[Audio Gap] run the software equity research franchise here at Citi. Very excited to have Okta on stage with me. And actually very thrilled to have Monty Gray, Head of -- EVP of Corp Dev, Head of Corp Dev at Okta. And it's exciting times in cyber, very exciting times in identity security. So very serendipitous for you to join us here.Question-and-Answer Session Fatima BoolaniCitigroup Inc., Research Division I know maybe not many investors are familiar with you. So I'd love to kind of level set with the a ...

Headline findings: Identity maturity gap widens – 63% remain stuck at basic levels as advanced programs surge ahead.AI adoption multiplies success – Organizations with AI-enabled identity security are 4x more likely to deploy advanced capabilities unlocking greater cost savings, productivity and risk reductionDeployment best practices overcome barriers – Organizations that prioritize data cleanup before migration and adopt stage-appropriate practices like automated app onboarding are significantly more like ...

Core Insights - SailPoint, Inc. will report its fiscal second quarter 2026 financial results on September 9, 2025, before US markets open [1] - A conference call to discuss the results will be held at 8:30 a.m. Eastern Time on the same day, with a live webcast available on the company's website [1] - An audio replay of the conference call will be accessible on the investor relations website for one year [2] Company Overview - SailPoint is a leader in enterprise identity security, emphasizing that security must start with identity as the foundation [3] - The company addresses the need to secure both human and digital identities within diverse workforces, which is critical for modern enterprises [3] - SailPoint's platform provides identity-first security, enabling organizations to manage and secure access to applications and data efficiently while defending against dynamic threats [3] - The company is trusted by many complex organizations globally, highlighting its role in securing the modern enterprise [3]

Core Insights - SailPoint, Inc. reported better-than-expected first-quarter adjusted EPS results and raised its FY26 guidance above estimates [1] - The company experienced a quarterly revenue growth of 23% year-on-year to $230.47 million, with subscription revenue increasing by 27% to $215.32 million [1] - For fiscal year 2026, SailPoint expects an ARR of $1.095 billion to $1.105 billion, representing 25%-26% growth [3] Financial Performance - First-quarter adjusted EPS was reported at 1 cent, surpassing the consensus estimate of a 1-cent loss [1] - The company anticipates second-quarter revenue of $242 million to $244 million, indicating a growth of 22%-23% compared to the consensus estimate of $231.96 million [2] - For fiscal 2026, revenue is projected to be between $1.034 billion and $1.044 billion, which is an increase from the previous guidance [3] Market Reaction - Following the earnings announcement, SailPoint shares increased by 14.7%, closing at $22.53 [4] - Analysts have adjusted their price targets for SailPoint, with Barclays raising it from $23 to $25 and Wells Fargo from $16 to $20 [7] Strategic Outlook - The CEO highlighted strong adoption among Fortune 500 and Forbes Global 2000 companies, indicating a robust customer base [3] - The company is focusing on identity security solutions that are AI and data-driven, which is expected to drive future growth [3]

Company Overview - SailPoint, Inc. (NASDAQ: SAIL) specializes in providing identity security solutions for enterprises, which include lifecycle management, compliance management, and analytics [1] Unique Selling Proposition - The company offers a modular-based identity platform that is powered by AI, positioning it uniquely to capture a larger share of enterprise customers [1]

Financial Data and Key Metrics Changes - The company reported an annual recurring revenue (ARR) of $925 million, representing a 30% year-over-year increase, with fast ARR growing 39% year-over-year [5][23] - Total revenue for Q1 2026 was $230 million, up 23% year-over-year, with subscription revenue of $215 million, increasing 27% year-over-year [26] - Adjusted gross profit margin was 76.3%, and adjusted operating margin was 10.2%, exceeding expectations [26] Business Line Data and Key Metrics Changes - The contribution from non-employee risk management, machine identity security, and data access security modules more than doubled compared to the same period last year [25] - The average ARR per customer is nearly three times higher than that of other identity security vendors, indicating a comprehensive enterprise-wide role [18] Market Data and Key Metrics Changes - The company holds nearly 21% market share in the identity governance and administration (IGA) market, significantly outpacing its nearest competitor [8] - Customer retention rates remain strong, with net revenue retention (NRR) at 115% [25][17] Company Strategy and Development Direction - The company emphasizes a strategy focused on identity security as a critical investment priority for enterprises, aiming to address the complexities of modern digital environments [5][24] - The innovation strategy includes the introduction of new offerings like agent identity security and Harbor Pilot, which leverage AI to enhance identity governance [12][13] - Partnerships with cloud providers and systems integrators are being strengthened to enhance market reach and customer solutions [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that there has not been a fundamental change in demand due to the macro environment, with identity security remaining a top spending priority for enterprises [24] - The company is confident in its pipeline and sales velocity, expecting continued growth driven by both new customer acquisitions and existing customer expansions [25][20] Other Important Information - The company ended the quarter with $228 million in cash and equivalents and no debt [27] - Guidance for Q2 2026 includes an expected ARR of $965 million, up approximately 26% year-over-year, and revenue of $243 million, an increase of 22% year-over-year [28][29] Q&A Session Summary Question: Insights on machine identity market dynamics and pricing - Management indicated that machine identity is a top concern for customers, with pricing expected to be value-based and a significant opportunity for the company [31][33] Question: Observations on macroeconomic pressures - Management reported that business remains stable, with no significant impact from macroeconomic factors observed thus far [39][40] Question: Details on ARR strength and customer acquisition - Management noted that half of the ARR growth came from new customers, with strong demand for identity security solutions amid competitive displacements [44][46] Question: AI's role in identity governance - Management explained that governance tools are well-positioned to address questions related to AI access and performance, differentiating from access and authentication tools [52][54] Question: Customer migration from legacy systems - Management observed an acceleration in migration from legacy IGA solutions, driven by the flaws in those systems and the need for modern solutions [58][60] Question: Contribution of migrations to NRR - Management confirmed that migrations contributed low single digits to the NRR, indicating ongoing customer transitions to newer solutions [104] Question: Growth in non-SaaS ARR - Management highlighted a strong term business for Q1, with some sizable customers opting for on-prem solutions, although SaaS remains the primary focus [111]

Financial Data and Key Metrics Changes - The company reported an annual recurring revenue (ARR) of $925 million, representing a 30% year-over-year increase, with fast ARR growing 39% year-over-year [4][22] - Total revenue for Q1 was $230 million, up 23% year-over-year, with subscription revenue of $215 million, increasing 27% year-over-year [25] - Adjusted gross profit margin was 76.3%, and adjusted operating margin was 10.2%, exceeding expectations [25][26] Business Line Data and Key Metrics Changes - The company saw a 62% year-over-year increase in customers with ARR greater than $1 million, indicating strong demand for its solutions [5] - ARR contribution from non-employee risk management, machine identity security, and data access security modules more than doubled compared to the same period last year [24] Market Data and Key Metrics Changes - The company holds nearly 21% market share in the identity governance and administration (IGA) market, significantly outpacing its nearest competitor [6] - The company reported that half of its new bookings in Q1 came from existing customers, reflecting strong customer retention and expansion [15] Company Strategy and Development Direction - The company emphasizes a strategy focused on innovation in identity security, particularly in governance for emerging identity types, including machine identities and AI agents [10][12] - The company is expanding its ecosystem through partnerships with cloud providers and systems integrators, enhancing its market reach and customer solutions [14] Management's Comments on Operating Environment and Future Outlook - Management noted that identity security remains a top priority for enterprises, with no significant changes in demand due to the macro environment [23] - The company is confident in its growth trajectory, with a robust pipeline and strong sales velocity, indicating resilience in identity and cybersecurity budgets [19][24] Other Important Information - The company ended the quarter with $228 million in cash and equivalents and no debt, having paid off its outstanding balance [27] - Guidance for Q2 includes an expected ARR of $965 million, up approximately 26% year-over-year, and revenue of $243 million, an increase of 22% year-over-year [28][29] Q&A Session Summary Question: Insights on machine identity market dynamics and pricing - Management indicated that machine identity is a top concern for customers, with pricing expected to be value-based and competitive dynamics focused on authorization capabilities rather than just authentication [31][35] Question: Impact of macroeconomic factors on business - Management stated that they have not seen significant macroeconomic pressures affecting their business, maintaining a strong demand for identity security solutions [39][40] Question: Details on ARR strength and customer acquisition - Management highlighted that new customer acquisition is strong, with half of ARR growth coming from new customers and half from existing customer expansions, including migrations and upsells [43][46] Question: AI's role in IGA and competitive positioning - Management explained that IGA is well-positioned to address the governance needs of AI, focusing on access and authorization questions that are critical for managing AI agents [51][54] Question: Customer migration from legacy systems - Management noted an acceleration in migration from legacy IGA solutions, driven by the flaws in those systems and the need for modern solutions [58][60] Question: Contributions to net revenue retention rate - Management confirmed that migrations contributed low single digits to the net revenue retention rate, with a balanced mix of upsells and cross-sells driving growth [101][103]

Core Insights - Cerby has announced a $40 million Series B funding round led by DTCP, with participation from existing investors including Okta Ventures, Salesforce Ventures, and Two Sigma Ventures [1][9] - The company aims to expand its identity security automation platform in response to increasing demand for solutions that secure disconnected applications [4][5] Company Overview - Cerby is the first platform to automate the full identity lifecycle for disconnected applications, covering aspects from credentials and authentication to lifecycle management and privileged access [3] - The platform integrates with existing Enterprise Password Management (EPM), Identity and Access Management (IAM), Identity Governance and Administration (IGA), and Privileged Access Management (PAM) systems, providing centralized access controls and automating manual security tasks [8] Market Demand - The proliferation of SaaS, cloud, mobile, and on-premise applications has significantly expanded the enterprise attack surface, increasing the need for scalable and advanced identity security solutions [2] - Cerby is focusing on growth in key markets such as Germany, France, the UK, and strategic regions in the Middle East, where regulatory pressures and enterprise complexity are driving demand for its solutions [5] Growth Metrics - Since its Series A funding round less than 20 months ago, Cerby has increased its Annual Recurring Revenue (ARR) by 10 times and expanded its customer base by 5 times, now automating identity workflows across more than 2,000 applications and supporting over 100 organizations globally [6]

Group 1: CoreWeave (CRWV) - CoreWeave reported a net loss of $149.6 million or -$1.49 per share, but Q1 sales surged 420% year-over-year to $981.6 million, indicating strong future earnings potential [2] - Nvidia disclosed a major stake in CoreWeave, owning 24.18 million shares, and has secured a $4.1 billion deal with OpenAI, with other notable customers including Microsoft and Meta Platforms [3] - CoreWeave's stock spiked over 35% this week and has increased over 100% since its IPO, reaching an all-time high of $84 per share [4] Group 2: Cisco Systems (CSCO) - Cisco Systems exceeded both top and bottom-line expectations for its fiscal third quarter, with Q3 sales rising 11% to $14.15 billion compared to $12.7 billion a year ago [5][6] - The company's Security segment revenue climbed 54% to $2.01 billion, and it reported over $600 million in AI infrastructure orders during the quarter [6] - Cisco has announced collaboration with the AI Infrastructure Partnership (AIP) to invest in scalable AI data centers alongside Microsoft, BlackRock, and Nvidia [7] Group 3: CyberArk Software (CYBR) - CyberArk reported Q1 sales of $317.6 million, a 43% increase year-over-year, exceeding estimates of $305.66 million, with EPS rising 30% to $0.98 from $0.75 a share [11] - The company has integrated artificial intelligence into its identity security solutions, enhancing threat detection and response capabilities [10] - CyberArk's stock is trading over $350 a share and has increased 35% in 2025, with an impressive average earnings surprise of 44.33% over the last four quarterly reports [11][12] Group 4: Market Sentiment - The quarterly reports of CoreWeave, Cisco Systems, and CyberArk have generated positive investor sentiment, suggesting potential for further stock price increases as the market sentiment turns bullish and AI continues to drive growth [13]

Group 1 - CyberArk (NASDAQ: CYBR) is positioned to capitalize on the growing identity security market due to the increasing popularity of agentic applications in enterprise environments, which enhances the demand for machine identity management [1] - The trend of manufacturing reshoring is becoming a significant topic, indicating potential shifts in operational strategies within various industries [1] Group 2 - The article does not provide any specific financial data or performance metrics related to CyberArk or the identity security market [2][3]