Okta, Inc. Q1 FY2026 earnings call

• Solid start to FY '26 with strength in large customers, Auth0, new product contribution, strong cash flow, and record profitability. • New products like Okta Identity Governance, Privileged Access, Device Access, etc., had strong contribution, with Workflow executions increasing nearly 400% over three years to nearly $40 billion in March. • Showcase event highlighted protecting non-human identities and Auth for GenAI for developers, with Auth for GenAI in developer preview and expected GA launch summer. • Okta Secure Identity Commitment with threat intelligence insights to combat identity-based cyberattacks.

No explicit detailed breakdown of product segment financial performance in terms of absolute numbers and revenue contribution % provided in the transcript.

• Q2 FY '26: Expect total revenue growth of 10%, current RPO growth of 10% to 11%, non-GAAP operating margin of 26%, and free cash flow margin of approximately 19%. • FY '26: Expect total revenue growth of 9% to 10%, non-GAAP operating margin of 25%, and a free cash flow margin of approximately 27%. Factors in go-to-market specialization and potential macroeconomic uncertainty.

• Macro economic uncertainty which may impact business performance. • Potential near-term uncertainty in the U.S. federal business due to evolving situations, though long-term public sector opportunity remains confident.

Q: What is the impact of the two layers of conservatism (go-to-market specialization and macro) on Q1?

A: Todd mentioned Q1 was solid, with macro not impacting Q1 but factoring in future macro uncertainty; Brett noted guidance philosophy has less conservatism but added a bit for macro while go-to-market specialization is on track.

Q: How should we interpret the embedded seat expansion and recovery curve going into second half?

A: Brett explained it's related to current RPO coverage ratio and seasonality, with cRPO likely to have a sequential decline in Q2 but potentially start growing sequentially in Q3 and Q4.

Q: Why does Okta think it will win in the non-human identity and agentic environment?

A: Todd stated Okta has a complete solution with breadth of products for solving NHI problems, has a lead in the market, and a trusted brand, but needs to keep executing and innovating.