So it's interesting, so we've done some work on this. I think we're obviously being prudent with the environment. Leverage Oktas password management to secure your Mac fleet. So maybe how to think about the federal opportunity more broadly and where you're investing the most there. Our dollar based net retention rate for the trailing 12 month period remained strong at 117%. The contract duration continues to be a little bit lower than what we've historically seen. You think you're right-sized at this time? To make a connection, the Kandji API token must be configured with at least "Device list" permissions. Thank you. We're also continuing to make sure the go-to-market machine is humming as effectively as it can. And then also even a few times, it's replacing solutions, which surprised me. Yes. Kandji deploys the Library item containing the Okta SCEP certificate to the Mac. Q1 free cash flow was a record $124 million, yielding a free cash flow margin of 24%. Looking at operating expenses. Sometimes it's going to be machines, sometimes going to be users. Device Trust (Identity Engine) is currently only available to customers who had Device Trust (Classic Engine) and upgraded to Identity Engine. Yes, I think, it's a really good -- it's some really good questions there. Kandji customers now have another powerful automation tool, in the form of Okta Workflows. We think with a great product like Okta Identity Governance, we can make it much, much larger. It's super integrated with access management. Okay. Advanced automation and frictionless experiences for Apple devices, Find, evaluate, and eliminate software vulnerabilities, Cutting-edge performance and extensive threat detection for Mac, Tear down the wall between IT and InfoSec to keep every Apple user secure and productive at work, Onboard users with a personalized setup experience, Let users unlock devices with their single sign-on credentials, Automatically ensure devices always have the right software, Set and enforce macOS update parameters fleet-wide, Move users onto Kandji via an existing MDM platform, Map settings to compliance benchmarks in minutes. So I do like to compare -- the actually quantitative aggregate data with my qualitative data. We're seeing it both enterprise and small and medium-sized business. Dave? Secure your consumer and SaaS apps, while creating optimized digital experiences. The company's legacy technology was complex, not adequately secure and couldn't meet the needs of the business line. And for more details on Okta Workflows, go to their Workflows Help Center.). The Kandji API token must allow the appropriate access for the given task. I mean, annual revenue is inching up a point here, 17%, 18% but cRPO going the other way. Innovate without compromise with Customer Identity Cloud. Got it. Kandjis Device Harmony platform now includes Declarative Device Management, an industry-first for active management on supervised devices. Enable and set up FastPass by following this Okta guide, which covers the following topics: In the left-hand navigation, select Security. Thanks. Hey, thanks, guys. The other thing we talked about is why we thought it was going to drop throughout FY'24 was around FY'23 customer adds. For example, to gather information about all devices, the Kandji API token must have permissions for the following: To create an API token to use for the Kandji connector: The Kandji connector is now configured, and this connection is ready to be used with available cards for the connector. But the larger question is, is that 14% to 15%, is that the bottom or does it get worse from here? In the log, look at the Event > Outcomefor a SUCCESS message. Now to your question on OIG and PAM, yes, obviously, we're actively working that to have those offset, those seat expansions, but I mean, OIG, off to a great start, as you've heard Todd talk about. Eugenio will turn his attention to the overall growth and operational excellence of Okta, including further accelerating our go-to market effectiveness and increasing automation across the company. If you lose the text for the token, you can delete it before you use it and create a new one with the steps above. Declarative Device Management allows businesses to apply configurations faster and receive real-time data from their devices. We appreciate everybody attending in today. Okta, Inc. (NASDAQ:NASDAQ:OKTA) Q1 2024 Earnings Conference Call May 31, 2023 5:00 PM ETCompany ParticipantsDave Gennarelli - Senior Vice President, Investor RelationsTodd McKinnon - Chief. Maybe for you, Todd. So it's a little bit harder to calculate, but we know enough to know that it's -- if we execute, we have a big opportunity. So I would -- instead of the exact time on that, I would focus on the fact that we're on track for the end of the year GA. Hey, guys. I would just also add to that, that I would say that we remain committed to this profitable growth concept, right? Okta Device Trust contextual access management solutions enable organizations to protect their sensitive corporate resources by allowing only end users and partners with managed devices to access Okta-integrated applications. Kandjis integration will also feed into other Okta products, such as its passwordless authentication via FastPass. Yes, it's a really insightful question. Okta Mobile App: This app delivers Okta's Single Sign-On (SSO) for iPads, iPhones and Android devices to end-users, providing instant one-click access to all their applications Microsoft Intune License: You'll need the appropriate Microsoft Intune license so it can be applied to end-users (depending on your organisation's licensing model) Solution We always have some deals that slip out of an end of the quarter, but we had more than normal slip out this quarter. And it does slow some things down, but the projects are still moving. Yes. Last month we unveiled our new partner program called Elevate. Okta, we're doing this ourselves internally. FTC: We use income earning auto affiliate links. It hasn't been like 90-10, one or the other, right? Let's go to Jonathan Ho at William Blair. So that's really how we're thinking about it going forward. In Q1, NerdWallet further expanded with Okta as it replaced its homegrown Customer Identity Solution with our Customer Identity Cloud. And maybe what's left to be done at this point? In Apple device management, automation is everything. We're also pleased to have turned the corner on the challenges we faced last year. Turn Off Lost Mode. Apply an app or security control to only a subset of users within a Blueprint. With Passport, your users have just one password to remember at work, and always log in with their most up-to-date credentials. Select Automatic profile redistribution and enter 30 for the days before the certificate expires. So that's -- I'm really excited about the potential. We're definitely seeing that as well. You're going to need to log on to these experiences. 2022 Okta, Inc. All Rights Reserved. It's how many sales reps have done Customer Identity Cloud deals. And then PAM is only going GA at the very end of the year. So even though they chose a legacy vendor, for whatever reason, they couldn't expand it fast enough, they didn't get the value or it didn't get as broad as they want it to. Simplifies onboarding an app for Okta provisioning where the app already has groups configured. But I do know that it's just -- they've tried customer identity stuff in the past. From professional services to documentation, all via the latest industry blogs, we've got you covered. As an integral part of Okta's Zero Trust security offerings, Okta Device Trust ensures that your end users are accessing applications from a device that you know is trusted. I can take it. That means you can automate things in Kandjisuch as locking or erasing a device or moving it to a different Blueprintbased on things that happen in Okta. December 16, 2020 For the last Founders in Focus post of the 2020, we're chatting with Adam Pettit, founder and CEO of Kandji. I think the one in terms of like modeling and going forward, when we see a quarter of some of these trends turn the other way, whether it's mix of new business to upsell, whether it's deal size, as we mentioned, things like that, that's when we're really going to be comfortable that the macro is past us and the business can achieve greater than the guidance we've outlined. Both of those obviously came to fruition, 117 is where we landed. Allows Okta to use custom attributes you have configured in the application that were not included in the basic app schema. But on the positive news, we've had many of those close in the first quarter of -- or in the first few weeks of Q2 here. I would say it's a mix of both of what you just said. It's interesting, the way it's manifesting itself in the numbers is a little bit average deal size is a little bit lower. So is that 14%, 15% guide, is that somewhat of a low watermark as we kind of contemplate the back half of the year? Get granular control over user account types. Just oneclarifying question and then one quick follow-up. You then compile a series of logic-action functionsif-this-then-that statementsthat will follow that trigger or schedule, by dragging and dropping cards into an order of execution. We're also seeing the momentum in terms of conversations and importance of identity be really quite strong. I'm curious, Todd, when you look at the new logo side, how do you think we could start to unlock the broader legacy identity, access management replacement? Here are just a couple of our latest technology partnership developments. So -- and that's happening, by the way, on the CIC side, the Customer Identity Cloud side as well. Okta is a leading identity and access management provider. And now, I'd like to turn the meeting over to Todd McKinnon. Overview Kandji is an Apple device management (MDM) solution built exclusively for IT teams at organizations that run on Apple. Select a . Quantitatively, what we look at is we look at the numbers I mentioned over and over. We've had technology integrations and partnerships with Google for over a decade and have a deep base of shared customers. Turn On Lost Mode. Similar to Q4, customers are requesting shorter contract term lengths and our overall business was weighted more towards upsells versus new business. In the Mobile device management provider field, add or modify the name of your MDM provider Okta pre-populates this field if you selected VMware, Microsoft Intune, or MobileIron in Trust is established by..The content of this field is displayed to end users when they enroll their device. Device Trust allows enterprises to ensure that devices are managed by an endpoint management tool before end users can access apps from the device. So those are all positive trends. The Kandji connector for Okta Workflows now includes eight new cards: Set Device Name. Look, I couldn't give you the exact percentage. Store the copied token in a safe place. And I don't think it's like a -- it's come -- it feels like it's come on all at once, but it's really been a culmination of really a lot of important trends in the world, both just like the algorithmic advancements and what they're doing with originally what was TensorFlow and now the large language models in various domains and -- or it's the compute power, which everyone knows about or. Awesome. The -- I mentioned the average deal size ticking down a little bit, but the unit price stays -- the unit price we get has stayed consistent. But it's also the ecosystems and the partner's ability to work with us, whether it's Google Workspace or Amazon or Zoom we talked about or the hundreds and hundreds of other big scale technology vendors that have an interest in and they're having to be choice in an ecosystem we're ready and willing and capable partner for them. This is Param Singh on for Ittai Kidron and thank you so much for squeezing me in. Learn more about whats new with Kandji in its December webinar. I would add one comment to that, Jonathan, which is the CIC trend that Todd talked about in terms of participation in the field is getting better. Subscription revenue was $503 million, an increase of 26% year-over-year . SAN DIEGO, Dec. 08, 2022 (GLOBE NEWSWIRE) -- Kandji, the next-generation leader in device management and security, today announced new innovations to empower technology and security teams. So that was a big milestone behind us. There we go. Passport: Take charge of user provisioning, Workflows: Update employees user profile. We have the vendor Authenticator App with a push notification method, FIDO2 key like a Yubikey, and device based SSO as the main leaders. Learn how to get started with Okta Verify on macOS by following this Okta guide. Empower agile workforces and high-performing IT teams with Workforce Identity Cloud. Because what I think investors are really struggling with is the cRPO guide is candidly deemed to be disappointing. Note on Subject - Upon saving the SCEP Library item, Kandji will append the PROFILE_UUID to the end of the CN used. Maybe just on the federal vertical. So that's an idea of in the products, how it could be maybe a nonobvious use case. But wonder if you could talk about what you're seeing through the first month of May or the first month of 2Q that's really changed. Yes. So we're seeing it broad-based across both products. solution Verify that Device Trust works Following the upgrade, Device Trust has been activated while Okta FastPass remains inactive. The win rates remain strong. One of the ideas that we're working on that might be a typical use case of how someone like us could use AI is configuring Okta, setting the policy up for Okta across hundreds of applications on the Workforce side or 10 or 20 applications on the Customer Identity side with various access policies and rules about who can access them and how they access them. When you add a Kandji card to a Workflow for the first time, you'll be prompted to configure the connection. Want to build your own integration and publish it to the Okta Integration Network catalog? I think that there's -- first of all, there's -- we're always improving and trying to get better. The business line also selected Okta Identity Governance to manage partner access to critical collaboration applications. As traditional corporate perimeters disappear, your end users need to access applications from anywhere, across a broad set of clients, platforms, and browsers. So what I remember about that is there's some similar trends to Q4 in terms of new business versus upsell mix being much more weighted toward upsells. Okta continues to expand our technology partnerships so that our customers can deploy the most innovative solutions while enhancing security, all while retaining freedom of choice. Great. Using Okta Workflows, that activity could trigger Kandji to check the security stance of any devices associated with that user or to take actionperhaps locking down devices by assigning them to more restrictive Blueprint or demoting their user accounts from admin to standard. Import the user attribute schema from the application and reflect it in the Okta app user profile. NerdWallet has been leveraging Okta Workforce Identity Cloud since 2017 to secure access for its employees. In fact, you all know that OpenAI is a customer and our Customer Identity Cloud is the login for ChatGPT. Be sure to check out, WWDC 2023: Heres everything to expect at Apples special event this year, Apple has built a special hands-on area inside Apple Park for AR/VR headset demos, Reality Pro could be the ultimate Mac display that Apple would never make, Apple preps first Mac with M2 Ultra chip and M2 Max desktop ahead of WWDC. And just to finish off though, is there anything you want to say about the cRPO growth? So that's, I would say, a very exceptional example of a successful application in the extreme. Additionally, provide custom branding, consent text, and a modern authentication experience with Okta for Apple device users during device enrollment. Kandji was also named #1 fastest growing app by Oktas 2023 Businesses at Work Report. Push either the users Okta password or a randomly generated password to the app. We think it will over time. It's actually one of the fastest-growing areas we had in the company and was definitely accretive to growth in the quarter. The other thing, too, is that when you think about the products to potentially upsell, the Customer Identity or Workforce Identity, selling Workforce Identity to someone that has Customer or a customer that has some in the Workforce is a way bigger impact than PAM and IGA at this point. Privileged resources were really around -- or Privileged Access management was really around the admin accounts and dealing with those things and somewhat of a silo. In Okta Workflows, from the Connections page or any card, click. I mean, I think from a current RPO guide, irrespective, obviously, we've been thoughtful about the macro I mean, we talked about it over the last few minutes and how it's really been affecting us a little bit more every quarter. User opens the Okta Verify app to register the Mac with Okta. You mentioned the PAM is in beta. Forward-looking statements represent our management's beliefs and assumptions only as of the date made. So we have -- thankfully, the team that's in place is doing a great job, whether that's the Interim Chief Revenue Officer, John Addison or our marketing and customer success executive, Eric Kelleher, is doing an amazing job or Eugenio is taking on this role, which is really, really important. User opens a web browser and authenticates to Okta via FastPass. In the Challenge field, paste the secret key you copied earlier. So I think how do you unlock that? So we'll see the effects from PAM more likely in '25 and '26. It's interesting. If you remember last time, I talked about macro worsening, and we basically spent most of this call talking about macro worsening. So when we look at the data holistically and be rigorous at it and really something we do culturally, which is check our assumptions and make sure we're seeing the world as it is, we just don't see it. This number can be adjusted to a value that's appropriate for your environment. Also more on the qualitative side, we saw a lot of deals or maybe more than normal. I'll take a shot at it from a big picture perspective and then Brett can probably add some details on the guidance. Get ADE Integration. This quarter, the company expanded with Okta Workforce Identity Cloud, including Okta Identity Governance to bolster its security posture and improve the user experience for its approximately 13,000 employees. Yes, I would just add to that in the sense that if you remember last time we spoke for FY'23, federal specifically was the fastest-growing segment we had across the company, and that's a direct result of the focus we put on in FY'23. I see that there are quite a few hands raised already and I'll take them in the order. I mean, just trying to get a sense of out of the 18,000 customers, how many use bulk? Our balance sheet remains strong anchored by $2.37 billion in cash, cash equivalents and short-term investments. What was the question? Thanks, Dave. Copyright 2023 Okta. How do you both think about Okta's opportunity in the generative AI space and the identity opportunity with the emergence of AI applications? But I mean, since you guys mentioned about the future of Identity Governance, you guys are seeing almost one-thirds or more of the total kind of Workforce Identity Cloud spend going to OIG. In addition, during today's meeting, we will discuss non-GAAP financial measures. Thanks again. Our projections continue to factor in the increased pressure from the macroeconomic environment. Has there been more replacements compared to last quarter in terms of the mix, how that's trending? In a heterogeneous technology world and an ever expanding number of devices and applications, Best-of-Breed technology is the future to help foster Best-of-Breed. OKTA earnings call for the period ending March 31, 2023. . So in terms of the compares, I mean, what you heard me say a second ago, there is some residual impact from the execution challenges we had in FY'23 in the current RPO guidance. I mean, it's going to change. And related to that, you've talked about IGA and PAM and presumably some other products being interesting to customers. As a reminder, we've taken several actions to reduce our cost structure and increase our efficiency as an organization which will benefit margins this year and beyond. Build conditional logic with user and group attributes from Okta, fine tuning which items are deployed to each device. Turning to our Q1 results, we added 450 new customers in the quarter, bringing our total customer base to over 18,000, representing growth of 14%. Non-GAAP net income per share is raised to $0.88 to $0.93 assuming diluted weighted average shares outstanding of approximately 180 million. It's been a long journey so far, with many different ways to achieve a 'Passwordless' authentication. You could configure the flow to trigger automatically when a user is suspended in Okta. At our Investor Day last November, I indicated that our historic norms for net dilution was in the 2% to 3% range and that we expected that range to be elevated in the near term, primarily related to the change in our stock price. And that's just more of, more repetition. What is Kandji, and what is your mission? Thanks. And when we look at evidence of that -- we look for evidence of that is resonating. One thing, quick thing there is Auth0 was in the comps last year, so that should be a like-for-like there. Building on this, we recently rolled out self-service OIE upgrades so customers can automate their upgrade. Brett, in the same sentence, you kind of said increased macro headwinds but then you also reverted to similar to Q4. So there's been a lot of talk about better cross-sell and upsell within your base versus new logos.