Profitability and cash flow also improved. Carolan said adjusted operating margin in Q4 was 20.6%, up 160 basis points year-over-year, and the company generated $64 million in cash from operations and $57 million in free cash flow, representing a 19.5% free cash flow margin. For fiscal 2026, revenue was $1.071 billion, up 24% year-over-year, with SaaS revenue up 35%, and adjusted operating margin was 18.1%, up 270 basis points.CFO Brian Carolan reported year-end ARR of $1.125 billion, up 28% year-over-year. ...

Financial Data and Key Metrics Changes - The company achieved an annual recurring revenue (ARR) of $1.125 billion, representing a 28% year-over-year growth, which is consistent with the growth rate maintained over the past three quarters [20][25] - SaaS ARR reached $746 million, reflecting a 38% year-over-year increase and accounting for 90% of net new ARR in fiscal Q4 [21][25] - The adjusted operating margin for Q4 was 20.6%, an expansion of 160 basis points year-over-year, while the annual adjusted operating margin was 18.1%, an increase of 270 basis points [25][27] Business Line Data and Key Metrics Changes - Net new ARR from emerging products more than doubled quarter-over-quarter, contributing approximately 17% of net new ARR in fiscal Q4 [22] - The average ARR per SaaS customer grew to over $380,000, a 19% increase from the previous year [22] - The company closed the fiscal year with 215 customers exceeding $1 million in ARR, a 34% increase from the previous year [23] Market Data and Key Metrics Changes - Non-human identities accounted for approximately 25% of SaaS identity growth in Q4 and now represent 11% of SaaS identities under governance [14] - The company noted a significant opportunity for growth as existing perpetual and term license customers represent approximately $350 million in ARR, with a typical 2-3x uplift upon migration [24] Company Strategy and Development Direction - The company aims to deepen its footprint within existing customers while attracting new customers, leveraging its SaaS-first strategy and AI-powered platform [16][17] - The focus is on defining a new standard of adaptive identity governance, emphasizing real-time governance and least privilege access [17][18] - The company is positioned as a foundational security control plane for the modern AI-powered enterprise, capitalizing on the growing demand for identity security solutions [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving market landscape, particularly with the rise of AI and non-human identities [10][46] - The company anticipates FY 27 to be the year of AI adoption, with a strong pipeline and healthy demand for its identity security platform [16][20] - Management emphasized the importance of domain knowledge and the ability to leverage AI technologies to enhance customer security and operational efficiency [81] Other Important Information - The company generated $64 million in cash from operating activities and $57 million in free cash flow, representing a 19.5% free cash flow margin [25] - The guidance for FY 2027 includes an expected ARR of $1.361 billion, up 21% year-over-year, and revenue of approximately $1.265 billion, an 18% increase year-over-year [27] Q&A Session Summary Question: ARR guidance for fiscal 2027 - Management indicated strong momentum heading into the year, with a focus on prudent guidance despite healthy demand and a strong pipeline [31][32] Question: Impact of new pricing models on customer engagement - Management noted that new pricing models have shown significant uptake, contributing to strong migration and customer engagement [39] Question: Market expansion drivers and future growth - Management highlighted the significant market expansion driven by the rise of non-human identities and the need for adaptive identity security solutions [45][46] Question: Changes in sales cycles due to non-human identities - Management acknowledged that sales cycles have elongated slightly but did not see any recent changes that would alter this trend [94]

Financial Data and Key Metrics Changes - SailPoint achieved an annual recurring revenue (ARR) of $1.125 billion, representing a 28% year-over-year growth, which is consistent with the growth rate maintained over the past three quarters [19][24] - The SaaS ARR reached $746 million, reflecting a 38% year-over-year growth and accounting for 90% of net new ARR for fiscal Q4 [19][24] - The adjusted operating margin for Q4 was 20.6%, an increase of 160 basis points year-over-year, while the annual adjusted operating margin was 18.1%, up 270 basis points [24][26] Business Line Data and Key Metrics Changes - The SaaS customer count grew by 16% year-over-year, with the average ARR per SaaS customer increasing to over $380,000, a 19% increase from the previous year [6][20] - Net new ARR from emerging products more than doubled quarter-over-quarter, accounting for approximately 17% of net new ARR in fiscal Q4 [19][20] - The total ARR from existing customers who adopted AI identity solutions expanded by more than 50% year-over-year [20] Market Data and Key Metrics Changes - Non-human identities accounted for approximately 25% of SaaS identity growth in Q4 and now represent 11% of SaaS identities under governance [12] - The company closed more than 500 transactions directly tied to new innovations, indicating strong market demand [12] Company Strategy and Development Direction - SailPoint aims to deepen its footprint within existing customers while attracting new customers by leveraging its AI-powered platform and flexible pricing model [14][15] - The company is positioned to capitalize on the growing demand for identity security solutions in the context of an expanding non-human workforce driven by AI [9][10] - The strategic focus is on defining a new standard of adaptive identity governance, emphasizing real-time governance and least privilege access [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving market landscape, particularly with the rise of AI and the increasing complexity of identity security [9][10] - The company anticipates FY 27 to be a significant year for AI adoption, with a strong pipeline and healthy demand for its solutions [14][25] - Management highlighted the importance of maintaining a conservative approach in guidance while recognizing the potential for future growth driven by emerging identity types [32][42] Other Important Information - The company reported strong cash flow with $64 million from operating activities and $57 million in free cash flow, representing a 19.5% free cash flow margin [24] - The gross retention rate remained strong at 97%, indicating high customer satisfaction and trust in the platform [23] Q&A Session Summary Question: ARR guidance for fiscal 2027 - Management indicated strong momentum heading into the year, with a focus on maintaining a conservative approach to guidance while recognizing the potential for growth from migrations and emerging products [30][32] Question: Impact of new pricing models - Management noted that the new pricing models, such as the Navigator Select, have shown significant early traction and are expected to drive further adoption [35][38] Question: Market expansion and competition - Management emphasized that the rise of AI represents a significant market expansion opportunity, and the company is well-positioned to capture this demand due to its unique capabilities [41][45] Question: Changes in sales cycles due to non-human identities - Management acknowledged that sales cycles have elongated slightly but noted that this is not a significant concern, as customers are increasingly looking for secure deployment of agentic AI [98]

Core Insights - SailPoint, Inc. has launched SailPoint Shadow AI Remediation to address security risks from unauthorized AI tools, known as "Shadow AI" [1][2] - The solution provides organizations with real-time visibility and control over employee interactions with unapproved AI platforms, mitigating compliance risks [2][3] Company Overview - SailPoint is a leader in unified identity security, focusing on protecting enterprises from identity-based threats through an AI-powered platform [4][6] - The company emphasizes a platform-centric approach that integrates identity, data, and security intelligence to enhance AI governance [3][4] Product Features - The Shadow AI Remediation solution offers immediate visibility into how employees use unmonitored AI tools, addressing risks of sensitive data exposure [5] - It enables proactive remediation by allowing security teams to block unauthorized uploads and redirect users to approved AI tools [5] - The solution is designed for easy deployment with minimal user impact, utilizing standard device management tools for implementation [5] Market Context - The rise of AI tools like ChatGPT and Gemini has created challenges for enterprises, with 80% of organizations reporting unintended actions by AI agents [2] - SailPoint's framework aims to unify various aspects of identity security, including Agent Identity Security and Machine Identity Security, to provide a comprehensive approach to AI security [3]

Q4 FY26 Investor Presentation March 4, 2026 © Okta and/or its affiliates. All rights reserved. © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient's Internal Use Only. 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, business strategy and plans, market trends and ...

Financial Data and Key Metrics Changes - In Q4 2025, revenue grew 16.7% year-over-year to $240.8 million, while total bookings increased 25.4% to $287.1 million [15][19] - For the full year 2025, revenue was $900.8 million, up 16.9%, and total bookings were $977.2 million, up 17.2% year-over-year [15] - Adjusted EBITDA margins reached over 30% in Q4, with a 33.2% margin, representing an increase of 870 basis points from Q4 2024 [18][19] - Free Cash Flow for 2025 was over $340 million, significantly ahead of guidance, with expectations for 2026 full year Free Cash Flow of at least $440 million, representing a 28% year-over-year growth [23][20] Business Line Data and Key Metrics Changes - CLEAR travel business is focused on enhancing the Home to Gate experience, with innovations like a relaunched mobile app and eGates [5][7] - CLEAR1 enterprise business delivered record bookings in Q4, more than doubling year-over-year, indicating strong growth in the B2B segment [17][9] - Active CLEAR+ members grew to 7.6 million, up 6% year-over-year, while total CLEAR members reached 38 million, up 31.5% [17] Market Data and Key Metrics Changes - The company is experiencing strong demand in both B2C and B2B markets, with significant partnerships in healthcare and travel sectors [9][43] - The partnership with American Express has been renewed, enhancing member acquisition and retention strategies [12][42] Company Strategy and Development Direction - The company aims to position itself as a leader in secure identity, focusing on both physical and digital identity solutions [3][4] - Strategic partnerships, particularly with American Express and government entities, are crucial for expanding market reach and enhancing service offerings [8][12] - The company is investing in technology and infrastructure to improve member experience and drive growth in both travel and enterprise sectors [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on the growing importance of identity security, particularly in the face of increasing threats [4][10] - The company anticipates significant growth in 2026, driven by improved member experience, strong retention trends, and expanding partnerships [23][16] Other Important Information - The company ended 2025 with $703 million in cash and marketable securities, expecting to exceed $1 billion by the end of 2026 [22] - A 20% increase in the quarterly dividend was approved, reflecting the company's commitment to returning capital to shareholders [22] Q&A Session Summary Question: Strategic priorities for the next 12 to 18 months - Management highlighted the importance of enhancing the Home to Gate experience and leveraging technology to drive member growth and retention [25][26] Question: Impact of government shutdowns on operations - Management reassured that CLEAR remains operational and emphasized the value of public-private partnerships during disruptions [33][34] Question: Drivers of Free Cash Flow acceleration - Management attributed the expected Free Cash Flow growth to improved member experience and retention, which enhances overall business economics [36][38] Question: Details on the American Express partnership - The partnership has been extended into a multi-year agreement, reflecting the value both parties bring to the collaboration [41][42] Question: Expansion in healthcare partnerships - Management noted the growing network in healthcare, with significant contracts like CMS driving opportunities for further growth [43][44]

Group 1 - SailPoint Inc. is recognized as a strong debt-free mid-cap stock, with a recent price target adjustment from $23 to $20 by Mizuho analyst Gregg Moskowitz, who maintains a Neutral rating due to sector weakness but sees long-term opportunities [1][3] - The company is focused on capitalizing on the growing demand for modern adaptive identity security solutions, particularly in the context of AI integration into enterprises, which presents new security challenges [3][5] - SailPoint has introduced the SailPoint Agent Identity Security, enabling organizations to discover, classify, govern, and secure every agent, reflecting its commitment to addressing modern identity security needs [3][5] Group 2 - Accenture's Chief Information Officer has confirmed plans to evaluate SailPoint's Agent Identity Security to enhance existing controls and support enterprise-wide AI adoption, indicating industry interest in SailPoint's solutions [4] - The company emphasizes its role in helping organizations navigate complex identity environments with innovative solutions, as evidenced by positive customer responses and quick adoption [5] - SailPoint specializes in AI-driven software solutions for managing, securing, and governing access to applications and data, ensuring appropriate user access [5]

Financial Data and Key Metrics Changes - The company reported a total revenue of $2.59 billion, reflecting a year-over-year growth of 15% [30] - Next-Generation Security ARR grew 33% to $6.33 billion, with organic growth of 28% year-over-year [29] - The operating margin for Q2 was 30.3%, marking a 190 basis point expansion compared to the previous year [34] - Diluted non-GAAP EPS reached $1.03, exceeding the high end of guidance [34] Business Line Data and Key Metrics Changes - The SASE business surpassed the $1.5 billion ARR milestone, growing approximately 40% year-over-year [12] - Software firewall ARR grew approximately 25%, driven by increased demand for securing dynamic multi-cloud environments [14] - XIM surpassed the $500 million ARR milestone, with over 60% of deployed customers achieving mean time remediation of less than 10 minutes [15] Market Data and Key Metrics Changes - The Americas region grew by 14%, EMEA by 17%, and JAPAC by 17%, indicating broad-based strength across all major markets [31] - The company generated approximately $200 million in ARR from the Chronosphere acquisition, contributing to overall growth [29] Company Strategy and Development Direction - The company is focused on a platformization strategy, which has led to a record number of platformizations in Q2, totaling approximately 1,550, up 35% [7] - The strategy includes expanding into identity security and observability, with the recent acquisition of CyberArk and Chronosphere [23][22] - The company aims to become the largest identity security player over time, addressing the growing needs of identity to secure AI agents [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for cybersecurity solutions, particularly as enterprises integrate AI into their workflows [5] - The company anticipates that the shift towards AI will drive more security adoption and platformization, as organizations seek to harmonize their security data [48] - Management highlighted the importance of real-time security measures as AI becomes more embedded in enterprise operations [6] Other Important Information - The company expects a cash outlay of $2.3 billion in Q3 related to the CyberArk acquisition, with a total combined cash outlay of $4.9 billion [36] - The remaining performance obligation (RPO) grew 23% to $16.0 billion, indicating strong future revenue potential [30] Q&A Session Questions and Answers Question: Comparison of AI shift to cloud computing and its impact on cybersecurity - Management noted that the current AI shift is seen as an opportunity for more platformization and consolidation in security, similar to the cloud transition [46][47] Question: Concerns about LLMs replacing SIEM tools - Management believes LLMs will enhance security capabilities rather than replace existing tools, emphasizing the need for high accuracy in security measures [52][53] Question: Joint pipeline opportunities with CyberArk - Management highlighted the collaboration between teams from both companies to pursue joint opportunities, indicating early momentum in leveraging combined capabilities [59][62]

Group 1 - CyberArk Software Ltd. (NASDAQ:CYBR) is recognized as a high growth international stock, with recent price target increases from DA Davidson and Jefferies maintaining a Buy rating [1][2] - The company reported record fiscal Q4 2025 results, achieving $372.65 million in revenue, which is an 18.53% year-over-year increase and $9.71 million above consensus estimates [2] - Earnings per share (EPS) for the quarter was $1.33, exceeding market expectations by $0.18, attributed to broad-based strength across its business [2][4] Group 2 - CyberArk achieved a record net new Annual Recurring Revenue (ARR) of $99 million, reflecting a 20% year-over-year increase, indicating strong customer prioritization of identity security [4] - The company's focus is on providing identity security solutions, particularly in privileged access management (PAM), to protect organizations from cyberattacks targeting high-privilege accounts [4]

Core Viewpoint - CrowdStrike Holdings Inc. is positioning itself for significant growth by acquiring SGNL for $740 million to enhance its cybersecurity offerings against AI-driven threats [1][7]. Group 1: Acquisition Details - The acquisition of SGNL focuses on its continuous identity technology, which conducts real-time evaluations to prevent identity exploitation by hackers [1]. - SGNL's technology will be integrated into the CrowdStrike Falcon ecosystem, enhancing CrowdStrike's identity business, which has already achieved over $435 million in annual recurring revenue [2]. - The integration aims to transition from static access models to dynamic, context-aware authorization, allowing for immediate privilege adjustments based on changing threat conditions [3]. Group 2: Strategic Implications - This acquisition aligns with CrowdStrike's broader strategy for 2026, which includes utilizing autonomous AI agents in its security operations center to significantly reduce the time required for complex security tasks [3]. - SGNL's team is expected to join CrowdStrike without planned layoffs following the transaction's anticipated closure in the first quarter of 2027 [3]. Group 3: Company Overview - CrowdStrike provides cybersecurity solutions both in the US and internationally, offering a unified platform for cloud-delivered protection of endpoints, cloud workloads, identity, and data through a SaaS subscription model [4].