) $2,694 $2,710 a $2,350 $2,236 $1,797 CBE QU FY21 Q2 FY21 Q3 FY21 Q4 FY21 QU FY22 Q2 FY22 Q3 FY22 Q4 FY22 QU FY23 Q2 FY23 Q3 FY23 Q4 FY23 =Current RPO = Non-Current RPO x b Onur fate. A lh reseved » okta
Slide 23: Total Calculated Billings Up
Total Calculated Billings Up 189 Quarterly Total Calculated Billings® (S in millions) Qi FY22 calculated billings of $256M®) when comparing ona like-for-like basis to Q1 FY23 QUFY21 Q2FY21 Q3 FY21 Q4FY21 QU FY22 Q2 FY22 Q3 FY22 Q4 FY22 QU FY23 Q2 FY23 Q3 FY23 Q4 FY23 = Calculated Billings (1) Calcul
Slide 24: TTM Dollar-based net retention rate
TTM Dollar-based net retention rate QiFY21 Q2 FY21 Q3 FY21 Q4FY21 QiFY22 Q2 FY22 Q3 FY22 Q4 FY22 Qi FY23 Q2FY23 Q3 FY23 Q4 FY23 x © Ona acorn A igh ecrved okta 24
Slide 25: Non-GAAP Subscription Gross Margin Up Y/Y
Non-GAAP Subscription Gross Margin Up 170 bps Y/Y Quarterly Non-GAAP Gross Margins?) 775% 82.8% 81.8% 82.1% 78.9% 78.3% Qi FY21 Q2 FY21 Q3 FY21 Y/Y change may not sum due to rounding, See appendix for non-GAAP reconciliation. 82.1% 78.4% Q4 FY21 81.9% ; 80.0% 80.5% 79.9% 78.1% | 765% 76.9% 76.8% QU
Slide 26: Non-GAAP Operating Margin Up 15.2 pts Y/Y; Free Cash Flow Margin Up 12.8 pts Y/Y
Non-GAAP Operating Margin Up 15.2 pts Y Free Cash Flow Margin Up 12.8 pts Y/Y Quarterly Non-GAAP Operating Margin 9.0% (27)% (6.79% Qi Q@2 @3 @4 Qt @2 @38 G4 QA @Q2 2 a4 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 (1) See appendix for non-GAAP reconciliation (2) Y/Y change may not su
Slide 27: TTM total revenue growth plus free cash flow margin
TTM total revenue growth plus free cash flow margin™ QiFY21 Q2FY21 Q3 FY21 Q4FY21 QiFY22 (1) See appendix for non-GAAP reconciliation. 60% 57% Q2 FY22 Q3 FY22 7 62% Q4 FY22 65% Qi FY23 59% Q2 FY23 50% Q3 FY23 46% Q4 FY23 okta
Slide 28: Total customers
Total customers ae 10,650 3 40,000 8,950 se : : Qi FY21 Q2FY21 Q3 FY21 Q4 FY21 QU FY22 () Includes one time addition of 1,650 customers from Auth0 in Q2 FY22. © Okta andor its affilates. lights reserved, 14,000 13,050 Q2 FY22 Q3 FY22 28 15,000 Q4 FY22 15,800 Qi FY23 16,400 Q2 FY23 17,050 Q3 FY23 17,
Slide 29: Customers with >$100K ACV
Customers with >$100K ACV 3,100 2,825 2,610 2,075 1,950 1,780 : : : : QiFY21 Q2 FY21 Q3 FY21 Q4FY21 QiFY22 Q2 FY22 Q3 FY22 Q4 FY22 (1) Includes one time addition of 375 >$100K ACV customers from Auth0 in Q2 FY22. 29 3,305 QIUFY23 3,525 Q2 FY23 3,740 Q3 FY23 3,930 Q4 FY23 okta
Slide 30: Q1 FY24 Financial Outlook
Q1FY24 (April 30, 2023) Total Revenue S509M to S51iM Total Revenue Growth (Y/Y) 23% Current Remaining Performance Obligations $1,675M to $1,685M cRPO Growth (Y/Y) 19% Non-GAAP Operating Income?) Si8M to $20M Non-GAAP Net Income Per Share®) (®) $0.11 to $0.12 Diluted Weighted Average Share Count 178
Slide 31: Financial Outlook Fiscal 2024
Financial Outlook" Fiscal 2024 (January 31, 2024) Total Revenue $2,155M to $2,170M Total Revenue Growth (Y/Y) 16% - 17% Non-GAAP Operating Income®) SI36M to $145M Non-GAAP Net Income Per Share®) °) $0.74 to $0.79 Diluted Weighted Average Share Count 180 million Non-GAAP Free Cash Flow Margin ~10% (1
Slide 32: Key Takeaways
Slide 33: Appendix
Appendix
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: GAAP subscription gross profit reconciliation
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 GAAP subscription gross profit $ 137 $ 152 $ 162 $ 176 $ 627 $ 188 $ 219 $ 246 $ 267 $ 920 $ 287 $ 318 $ 349 $ 376 $ 1,330 Stock-based compensation 3 5 6 7 21 7 13 13 16 49 17 18 17 17 69 A
Slide 37: GAAP research and development expense reconciliation
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 GAAP research and development expense $ 49 $ 54 $ 58 $ 62 $ 223 $ 69 $ 122 $ 131 $ 147 $ 469 $ 162 $ 156 $ 148 $ 154 $ 620 Stock-based compensation 12 15 17 19 63 20 53 57 63 193 70 70 69 6
Slide 38: GAAP total operating expenses reconciliation
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 GAAP total operating expenses $ 186 $ 194 $ 212 $ 229 $ 821 $ 276 $ 478 $ 440 $ 478 $ 1,672 $ 524 $ 522 $ 550 $ 528 $ 2,124 Stock-based compensation 31 40 46 48 165 55 172 139 139 505 150 1
Slide 39: GAAP net loss reconciliation
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 GAAP net loss $ (57) $ (60) $ (73) $ (76) $ (266) $ (109) $ (277) $ (221) $ (241) $ (848) $ (243) $ (210) $ (209) $ (153) $ (815) Stock-based compensation 37 47 54 57 195 65 188 156 157 566
Slide 40: GAAP net loss per share, diluted reconciliation
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 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) $ (5.73) $ (1.56) $ (1.34) $ (1.32) $ (0.95) $ (5.16) Adjustments for diffe
Slide 41: Calculated Billings reconciliation
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Calculated Billings Total revenue $ 183 $ 200 $ 217 $ 235 $ 835 $ 251 $ 315 $ 351 $ 383 $ 1,300 $ 415 $ 452 $ 481 $ 510 $ 1,858 Add: Deferred revenue, current (end of period) 392 391 425 50
Slide 42: Free Cash Flow and Margin; Headcount
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Free Cash Flow and Margin Net cash provided by (used in) operating activities $ 39 $ 11 $ 43 $ 35 $ 128 $ 56 $ (3) $ 37 $ 14 $ 104 $ 19 $ (19) $ 10 $ 76 $ 86 Less: Purchases of property and