PresentationTodd McKinnonCo-Founder, Chairman & CEO It's great to see you all showcase. We're going to talk about our industry, and we're going to talk about our products. And in November, we introduced Okta for AI agents to the world. And it's our most important product ever, our most important product ever. It's simple on the surface. It's in the name. Okta connects your people to your technology, your customers to the technology they need to interact with your organization. And so it's Okta for AI agents ...

Coming to cash flows, net cash flow from operating activities rose by 35% from the prior year to $626 million for the nine months ended Oct. 31, 2025. Overall, the company closed the quarter with a cash balance of $645 million, with no short-term debt on its books.Remaining performance obligations, a key indicator of demand, shot up by 17% yearly to $4.3 billion, while cRPO, which is the quantum of orders that must be fulfilled within 12 months, increased by 13% from the previous year to $2.3 billion. Thus, ...

Core Insights - Okta (OKTA) is expected to report fourth-quarter fiscal 2026 results on March 04, with projected revenues between $748 million and $750 million, reflecting a year-over-year growth of 10% [1] - The current Remaining Performance Obligations (RPO) is anticipated to be between $2.445 billion and $2.450 billion, indicating a year-over-year growth of 9% [1] - Non-GAAP earnings are forecasted to be in the range of 84-85 cents per share, based on approximately 185 million diluted weighted-average shares outstanding [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for earnings has remained steady at 85 cents per share, showing a year-over-year growth of 8.97% [2] - The consensus revenue estimate is pegged at $749.10 million, indicating an increase of 9.84% from the previous year's quarter [2] - Okta has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 9.05% [2] Customer Growth and Product Development - Okta's expanding product portfolio, particularly in security and identity governance, is expected to drive client acquisition and revenue growth [3] - The company reported a 7% year-over-year increase in customers with more than $100 thousand in Annual Contract Value (ACV), totaling 5,030 [3] - Okta exited the third quarter of fiscal 2026 with over 20,000 customers and $4.292 billion in Remaining Performance Obligations, indicating strong subscription revenue growth prospects [4] Innovation and Market Position - Okta's focus on innovation, including new products like Okta Identity Governance and Okta for AI agents, is anticipated to provide significant value to customers [5] - The company's emphasis on securing AI agents is expected to be a major growth driver, with over 100 customers engaged in trials for these solutions, representing more than $200 million in existing annual recurring revenue [6] Earnings ESP and Zacks Rank - According to the Zacks model, Okta has an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy), which typically indicates a favorable outlook for earnings performance [7]

Summary of Okta's Conference Call Company Overview - **Company**: Okta - **Role of Key Speakers**: Monty Gray, responsible for corporate development, covering strategy, M&A, and technology partnerships [4][3] Industry Insights - **Identity Market Evolution**: The identity market has transitioned from an enablement function to a security-focused phase, with a convergence of previously separate segments like IAM, IGA, and PAM [5][6][10] - **Current Trends**: Increased security awareness and cloud adoption are driving the need for simpler, unified identity systems [10][11] Product Offerings and Performance - **Governance and Privileged Access Management (PAM)**: - Governance (IGA) has seen significant traction and is a major contributor to new product revenue [11][12] - PAM is still maturing but is expected to contribute meaningfully to future business [12] - **Sales Structure**: The sales organization is specialized to facilitate cross-selling of governance and PAM products alongside identity management [18][19] Customer Deployment and Readiness - **Deployment Complexity**: Customer environments vary (cloud vs. on-prem), affecting deployment readiness and complexity [14][15] - **Change Management**: Successful deployment relies heavily on customer understanding of policies and entitlements, with cloud deployments now taking weeks to months [15] M&A Strategy - **Tuck-in Acquisitions**: Okta is focused on acquiring companies that enhance resource coverage and capabilities, with Axiom being a recent example [26][27] - **Large Scale M&A**: While always considered, there is no immediate need for large-scale acquisitions due to current capital flexibility [28] Financial Performance - **Revenue Growth**: Revenue grew 12% year-on-year, with RPO up 17% and cRPO up 13% [62] - **Contract Duration**: Average contract duration is extending, incentivizing longer deals and enhancing cross-sell opportunities [64][66] - **Net Retention**: Stable gross retention supports a net retention rate around 106, with upselling and cross-selling driving growth [68][70] Market Position and Competitive Landscape - **Cloud Neutrality**: Okta's independence from application silos is a competitive advantage, especially as agents become more prevalent [32][33] - **Agentic AI**: The rise of non-human identities (agents) is creating new security challenges, with heightened awareness among CISOs [35][39] Customer Engagement - **Customer Testimonials**: Okta is actively building a portfolio of customer testimonials, showcasing successful agent deployments in regulated environments [41][44] - **Monetization of Agentic AI**: Okta is developing two offerings for managing agents, with early monetization efforts underway [49] Conclusion - Okta is well-positioned in the evolving identity market, leveraging its cloud neutrality and expanding product offerings to meet the growing demand for secure identity solutions. The company is focused on strategic growth through M&A, enhancing customer engagement, and optimizing its sales structure to drive future revenue growth.