Slide 1: Q3 FY25 Investor Presentation
Q3 FY25 Investor Presentation December 3, 2024 © Okta and/or its affiliates. © OktaAlland/or affiliates. All rights reserved. Confidential Information of Okta – For Recipient’s Internal Use Only. rightsitsreserved.
Slide 2: Safe Harbor
Safe Harbor This prepared commentary contains "forward-looking statements" we may experience challenges successfully expanding our within the meaning of the "safe harbor" provisions of the Private marketing and sales capabilities, including further specializing our Securities Litigation Reform Act o
Slide 3: Agenda
Agenda 01 Company Overview 02 Q3 FY25 Financial Review 03 Q4 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: © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For
© Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient’s Internal Use Only.
Slide 6: Okta at a Glance
Okta at a Glance Total Revenue 26% CAGR from FY22- FY25E(3) 19,450 Total customers $2,595 - $2,597(2) ) $2,263 $3.659B $1,858 ($ in mil.) Remaining performance obligations (RPO) 108% $1,300 TTM Dollar-based net retention rate(1) at October 31, 2024 (1) Trailing Twelve Months (TTM) dollar-based net r
Slide 7: FY25 Priorities
FY25 Priorities Security Reignite Scale Growth Okta © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient’s Internal Use Only. 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 service
Slide 9: Identity is the critical foundation for connection and trust between users and technology
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 needs identity
Every C-suite leader needs 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 Identity Platform © Okta and/or its affiliates. All rights reserved. 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: Okta's unique multilayered approach to identity security
Okta’s unique multilayered approach to identity security © Okta and/or its affiliates. All rights reserved. 13
Slide 14: Okta's Opportunity: $80B TAM
We are here Okta’s Opportunity $80B * TAM *See Appendix for TAM calculation methodology. Figure not drawn to scale. © Okta and/or its affiliates. All rights reserved. 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 © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient’s Internal Use Only. 15
Slide 16: Okta is the Superior Choice vs. Microsoft - Every Time
Okta is the Superior Choice vs. Microsoft - Every Time Enterprise Agility Reliability & Ease of Use & Time to Executing on Identity Depth of Integrations Mitigate Commercial (Okta for Global 20001) Performance Value (Unified Challenges (IPSIE-enabled29, and Operational Risk Platform2) Shared Signals
Slide 17: Environmental, Social and Governance
Environmental, Social and Governance Okta partners with NetHope to enhance cybersecurity resilience for non- >$7M In cash contributed by the Okta for $6M In technology and services profits Good Fund, Okta, Inc., and Okta donated employees Okta and CodePath to deliver cybersecurity 88% Employee parti
Slide 18: Q3 FY25 Financial Review & Financial Outlook
Q3 FY25 Financial Review & Financial Outlook © Okta and/or its affiliates. All rights reserved. 18
Slide 19: Q3 FY25 Financial Highlights
Q3 FY25 Financial Highlights Q3 FY25 vs. Q3 FY24 Total Revenue $665M + 14% Subscription Revenue $651M + 14% Remaining Performance Obligations (RPO) $3,659M + 19% Current Remaining Performance Obligations (cRPO) $2,062M + 13% TTM Dollar Based Net Retention Rate 108% - 7 pts Non-GAAP Gross Margin(1) 8
Slide 20: Total Revenue Up 14% Y/Y; Subscription Revenue Up 14% Y/Y
Total Revenue Up 14% Y/Y; Subscription Revenue Up 14% Y/Y Quarterly Revenue(1) ($ In Millions) $665 $646 $605 $617 $584 $556 $510 $518 $481 $452 98% 98% 98% 98% 97% 97% 97% 97% 97% 96% 4% 3% 3% 3% 3% 3% 2% 2% 2% 2% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 (1) S
Slide 21: cRPO is a Leading Indicator for Future Subscription Revenue
cRPO(1) is a Leading Indicator for Future Subscription Revenue cRPO (subscription backlog Quarterly Bookings ≤ 12 months) New Customers Dollar amount added to cRPO is impacted Future Upsells(2) by factors such as the cRPO moves to subscription Components that number of customers, quarterly revenue i
Slide 22: RPO Up 19% Y/Y; Current RPO Up 13% Y/Y
RPO Up 19% Y/Y; Current RPO Up 13% Y/Y Quarterly RPO ($ In Millions) $3,659 $3,505 $3,385 $3,364 $3,007 $3,027 $3,073 $2,942 $2,790 $2,853 $1,597 $1,510 $1,432 $1,415 $1,255 $1,248 $1,323 $1,241 $1,294 $1,274 $1,952 $1,949 $1,995 $2,062 $1,684 $1,701 $1,772 $1,826 $1,497 $1,579 Q2 FY23 Q3 FY23 Q4 FY
Slide 23: TTM Dollar-based Net Retention Rate
TTM Dollar-based Net Retention Rate TTM Dollar-based net retention rate (1) 122% 122% 120% 117% 115% 115% 111% 111% 110% 108% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 (1) Trailing Twelve Months (TTM) dollar-based net retention rate is calculated based on total
Slide 24: Strong Non-GAAP Gross Margins
Strong Non-GAAP Gross Margins Non-GAAP Gross Margins (1) 82.8% 83.7% 83.5% 83.6% 83.2% 80.5% 80.5% 80.4% 81.6% 81.5% 81.7% 81.4% 77.0% 77.6% FY22 FY23 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 (1) See appendix for non-GAAP reconciliation. Total Gross Margin Subscription Gross Margin © Okta and/or its aff
Slide 25: 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) ~22% 13.7% (0.5)% (5.7)% FY22 FY23 FY24 FY25E (1) See appendix for non-GAAP reconciliation. (2) FY22 includes 3 quarters of impact from Auth0. (3) FY25E is based on the midpoint of our FY
Slide 26: Efficiency and Reduced Cost Structure Yielding Significant Margin Improvement
Efficiency and Reduced Cost Structure Yielding Significant Margin Improvement Non-GAAP Free Cash Flow Margin(1)(2)(3) ~25% 21.6% 6.7% 3.5% FY22 FY23 FY24 FY25E (1) See appendix for non-GAAP reconciliation. (2) FY22 includes 3 quarters of impact from Auth0. (3) FY25E is based on the midpoint of our F
Slide 27: 19,450 Total Customers
19,450 Total Customers Up 3% Y/Y Total Customers(1) 19,450 19,300 19,100 18,950 17,600 15,000 FY22 FY23 FY24 Q1 FY25 Q2 FY25 Q3 FY25 (1) Includes one time addition of 1,650 customers from Auth0 in Q2 FY22. © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Reci
Slide 28: Customers With >$100K Annual Contract Value
Customers With >$100K Annual Contract Value Up 8% Y/Y Customers with >$100k ACV(1) 4,705 4,620 4,550 4,485 3,930 3,100 FY22 FY23 FY24 Q1 FY25 Q2 FY25 Q3 FY25 (1) Includes one time addition of 375 >$100K ACV customers from Auth0 in Q2 FY22. © Okta and/or its affiliates. All rights reserved. Confident
Slide 29: Key Takeaways
Key Strong foundation for growth at scale Takeaways Large addressable markets with multiple growth vectors Positioned for profitable growth(1) (1) Non-GAAP basis. © Okta and/or its affiliates. All rights reserved. 29
Slide 30: Financial Outlook for Q4 FY25
Financial Outlook(1) for Q4 FY25 Q4 FY25 (January 31, 2025) Total Revenue $667M to $669M Total Revenue Growth (Y/Y) 10% - 11% Current Remaining Performance Obligations $2,130M to $2,135M cRPO Growth (Y/Y) 9% Non-GAAP Operating Income $154M to $156M Non-GAAP Operating Margin 23% Non-GAAP Diluted Net
Slide 31: Financial Outlook for FY25
Financial Outlook(1) for FY25 Fiscal 2025 (January 31, 2025) Total Revenue $2,595M to $2,597M Total Revenue Growth (Y/Y) 15% Non-GAAP Operating Income $573M to $575M Non-GAAP Operating Margin 22% Non-GAAP Diluted Net Income Per Share(2) $2.75 to $2.76 Diluted Weighted Average Share Count(3) 182 mill
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 2 50 employees (per 2019 U.S. Bureau of Labor Statistics) multiplied by 12-month ARR assuming adoption of all our current produ
Slide 34: Sources: Okta Advantage
Sources: Okta Advantage SOURCES: 1 Okta for Global 2000 2 New with Okta’s Workforce Identity Cloud: A Unified Identity Solution 3 Unifying efforts, amplifying security: Shared Signals interoperability 4 Okta Integration Network 5 News Corp saves 1000 work hours annually on synchronizing and consolid
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 to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 FY25 YTD GAAP subscription gross profit $ 920 $ 287 $ 318 $ 349 $ 376 $ 1,330 $ 381 $ 414 $ 443 $ 465 $ 1,703 $ 473 $ 495
Slide 37: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 FY25 YTD GAAP research and development expense $ 469 $ 162 $ 156 $ 148 $ 154 $ 620 $ 163 $ 172 $ 165 $ 156 $ 656 $ 163 $
Slide 38: GAAP to Non-GAAP Reconciliations - Fiscal Quarters
GAAP to Non-GAAP Reconciliations - Fiscal Quarters(1) (dollars in millions) FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 FY25 YTD GAAP total operating expenses $ 1,672 $ 524 $ 522 $ 550 $ 528 $ 2,124 $ 536 $ 569 $ 550 $ 543 $ 2,198 $ 516 $ 51
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) FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 FY25 YTD GAAP net income (loss) $ (848) $ (243) $ (210) $ (209) $ (153) $ (81
Slide 40: 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) FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 FY25 YTD Free Cash Flow and Margin Net cash provided by (used in) operating activiti
Slide 41: © Okta and/or its affiliates. All rights reserved.
© Okta and/or its affiliates. All rights reserved.