Okta(OKTA)2025-03-04 08:59Financial Data and Key Metrics Changes - The company reported a record bookings quarter, crossing 4 billion, driven by an increase in the weighted average term length for deals [25][26] - Operating margin grew by approximately nine points, and free cash flow margin increased by six points for FY 2025 [22] Business Line Data and Key Metrics Changes - Over 20% of Q4 bookings were from new products, including Okta Identity Governance and privilege access [5][6] - Okta Identity Governance has over 1,300 customers contributing over 300 million, totaling over 1 million-plus annual contract value, growing the total base of such customers by 22% to 470 [26] - Revenue from AWS Marketplace grew over 80% in FY 2025, with over 1 billion in aggregate total contract value since the partnership began [28] Company Strategy and Development Direction - The company aims to transform into one of the most secure companies globally and reignite growth through product innovation and partner ecosystem prioritization [3][14] - FY 2026 priorities include elevating the industry with the Okta Secure Identity Commitment, winning IT and security with Okta, and winning developers with Auth0 [14][15][17] - The company is focusing on further specialization in its sales teams to better serve customer needs [12][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market opportunities, particularly in identity security as organizations modernize their systems [39][41] - The macro environment remains consistent, with identity being a foundational layer for large companies [39][41] - Management is optimistic about the federal government market, citing opportunities to modernize legacy identity systems [151][153] Other Important Information - The company announced the promotion of Eric Kelleher to chief operating officer, focusing on growth and the Okta Secure Identity Commitment [18] - The company is excited about the momentum built going into FY 2026 and is taking steps to advance its position in the identity market [19][20] Q&A Session Summary Question: Guidance Prudence - Management acknowledged the strong Q4 performance and indicated that while they are optimistic, they remain prudent in their guidance for FY 2026 [34][41] Question: CRPO Guidance - Management explained that Q1 typically has lower expectations due to seasonality, and they are focused on executing well throughout the year [50][53] Question: Seat-Based Headwinds - Management noted that while seat-based headwinds persist, the success in governance and new products is offsetting these challenges [68][75] Question: 1 Million Cohort Growth - Management indicated that there is significant growth potential with large customers, and they are just scratching the surface of IT spend opportunities [81][84] Question: Auth0 Go-to-Market Strategy - Management discussed the transition to specialized sales teams for Auth0, emphasizing the complexity of the products and the need for focused expertise [90][95]