My Okta CC notes

My conference call notes

Calculated Billingsalso up 60%

**Total customers<**grew by a robust 40% to over 4,700.

Customers with over $100,000of Annual Recurring Revenue grew even faster at 52% to 747

Dollar-based net retention ratecontinued at a healthy 121%

Subscription gross marginwas 80.7%, up 2.4% yoy,

Prof services gross marginwas minus 1.6%, up from minus 44.3% last year.

Total gross marginshowed continued improvement and was 74.1%, up 5.2%.

Gross profitwas $61.9 million, up 72%. Our gross margin was a new record as we continue to scale our platform.

Adj op marginwas up more than 22% points to minus 13%

We have three major areas of focus: first, the Okta integration network; second, customer identityand third, security.

We announced two new capabilities that will take the Okta integration network to a new level.
Sign In with Okta which will enable technology providers to integrate with Okta in a fraction of the time.

Okta Onramp which will make it easier for organizations to discover and deploy new technologies.

As far as security

Okta ThreatInsight will give our customers the ability to take action on a real-time feed of threatening IP addresses that our security research team has found based on activity across all of Okta’s customer base. We believe this additional insight will be game changing. We also believe we are best position to responsibly offer password-less access because of the power of our networks.

Q. - How much of your customer conversations right now are being driven by security first?

A. - It’s really interesting. The evolution for us has been – when we started we were really about enabling things, we were making it really easy for end users to login, make it easy to rollout apps, and enable technology. It wasn’t until four, five years into building the company that we really started selling to the CSO, the Chief Security Officer. And it changed from identity being just an enabling thing to identity being the key to security.

What’s happening is, the world of identity and security are really merging with concepts like zero trust, which is like this post network perimeter world where you have to really manage the security and identity of every person, every device. That is really becoming one conversation. I think it’s a huge driver in our business,

Q. - Very impressive conference Oktane19 up 50%, a huge turnout there. It seems pretty clear that you guys are really out-running any competitor that might want to get into the space with the scale of your integration network, and the attention you’re getting. Have you seen any change in the competitive dynamics as your integration network gets larger and larger? Is there any reaction from competitors?

A. - We see the big platform players, folks like Salesforce or Microsoft, they have a different worldview than us. They think about their platform – the Salesforce platform. They don’t think about a broad ecosystem of technology, all of that can be used by our customers to be successful, regardless of whose platform it might run on. So that’s just a different worldview and I think that’s why you see strength in competitive win rates against those folks.

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