Financial Data and Key Metrics Changes - In Q3 FY 2026, the company reported total revenue growth of 10% and raised its full-year revenue growth outlook to 11% [17][18] - The non-GAAP operating margin for Q4 is expected to be 25%, with a full-year margin of 26% [17][18] - Free cash flow margin is projected at approximately 31% for Q4 and around 29% for the full year [17][18] Business Line Data and Key Metrics Changes - The company experienced strength with large customers and upsells in its workforce segment, particularly with new products like Okta Identity Governance [6][7] - New products are contributing significantly to results, with a record number of customers engaging with Okta's offerings [7][9] Market Data and Key Metrics Changes - The company has over 20,000 customers, positioning it well to become the identity layer for AI agents [9][10] - There is a surge in interest for agentic security solutions, with over 100 current customers representing more than $200 million in existing ARR [10][11] Company Strategy and Development Direction - The company is focusing on securing AI agents and non-human identities, which is seen as a critical growth opportunity [8][12] - Okta is investing in innovation and expanding its product portfolio to simplify customer interactions and enhance security [7][14] - The strategy includes increasing the number of quota-carrying sales representatives to meet growing demand [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming Q4, which is expected to be the largest quarter of the year, and highlighted strong business momentum [44][46] - The company is confident in its strategy to capture emerging opportunities in the identity security space, particularly related to AI [14][35] Other Important Information - The company ended Q3 with nearly $2.5 billion in cash, cash equivalents, and short-term investments, indicating a strong balance sheet [17] - The company is evaluating its capital structure and considering investments in business growth, M&A, and opportunistic repurchases of outstanding notes [17] Q&A Session Summary Question: What convinces customers to consolidate their identity management with Okta? - Management noted that technological changes, particularly related to AI, are driving customers to consolidate their identity management systems with Okta [24][26] Question: Can AI capabilities be deployed by non-Okta customers? - Management confirmed that while many customers are interested in AI capabilities, the deployment can be applicable to any company, not just existing Okta customers [30][33] Question: How does the company view its guidance for the next fiscal year? - Management refrained from providing specific guidance for FY 2027, citing the need to assess Q4 performance first, but expressed confidence in business momentum and growth opportunities [40][48] Question: What is the status of the sales realignment efforts? - Management reported positive outcomes from the sales realignment, with improved sales productivity and lower attrition rates among account executives [80][81] Question: How is the company addressing the challenge of agentic commerce? - Management highlighted the importance of Auth0 for AI Agents in enabling businesses to build and manage agents effectively, addressing security and access challenges [59][62]