Okta (OKTA) Q2 2026 Earnings Call August 26, 2025 05:00 PM ET Company ParticipantsDavid Gennarelli - SVP - IRTodd McKinnon - CEO, Co-Founder & ChairpersonBrett Tighe - CFOBrad Zelnick - Managing DirectorBrian Essex - Executive DirectorEric Kelleher - President & COOJoshua Tilton - DirectorJohn DiFucci - Senior Managing DirectorAdam Borg - MD - Enterprise SoftwareJonathan Ruykhaver - Managing DirectorAnnick Baumann - VP - Equity ResearchGabriela Borges - MD - Software ResearchConference Call ParticipantsMatt ...

Okta (OKTA) Q2 2026 Earnings Call August 26, 2025 05:00 PM ET Speaker0Hi, everyone. Welcome to Okta's Second Quarter Fiscal twenty twenty six Earnings Webcast. I'm Dave Gennarelli, Senior Vice President of Investor Relations at Okta. Presenting in today's meeting will be Todd McKinnon, our Chief Executive Officer and Co Founder and Brett Tye, our Chief Financial Officer. Eric Kelleher, our President and Chief Operating Officer, will join the Q and A portion of the meeting.At around the same time that the ea ...

Okta (OKTA) Q2 2026 Earnings Call August 26, 2025 05:00 PM ET Speaker0Hi, everyone. Welcome to Okta's Second Quarter Fiscal twenty twenty six Earnings Webcast. I'm Dave Gennarelli, Senior Vice President of Investor Relations at Okta. Presenting in today's meeting will be Todd McKinnon, our Chief Executive Officer and Co Founder and Brett Tye, our Chief Financial Officer. Eric Kelleher, our President and Chief Operating Officer, will join the Q and A portion of the meeting.At around the same time that the ea ...

Financial Data and Key Metrics Changes - The company reported solid Q1 results with exceptional cash flow and record operating profitability and profit margin [16] - For Q2 FY '26, total revenue growth is expected to be 10%, with current RPO growth of 10% to 11%, and a non-GAAP operating margin of 26% [20] - For the full year FY '26, total revenue growth is projected at 9% to 10%, with a non-GAAP operating margin of 25% and a free cash flow margin of approximately 27% [20] Business Line Data and Key Metrics Changes - The governance portfolio, including Okta Identity Governance, lifecycle management, and workflows, has seen substantial growth, with workflow executions increasing nearly 400% over the past three years [8] - The Auth0 platform performed well, contributing positively to the overall results, particularly following a record Q4 [16][17] Market Data and Key Metrics Changes - The US public sector vertical has shown strength, with significant deals contributing to Q1 results, including federal contracts [18] - International markets experienced a deceleration compared to the US, but specific details on the impact were not disclosed [34] Company Strategy and Development Direction - The company is focused on product innovation, with new offerings such as Okta Identity Governance and Auth for GenAI, aimed at addressing evolving cyber threats and enhancing security [7][12] - Okta is positioning itself as a leader in identity security, emphasizing the importance of consolidating disparate identity systems for customers [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong customer conversations and the importance of identity solutions in the context of AI projects [26][30] - There is a cautious approach to guidance due to potential macroeconomic uncertainties, although no immediate impacts were observed in Q1 [28][30] Other Important Information - The company is committed to maintaining its investment levels despite a cautious macro outlook, indicating confidence in long-term growth opportunities [110] - The introduction of suite-based pricing for the Okta platform has shown positive results, with customers interested in purchasing multiple products [62] Q&A Session Summary Question: What factors influenced the additional conservatism in guidance? - Management noted that while Q1 results were strong, there is a cautious tone in the environment, prompting a conservative approach in guidance [28][30] Question: Was there any softness in April? - Management confirmed that there was no softness in April, and performance remained solid throughout the quarter [35] Question: How is the go-to-market specialization progressing? - Management reported a solid start to the specialization process, with strong performance in the Auth0 side and pipeline building [41][42] Question: What is the outlook for new logo pipeline in the workforce business? - Management expressed optimism about the new logo pipeline, highlighting the potential of new products to attract new customers [91][92] Question: How should investors interpret the guidance for CRPO? - Management explained that the guidance reflects a cautious approach due to macroeconomic factors, but emphasized that the underlying business remains strong [55][107]