Okta, Inc. (OKTA) Earnings Call Transcript & Summary

Please welcome Okta Co-Founder and CEO, Todd McKinnon.

Hi, everyone. It's great to see you, many familiar faces, some new ones. Thank you for all your support over the years. This is the 10th Oktane and little-known fact, see that picture from '13, it was in this room. I think we might have more people now. So that's kind of cool. Yes, so we're looking backwards, and we're proud of what we've accomplished, but the keynote in the session today is all about the next 10 Oktanes and what's our vision and strategy for how we take this big bold view we have of the industry and of what we could potentially achieve and how do we get there? How do we start to really change the world. We are going to be talking a lot about Auth0 and Okta, better together. It's a really important part of our strategy and our company. And we've made a lot of great progress on the tactical integration, some of the integration and execution challenges, we talked to you about the last earnings call we had. And we are in a quiet period right now. So we'll give you a little bit of a high-level update, but a lot of the details are going to have to wait for our Q3 earnings, which are coming up on you all know, November 30. I think the takeaway for me here is that we are all going to look back on this in 5 years and think this is the most strategic acquisition we've ever done, and it's really going to impact how we go forward toward prosecuting our vision, which is, as you all know, is to free everyone to safely use any technology. That's what we're focused on. And we do this by building the primary cloud for Identity. And what that term means to us is that Identity becomes such a strategic enabler for all of our customers. It's going to be one of the most important things they invest in. One of their centers of gravity, their rocks, their key technology vendors that they're going to pour resources into and more importantly, they're going to get tremendous value from. This has never happened before. The history of Identity, there's been Identity features and functions, but there's never been a big independent important Identity company. When we started Okta, we would go around and talk to investors at the time, and they would ask us why we're trying to build an Identity company. They said the best you could ever hope for was to sell your company to CA. You can draw your own conclusions about how motivating or demotivating that was. But we looked at the world at the time and we saw smaller Identity players that were relying on emerging protocols and really providing tactical tools to companies to help solve some of these Identity challenges or the balance of Identity was really about big monolithic platforms on-prem that had built Identity into their stacks, whether the best example of this is the Windows stack with exchange and Windows Server and Active Directory and Windows clients or -- but that wasn't the only one. IBM had the same version of it. It was connected to IBM's platforms and services and Oracle the same way. And our insight was that we wanted to build this company where it was pre-integrated. So you could choose cloud applications at the time because that was just at the beginning of this big cloud migration and you could connect those cloud applications to your environment and really free choice and free flexibility for everything you wanted to do. So we've made a lot of progress, but the industry, it's -- and you all look at the industry as much as we do from a macro perspective, which is it's still very fragmented and siloed. If you look at the market share report, we are, by far, the biggest independent and neutral player, and there's a lot of money spent with a lot of smaller vendors down the stack there. And we think over time, the -- first of all, Identity is a big and important category -- and the winner in this category is going to be independent neutral, and I'll talk a little bit about why I think that. But that's -- those are 2 key takeaways. Identity is a big important category and the winner is going to be independent neutral. And some of that success is going to become growing new parts of the market. For example, the customer Identity market, it's more about people are building themselves and there's tremendous opportunity cost we can unlock there. Workforce Identity is a little different. There's this very fragmented array of vendors that we can help centralize and get more strategic values for customers by standardizing on the leading independent neutral platform. So the secular trends that have powered our success over the past 10 years are consistent and enduring. It's movement to the cloud, more apps that go to the cloud, more infrastructure go to the cloud, the more it heightens these Identity challenges of knowing who people are not bound to the network and how they can work from anywhere, and accessing these cloud applications, the customers don't know themselves. That's driven our success. It's the risks and the problems with security keep getting bigger and bigger. So people have to invest to make this new kind of architecture and this new kind of cloud-centric world work in a secure way. And everyone wants to do digital transformation, open up new markets and open up new opportunities. And we are in a very, very different world we are now than we were a year ago in terms of the macroeconomic environment. And that is a -- that's causing changes in companies and Okta is no exception. We are, like everyone else, -- we're being very diligent in scrutinizing our investments to make sure that they have the ROI that they need to have the math to jump over the bar of our productivity we need from our investments. That's an important part of the changes we're making. And every customer is doing the same thing. Their money was free. I mean a year ago, it's like, yes, sure, let's invest. What's the alternative? 0 interest rates. And customers are all going through this change as well. They're doubling down on the things that are going to differentiate them, their core competencies, Okta is doing the same thing. The good news is that these trends are as applicable now as in any economic time. What does the cloud allow you to do? It allows you to do more with less. It allows you to trade off capital expenses for operational expenses, flex your demand based on what's actually happened in your business. Security is an evergreen requirement. The risks of a regulatory oversight from a breach or reputational risks are consistent no matter what the macro outlook is. And digital transformation, talk about an opportunity if you make the right focused investments to move forward past your competitors, it's a great opportunity for those that are doing it right. So central to our strategy is because of all these trends, there's this opportunity for Identity to solve many more problems toward a much greater value than ever before possible. And if we're going to build this primary cloud for Identity, we have to cover the Identity use cases that are required for every area within a company. Traditionally, Identity was purchased by the CIO to -- as you could imagine, to grease the skids of a rollout from a monolithic tech stack. But now it really applies to everyone in our organization from the Board, the CIO, of course, adopting new technology, wanting to build a high-performing IT team, but it's also to the product development teams and the Chief Technical Officer that are trying to innovate and not trying to waste time on undifferentiated development and focus that on what's going to really differentiate their product in the market. Security, one of the biggest differences over the last 10 years is that when we first started selling Okta, we tried to avoid the security people because they were more on-prem centric. They didn't want to move anything to the cloud. And so we went to IT in an unlocked innovation and unlock the choice of the cloud. That's very different now. Almost every one of our deals involves a strong advocacy from the Chief Security Officer. Chief Financial Officer wants to do more with less Chief Marketing Officer wants to drive usage and conversion on websites and leads. And that's why over 16,000 organizations have turned to Okta as the independent and neutral leader in this space. They can get all this business value out of Identity now, and more and more and more are starting to realize this, whether it's supercharging the capabilities of their IT team or building a security model that's Identity powered and as a Identity-centric, as Identity at the center, whether it's optimizing the digital experiences they're presenting on their apps or websites. And it's really innovation without compromise as they take advantage of all the potential of technology. So we've made a ton of progress, but we're not like resting on our laurels or looking back and congratulating ourselves for how wonderful we are. It's all about the future. So when we look at our opportunity, what could accelerate us and what could make us go faster. And this is how we think about that. So we have a massive addressable market, $80 billion. We've talked about that a lot. And we're just getting started. We're -- this year, we're going to be about $1.8 billion into that. And what are the opportunities? How can we accelerate things, go faster? What is happening around us that can unlock this massive opportunity even further. Well, one important distinction is that I talk a lot about how the cloud has been the evolution of the cloud has helped us be more successful because when more apps are in the cloud, it heightens the security requirements. People can use the cloud to transform digitally. But there's also -- when you look at Okta, there's the fact that it is a cloud service itself. And that is a very differentiating for us. And it's also an architectural advantage because simply we can maintain and manage the integrations to over 7,000 services centrally, which wasn't possible on-premise. So the fact that Okta is a cloud service itself is very important. But the fact of the matter is that for many organizations in the world, especially large organizations, it's still a new thing to look at a service that's going to do Identity and security and have that be done as a cloud service itself. So that is an opportunity, but something very interesting happened last year. For the first time ever, the amount of spend on Identity and access management outpaced in terms of cloud service, the deployments in the cloud outpace the deployments on-prem. This is according to IDC. And it's an interesting inflection point in terms of the mindset because this is going to change. In 10 years from now, the amount of cloud Identity is going to be the vast majority. That is -- every other industry has gone through this. That's the technology trend. That is going to happen. So if you look at other organizations like Salesforce, this inflection point happened in 2015. That was the first year where the amount of money spent on cloud-based CRM surpassed on-prem CRM. And you can see what happened with Salesforce over the 7 years after that. They went from $5 billion to $26 billion in revenue. So the dynamics aren't exactly the same. It's a different market, a different set of requirements. But you could argue that using a security tool and an Identity tool, the move and the tip to the cloud for that installation might be even more than accelerate because it's such an impactful thing that once people make the flip and start seeing the value of it, it could accelerate things even faster. So this is exciting for the workforce side. But on the customer Identity side, it's a little bit of a different story. If you look at the market share reports for customer Identity, it's about -- it's really a misrepresentation of what's going on because people that are spending money on customer Identity, they're really not doing customer Identity in the way we think about it. They're doing it in a way that is taking workforce access management. And for projects that are controlled or managed by the CISO or the Chief Information Officer, they're repurposing that for customer-facing initiatives. And that's the revenue that the market share reports calculate. But our basic strategic investment is that there's a much bigger opportunity out there, which is people that are building themselves. People that are engineering folks and product folks and technical folks that aren't going to take what IT is offering and use it, they want to build it themselves. And our strategy around customer Identity -- in our customer Identity cloud is to build the product that engineers and product people and developers love thus unlocking this massive, I think, underappreciated TAM that is the opportunity cost of what all those people are giving up by building it themselves. So we're attacking these trends very deliberately, but the strategy is be the best independent and neutral provider of Identity overall, but doing that by addressing all the specific use cases with these 2 purpose-built clouds. Customer Identity cloud and workforce Identity cloud. And now why does this have to come from one company. I've just made the argument that there's distinction in terms of the requirements and the market dynamics, but why do they have to come from one company because it's still Identity and customers in this complex environment of this technology and the business implications, they need one place to come to for a road map, for vision, one set of experts to help them navigate this, 1 sales team, 1 set of support offerings across all use cases. This is all very valuable at a table stakes layer, but they also need a foundation of security and reliability. They have to make sure it's going to work. They have to trust the provider. It has to be all and done, which always on, which is why we've spent $700 million of R&D since we acquired Auth0 last year to make sure this is true now and forever. And there is integration. The first priority is not to merge these clouds together. The first priority is to build the best capabilities for these use cases, and then where it makes sense, to have this Okta integration platform layer that merges them together where it makes sense. So some examples that many of us have talked about before, our Workflows platform service that has equal applicability to both clouds and integrating that seamlessly, or there's also this exciting opportunity around data network effects, where risk signals and threat information from 1 cloud can be used to protect the other cloud and vice versa. So I've talked about why Identity is a big problem and some of the structural dynamics of the industry. But why is it important? And why do we think the winner will be independent and neutral? It's for a very simple reason that the -- I think the attraction -- and this was true back in the on-premise days, and now it's starting to happen now, most particularly with Microsoft. But every other big platform company is going to try to own Identity over time, whether it's the big infrastructure providers or it's the big -- other big collaboration companies. So it's kind of this different world view between monolithic platforms thinking that they are going to control Identity and lock you into their, frankly, mediocre platform applications and services, in some cases, sometimes they're great. But on average, they're not the best in the industry. And that's the way to get you integration and security, or our view of this open ecosystem that believes that we can provide both. We can provide the management and security and the enterprise readiness but also give you choice for all this innovation. And we believe in innovation. We believe that the big breakthrough that's going to make every customer 10x more productive from a business process perspective or 10x more secure, we don't know what that is now. We've seen it in the history of technology. Innovators want to innovate, and they'll keep making progress. That's why this fight for this open ecosystem is so important to us. And it's only a vendor that is independent and neutral is going to focus on this and make this a priority. In my career, I worked at Salesforce before I started Okta, and I had the opportunity to start Okta inside of Salesforce. But I saw firsthand how that -- or any company that has an amazing set of platform -- or amazing set of applications, it's going to be beholden to that set of applications. You're not going to be able to build a completely integrated service that would take the customer outside of that set of applications. And that's really important. On the foundational technology to do this, that's our Okta Integration Network. And it was an innovation when we did it 13 years ago. It's still the broadest and deepest. And it really is the technical layer that enables this choice. And if you think about all the exciting stuff we talked about at the keynote, it's our opportunity to take this to the next level. That's the most exciting to us and to me personally. So our vision here of the Okta Integration Network is, if simply stated, it's that if applications in the Okta Integration Network use the Customer Identity Cloud, that will plug them into this new set of standards and the new set of capabilities that make workforce customers able to use those standards and use that set of capabilities in a way that's not possible today. So by having both clouds together, we enable this open ecosystem of choice. And this -- the concrete benefits for both sides in this matter a lot for workforce customers, they get the things they're craving, which is seamless Zero Trust security, continuous authentication, fine grain authorization. It all works just out of the box. And for the SaaS builders, the innovators in the world, they know what enterprise readiness looks like because we define it in the APIs and the capabilities of the Customer Identity cloud. So once they use that, they plug into this set of -- they plug into the set of capabilities and get plugged into all the workforce customers around the world. So this only works if both sides see the value. So I've recorded this conversation with the Co-CEO of Atlassian, Mike Cannon-Brookes and I thought it would give -- be helpful to hear his perspective on this. Mike, glad you could join us.

Thanks for having me here, man.

This view you've expressed about the Cambrian explosion of SaaS and the choice and the ability to have the right tool for the right job, it's pretty different than other big platforms if you think of the Microsofts or the other big suite companies. Why is it that you see the world so differently?

We have a fundamentally crossed an extensibility of our tools. So deeply extensible, integratable. We want our customers and teams to work well together with whatever tools they need to use, and we want our products to win in the marketplace on their strengths for your team and the job they're trying to get done, not because of some sort of vendor lock-in.

What is your perspective on what value Okta can bring to this?

When you think about Cambrian SaaS, the explosion of applications, your own surveys, I should remember that. I think it's like the average user uses 90 apps in a week or a month, or it's some intense of apps.

And growing, yes.

Yes, and growing. That requires challenges that you, in Okta, deeply understand that they're trying to solve. And we see it every day, right, in terms of Identity, is this the same person across 2 applications, right? How does data from Confluence get connected to data from Slack or from somewhere else? Yes, we can do point to point, but what is in my Okta database is fundamentally a list of all my applications and who has access to which, and all of my users, staff, employees, contractors, customers, whatever I put into my Identity diverses, bringing those together and servicing the Cambrian SaaS explosion with that data to enable better connections for customers is a really powerful and fantastic position, I think.

I couldn't agree more. I think that by working together, the ecosystem can be 10x bigger. And we can bring this to fruition, this Cambrian explosion that benefits everyone and makes the pie bigger for everyone. I look forward to doing a ton more with you and the whole Atlassian team in the future. It's cool to see Mike's buy in there, but it's not just Mike. They are a customer of the Customer Identity cloud today. It's also -- there's hundreds more applications in the Okta Integration Network that are currently built on the Customer Identity cloud. And our vision is to increase this number greatly. So every application in the Okta Integration Network is actually built on the Customer Identity cloud. And this is going to unlock this open ecosystem of choice. So in summary, identity is an important category and the winner will be independent neutral because of this dynamic of this open ecosystem of choice. And we're working hard to extend our lead in this important market. And in the following sessions, you'll hear a bunch more details about the nuts and bolts of this and why we're also pumped up about this opportunity and working hard take advantage of it. You're going to hear from Eugenio, who runs the Customer Identity cloud. You're going to hear from Sagnik, who runs the Workforce Identity cloud. Of course, Susan St. Ledger runs field operations for Okta; and our amazing CFO is Brett Tighe. So they're going to take you through their presentations, but you'll also get to hear a perspective of a key Customer Identity cloud customer at Fifth Third Bank, John Podboy, who we're excited to have here. Kim Huffman from TripActions is going to talk about the importance of identity there. And then finally, Chris Grusz from AWS is going to give his perspective on the ecosystem. So thanks a lot for your support, and we appreciate your attendance and your time. And now please welcome Mr. Eugenio Pace.

Hello, everyone. Good afternoon now officially. It's afternoon. It's great to be here with all of you, some familiar faces as well. I am Eugenio Pace. In a previous life, I was the founder and the CEO of Auth0. Today, I run the Customer Identity product unit here at Okta. And today, we are going to go on to cover 3 things. One, it's our overall strategy and market opportunity; second, some exciting product announcements. And last, but not least, our future opportunities and possibilities. So on the last earnings call, you heard and you saw a preview of what our product strategy looks like, and it's really around these 2 specialized clouds, the Customer Identity Cloud and the Workforce Identity cloud. Each one focuses on different audiences and different buyers, different use cases and different requirements. Customer Identity Cloud is focused on 2 specific use cases. The first one is consumer applications, what we call consumer apps and digital experiences, which we are all very familiar with because we are all consumers of something. So think about you take a train, an airplane, you make payments, all of that, all these things we do as individuals. The second use case is SaaS applications. If you're developers, if you're a developer building an app, think the Workdays, the Salesforce, the Atlassian, the Slacks of the world. That's the second use case. So how big is this opportunity? Well, according to our own research, it's pretty big. It's about $30 billion market for us. And it might seem like a big number, it's a pretty big number. But if you think about it, think about all the -- who needs us? Everybody needs us. There's no company in the world that can live without Identity. It's -- think about all the applications that surround us, all the technology that surrounds us. All of that needs to who the real users are. And in the Customer Identity world, that is primarily a build yourself. So developers have solved this on their own, becoming part-time security experts, which is not really great. And it shows because this has led to solutions that don't scale. They're not as secure as it should be. They are -- they cannot keep up with innovation, with new things that come up in the market. All of that, it's a problem. The other component of our big opportunity at Okta is this bottoms up product-led growth engine that we have, which allows us to start with early -- very early on with smaller organizations, start-ups and then grow from there, from trial to self-service, all the way to enterprise deals. We have 48,000 active free subscriptions in our platform today and 17,000 paying self-service customers. These are developers essentially putting their credit card every month. And why is that important? Well, it turns out that 45% of all the enterprise deals that we have closed in the first half of this fiscal year come from that segment. They come from somebody paying with a credit card. So it's an incredibly important motion. This is just a small example of all companies that started that way. They started with a little tiny thing and they grew over time. Look at the diversity in industries and geographies. It's another testament of how these -- how universal this is. So there's no doubt there's a big opportunity for us out there. So let's start with the first case, again, consumer apps. And again, we all know -- because we all know what great looks like. And we all know what not great looks like. We all have personal experiences about that. And it's not surprised because Identity is the first door into any application that we use. It's a sign up, it's log in. And it matters because digital experiences account for 10% of the U.S. GDP according to the Bureau of Economic Analysis. That's no joke number. It's a big, big number. So let's take now at a typical journey of a company, building a consumer-facing digital experience. [Presentation]

Now, of course, this is a fictitious story, but it's a story that we hear again and again with every customer that I get to talk to. It's repeats again and again. So returning users, engaged users, loyalty, it's earned through this amazing digital experience and a digital experience that is not horrible. Every digital marketer in the world has been chasing this forever. And they have traditionally been forced to make trade-offs, trade-offs between security and digital experience. We need to believe that you can make an application super secure and then begin to use, or super easy to use, but not very secure. And the trick is that you have to maximize all these variables at the same time. And it's not an easy trick to pull off, but that's what we're here for. The Okta Customer Identity Cloud is designed from the grounds up to enable this to happen. This week, we are introducing 4 key enhancements that allow you to do this. The first one is features to increase retention and conversion of consumers and giving them the option to log in, in any way they want. You can use a user name, an e-mail, the face, a finger, anything, the phone number, giving them choice. We also announced support for passwordless authentication via passkeys, which unlocks biometrics, advanced biometrics for everyone. We announced strong authentication capabilities for regulated industries like banks, health care companies and utility companies. These are all the things that require deep expertise and bring a lot of complexity, and we'll remove all of that as well. And last but not least, we introduced security center, which gives our customers the ability to monitor, detect and respond to security events in real time. The sessions -- the specializations that we have in our conference that go deep into the road map and into time lines and what's in each of these buckets. Now let's jump into the second use case, SaaS applications. Also under Customer Identity, very unique and distinct. The SaaS market is exploding and companies rely more and more on more applications to do their job and do their business. A great example of that is the interview that we just saw between Todd and Atlassian's CEO. In simple terms, with the Okta Customer Identity Cloud, we help SaaS application builders ship enterprise-ready apps in no time. We take care of all the complex enterprise-level requirements like Federation, among other things. And we also announced around this use case, turnkey integration between the 2 clouds. Now it's possible to authenticate users that are protected -- they're trying to go into 1 website protected with a Customer Identity Cloud With accounts that reside in the Workforce Identity Cloud. We do that with a new capability we just announced. We also -- we made a first view into fine grain authorization, another massively complex space that requires a lot of investment in time and to master. And last but not least, something that Todd mentioned in his vision presentation, which is this ability to have like a one-click publication of any SaaS app on our Marketplace on the Okta Integration Network. Developers are a very important component of what we do in this market, and it's a very important piece of our growth with the Customer Identity Cloud. We make it easy for every developer in the world to be a master in all these things, and to secure their applications in any way they want and do it quickly without having to become a part-time expert, which is never a good idea in the security world. Developers have choice, too. They don't want to be forced into doing things in one and only way, and we want to give them flexibility, and we want to give them what's important for them. Customer Identity Cloud can be called out from any application, in any programming language, in any stack. It doesn't matter which is your stack of choice. .Net or Java or Javascript, whatever. We support them all. You can run -- you can also choose the cloud environment you want. We run on Microsoft Azure. We run on Amazon Web Services. You can provision Customer Identity Cloud from Heroku as well. And this week, we are announcing 3 new formal partnerships in other platforms developers cloud. DigitalOcean, Netlify and Vercel, we're bringing Customer Identity cloud where developers are. In a nutshell, we are making truly no-brainer for any developer out there to use the Customer Identity Cloud for everything related to authentication and authorization, instead of building this themselves, which is what's been happening and which is detracting from doing what is truly, truly important for them, which is their own applications and their own customers, the customers that those applications serve. So to make it even more accessible to be pervasive across the world, we also announced a couple of other things. One, it's the ability to use the Okta Enterprise Connection for federation between the 2 clouds available for free for all our customers. We're also investing in content and in a framework like the enterprise identity benchmark that gives developers guidance in how to go around and doing this. Last but not least, we're expanding the already very, very successful startup plan to lower the bar of entry and make it available for all startups with less than $5 million in funding, access to Customer Identity Cloud for free. And last but not least in here, it's -- I hope you see the strategically important connection between the Okta Integration Network provides because it connects the demand side of applications, which is Workforce side and the supply side of technology, which is SaaS builders. We are the connective tissue between those 2. We're the only company that can do that. So to wrap it up, 3 takeaways. We are leaders in a market that is still early, maturing, underpenetrated, underserved. We're expanding capabilities to all developers in the world. And with both the Workforce Identity Cloud and the Customer Identity, we are reaching all the key buyers in all organizations. So with that, I'm thrilled to welcome one of our greatest customers, John Podboy from Fifth Third Bank and our very own Eric Kelleher, our Chief Customer Officer.

Thanks, everybody, for joining us here today. And Eugenio, thanks for taking us through the Customer Identity Cloud and where we're going with that. It's my privilege as Okta's Chief Customer Officer to welcome John Podboy to the stage. John, you have been a customer of Okta's for some time, and a customer of the Customer Identity Cloud as well. We're going to spend a little bit of time talking about that. But to start us off, maybe share -- let us know a little bit about you and your role and why you're here today.

Yes, absolutely. Maybe I'll kind of kick off talking about my bank, Fifth Third Bank based in Cincinnati, Ohio, a top 15 bank in the United States, really focused on digital transformation. In the last year, we really kicked off a massive platform modernization, really looking at how do we accelerate our speed to market and go about transforming a bank of our size. And this is really kind of centered in how we focus on moving our core banking platform to a cloud-based system. And another way to put that is moving the bank to a cloud environment and looking at the dependencies there. And really, this, for us, is an opportunity to continue our vision for a 160-year-old bank to focus on trust and relationships. And trust and relationships when you really start thinking about it in the digital perspective is Identity. So for us, our broader security org is really focused on driving transformation in the digital world and leveraging Identity as a key pillar of bank transformation. So my role is leading the Identity pillar within information security and taking a very broad approach across organizational silos to think about how do we reimagine our security posture but also how do we deliver trust in the digital world.

That's great. It's a great context for how you're thinking about Identity. So as I mentioned, you've been a customer of the Customer Identity Cloud now for about a year. And I'd be curious to know what were some of the initial challenges that you were looking to solve back when you were making that assessment.

Yes, it's a great question. I mean, I've had the privilege of being in around Okta Auth0 at various organizations over the last 10 years, and large-scale companies from General Electric to Thomson Reuters, another bank. And Identity is always critical in transformation. And many organizations in the past have underestimated its criticality. So we were very fortunate to be able to have that understanding and we were doing our assessment. It's not just a world-class partner technology, but it's also how does this connect to everyone and everything from users, devices, applications. And when you think about transformation, that's the body of the work is moving that to a modern stack. So for us, first and foremost, it was about that unified platform approach to leverage that interoperability across the customer experience use cases and the Enterprise.

And were those the key criteria? Were there other key criteria that you were looking at as you were shopping for solutions?

Absolutely. Obviously, being a financial institution, we have to meet a variety of regulatory requirements. Many of those things come with a lot of dedicated focus. The very largest financial institutions have huge identity teams. And we think about solving that problem, that's maybe a great approach for the past. But for us, is we want to take a modern approach. So that scalability for us of the platform, using the right technology to automate functions, instead of throwing people at a problem, really actually fixing these things and digitizing them. So the wealth integration network, the prebuilt APIs, the customization and the Customer Identity space is really critical.

That's great. Well, in your industry as well, and banks are constantly under cyber attack. What role did technology and Identity play for you in banking transformation with that increased threat environment?

Yes, that's a great question. And I think about more broadly, many organizations, not just banks or our institution, have really taken an on-prem focus, a device focused to security and not that, that's necessarily going away, but you talked about the Cambrian moment earlier of SaaS. All these applications have prebuilt Identity if you don't have a centralized tool. You're talking about hundreds, thousands of systems you have to connect. You can't afford to take that same approach as we did in the past. So for us, Identity is probably one of the biggest strategic pillars of what we're doing in transformation. And not so much just Identity for itself, whether it's authentication, authorization, but what it can drive, right? If you drive standards, you can say applications have to meet this new threshold. And that is very empowering to drive embedded security to meet regulatory requirements. But more importantly, then it's thinking differently about the user experience and thinking about security from the user onward. To maybe use a buzzword now, right, we're really thinking about how do we shift left with identity, right, to be at the forefront of security, not just as the front door, but continuing that journey from that security posture.

That's great. So it sounds like identity has evolved. Its role has evolved with you as you've thought through navigating that landscape.

Absolutely. I mean I think we've gotten great support in building out. And people may have initially asked us like, why is Identity forefront of our transformation effort, right, just how you log in and it's like, wow!, wait a minute. This is critical, not only for security, but privacy for marketing, and it's really taking the approach of that broader view of what we're connected to. And when you think about that spiderweb of connections, if you approach it the right way, you can drive a much broader transformation effort, and that's been very critical for us.

That's great. Thanks for sharing that. As I mentioned at the open, your Fifth Third Bank is also a customer of Okta's Workforce Identity Cloud. How do you view the role or the value in having one Identity company that you're partnering with on this journey as a bank?

That's a great question. For me, I think there's obviously great capability out there. But that interoperability, that freedom to solve Identity challenges independent of large ecosystems was a very, very important. And not that the capability may be different it's the dependencies that come along with it. And Okta really allowed us to free that up. And I think Todd mentioned it earlier, but you're seeing convergence across customer use cases, fraud use cases, AML, KYC that are bleeding into the workforce side. Things you are required by law to do for your customers are now becoming requirements for your employees. And that's radically different, right, where we may have to get to a world where just because you authenticate doesn't mean we trust you. We have to provide verification of our ongoing checks. And the platform, the capability that's already been built out in the customer side is starting to get merged into those enterprise use cases really to embed security with Identity.

Okay. Some great examples of use cases. Thanks for sharing that. What's next for you? What lies ahead as you think through the future of your digital transformation, as you think about Identity?

Yes. I mean I think we're on a mini year journey. We've been very clear with our investors and what we're doing. Really, it's about like many banks transporting us for the future of financial services. Fifth Third was well known to have been an early player in inventing the ATM network in the '70s without a genie product. But many -- like most organizations and financial services running on a core mainframe system, they were built to last decades. And as we think about our platform modernization play, Identity, to me, personally, is kind of one of those distinguishing things we got to get right. Identity belongs to people, not necessarily just enterprises. How do we start enabling our customers to bring things with Identity. And there's a lot of speculation what is the future of financial services with customization. We could talk about digital wallets. You could talk about blockchain. But at the end of the day, it's all going back to the user, who they are, how you maintain that relationship and provide value trust. And digital trust is obviously critical when you're handing somebody of their money and allowing them to invest in and care for it. So for us, making sure we deliver on our promise of trust and have that digital experience as we move into the next several decades will be critical.

That's great. You closed in the commentary, bringing it all back to the user. And I think for Okta, for us, we bring all back to the customer. And while it's great for us to share a vision for where our products are going, what's most powerful for people to really understand is how our customers are leveraging the investments they're making to go solve their business problems. So really appreciate you taking the time to share your story with us here today. Can we all thank John for joining us here today? Thanks very much. And with that, we're going to switch gears. So we've just opened on the Customer Identity Cloud. And next up, we're going to spend some time talking about the Workforce Identity Cloud. I am pleased to introduce to the stage our President of Workforce Identity, Sagnik Nandy.

Thank you, Eric and John, for that great conversation. It's always inspiring to hear from our customers how we play a strategic role in their overall goals Also, through all this morning through multiple conversations with customers and partners, it's become very evident how strategic Identity is increasingly becoming for every organization and business. I'm Sagnik Nandy. Hi, everyone. I'm the President and Chief Development Officer for Okta Workforce Identity Cloud, and I am here to share some really exciting developments and plans in that space. We have been a leader in this space since we started. And the innovation that we've done and continue to do in this segment has helped not only shape that segment but also transform it. We are excited to continue to push the boundaries of Workforce Identity as more and more customers rely on Okta to make themselves secure and make their user experience delightful. It's an exciting time to be an innovator in the Workforce Identity space. We live in a boundaryless world today, no boundaries on how we work, when we work, where we work from, what technologies we use, what devices we use, how we connect, who we connect with. So today, the definition of a workforce as a result of all of this has become a lot more fluid, and the boundaries are really blurring around who's an employee, contractor, a business partner. And the expectation is for Okta to provide connections for all these workers. Take T-Mobile, for an example. They have hundreds of thousands of workers spread across employees, contractors, business partners who all want access to their systems and tools and rely on Okta to providing it securely and efficiently. Using Okta, T-Mobile managed to reduce the number of authentications for their workforce as much as -- by as much as 90%. This allowed them, the folks in T-Mobile, to focus on serving their customers and not worry about technology or treat technology like an impediment. That's the business we are in. We hear from customers like T-Mobile all the time that for them to be secure and for their business operations to be efficient, we really have to address their entire workforce. And that's a use case we are very focused on. This extended workforce definition, extended collaboration and our investments in the past in Okta CIAM, along with our workforce investment, really sets us up well to address this broader extended workforce use case. Our vision for the Workforce Identity cloud is truly to connect everyone to everything. This is the North Star that drives our innovation in this space. We'll talk about lots of interesting product launches and deliverables. But before that, let's take a step back and examine the Workforce Identity market and what's driving the need for innovation and solution in this space. We are the leader in the cloud-native Workforce Identity market, but we've only literally just begun scratching the surface of opportunity in this space. We operate in a $50 billion total addressable market that can be split up as $35 billion in the identity and access management space and an additional $15 billion coming from adjacencies like identity governance and privileged access management. More importantly, there are 3.3 billion workers around the world, around 1 billion of them being knowledge workers. And increasingly, more of these workers are accessing digital tools and applications from different locations and a growing range of services using a wider range of devices. As businesses enable their workforce in this boundaryless world, maintaining security of the workforce is more important than ever. According to the Verizon data breach, 82% of cybersecurity threats, you can trace back their roots to some form of credential stealing or abuses like phishing. And we, at Okta, take it very seriously to provide protection against all these security threats. So we truly want to make things like anti-phishing technology available to every user, on every device, on every major operating system. As businesses, technology and security trends change. We have remained maniacally focused on driving innovation and shaping and transforming this space. Identity has evolved a lot since we offered single sign-on and multifactor authentication support 13 years back. As the space has evolved, you can see we've grown and helped the space grow, everything from on-premise resources with advanced server access and Okta Access Gateway. We have also led our customers to push the boundaries of identity, allowing them to customize our solutions for their exact identity needs by rolling out Okta Identity Engine, which is a complete rewrite of our platform. I'm excited to share that over 4,000 customers are already leveraging Okta Identity Engine. And this really allows them to make Identity their own, customize it exactly the way they need to and they want to. We have also made great strides in eliminating the password completely where possible. Because the password, at its heart, is very vulnerable and brittle. In 2021, we launched Okta FastPass, our password-less solution. Okta FastPass provides passwordless solution for your workforce to connect to everything, thereby making the trade-off of choosing between a delightful user experience and robust security, a choice of the past. We've also brought in FastPass and combined it with Device Trust, which can check for your OS version, whether your disks are encrypted, whether passcodes are enabled, thereby allowing you to create a higher security bar for your unmanaged devices as well as your managed devices. This really allows you to improve your security posture for third parties by extending some of Okta's goodness beyond the boundaries of your managed device perimeter. Okta FastPass is heavily used with companies like Takeda, Zoom, Hitachi, all relying on it to provide delightful sign-in experience and making those sign-in experiences more secure. In 2020, what's calling out -- FastPass now powers more than 4 million unique authentications every month with these numbers steadily growing. In 2020, we introduced Okta Workflows. Today, over 2,000 customers are leveraging the power of Workflows to drive automation and orchestration in their companies. Take Netflix, for an example. Netflix uses Workflows to orchestrate life cycle management across different business units. Prior to Okta, they were using multiple homegrown solutions and several third-party solutions. And now with Okta, they can consolidate all of that across multiple business units. Finally, Okta Identity Governance and Okta Privileged Access, which I'll cover in a lot more detail in a bit. They complete our vision of this unified platform that provides identity access management, governance and privileged access in 1 solution that your IT and security teams rely on and trust and love. I'm really excited about this innovation journey and really look forward where that graph goes over the next few years, and we are very, very committed to making it grow upwards and in an even steeper trajectory. So with that, let's talk about some product announcements. In the last couple of years, we've seen a number of high-profile attacks that had their roots in stolen credentials. That's why I'm really excited to announce the first announcement from this morning. We've made Okta FastPass phishing resistant. This has been a major undertaking, and I'm really proud of the team turning around this project at such a short time frame. Since FastPass works on any device, every major operating system and across multiple user bases, this means we are taking the antiphishing goodness and making it available across all these touch points. We're also enhancing our controls for other authentication factors like WebAuthn factors or new final authentication like Passkeys. This allows every company, every IT team to decide which factor or factors works best for their use cases. This flexibility and neutrality, the ability to let you choose what technology works best for your organization, is something very unique to Okta. And as Todd was mentioning, is part of our core DNA in providing that neutral choice to every customer. The next major item I want to talk about is the progress we've made in the Okta Identity Governance and Okta Privileged Access space. I'm very, very excited to share that Okta Identity Governance is now available to everyone in North America with 100-plus customers already using it since its launch in August. And today, we announced that we are making it globally available for everyone by the end of this year. Okta Identity Governance reimagines how governance should be done, pushing for simplicity and automation in the entire process of who gets access to what resources and when. It's a great way to keep IT teams productive without hampering the user experience. And we are very, very excited about what we have in store for Okta Identity Governance going into next year. I'm also very excited about Okta Privileged Access which we've been working hard on and will be available for early access in Q2 of next year and will be generally available for everyone, everywhere by the end of next year. Okta Privileged Access extend that same delightful user experience that Okta provides for apps and extends it to critical infrastructure, creating a far more modernized security stance for your privileged resources. As part of the unified solution, customers will get critical capabilities like privileged governance, vaulting support and compliance audits which are critical for securing privileged access systems, all within the same Workforce Identity solution that they already use with Okta. Just to put that in context, traditionally, companies have been using several bespoke solutions for identity access management, governance and privileged access. This is not only time-consuming given the number of integrations you have to do and the number of deployments, it's also very expensive. With the Workforce Identity Cloud, the customer will be able to get all these functionalities in 1 cloud solution, along with all the other goodness that they've come to expect with Okta, like uptime of 99.99%, federal ATO, all sorts of goodness in that 1 combined unified solution. Only a unified platform can manage your users access across any kind of resource, be it their apps, SaaS applications, servers, Kubernetes and many, many more. And that's what we are aspiring to provide. Kyndryl is a great example of the power of this unified solution. Kyndryl is a multinational IT company with around 90,000 workforce spread globally with a massive cloud deployment. They are leveraging Okta to knock down old silos of identity, and create a unified view and platform for identity across 1,700-plus apps. We also leverage Okta Advanced Server Access to modernize lease privilege access to critical infrastructure like Linux, Windows and virtual servers. Just to put it in context, using Okta, we managed to stop using 22 separate solutions that they inherited from IBM when they spun out and focused on 1 unified identity solution. That's the kind of power that Okta Workforce Identity Cloud allows them. Kyndryl is so happy with this, that they are also using the deployment of Okta as a model they look to replicate with managed service customers. I spoke earlier about Okta Workflows, a flexible and powerful identity automation and orchestration platform, and we have some great updates on that front, too. Every day, we hear about new ways in which organizations are leveraging workflows. Sonos, for example, uses workflows for securely provisioning privileged accounts. Red Cross of France uses workflows for more than 80,000 users in times of emergency to quickly spin up resources for them. In this boundaryless world, empowering customers to automatically get a lot more of this done is super critical, and that's what Workflows facilitates. Okta has over 2,000 Workflow customers and growing with many of them deploying hundreds of flows to drive identity automation and orchestration. Today, we are very excited to give customers some additional connectors and templates. Some of these involve new security connectors that they can initiate flows based on as well as risk signal integration so they can actually initiate automatic flows based on certain risk factors. What also makes Workflows very powerful is the ability for customers to share templates of flows with each other. So you can create something awesome and have others both share and use that or build on top of that. So to facilitate more of that, we are excited to share that we are making it even easier to publish connectors with our new connector builder. It's already in early access right now and will be made generally available in Q1 of next year. We are really hoping this will facilitate a lot more flows, a lot more automation across a lot more amazing exciting use cases backed by Okta. All of this innovation that I just spoke about on these launches are all on the Workforce Identity Cloud itself. When you put that together with our Customer Identity Cloud that Eugenio spoke about, Okta and Auth0 coming together, the possibilities are truly endless. You heard earlier today from Todd as well as Eugenio about the vision of OIN and how we are making it easier than ever for SaaS providers to build and innovate on enterprise-ready apps on top of CIC with the OIN as a natural bridge and glue for this ecosystem. With OIN, we are really facilitating a lot more use cases and discoverability for apps that are part of that network. As an example, take our business-at-work report, which we publish annually which tells people which apps are growing, which -- what kind of usage we see in the SaaS space. It creates this very symbiotic synergy for the SaaS ecosystem by being part of OIN. And we are hoping to continue to push in that direction. OIN also very naturally facilitates a lot of really interesting use cases across Customer Identity solutions and the Workforce Identity Cloud. As an example, take risk signals. If an application has been built using our Customer Identity Cloud and they detect a denial of service attack, they can instantly, through the OIN integration, share that information across every other application in the OIN. And Okta can then come and take preventive measures, maybe using Workflows and other things. So you get this natural benefit of an app being built using the Customer Identity Cloud and managed to span out that benefit to the entire ecosystem through OIN. So that's just, again, 1 example of something really exciting that we can do across these 2 clouds. So the OIN of tomorrow will accelerate the next generation of standards and make things such as Zero Trust access, security, automation and governance work a lot better together. It will be a lot more powerful for customers to implement and operate. Organizations, at the end of the day, want to use the best technology so that their workforce is as secure and effective as possible. App builders want to build on what's the next big idea and get it up and running as fast as possible. With Workforce Identity Cloud and Customer Identity Cloud coming together and things like OIN being a bridge, Okta is uniquely positioned to make this a reality for all businesses and make identity a lynchpin in the development and adoption of several new technologies for the years to come. So as we close our time together, I want to leave you with 3 main takeaways for the Workforce Identity Cloud. One, there are no more boundaries in today's workforce. Successful companies must be able to make people productive at any time, any location, any device, any software. That is why our mission at Okta is to safely connect everyone to everything. Two, as identity challenges become more complex, a unified platform across access, governance and privileged resource management will really help companies streamline their IT operations by bringing it all together in 1 unified consolidated platform that they already depend on and love. And three, in a digital-first world, the combined power of the Workforce Identity Cloud and Customer Identity Clouds will truly unlock powerful identity solutions for enterprises, partners and customers as well as really take the overall SaaS industry forward. This is why we are so excited about the next 10 years of innovation and opportunity that Okta has. I'm really, really excited, and thank you for your time today. Next, I'd love to welcome back Eric for a conversation with an Okta customer who leverages both the Workforce Identity Cloud and the Customer Identity Cloud, Kim Huffman from TripActions.

Thanks for joining us. It's great having on the main stage this morning. We appreciate you joining us here today as well. You were great. And it was -- I know the audience really enjoyed hearing your story in some detail. We wanted to share a little bit of that with this audience as well and give them some context for how you think about Identity. One of the things that's really apparent from hearing you talk about TripActions is how fundamentally you think as an identity-first company. And so I'd love to hear a little bit about that philosophy and your role as Chief Information Officer.

Sure. Yes, it's been an interesting journey. So I joined TripActions about a year ago right at the tail end of the pandemic. And really to come in and with the main purpose of focusing on building a technology foundation that obviously would be able to scale and grow as the company began to go quite quickly when travel came back. And the underlying kind of strategy with that is really focusing on developing tools and buying solutions that allow us to scale and be agile to our business. And so in looking at our business, we are, as I said, a travel company focused on really rethinking the way that individuals have -- take business travel end-to-end, not just booking a trip, but also the expense management associated with that. And we are -- we view ourselves as a tech company, not a travel company. And so for us, innovation is very important and partnering with companies that are focused on innovation. So when we looked at solutions that we had in our technology stack that we're really going to allow us to grow and scale quickly, we looked at the Customer Identity Cloud. We had an in-house IDP solution that we've been using. And looking at solutions that allow our developers and our engineers to really focus on what our core competencies are, which is developing the best travel and expense platform and not necessarily an identity solution, was really critical for us. It allowed us to have an immense speed to delivery, ease of use for our customers, and actually a partner that's focused on identity. Security is very important, and trust is very important in our industry. And so we wanted a partner that was thinking about identity all the time, and was going to continue to be building identity and innovating in the identity space. So that's were some of the things that we looked at as it related to the innovation.

That's awesome. That's great. And you shared earlier this morning part of the timing of your joining and you just mentioned at the end of the pandemic. Clearly, this was a challenging time for travel, and there was no travel at the beginning of the pandemic. How have you -- how is TripActions thought about technology's role in helping it navigate through those shifts in the industry?

Well, I think it -- we have a fundamental sort of mission in that. We think that the industry that we're in, which is travel and expense, is sort of ripe for innovation, and there's a lot of opportunity to disrupt and continue to innovate and push delightful user experiences, which is usually synonymous with the travel industry. So we look at technology and we look at tools and really trying to balance innovation and user experience and security. And so when we started looking at -- we were a Workforce customer for -- since I got there, and I've used Workforce for many years.

Little over 3 years.

And I still get really excited when I see the road map that I saw today for Workforce because there's a lot of great functionality there. but it allowed us to look at continuing to innovate. And what we're really focused on is this kind of speed of delivery, speed of adoption. So when we looked at the customer cloud and specifically the integration network, most of our customers are already on Okta. So they already understand the Okta ecosystem. Their users are already comfortable with Okta. And so it was a natural extension for us to use the Customer Identity Cloud and push -- onboarding and getting the users on our platform is one of the key success factors when we sell to a new customer, and the fact that they can use any Okta's the integration platform and their users are used to doing -- seeing it on their tile, it's just 1 less kind of friction point in that change management that we're trying to focus on with our customers.

You mentioned being on the Workforce Identity Cloud prior to your arrival, and it's been about 3 years in total since TripActions has been -- had that deployed. Obviously, now that's part of your portfolio as well. How do you think about the benefits? Or what do you see as a benefit to having 1 identity provider for you as you look through these very different use cases for how your stack has evolved?

I think there's -- fundamentally, for both clouds, there's common elements that are foundational. And so -- and there's also a skilling that we are able to take advantage of as far as economy of scale where the people that are supporting our apps understand it. We're using some of the same common foundations across both. And I think as our customers are even have questions on, hey, we have a question on the Workforce, we can help them right, because we've got people that are internally capable in both of the clouds. So it's given us an opportunity to kind of focus on learning on technology, partnering with 1 partner that can offer us with solutions on both sides.

And you mentioned prior to this, the team was building in-house, right? So how has that affected your ability to adjust your resourcing as you've partnered with Okta on this?

Yes. I mean I think we were obviously a smaller company, fast growth. And so I think they built it in-house, which makes sense in some cases. Obviously, now if you're a startup, it makes much more sense to go with the Customer Identity Cloud. But at that time, that didn't exist. So I think it allowed our developers, again, to focus on the things that they wanted to focus on. And like I said this morning in the keynote, are -- your developers and your engineers at Okta are thinking about identity 24/7. Ours are thinking about travel and expense feature, and I actually would prefer that they don't think about identity 24/7. So it's allowed us to move much faster. And actually, I think what it's done is there's a trade-off between sort of ease of use and security and privacy. And I think we don't have to have that compromise anymore because I think there's enough innovation in the space where we're not forced to make those choices. It's -- we can have a solution that does both seamlessly for us.

That's great. Great to hear. What -- so what do you see in the future? You mentioned some excitement over the road map specifically, but what do you see as evolving in the road map for identity overall at TripActions?

Well, I mean, I think personally for me, as I was looking at the -- hearing the keynote today and just trying to -- again, there's a lot of things that I think we've used point solutions for in the past around our identity, around Workforce management or even in the Customer Identity Cloud. And I think as Okta is evolving feature sets, it's going to allow for an opportunity for us to consolidate some of our existing solutions more on to the platform, which we have a lot of applications. So any time I have an opportunity to consolidate, it's great for me so.

We hear that a lot. Well, thank you for sharing your experience with us today. This is really helpful. Can we all say thank you to Kim for joining us here today. Thanks very much.

Thank you, everybody. At this time, we will take a brief 15-minute break. If we can have everyone back in the room in 15 minutes, please be back by 1:35. Thank you. [Break]

Please take your seats. Our program will begin in 5 minutes. Thank you. Please take your seats. Our program will begin in 5 minutes. Okay. Please welcome Okta's President of Worldwide Field Operations, Susan St. Ledger.

Hello. Thank you for joining us. Today, I'm going to talk you through a few things. Due to the high degree of interest from the last earnings call, I'm going to walk you through our progress on the integration process. I want to talk to you about how our 2-product strategy and the market is evolving, about why the market is coming to us and what are the drivers for our customers? And then lastly, I'm going to cover our go-to-market strategy. So we'll start with the integration process. We implemented several things very recently in the effort to stabilize go-to-market, I should say, at the end of Q2. So unifying the CRM system was one; unifying product marketing teams was the second; doubling down on sales enablement was a huge one for us; and putting more dollars into the commission pool for the second half of the year for our account executives. And then lastly, we intentionally slowed hiring to make sure that we had absorption of all the new people. As a result, there's been a significant decrease or a significant improvement, I should say, in Q3 attrition. Of course, there's always more to do, but we are pleased with the progress so far. So let's talk about the market evolution. I know that all of you in this room are very well versed on the TAM. But what I wanted to do is level set on the difference in the level of maturity between the Workforce Identity Cloud and the Customer Identity Cloud. Customer Identity is far less mature. And in my personal opinion, greatly understated. Whenever a market is in its early stages, it's usually underestimated from a TAM perspective. Just look at Workforce. Workforce in 2009 was stated to be a $4 billion TAM. And now in 2022, it's $50 million. Customer Identity is estimated to be a $30 billion TAM right now. But the reason I believe it's even bigger is a pretty simple proof point. How many identities do you have at work? You have one. I have one. I'm SSL at Okta. How many do you have in your personal life? I have dozens. Netflix and Peloton and my bank and my Tesla and whatever else. And how many do you add every year? And how many do your kids have? And how many does your wife have? And all the people you know in your life and how many do they add year-over-year? That is the Customer Identity opportunity. So whether it's Customer Identity or Workforce Identity, our fundamental belief is that everybody needs Okta. Whether you're a big company or a small company, whether you're an established company or a digital native company, across every industry. And again, it's a really simple principle. Every time you're trying to connect people and technology, you need identity. But to better understand our belief, what I wanted to do is discuss the drivers for each of these markets so that we validate that these drivers, every single one of them, are continuing to grow and accelerate. And we're in the early innings. So we'll start with Workforce. The drivers for Workforce are cloud modernization and migration, IT efficiency and security and employee experience. Let's look at them one at a time. Cloud migration and modernization, whether you're rolling out Salesforce or Workday or whether you're building your own homegrown cloud native apps, that's a key driver for Okta Workforce. Security is an obvious driver. But with the acceleration of remote work and the immense focus on Zero Trust, in conjunction with the recognition that people have become the new security parameter, that's also accelerating. And our protocol -- there was a protocol statistic, and you saw some good statistics from [ Portronic ] as well, but there's a protocol statistic that says 48% of all breaches in 2021 were due to credentials. That's the largest vehicle by far for any category of breach. IT efficiency. We all know that IT efficiency is a never-ending battle. And whether it's M&A or just legacy siloed on-prem tech that created your siloed identity, it creates havoc for enterprises. Of course, IT is always looking for increases in efficiencies. And that's going to continue, especially in this macroeconomic environment. Our core Workforce Identity Cloud inherently drives efficiencies, but by adding automation capabilities, like life cycle management and Workflows that you heard from Sagnik, we're seeing our customers get tremendous improvement in automation and productivity. A great example of this is Zoom. Zoom is what we call a power Workflows user, and they use us for many, many use cases. But the one they like to talk about a lot is they use us for license management. By looking at the number of authentications that happen across all of their licenses and their software environment, in 1 particular case, they were able to save 72% on every underutilized license in their office productivity suite. Employee experience. We all know that, that is incredibly important. And I love the fact that when I get up in the morning, all have to do is put my fingerprint on my keyboard and I have access to everything right at my fingertips. I think we can all agree that all of these drivers are accelerating. And the same can be said for the Customer Identity side. What are the drivers here? There's security, consumer applications and digital experiences and SaaS applications. Security here, also obvious, but it's focused on fraud detection mostly. So whether it's bots or credential stuffing, our customers need to be protected. And this is not true of just consumer companies, but public sector. If we look at the number of digital experiences that are government to citizen now in the explosion that both federal and state and local markets have driven, it's unbelievable. They've become a large customer for this use case for us. Take, for instance, the Kansas Department of Labor. During the pandemic, their unemployment claims and their federal pandemic relief claims went through the roof. And as they did, their fraudulent log ins were off the charts. So they came to Okta. And upon implementation, within just 1 week, we were able to stop over 1 million fraudulent log ins. You heard about why SaaS is such a big market for us and why it's such a big driver with customer identity. But we now have over 2,000 SaaS applications -- application providers already on our customer identity. And that -- now we're putting a big focus on it. That just happened inherently and naturally in the Auth0 environment. The SaaS market is estimated to go from $130 billion to $716 billion by 2028. The last driver for Customer Identity is probably the most important. And you heard Kim from TripActions talk about it. And that is about frictionless customer experience. From your websites, to your apps, to your Tesla account as well, digital experiences can make or break companies these days. It is the new competitive frontier. I don't care if you're a bank or hospitality or what your business is, it's the new competitive frontier. But customer experience has many different facets to it. So if you look at Warby Parker, they chose Okta to create an omnichannel experience so that their customers had a seamless experience whether they were logging in to buy glasses or actually logging in for a virtual vision test, which they offer. Dignity Health created centralized log in experience so that their patients could log in 1 place, whether they wanted to look at their patient records or talk to health care providers. Decreasing friction to acquire and convert has become a science for marketers. With technology such as progressive profiling, gone are the days where people are willing to fill out big forms to try and do business with you. Those are over. And lastly, another use case, conglomerates like Albertsons who have so many brands, they have to unify loyalty benefits, and they do it with Okta so that you're rewarded for shopping at any of their 19 brands. Every brand has at least one of these problems, but most brands have all of these problems. Of course, none of these Customer Identity drivers are new, but the landscape is changing and truly accelerating dramatically. The results are undeniable. There was a Watermark Consulting report recently that said, "Customer experience leaders generate a total return of 3.4x that of customer experience laggards." And the pace at which these experiences are being delivered on cloud native platforms is another accelerant. Gartner reported that by 2025, cloud native platforms will serve the foundation for 95% of new digital initiatives. That's up from 40% in 2021. So that's an incredible jump over a 4-year period. Another contributor to the changing landscape is build versus buy. And you heard a little bit about this from Todd, a little bit about this from Eugenio. But I want to tell you what I hear from my customers. This definitely was a build-it-yourself environment. Customer Identity was all about building it yourself. But developers are recognizing that the 2 hardest things to build are payment services and authentication services. The hardest thing to keep up with once you've built it is authentication because of the constantly changing threat landscape. Now add to that, that the volume of digital experience is that -- every company has to put out there for their customers is exploding. Developers want to focus on innovation. They want to focus on their core business innovation that's going to drive their top line, not on identity. And you heard a great example of that again from Kim. It was we recognized we were spending too much time maintaining identity. She said, any startup today would choose Customer Identity Cloud. And customers trust Okta. It's built by identity experts, and they know that they're not going to have to worry about us. We are constantly going to deliver scale and innovation for them on the identity front. So how does all of this that I've just talked about impact our go-to-market strategy? Of course, the most significant shift in our go-to-market strategy is driven by becoming a 2-product company. We now have the ability to serve the entire enterprise identity needs for our customers. In early indications are that our customers are really excited about our 2 cloud strategy. The common themes that we hear are that they are very excited about our converged identity vision and the ability to have a single provider for all of their identity needs. Of course, they trust Okta. And we've seen this over the years constantly where people move from 1 company to another, and they take Okta with them. We have a great history with CISOs and CIOs. And while they are not the decision makers for customer identity, they are extreme influencers. Lastly, Todd mentioned, these causes are purpose built, and our customers love that. They believe our Customer Identity Cloud and our Workforce Identity Cloud are custom-built and best-of-breed technologies. So let's take a look at a customer who bought both Workforce Identity Cloud and Customer Identity Cloud from Okta and their continuous expansion. In 2018, this technology customer chose Okta for its Workforce needs as well as its extended Workforce. The drivers for them at the time were improving security, user provisioning and scale. They were a hot company. They were growing fast, and they knew they were going to need to choose a solution that scale. As you can see, over time, they continue to renew and expand, adding employees and a variety of profiles, knowledge workers, warehouse employees, delivery drivers and content partners. In 2021, they unleashed the power of Workflows. You're hearing a common theme here on Workflows. They saw immediate results in the change to the onboarding program. They integrated 11 day-one applications and saved 90 minutes per user in the onboarding process. They were, at this time, onboarding hundreds of people per month. That's an incredible improvement in IT efficiency. Later in '21, that's when they decided, okay, now it was time for them to really change their digital customer experience, and they purchased Customer Identity Cloud. In January of this year, they renewed and expanded with a longer contract term and higher TCV. This is a great example of a company that chose Okta for their enterprise-wide identity needs. But how has becoming a 2-product company changed our go-to-market strategy? I know that's a big question that's on your mind. And there have been so many questions about the need for specialization. And it's the right question. It is the right question. The question is not if it's needed, it's where it's needed. And we've invested deeply in sales engineering specialization. We made the decision to have 1 account executive across both clouds. And the reason being this strategy to have 1 account executive aligns with this very important shift that you heard Todd talk about, which is identity is becoming a board-level discussion for many companies. More and more organizations are recognizing that identity as a 10-year strategic decision that enables business outcomes. We had our Executive Summit yesterday and into the evening last night, and it was unbelievable hearing the stories from an Air Force CIO from MLB about how identity has become an enabler for their business. It was never seen that way in the past. So we're getting into these executive-level conversations, we're enabling our account executives to have that level of conversation, focused on business outcomes and identities enabling of those business outcomes. So whether it's Workforce Identity or whether it's Customer Identity, it's still identity. But based upon the decision makers, the influencers and the champions, we align our sales force, which is made up of both account executives and sales engineers, to have the right level of discussions. We specialize our SEs on a range of skills based upon the customer needs. We have sales engineers that do hands on keyboard, that do configurations and that drive all of our proof of concepts. We have field technology officers, we call them field CTOs, that drive -- that have enterprise architecture discussions and also help our customers figure out their enterprise-wide identity strategy. We have SEs that were previously developers. And we have SEs that have deep, deep, deep security backgrounds far beyond just understanding identity. So whether it's a frictionless employee experience for Workforce or a frictionless consumer experience for a website, identity is the enabler. Whether it's cloud modernization so that you can adopt business applications for your employees faster, or whether it's enabling faster time to market for new consumer experiences, identity is the enabler. With this elevation of identity as a 10-year strategic decision and the fact that we can now serve end-to-end enterprise-wide identity needs has actually led our customers to expect more out of Okta. And as such, we expect more out of our partners. So the last part of the go-to-market strategy that I want to touch on today is to talk about how our partner ecosystem is evolving. As you all know, the early strategy, as it is with any company, the early strategy, we were smaller, and it was all about reach. So the partner ecosystem was mostly focused on resellers. And they're still important where we need reach, still very important where we need to reach. But with the market evolution and the expansion of our portfolio into Customer Identity, Okta has become much more interesting to new partner types. Let's start with SIs, systems integrators. Whether they're global or boutique, it doesn't matter. They recognize that identity is now central to cloud modernization, Zero Trust and modernization of consumer experiences. We have 2 great proof points just this week. For the first time ever, we have a global SI in Deloitte, and we have a boutique SI at BeyondID, that are both platinum sponsors of Oktane. That has never happened before. That is a great proof point that they now understand how much business they can build around the Okta ecosystem. Next, we'll talk about service providers. Managed service providers are an important go-to-market motion in certain parts of the world. We've established 2 critical design partnerships this year with strategic providers, 1 in EMEA, 1 in Europe and 1 in Asia Pac. And we're building out that motion over the coming year. Our technology partners, of course, remain at the center of our biggest competitive advantage. And you heard all about this from Todd. Neutrality, neutrality and independence. Our OEM partnerships afford our customers deep seamless integrations with over 7,000 technologies. And some of the most prolific are our security partners that help us bring Zero Trust to our customers as well as our SaaS partners. But the addition of Customer Identity to our portfolio accelerates the enterprise readiness for every SaaS partner who chooses to build on Customer Identity and our Customer Identity Cloud. And at scale, that's going to create an incredible network effect for all of our customers that are eager to adopt more and more SaaS applications. Last but not least, cloud service providers. It's become very clear to us that our customers are very excited about buying off the AWS Marketplace. Our year-over-year growth with AWS was -- is 300% already against last year's full year. And it's no surprise that AWS is Okta's Technology Partner of the Year. We look forward to doing much more with AWS in FY '24 and beyond. And with that, I would love to invite Chris Grusz up to the stage to chat with me.

All right.

All right. Thank you so much.

Thank you for the Partner Award.

It's -- well, it's very well deserved. So huge congrats, and we should probably chat a little bit about -- you're the one responsible for partnerships. So maybe if you could take a few minutes and tell our audience specifically what your role entails?

Yes. Sure. So I run the Alliance organization for AWS. And that is specifically for our ISV partners. So I'm part of Amazon partner network. And so any ISV that's a partner with AWS goes to my organization. And that also includes Marketplace. So earlier this year, Marketplace in the Amazon partner work were actually separate teams, and we've merged those 2 teams together. And so I'm responsible for all the business development functions for Marketplace as well as our ISV teams worldwide that are building on top of AWS.

Excellent. Excellent. So can you share maybe some of the trends that you're seeing, changes that you're seeing in the Marketplace?

Yes. I mean, first of all, Marketplace, it's interesting. I've been with the team now for 7 years. And when I first joined the team, there was a ton of evangelism that we were doing. We were just trying to get ISVs to try Marketplace out. We're trying to get customers to try it out. And so there was a lot of kind of convincing that was going on. And I think the tipping point was about 2 years ago at re:Invent where suddenly the conversation has changed where it was no longer should I try it, but it was more about how do I do better? And so we saw ISV suddenly just defaulting to selling to Marketplaces. And then we also saw our buyer community doing the same thing, where we had buyers that had the same type of experience. They may be put their foot in the water and tried it, but suddenly, they were now doing all of their subscriptions for their software on AWS to Marketplace. And so they went from doing 1 or 2 subscriptions to dozens of subscriptions. And so we've really seen Marketplaces take off in a very material way. Last year was the first year that we disclosed how much revenue is going through Marketplace. It's now in the billions of dollars. And so the size of the deals has gone up dramatically. When I first started, the transaction sizes were very small. It was a couple of thousand dollars. And we're now seeing subscriptions that are 7 figures, 8 figures, And even starting to get up to 9 figures in size. And so the deal size has grown dramatically. And then the other piece is that it's really branched out from just infrastructure-related products. So we used to sell security products, networking and those were the top categories. Now we're starting to see line of business solutions sell through Marketplace. So we're seeing products like Infor. People are buying ERP systems to Marketplace, and they're buying help desk solutions, they're buying things like Genesys for their call centers. So we're seeing customers buy everything, not just infrastructure products, but all their software through Marketplaces. So that's a big trend. And then the buyers are changing, right? Again, it used to be that storage admin, security admin that was buying through our Marketplace. Now it's become a line of business buyer. They're buying those types of solutions because those horizontal apps or these vertical apps, they're not bought by a CIO's office, they're bought by that line of business. And so we're now seeing all kinds of SaaS applications across the board come in, which candidly makes it much more critical for us to work with Okta as well because that is now the way that these SaaS applications are coming in AWS.

That's great. Because well, first of all, congratulations because it speaks to how seamless you've made the experience. It really is pretty amazing. So maybe let's talk specifically about why identity has become such a critical element. What do you see from customers?

Yes, it's interesting. So one of the other service lines that ran business development for a -- it was a service called Control Tower. And it's an automation tool that basically automates the standing up of what we call landing zone. This is how customers build their AWS environments. It's kind of like a stamping factory. They standardize their standard accounts, and then they use Control Tower to distribute those. And what we started to see was that there was common themes on the type of software that they use the very first day they work with AWS. Security is kind of a day zero type of solution. But then when you peel that back, there's a whole variety of different technologies that fit underneath security. And what we found was that there was -- ultimately, there was 3 things that always got implemented. One was identity. So as soon as you came in, that had to be established. So identity was a job zero function. The second piece was observability. So we would see them add like how they're going to send their logs and where those are going to go. And so those types of solutions were also kind of a day 1 type of solution. And then the final point was really more of that endpoint security product. So people would secure their instances, and they'd have an endpoint security product. But identity was always one of these things that always popped up at the very first time that they started with AWS.

Makes sense. Yes, it does make sense. So obviously, we value our relationship tremendously. But it would be great if you talked a little bit about what Okta brings that's unique. You have a lot of ISVs as you just said. And I remember in the early days, there were a handful of ISVs. And so what is it that makes Okta so unique and that drives our partnership?

Yes. I mean it's -- if we take a look at Marketplace, we were a 10-year-old service. We have over 2,000 ISVs now. What's cool about Okta is it's -- first of all, it's so complementary to what we're trying to do, right? There's a lot of solutions that we have in Marketplace. But again, it is such a complementary solution. Our customers want identity. They want to have this identity posture in place as they move to AWS. And so it is such a complementary relationship. So I'd point to that. Number two, you've done the work to really integrate fully into AWS. And what I mean by that is there's now 21-plus integrations and counting, and they're across a variety of AWS services. So you've integrated Okta into like our SaaS applications, like Chime, or AppStream. You've integrated some of our lower level services like API Gateway. And so having that identity storyline across multiple AWS services is key. I think out of your catalog, you've got 7,000 plug-ins in your catalog. And the last I heard is that your plug-in for the AWS console is actually, I think, #2 in your entire catalog. And so that's just great validation by our joint customers. We've got thousands of joint customers, and it's really cool to see that we're that high up on your catalog. And it just, again, it helps drive that migration in AWS, which is ultimately what we look at from an AWS perspective. How do we make these migrations go faster? And if we can have that identity story upfront, ultimately, it's driving those customers quicker to AWS, and it's also growing all the other SaaS applications that are built on top of AWS because now they can use Okta that's going to grow their consumers as well. And so they're streamlining on that side as well. It's not just the migration for those back office systems. Okta helps enable and grow all the other SaaS applications that are growing on top of AWS.

That's a great call out. I guess specifically, the part of the reason why it works so well is because we have a deep technology partnership between our development teams and engineering teams and then we have the go-to-market that marries with it. So I think that's why we've seen the acceleration for sure. That's great. All right. So let's look into the near future. Marketplace just keeps getting more and more successful and then thereby making us more successful. So what can we look forward to in the future that will help you and your other ISVs?

A couple of things. So one, we're going to continue to focus on how do we automate that SaaS experience with AWS. When we first launched Marketplace, it was really machine image catalog. And we had this nice integrated experience where the Amazon Machine Image was purchased. It was easily deployed in 1 motion to an AWS customer. When we launched SaaS, we kind of jumped more to the contracting side. And what we found is that people would buy a SaaS solution, but then they don't have to spend hours or even days wiring that up to set that up effectively with AWS. And so there's a whole bunch of things that we have on our road map to streamline that. How do we deploy agents for Okta? How do we make it a much more integrated experience? So it starts to resemble more of a first-party look and feel when you're using it alongside AWS services. So the automation is a big one. The second piece is we're going to continue to invest in the channel. And it's kind of interesting. When we launched Marketplace, our original motto was it was going to be more of an app store type of approach. You would have ISVs on one side, you have customers on the other. It's going to be so simple, you wouldn't even need a channel partner. And that was a big miss for us because what we found is that there is this huge transformation going on in the channel. Like local [ VARs ] that were doing, break/fix, rack and stack for small data centers, that work is going away. But what we've seen is that work is now being replaced by managed services, consultation, implementation. And so we've effectively retrofitted our marketplace that we can now bring in channel partners. And when we launched Okta, this is one of the big things we talked about, was, how do we bring born-in-the-cloud channel partners to Okta? And so we're really excited about that. Through our channel partner functionality, Okta can just authorize resellers to resell through Marketplace. We take care of all the billing. We do all the distribution of those funds. And so it becomes a nice channel enabler as well. And so that's another area that we've seen really good growth on that, we're going to continue to double down on. And then further, just working closer with top ISVs like Okta. Again, as I kind of rewind back when we started, it was kind of a trial of experience and people are kind of putting their foot in the water. What we're finding now is that Marketplace is becoming a material part of our ISVs businesses. And what I mean by that is we look at materiality is if they're doing over 10% of their revenue through Marketplace. And we're seeing a lot of our ISVs actually surpass that clip. And so that means better co-selling in the field, better field alignment, better executive alignment alongside all the automation that we bring to the table from a Marketplace perspective. So those are a couple of big ones. We're also doing a lot on the international side. I think that was the final piece that we really looked at for Oktas. How do we help bring Okta out to the international markets? And Marketplace, because we're a day 1 service within AWS, any time we launch a new region, Marketplace is there. And so we're starting to see a lot of ISVs. look at Marketplaces now the go-to-market motion for their international expansion. It's cheaper just to use Marketplace than go putting people in different geos, hiring people figuring out the labor laws, just use AWS, use the co-sell resources, use the taxation that we provide to the Marketplace to really expand that international footprint.

Totally agree. First of all, your sales team has been unbelievable to partner with. It's just been -- had such a huge impact. And the global reach is definitely starting to work. So we're excited about that. I think it's going to continue to accelerate. Let's give Chris a round of applause. Thank you so much for joining us.

Thank you.

All right. With that, I would like to introduce our CFO, Brett Tighe, to take us home.

Thank you, Susan. Thank you, Chris. That was a very insightful conversation. I know we're very excited about the partnership. So thank you for taking the time to chat with us, Chris. We appreciate it. And thank you, everyone, for joining us today. We know your time is valuable. So we really appreciate you all being here and taking a little bit of your time to learn a little bit more about Okta so. If there are really 2 takeaways I want to get across over the next 15 minutes or so, these are the 2. So you can tune out after we get past this slide, if you'd like. But these are the 2 things I want to make sure that I really get across, right? So our company is only 13 years old. It's only 13 years old, and we've developed a very strong foundation. And the reason that foundation matters is something you've heard throughout this presentation, and frankly, you've heard over the last several quarters, around this massive market opportunity. We've earned the right now to go after that massive market opportunity because of that strong foundation we've built. And I'll talk -- we'll talk a little bit about that foundation over the next few slides. And then from a financial profile, we've got a very attractive financial profile. There's a lot of reasons to like it. You can start with the fact that it's -- obviously, we're a SaaS business, fully SaaS business, so you land and expand. We do a great job of that. You'll hear a little bit more about that later today. And our ability to balance growth and profitability. You'll hear a little bit more about that throughout the presentation. So those are the 2 things, strong foundation and a very attractive long-term financial profile. So I want to make sure you guys get that. So let's look at that strong foundation. We could have dizzied you with a bunch of numbers, but we decided these 6 will probably cover it best. You can talk about the great current RPO numbers, $1.5 billion. And I think if you've heard me talk about current RPO, I'm going to give you the obligatory, I think this is the best forward-looking metric out there. You notice calculated billings, it's not on there for a reason. Current RPO continues to be that best forward-looking metric. You can look at the total RPO number, you could look at net retention, total customers, the gross margins, everything. We've built a very strong foundation. And just like I said, it's all about that strong foundation to what we can build from, from here, right? That $80 billion TAM. As you heard Todd talk about earlier today, our revenue guidance for FY '23, a little bit north of $1.8 billion. That is a rounding error compared to the $80 billion opportunity. And so we believe our foundation is setting us up to be able to go after that opportunity. So let's dive in a little bit about one of those metrics, net retention. It's one of my favorite metrics. I think a lot of you like it as well. If you look at the last several quarters we've got here on this slide, we've been a little bit north of 120%. And I want to be clear, that's above our stated guidance in the past. We think it should travel in the 115% to 120%. So we're really pleased with what we've been able to produce over the last several quarters. And that's a testament to the land and expand and we'll talk about a little bit over the next few slides. But I think it's more important if you look at the gross retention that you see on the slide. It's been consistently over this time frame in the mid-'90s. I fundamentally believe we do not have a great net retention number like this if we do not deliver a great gross retention because you earn the right to an upsell by being able to deliver on the promise to our customers, and that's part of who we are as a company. One of the company values that we have here is love our customers. You can see it through delivering customer value, customer success, delivering on that initial promise. If you don't deliver on the initial promise, you don't get great gross retention numbers like this and you don't get the opportunity to upsell those customers. So it's crucial to how we operate. A lot of our customers is a key company value. We -- every day, day in, day out, we do this, and you see the results in these great gross retention and great net retention results. So let's twist the math a little bit and look at some of the cohorts, right? So this is basically just another version of net retention, but it's a customer cohort. So when you joined us, what were you spending in the beginning? What are you spending now? Let's take an example of FY '14. It's the very bottom, what is that greenish color on the chart. This is inclusive of Auth0. So let's pretend like a very theoretical example that all of the customers who signed up in FY '14 were spending $1 with us, they're now spending $3.50 with us. A testament to that strong land and expand. This includes the attrition. This doesn't just include customers that are still customers today. But as you saw on the prior slide, our gross retention is very high, which means we don't lose customers too often. So if you started, like I said, if the group started with $1 in FY '14, now they're $3.50. If you look at FY '15, it's $1 turns into $3.07. And the interesting thing about this is if you look at each of the CAGRs, I'm sure you guys are all pretty quick in math, the CAGRs of a lot of these cohorts, they all travel in a very similar path, whether it's over time or in certain time frames. And I think that's a testament to what I just said. When you love your customers, you need to drive customer value, you drive customer success, you see numbers like this. So personally, I'm very proud of this chart because you can see the consistency in our land and expand over time. It tends to repeat itself. Once we get a customer in, we drive that value, we tend to upsell, we tend to drive that customer success. So let's look at another cohort that's very important to us. It's really the large customers. I think a lot of you have seen these stats. First 2 columns, just to be clear, exclude Auth0. The second 2 columns include Auth0. But the story remains the same. If you look at the growth rates on these numbers, it doesn't matter which cohort you look at, $100,000, $500,000, $1 million, all of them outpace the total customer count growth of the company. Yes, we're proud of the 16,400-plus customers we have, but we are also very proud of these numbers. Because if you think about what we've talked about over the last few hours and really the -- if you saw the keynote this morning, if we want to fulfill this desire, this potential of being a primary cloud, we can't just service small customers. We can't just service medium-sized customers. We have to also do with large customers. And so it's important for us to focus on this. You can see the results. We've done quite a good job over the last several years here, and we continue to invest here and continue to focus on this because this is part of fulfilling that potential that we have as a company. The other thing I might say about this group is, clearly, we don't all start with a customer that says, oh, they're greater than $100,000, and then they just stay there. I've talked about the land and expand. So a lot of these customers start below $100,000 and then end up above $100,000 because of the land and expand. Start below $500,000 and be able to upsell beyond that. There's a lot of evidence in that. We'll see a little bit more of that as we go through the presentation. So let's dive into a couple of other cohorts in terms of large customers. We're proud to say today that we've got half of the Fortune 500. We've got about 70% or greater than 70% of the Fortune 100 that we can count as customers. And for the Global 2K, we can count 33% of the Global 2K as customers today. So I think there's a couple of things I want to make sure that you understand though. You can see the title on the slide. Yes, we count these customers as customers today, but we're not saying that they're fully penetrated. In fact, the vast majority of these customers are just scratching the surface within the opportunity. Yes, the average size of these customers are significantly larger than the average customer across the total company. But the number of identity use cases that we can still address across this group is staggering. And so yes, we're proud of these numbers, but there's a lot to work on. And if you saw the slides prior, if you remember the slides prior about how we land and expand, we're going to run the exact same play in this group. We don't go into these big companies and say, hey, lift and replace everything. We go in with a small implementation, we drive success, we drive value. We get the opportunity at the next identity use case. And so that's what we're going to do with this group as well. The other thing I want to point out here is you'll notice that a U.S.-based metric, Fortune 100 and Fortune 500, we have significantly more penetration in terms of number of customers relative to the Global 2K, which is a metric that has a majority of customers outside the United States. And that's why you've heard us talk about in recent quarters about global acceleration. You can tell when we focus on a region, we do well. We just need to do the same thing outside the United States, and that's why we're continuing to invest from a global perspective. Now for those of you who've been following the story for a while, you'll recognize this slide. We've been using this one for a while. It is the top 25 customers that we can count as customers today. So what you can see here on the first blue box is when they became a customer. The orange box is all the incremental ACV or upsells. There is a lot of orange on the page. So you can see in our largest customers, we do a tremendous amount of upselling. And then the final part of the slide here, you'll see the green box is when they became a $1 million customer. So there's a couple of things I want to make sure that you see here. One, in a lot of cases, our biggest customers started really small. The other thing is, we also are landing with bigger customers these days. You can see that the green box is earlier in the history of a lot of these customers now. But the fact remains the same. They still upsell a tremendous amount after even landing with $1 million ACV contracts. And then the second thing, take a look. I know the font is a little bit small. But take a look at the industry next to each one of these customers. It's pretty diverse. But that's not the only place that's diverse. Let's look at the top 10 industries by ACV. This is in alphabetical order. So if you see, these are our top 10 industries. The important fact on the slide is that none of them are greater than 10% of the ACV in the entire book of business. And there's a reason for that, and you've heard us talk about it for the last couple of hours. Identity is a universal problem. It's not an industry problem. It's not a U.S. versus international problem. It's not a big versus small company problem. It is a universal problem. And you can see that squarely by looking at this slide. All right. We've talked a lot about top line cohorts, land and expand, a lot of success there. Let's talk about profitability. So if you flash back to FY '17, fiscal year '17, the year -- 2 months before we went public, our free cash flow margin was negative 33%. This year, if you paid attention to the commentary in the latest earnings call, I said low single digits and positive free cash flow. If you take point A and point B and do some simple math, that's 600 bps of average improvement in free cash flow margin over a 6-year horizon. But that's not where we're going to finish. We're going to continue to improve profitability. So you can see on the bottom right-hand side of the slide, we're committing to you in FY '24 we're going to improve both free cash flow margin and non-GAAP operating margin. But it's not just about FY '24. We've been doing this with our free cash flow margin. We're going to continue to do that past FY '24. So it's not just about FY '24 improvements, it's about setting a glide path for FY '25 and beyond. So another topic I want to talk with all of you about is around dilution and stock-based compensation. So before I get into dilution and stock-based compensation, I want to remind everyone how we compensate our employees. We do it through a mix, like a lot of tech companies, of cash, to salary and bonus and equity. The equity component hits dilution and stock-based compensation. But over the years, we've changed that mix. So if you look back prior to being a public company, clearly, it was weighted on the side of equity and less so on the cash side, right? As we have matured as a company, you can see us balancing the 2 because that's what you do. And we're going to continue to do that. If you remember, several years ago, we talked about, we believe the right balance, the right balance there, would produce about 2% to 3% net burn. That's what we've produced over the last several years since we've been a public company. And the important thing to factor in here is when we think about this balance between cash and equity, we're thinking about it in 2 lenses: one, attract the best and brightest to be able to go after this massive market opportunity but also -- and also retain them. And then also do a fiscally responsible thing from a company perspective. And you can see us delivering on our promise over the last several years around net burn in terms of dilution. Now given the stock price compression over the last 6 to 12 months, we do believe in the near term that, that dilution will rise by a few points. But that doesn't mean we're not managing this. We've been managing this for years, as I just described. And we're going to continue to manage to do the right thing for the employee, but also the right thing fiscally responsible from a company perspective. And as dilution goes, you can see you guys can read the title, we're going to continue to work this down over time because that balance between cash and equity for our compensation programs will change, and we will improve on dilution. That will have a direct effect into your SBC expense as a percentage of revenue. So you'll see that be driven down over time as well. Now the other thing on stock-based compensation expense I wanted to cover with all of you was the impact associated with Auth0. We have talked about it being material over the last few quarters. I wanted to put some exact numbers on there for each of you. So you can actually see it. You can see it is very material as a percentage of the revenue number. We do expect this to be driven down over time as well. All right. One of the last topics here will be our -- a few things on capital allocation. Frankly, there's really not much to report here. Fairly similar to what we've said in the past. We're going to maintain a strong balance sheet. We're going to continue to invest in the business. And in terms of tuck-in M&A, if we find something that makes a lot of financial sense that can accelerate our product road map, we will obviously evaluate opportunities like that. Now for our final topic, something that's near and dear to my heart, to the management team's heart and frankly, the entire company's ESG, we have made a very big effort on this over the last a couple of years to be able to set this up, to be able to lay the foundation for a great program. And you can see that in the work that we've done. You've seen the science-based targets. You've seen the human rights impact assessment that we released for the first time this year and keeping all of you up to date in terms of the ESG fact sheet. This is something we've, like I said, set the foundation. We've done a lot of work here. There's still a lot of work to do, but I'm extremely proud of the team who's been working on this. They've done a great job, and we're going to continue to make progress here. So to really wrap it up here, I want to make sure there's a couple of things that all of you remember. We've talked about how identity is critically important. There's a massive opportunity out there. It's a universal opportunity. You just heard me talk about it. It doesn't matter if you're segment. It doesn't matter if you're U.S. versus international. It doesn't matter big or small you are. And the good news is we've got the platform to cover the most identity use cases out there, whether it be on the workforce side, which you heard Sagnik talk about, or the Customer Identity side, which you heard Eugenio talk about. We've got a great product to be able to go after that massive market opportunity. And then for my presentation, remember 2 things: strong foundation; and a very attractive long-term financial profile. So with that, I'm going to invite my fellow management team members up here, and we're going to do some Q&A for you.

Appreciate the details, Adam Tindle, Raymond James. Susan, I wanted to start with you. You alluded to some of this quickly in your presentation. But on the last earnings call, sales repetition was highlighted as one of the primary reasons for the lower billings outlook. Can you comment on the state of the sales force? Would be great if you could go into specifics on Okta versus Auth0? And then I have a follow-up, please.

Sure. So as I mentioned, we've seen a massive improvement in the attrition in Q3. So we believe that all of the things that I mentioned that we put in place have had an impact. We've also gotten that type of feedback from the reps themselves, from the account executive. So as far as Auth0 versus Okta, I mean, it's a blended Salesforce now. And I think that what we're -- we definitely are tracking things like who has sold which products and making sure that they're cross-selling their product that they didn't know. And we're seeing early and strong indications in that as well.

Okay. And if I could just add to that -- sorry, I don't mean to interrupt you. I think that we're really proactive about making sure we're set up for long-term success. So it's not like the attrition gets a little bit better and we're taking victory laps. I think what's going on in the world in terms of the hiring market might be contributing to some of that. So we're making sure we double down on the long-term things we know we need to do, whether it's building the best products, whether it's making sure everyone sees the vision clearly and on and on. So it's good progress, but like I said, we're not high fiving ourselves around the block.

Understood. And Brett talked about moderating headcount growth. Susan, this one is still for you. Do you have enough productive sales capacity given the attrition that you're experiencing right now, the improvement in attrition to still achieve that prior 30% to 35% revenue growth? Or is that something you think will have to be built?

We're in the quiet period so.

Good try.

We wanted to -- no, we -- first of all, we take financial outlook and forward-looking comments very, very seriously. We know they're valuable. And we also wanted to have this conversation right when we had Oktane. So we realized it's not ideal to do this in a quiet period. But if we could really stick to the high-level strategy and don't put us in a compromising position, we'd really appreciate that.

Brian Essex from JPMorgan. Yes. Let me know if I'm out of bounds with this. But just want to understand where you are with latest version of your OI operating system, how many of your customers or if maybe you can get a sense of your installed base that's migrated over.

Yes, I'm happy to talk about that, and Sagnik is running the Workforce Identity Cloud. He's an expert on this as well. Okta Identity Engine, I think, is one of the most important parts of the Workforce Identity story and probably the most maybe we could be more clear about talking about what it enables. And it's been a journey over the last few years, and that's because it's really an important driver. And it's -- think about it as we -- 3.5 years ago, we rethought what a Workforce Identity Cloud would look like if we started at the time. And as Okta evolved in the history of Okta was really -- it was very quick to set up, and it was very quick to get value from. But the trade-off there was sometimes it was too rigid in terms of what it did. So Okta Identity Engine is rethinking from a componentization and flexibility perspective, what you would need from a Workforce Identity Cloud if you did it today. So it enables things like much better policy on your application. So you could very, at a custom level, say these kinds of apps need these kinds of authentication factors, these other kinds need a different policy layer, and it's quite powerful. And we've made a ton of progress on not only new customers -- because it's been available for new customers for coming up on a year, but also importantly, upgrading this customer base. This customer base you saw that has amazing gross retention, powerful upsells, cohorts increasing over time. It's a big priority to get the OIE upgrades happening. And they're progressing very strongly. We're very happy with it. Big customers. I'm in the executive sponsor on a bunch of big accounts, and they're all upgraded and shown a ton of progress. We haven't broken out the numbers in the pacing, but it's something that we should consider actually. And it's -- I'll take your question as feedback that we could maybe be more detailed there in the future. Do you have anything to add there, Sagnik?

Yes, a few things maybe. We shared like we have several thousand customers already on OIE. So we shared that in the deck. We -- you can think of it broadly in 3 different categories. So new customers who are by default on OIE, and we are seeing a vast majority of them stick to OIE, maybe a very, very small sliver where there might be some missing feature. But -- so that's automatically increasing the OIE pool. Then we have built tools for automatic migration, and we've already converted a bunch of existing customers using the automated tools, including some big ones. So as we leverage that tooling, we'll see a lot more. And then there's a third pool where we know there are specific things where there might be a few remaining features or some things work slightly differently. And there, we are chipping through that list as well as, in some cases, we feel what we have the new thing -- it might just be just desire to stick to old things. And over time, like that will automatically happens. And we are investing in all 3 buckets. So that's happening.

A real specific example that I want to talk in specific so you guys get a good understanding. So like a feature that we recently made compatible with OIE was the rich command line interface into AWS. So before we did that, all the thousands of customers that were using that rich command line interface in AWS, you couldn't use it with OIE because if we hadn't upgraded -- we hadn't made it work with OIE. But that's why we knocked down recently so that enabled a whole new cohort to upgrade. So it's things like this. We're in pretty fine-grained details and getting the majority of customers over there.

Maybe just a quick follow-up. Like how important is that for the adoption of your 2 cloud strategy? And is that an accelerant to attach rates on your platform? And I'll pass it on.

I think it's very important. It's very important because we have a ton of innovation from FastPass, to things like this powerful policy engine for contextual access that are enabled by OIE. A couple of things that aren't actually enabled by OIE are things like governance and Workflows and privilege, those actually, they're kind of at a different layer of the stack. So you can use life cycle management or the Workflows capability or governance. It doesn't matter if you have OIE or not. But again, everyone is going to OIE so it's not going to matter over time either way.

The good nice thing is we are increasingly hearing from customers reaching out to us saying, hey, we aren't on OIE. Can you get us on OIE? And that's where the tooling and a lot of these things are additionally helping. So the momentum is there.

Great. Brad Zelnick with Deutsche Bank. Thank you so much for hosting a great day. Brett, I want to ask a longer-term financial model question. So cut me off if I'm going out of bounds relative to a quiet period. But can you just remind us of your longer-term targets that you have out there? And as you talk about the leverage in the model beyond fiscal '24, can you just maybe double-click on the sources of where we should expect that to come from? And the rate of investment from here all the way to '24 and beyond that you're going to pursue for this massive $80 billion opportunity.

I can make a quick comment and then you can fill in all the details or some details, Brett. So when I think about the business, and this has been true some of you, we've been friends for over 5 years since we've been public, so you've heard me say this before. But if you look at our business, the gross margin is healthy. It's getting better, but it's already healthy. And if you look at the biggest lever on cash flow and profitability over time, it's really the sales and marketing spend. And that's very related to you spend money in a given year for growth in the out years. So in our business and in our model, since the retention and the upsells are so healthy, there's a very natural leverage between investment in sales and marketing for the out-year growth and how much growth you get in those years and how much cash you burn or generate in a given year. So we have a natural lever there that sets us up for a lot of flexibility and success there as we balance growth with cash flow, which leads to profit over time.

Yes, Brad, obviously, given we're in the quiet period, I'll defer your question until November 30 because obviously, we've got the older model out there, but we said we're going to reevaluate it and come back to you at Q3 earnings.

I think it is important to -- at a high level, big picture, the -- like every other organization in the world, it is a different world than it was a year ago. It's a different world. Full stop. And I understand that deeply. The Okta Board of Directors understands that deeply. And the management team understands it deeply. Money is no longer free. And so what that means for us is we have to be really disciplined about our investments and making sure they reach over the ROI hurdle. So a year ago, it was different. It was like the opportunity cost was 0 because we weren't going to make anything on the money anyways. So now it's -- these have to drive our strategy. They have to really move the needle because money is not free.

It makes total sense. And maybe because that was a bum question, I'll ask another one.

You get 1 bum question -- 2 bum questions.

1 swing and then that's it.

One more. So I loved all the disclosure about large accounts, the top 25 accounts which we've seen over time. But if we just think about, again, the massive $80 billion opportunity, how underpenetrated you are, yet you're -- you claim over 50% of the Fortune 500, I think it was even greater of the Fortune 100. And of the entire identity spend within each of those accounts, you're way underpenetrated relative to the other solutions that they have in these very large enterprises. How do you get more of the total identity spend? And I'll throw that as a jump ball to all of you, but it seems massive just relative to...

Yes, I think, the main thing is you got to cover all the use cases. So one of the biggest parts of spend is not even reported because there's opportunity costs. These companies are doing it themselves. We have a great customer that I've worked with closely, and we have -- we're the provider for Workforce Identity. And the -- we've been -- over the years, we tried to win the customer in a business, but it was the amazing IT team at this company going to the engineering team and saying, use Okta Workforce for Customer Identity. And I used to run engineering. I know that the engineering folks want to build it themselves. Like Sagnik, they want to build everything themselves. And so now we have this purpose-built platform that was built for engineering teams to do exactly what they need to do without doing too much. So that's going to open up a lot of spend over time. Another thing that's a very important dynamic is for a lot of companies, using a cloud service for identity and security is new. And so how do we overcome that? Well, first, part of it is just eventually it's going to happen, and we have to be the leading independent neutral vendor be ready. But part of it is we have to do a better job getting our vision and our message out there. Hopefully, we're doing a good job at Oktane this week. When we do a keynote where it's like you think -- when you think about your identity challenges, all these questions, these 8 questions that -- are they all answered yes? So let's think about how we could answer them. That's all designed to get this vision out there. And then the last thing is the products keep getting better. We talked about the OIE upgrade and how it enables better passwordless, better policies, better integration to everything on the client, from EDR vendors to other risk signals coming off the client, the product has to get better. And I think doing all those things, it's just a matter of time.

Rob Owens from Piper Sandler. Could you elaborate a little bit on the evolution of the partner ecosystem? Help us understand what this mix shift looks like historically, not in Q3. I'm going to turn just on a one question. And maybe if there's any differences in contribution margin.

Sure. So as I mentioned, we have basically broadened the ecosystem. Resellers were the initial partner because it was all about extending our reach. We still have resellers. We still have many parts of the world as well as certain segments where we rely heavily on resellers. I think you heard Chris for AWS talk about the fact, too, that we're working with these born-in-the-cloud type resellers that Amazon has really attracted as well. So they're still a part of it. And then as I said, the global SIs, if you think about the SIs practice and what they want, right, they want long-term engagements. And these digital transformations that are being driven from the Customer Identity Cloud, those are very long engagements. And that's why we're starting to see so much traction with the SIs wanting to actually go to market with us and starting to build practices around us. In terms of the contribution margin, I don't have any comment on that one.

One thing that, from my perspective, that might be helpful is, like a lot of areas in the company, this is no exception. We're taking a very studious look at what has worked and what's the highest amount of ROI, and we're doubling down on that. So you're seeing more strategic focus on the things that are really going to move the needle because like I said, money is not free. So we have to make sure we doubled that on what's working.

Great to see everybody today. So I think there's a question maybe for both Eugenio and for Susan. What -- maybe we can talk to the sort of the history of the sales -- treatment of the sales force separately, somewhat than integrated. Financially, some of the strengths going separately was that strength of Auth0 and selling to the developer and Okta selling to security. So how did that evolve? And why was it the right time to switch? And why do you -- why have you developed the sales force such that 1 sales force is sufficient at this point?

So let me just start with the -- there was a very big imbalance, first of all, on how many go-to-market reps there were from an Okta perspective versus an Auth0 perspective. And what I talked about today in my presentation, right, is that fundamentally, we see the shift in the way that we're selling and focus on business outcomes. So again, we did deeply specialize on the sales engineering side. And that's a big part of where Eugenio's specialization occurred as well. The other thing I will tell you is the developer up motion that runs out of the marketing organization, and there's still a big focus there. And then we have our emerging reps who we have now enabled to actually understand how to mine all of those developer up motions. And so that's a separate motion I didn't call out here today, but that is happening. And that is specifically with our -- the lower end of our market with the emerging reps that are focused on that. And that -- so what we did was we took the same motion that Auth0 was running, and we put our emerging reps focused on that.

Yes. So that has not gone away. We still have a free trial, freemium motion, self-service that I mentioned in my presentation. And then from one that model is exhausted, is like that transition from self-service into enterprise. That seem, it's something that we are investing, we're doing more and we have further specialization in that specific role, which is looking at companies that are just ready to make that jump. We have specific programs as well, et cetera. But in Susan's team, there's a specific group of people that all they do is precisely that, looking at what are the upgrade opportunities. I mentioned before, like 45% or so of new logos in Customer Identity are coming from that pool of users. The self-service, freemium trial, product-like growth, that still sits in the product unit. So it's in my -- it's part of my organization.

And we've talked about it before on the earnings call. We -- if we had this all to do over again, we would probably wait another year before we fully integrate the sales teams because of all the things we talked about, the systems issues and the list we went through. But that doesn't mean it's not the right strategy because we are trying to -- ultimately, we want to sell identity to the CEO and the Board. And that's best done with 1 sales rep that can have a broad conversation. With technical specialization of course, but 1 broad conversation, that's where the market is going. We're building this primary cloud, and that is sold at a different level. Every other company that's tried to sell identity, it's been at a tool and a lower level to a practitioner or someone that was trying to solve a tactical problem. We're trying to change the world. We're trying to say, listen, this is 1 of the most 5 or 6 vendor choices you're going to make. We have this broad coverage across all of these use cases, and that's where we're going. But I definitely acknowledge the mistake I made in making the decision to combine the sales teams that we did. It probably, in retrospect, it would have been done a little bit later, but does it mean the direction where we are is the wrong direction.

Maybe another point of clarification is that there's no developer in the world with $1 million of budget for identity. So that doesn't exist. At most, you will have like somebody with $50 per month to play around with. But it's a very important component because they are the conduit to the budget owner, right? And so you still need to close the deal that it's anywhere over $50 per month, you still need the knowledge and the discipline of a sales organization, right. You can't get away with that.

Thanks for the detailed response. I have no follow-up, but I forgot to introduce myself. I'd add one thing. This is Michael Turits from KeyBanc.

I was going to do it for you.

This is Joel Fishbein from Truist Security. Follow-up to Michael's question, I think, is just a logical extension. As you are now going to be selling governance and PAM not normally the same buyer in the organization, just how should we be thinking about the sales force going with that? Are you going to go in with a specialized sales force in those 2 areas, number one? And number two, because the competitive dynamics are much different also. Second thing is, how are you going to be charging for those, right? Because I think that, that's a little bit of a gray area now that you have a holistic solution in a converged identity.

Do you want to start that one?

Sure. So from an IGA perspective, I think that one, we look at that as just a derivative of identity. And not to oversimplify it, but if you think about the governance aspect of it, we already know who should have access, we know who did access and now we're running the Workflows and the reporting and just -- so that one is straight up just an extension of identity. From a PAM perspective, I think we're going to have to take a hard look at that. The product is evolving, right? The first part of the product coming out is very much around Privileged Access for Kubernetes and servers. And so but I think the more we expand the PAM strategy, we'll have to take a hard look at that, and we'll work closely with Sagnik and team on that. So I think the buyer you add, obviously, on IGA is the risk compliance buyer, but I still think a lot of it is the CIO.

I think 1 thing worth calling out is with things like PAM, IGA, we are a good representation of the future buyer ourselves. Some of the things we do very seriously is try to [ dog food ] at ourselves. And it's a great way of finding product gaps that we can then build for. Like we take reliability, we take servers very, very seriously. So as we try to clear around with many of these solutions, we know exactly where the gaps are. We like how we, as buyers, would react to it, and that's been a great input into the whole product development process.

Keith Bachman from Bank of Montreal. I'm not Michael Turits from KeyBanc. Todd, I wanted to direct this to you. And on the one side, you've painted a compelling vision over the next couple of years for the importance of identity. And I think Okta still remains the leader in a very important market. On the other side, by your own admission, you've had a number of execution-related issues over the last couple of years. This morning, you announced that PAM's further delayed candidly. And the sales force attrition started in '21, it also accelerated, I think, with the merger of Auth0 and then some of the merger integration issues you mentioned. So the stock has moved from a 30x multiple to a 3x multiple. And clearly, you're not getting credit for the technology and the market opportunity you have and execution has been a part of that. So how, as an organization, how are you trying to improve the execution-related capabilities that Okta has as you look at this tremendous opportunity? And one of the key things I just throw out there is, why not hire a world-class COO to help alleviate the burden of this whole go-to-market and the opportunities? And then I have a follow-up.

I think it is -- it's a culture of just admitting your mistakes and working as a team to fix them within honesty and hard work and diligence about the future. And we look -- thanks for your suggestion about how to formulate the management team, and I appreciate all suggestions, but we also look at personnel and organization very broadly down the organization, up the organization. We want to put the right internal folks in the right jobs, we want to put the right external folks in the right jobs. We're really trying to balance off people that know about our market with people that might bring a fresh perspective. So we're kind of open to all options. And I think that what really keeps people excited is this vision about the future. People want to work on the most strategic things. People want to make a difference for customers. And the most important part of my job is making sure people see this vision and I work very hard on that internally and externally. Oktane is a great example of that. But then once the vision is in place, it's the strategy. Why does it make sense to have go after this market with 2 clouds at specialized capabilities? Why does it level up to this one strategy that is the cross-use case coverage for identity and how likely is that to lead us into this most strategic vendor conversation? We spend a lot of time on that as well. So we're working hard, and we -- believe me, we look at the scoreboard more than anyone. And sometimes it can be discouraging, but also can be very motivating because I'm fired up by a challenge, and I think the entire management team is fired up by a challenge as well. And when we look back on this in 5 years, we're going to be, I think, celebrating a lot of success.

I can speak for our pocket like what you're suggesting, I think we are taking scaling and efficiency very seriously like we have an internal effort called like scaling our excellence, like things we do well, how can we do well with like half the resources, 1/4 the resources? And there are a bunch of efforts happening focused on that. So taking the specific example of PAM. I'd like to believe PAM's making a lot more progress in the last like 3 or 4, 5, 6 months, than it did ever before. And all the fundamental shifts we made was from a PAM team that was structurally organized horizontally, so there were a whole bunch of skill sets like so there could be a team focused on identity. There could be a team focused on admin management, there could be a team focused on a whole bunch of like specific functions we brought it all together under a single leader that made like decision-making, hiring, kind of filling up gaps in roles like blocking -- like even the tech stack selection, all these things were made a lot more autonomously, people were empowered, and that's really impacting. So we are making a bunch of changes like that. I think the world we are moving towards increasingly more independent units will be held accountable for their delivery, and that will automatically influence and improve efficiency and execution.

Okay. Had a follow-up. And Todd, it sure seems like you have the right vision and strategy. It just seems like some of the execution pieces haven't worked as well.

Yes, I would just add that I think the clarity and the vision and execution is what we're seeing -- the clarity and the vision and the strategy is what's helping us now drive the execution, right? So getting to the point that we are now to know how the 2 clouds are going to help accelerate and benefit our customers together that was work in progress. And there was certainly a confusion when we first came together, integrations are hard. Not just on the system side, but we had to get this, and I appreciate you saying that the clarity is there now because we agree, and I think my sales teams are -- they're super excited about it and bringing together the product marketing teams to now drive that clarity and the strategy and vision has been a big win, too.

Okay.

We do appreciate the feedback, though. We take it seriously.

Dave doesn't but I wanted to ask a follow-up, Susan, if I could for you. Just you -- on your presentation, it's -- I just want to clarify, you're signaling that you're -- it sounds like emphasizing more the channel opportunities or partner opportunities. And was that a broad statement? Or were you highlighting the SIs and the MSPs because some of the history when you were at Splunk in here, your leadership has been a little less partner enabled and more kind of direct. So I just wasn't sure if I quite got the message there, and then I'll see the floor at many things.

So it's about the partner ecosystem, right? And that doesn't mean -- so like if you look at SIs, that doesn't mean that we're going to be indirect, right? SIs are driving these, what we're saying is that the identity has gotten to be such a strategic level. And when you're talking about identity across the enterprise, enterprise-wide, both on the customer identity side and workforce identity side, those almost every customer has some sort of SI in there, whether it's a Boutique or a global to have those discussions. And so we'll be the identity experts and will help with the enterprise architecture, but they are generally the ones driving the strategy. So that's why they've become so important. And then the MSPs, again, it's the global expansion that's driving the need for the MSPs because in certain parts of the world, Japan, Canada, France, that's a really big motion. And so it's -- it will benefit us to build out that motion, especially for the -- it's the long tail in the commercial segment. And so that's why you're seeing the explosion in our bedding on the partner ecosystem. So it's not to say that we're becoming an indirect sales force. We're going to continue to leverage resellers where it makes sense for sure. And we do that a lot in commercial markets, and we do that where we need reach into certain countries. I think it's just the maturity of the company, and that's what you're starting to see now.

Joe Gallo from Jefferies right here. I appreciate the question. And I appreciate the mid-90s gross retention rate disclosure. How has that trended the past few quarters? Has that seen any headwinds related to macro? And then your net retention rate has been very, very consistent in the last couple of years. How should we think about that split between user expansion, which might be more challenged in this environment versus product upsell historically?

Yes. The gross retention mid-90s was over the entire time frame that we showed you there. So I think it was like 8 or 9 quarters that we showed you there. In terms of the mix, I mean, it's a mix of both, right? It's been products and users for years. The trend has been fairly similar. So I mean, how it goes with the macro, well, obviously, we're not going to be immune. Right? We have to be thoughtful about that. So we're going to keep delivering customer success and customer value and keep plodding forward with it.

Peter Levine with Evercore ISI. I thought Eugenio's conversation, you highlighted 48,000 active free subscriptions on the Auth0 side. So why not implement more payrolls, limit feature sets. Maybe talk through kind of what you're doing different today to convert some of these users.

We are constantly tweaking and changing and experimenting how to make -- improve our conversion rates for that massive amount of free trials. We also have like tens of thousands that are coming up all the time. That's what product-led growth is about. It's about like injecting, like experiments all the time to make sure that those conversion rates improve. So we have a dedicated team that all they do is exactly that.

Then just a last follow-up is how much of your growth is driven by, I think, user expansion like we've heard from other software companies called out a slowdown given the macro. So I mean I think -- so given some customers might be pushing back larger decisions, are you able to really toggle your sales force to kind of go back to that base? Just curious to know how you guys are thinking about some of the uncertainty that we're facing.

Are you talking about specifically in customer entity?

I think it's both.

On customer identity, we see the same growth patterns of landing and expanding. Typically, we go into a smaller project, and then we prove success there. We launched there's a big, big retailer that comes to mind. They started -- we quoted the deal originally for 20+ countries. It was a couple of million dollars opportunity. They said, no, we're going to -- we've been burned in the past with identity. We're only going to -- we're going to take the entire year to do 6 countries. And we say, Okay, great. There was a few hundred thousand dollars deal. And then 3 months later, we were live in all 6 countries. And they say, Oh, great. Now we can go to maybe in the next 10 countries. And by -- in the same year, within the 9 months period, we were live in 26 countries. And so that was it. It's another great story, the same trajectories that Brett was showing in terms of cohorts' expansion and user expansion, they are very, very similar. Of course, in customer identity, some of the numbers are at different scales because in a company if you have like 10,000 employees, that's a very large company. And so you might go from a couple of thousands to an extra couple of thousands. In customer identity, the volumes tend to be way bigger because you might launch with 100,000 users, which is already a big number. And then all of a sudden, if you're successful, we can have millions of users. And so the scale patterns are slightly on different metrics but they follow more or less the same, the same curves.

And on the overall business, I think the just -- you've heard me say this over the years, which is on the workforce side, the value is correlated with the number of users. So the more users all things being equal, they'll pay more for that. But as that changes, whether it's a smaller company or it's a big company or whatever the company grows or shrinks because of macro that there's other use cases we can sell them, whether it's IGA and privileged access or right now, Advanced Server Access, which is the precursor to that. And then they can also -- it's very common, especially a larger account, Brett talked about some of the biggest accounts in the world. It's not true that they adopt all of their users right out of the gate. So you can get expansion with departments or companies, a very common success pattern for us in the largest enterprises in the world is they buy companies that use Okta and they buy enough companies that use Okta, it's very clear to them in stark relief that it works much better than what they have centrally. So then there's a big upsell enterprise wide. So my point is that thinking about the business as just correlated with worker count is -- and that is a driver for sure, but there's all these other variables, whether it's the customer use case, whether it's more products inside of workforce, whether it's departments of companies that are expanding the use across, there's lots of different variables going on there.

It's John DiFucci with Guggenheim. Listen, I think everybody here sort of recognizes that Okta sort of attain -- yes, I'm with [ Rodney Dangerfield ] back here. But Okta sort of attain the status of great software company with workforce identity, your Act 1, and you frankly knocked it out of the park with that. But there aren't very many companies that have a successful Act 2. They sort of live on that Act 1 and they're still a great company. But I want to focus a little bit on product because I think that's what drives an Act 2. So Sagnik talked about excitement about IGA going into next year. I'm just curious, does that imply there's going to be some incremental functionality around IGA? And can you talk even generally about what that might be? And then if there are things that are needed and PAM was brought up a couple of times by [ Keith ] and others, and it's kind of on the way. Todd, you and I have talked about Vault functionality that's needed in that. Is there -- like should -- can you just buy that? Like is that functionality you can buy sort of a technology tuck-in, just to speed the time to market because it sounds like customers are waiting for it. Obviously, we're waiting for it. But I don't know if you can -- did you sort of -- or is it important that has to be built in-house?

I feel we -- believe me, we're very aggressive about looking for technology tuck-ins. We've had a lot of success with them, whether it's the really the underpinnings of the Advanced Server Access product or the start of our workflow services, which is an amazing success for the company in terms of not only just upsell, but also doing more for our customers in terms of automating the complete business process. Another example is we have the core part of some of the human workflow elements of IGA or from a company we bought called it was atSpoke about 2 years ago. And so we're very aggressive about these tuck-ins. The reality is that in the privileged access market, there wasn't a lot of good tech that fit in with our cloud-centric model. We're not trying to do a roll up here of PAM. We think there's a reason why the PAM market is not bigger than it is right now. It's because there hasn't been a great product. We looked around and we found that we think we can build something better. So that's our approach there. I also think one of the things that's mischaracterized, especially about Okta identity governance is that people think it's like a toe in the water or an incomplete solution. It's a very powerful complete solution. And I think we're very optimistic about what it could turn into as it's been generally available in North America for a few months now and then Sagnik announced in the keynote global GA by the end of the year.

Okay.

I think overall, for both those pieces, we have most of the fundamental building blocks in place right now. And the big focus next year will be making it more thorough and going for like locking down many of the end-to-end in-depth use cases. So let's say, for something like Okta identity governance, better support for more fine-grain entitlements, like that will make it like specific integrations even more richer. Again, for PAM, we have many of the key blocks. We mentioned today like Vaulting will be part of it. Those are there. Now which integrations do you do? Like Kubernetes we talked about like next -- like big specific database providers, et cetera. Like those are the ones where you'll see a lot more focus. But I think for both these pieces, the fundamental building blocks are now ready. And that's why we feel so excited that we can then do many things on top of it.

And because we have this kind of solid architectural underpinning that we did in these cases spread ourselves too thinly with buying too much dispersed technology. One of the things you asked about, will there be enhancements? Absolutely, yes. That's part of the train we're on. It's like we can deliver this enhance -- these enhancements continuously, which is a powerful position to be in.

Great. And if I could just sort of sticking with product and really architecture, and I'm going to quote the go-to-market leader. Susan said whether it's workforce identity or customer identity, it's still identity. And it sort of makes you wonder like I don't want to belittle the technical challenges, but why two identity clouds like for workforce and customers? Is it because the foundations of those solutions are so different, the needs for those are so different? Or is it -- is it because Auth0 was an acquisition and it would just be too difficult to merge those today?

It's a great question. And the answer is because we were leaving too much opportunity on the table, but with having one. We tried to take one cloud and sell it to product and engineering teams and technical people, and we were missing the mark. And that's because engineering teams and digital teams, technical teams they're building it themselves now. And frankly, they don't want something that gets kind of pushed on them by IT or security. It has to be a purpose-built thing for them. So John, it's really market driven. It's really market driven. That's the perspective. In terms of technology, I think the wrong strategy right now would be to take these 2 clouds and merge them together and have a 3-year integration project where everyone is figuring out how to optimize the core layers. A much better strategy is to keep the team separate and focus on -- Remember, the whole strategy is here, be this end-to-end identity provider for every use case across the entire C-suite. And so to do that, you have to have the best capabilities that the engineering folks, the digital folks, the technical folks will have, doesn't do too much, doesn't get in their way, solves our problem. And then where it makes sense to integrate those in the Okta Identity platform, high-value integrations, that's where we'll focus over time.

Can I add something? Also, when we say it's identity. Yes, at the end of the day, it's about discriminating whether a user is real or not. That's what it is. But it's like saying cars. Toyota sells cars but they have SUVs, and vans and Sedans and people who buy a van are not the same who buy Sedan, they buy it for different reasons. And it's not just the core capabilities. It might be the same -- the exact same capabilities, the [indiscernible] the protocol support in both. There's a single sign-on in both, there's MFA in both, but they buy it for different reason, for different purpose. I mentioned before, different scales, different number of users, the seasonality of use is different, but also the evaluation process is different. The way I go around and read the documentation and I explore and I use the product, it's very different. In the same way, if you have a family, you buy a minivan, you don't buy a Sedan. Same thing. Now that doesn't mean that Sagnik and I don't talk to each other, and we're just building complete in isolation with each other. So every time, every opportunity we have to not reinvent a wheel, we don't reinvent it anymore. And so there's a lot of things that we are doing behind the scenes that you don't see, even our customers don't see it necessarily. So network, edge infrastructure, like core vendors that we use for databases, for hosting, for cashing, for so many things that now we have teams talking to each other. And so it's not that we are completely separate, and we don't really share learnings. We don't share requirements. We don't share contracts. We don't buy -- We don't pay Amazon separately. There's only 1 bill coming from Okta. And that gives us economies of scale, gives us a better pricing, lots of advantages coming from that. But yes, we do have the specialization, the specialization in language too because when we talk to different people, too, CIOs, marketers, they see identity in different lenses. Makes sense?

It's Gregg Moskowitz from Mizuho. Todd, I guess, first question that [indiscernible] Freddy?

Yes, I was going to say. Do we leave someone out up here, I guess just musical chairs, someone brought an extra chair up here?

So a question on the go-to-market and getting back to a single account exec across both clouds. So naturally, the specialized SEs will help. But I'm curious, given that clearly, most of your account execs come traditionally from Okta, how is the proficiency with respect to them selling customer identity cloud because I think as many of us are aware, talking the talk with the CDO is quite different versus the CIO or a CISO.

Sure. So a great question. So first of all, remember that a lot of the sales team is new as well. So we did a lot of hiring. And so we put a big focus on sales enablement and the onboarding process as well as bringing all of the existing reps through it. And so one of the things that's unique when you're selling to CDO and CMO. In most cases, they're consumer experiences. We actually -- one of the big things that we did in our new enablement as we taught our reps how to go evaluate. So you can go experience those companies, right? Go experience in them, all the channels they have, their apps, their websites, wherever they are. And we actually now have given them all the tools to do the assessments of how does this compare to other experiences, right? And so we've had some real early success with that. And I think that what that really did was it put this big focus on, again, shifting to outcomes, shifting about what CDOs and CMOs are trying to accomplish. And those were the use cases that I laid out, right, with the omnichannel experience, the acquirer to convert the single log and the loyalty. And so we're showing them all those repeatable motions. And I think, quite frankly, in a lot of cases, it's actually easier for people coming in to -- now that we have the right enablement to actually learn that motion because that makes sense.

That's helpful. And then just for you, Todd. So a few months back, you talked about the traditional Okta customer identity solution and how that was going to be positioned for selling to the extended workforce, so to speak. Today, we heard a lot about CIC and it's a very compelling vision. But just wondering if there's any change or any update to the strategy as it relates to getting that core or traditional customer identity technology.

Okta CIS, it's called the customer identity solution. supported for all customers. We're not making anyone migrate, but Okta Cloud is now workforce identity cloud.

Joel Omino here from Citi here on behalf of Fatima. So just the first one on R&D efficiency and then a quick follow-up, if I may. So on R&D from a core technology perspective, is it fair to infer that the customer identity cloud within this 100% is going to be powered by the Auth0 intellectual property. And then likewise, the original Okta SIEM is going to go 100% under the workforce identity offering. Just any color there and how -- what the mechanics there are? And then just a follow-up.

I think that's the right way to think about it. I would say that there's many customers that are using the Okta SIEM, which is now called customer identity solution that are still using it for customers. Many of them are actually all along using it for workforce. They were using it for things that were partner apps or things like dealers and franchisees that are kind of pseudo customer, pseudo partner. Those are all going to stay on the customer identity solution in Okta, which means that if there's maintenance or bug fixes, those have to happen there. But the go-forward investment in terms of additional R&D is going to be very focused.

Appreciate the details. And then just on the Okta Integration Network. What's the -- what's your commercialization strategy when you look at SaaS apps and the visibility you have particularly, how are you looking at -- or where do you aspire to place these SaaS apps? And any specifics on how you're looking at when -- for example, Atlassian customer, right, is utilizing this integration network and you have visibility on that? Just how you're looking at that and how you're thinking about commercialization there?

Well, I'll ask the question in 2 parts. One is what the commercialization is today and Eugenio can talk about that. He's the expert there.

Yes. So the SaaS builder is a core user of the platform. The value proposition there is not spending any time building the identity stack yourself. So they buy companies like Atlassian and any other SaaS builder buy it because they're spending a ridiculous amount of effort just maintaining all the identity stacks. Which has evolved over the years, remember, like you cannot go around and say, oh, let's add identity to my app. You cannot ship without identity. Every application in the world has identity of some sort. And so the core value proposition is say, forget about that, we will take care of all the problems, all the issues and all the advanced features and the maintenance over time because now there's log-in with Apple. And if you need to add log-in with Apple, you have to go read the documentation, understand how it works. And yes, it's the standard base, but it has a little bit of Apple, SaaS as well. So it's not quite exactly the standard.

Did you say Apple, Saas?

Apple, Saas?

Apple, Saas, yes.

Very nice.

And so it's not a standard. It's the standard, but it's not quite. We allow -- we take that burden out of people. And so with literally with a flip of a switch, they get all the functionality, constant stream of innovation and what they can do now is that they remove their concern from their minds and they can go around and put all those resources to [ hook ] their application. That's the core value proposition for SaaS.

And that's today, and so -- that's definitely an important part of our driver for our business, but we're talking about the next 10 years now. So now what we're really excited about beyond that is this vision for this open ecosystem and how by Okta the company being on both sides of the interaction between a workforce customer logging into an app that then goes across the wire to a SaaS builder using customer Unity Cloud to power their identity we have a lot of potential in terms of being on both sides of that interaction. And that's where you talk about the new standards we can support in the industry, both in a de facto way about what enterprise readiness looks like, but also in a very concrete technical way, new kinds of standards we can make because we're on both sides of the interaction. And then even beyond that is this vision of a more integrated ecosystem. And that's what Atlassian is really -- the future Atlassian is really excited about is we can give them more insight into what customers are actually using and beyond the standards around Zero Trust and fined grained authorization, we can actually create a better -- help them create a better product by giving them insight on what other applications their customers will actually use. And how we're going to monetize that over time is, well, the basics are just -- it makes the customer identity cloud more valuable to that SaaS builder. But there's also another -- a lot of other potential ways we could do it as well if you think about combining free capabilities which just make it more attractive to SaaS builders to actually connect all the workforce customers. And then I'm sure there'll be over time, over the next few Oktanes we'll talk about more ways to just maybe just monetize the data potentially but it's all rooted in this value prop today, which is the value of the customer identity cloud.

Okay. We've got about 20 minutes left. So I'm going to ask you to keep it to one question, so we can get all the hands up.

Andy Nowinski with Wells Fargo. I think you did a nice job simplifying the message today with a 2-product company and gave a nice customer spotlight on a customer using both clouds but I'm wondering what percentage of customers actually deploy both right now? And is there a price incentive to deploy both clouds?

Let me talk about the price. I mean the net of it is that whenever people buy volume, right? So people who buy together and we have seen a couple of those customers buy together but it's just standard approach to how we sell volume discounts.

Yes. What I was going to say is that it's -- there's a lot of potential. We have a lot of customers that only have one or the other, especially in this dynamic of this digital team, this engineering team, this product team that really is building it themselves. And there's -- I think as the one broad identity company, we can help a lot of those people as well.

But think about it, every company in the planet has employees by definition. They need workforce. Every company in the planet has customers, hopefully, at least could be consumer customers or could be business customers. They need customer identity too. So at a minimum, they need 2 use cases, 2 of the 4 use cases that we support. They need all of us, all of our stuff, everybody.

This is Angie Song from Morgan Stanley. So -- it's been around 3 months since your IGA early access has been released. Could you share some of the customer feedback that you've had and some of the pain points that you've had to overcome as you integrated atSpoke?

Any question dealing with the last 3 months is going to wait until November 30. Sorry, I know it's not ideal, but we need to stick to that.

Do you want to talk about the integration atSpoke?

Yes, sure. Do you want to talk about that one...

Integration of atSpoke?

It's actually...

We did that a couple of years ago, we can talk about that one.

It's actually worked out very well. And I think for a previous question, we mentioned we brought in that team that has both expertise in doing specific kinds of things and also a slightly different tech stack. And we're leveraging that team for some of the new stuff around PAM and other things as well. So, they've incorporated very well with the existing stack and some of the strengths we are leveraging more widely. So that's actually going very well.

Yes, this is Shrenik Kothari from Robert Baird. Great presentation. So you said your core Workforce Identity Cloud inherently drives efficiencies, and you mentioned about automation capabilities, life cycle management workloads. You talked about customers get tremendous improvement in productivity and you gave examples of Zoom and Netflix there. So I mean, as you said, they are using across all the licenses, you mentioned out a particular use case, which sounded super powerful. So especially in this kind of macro environment and you guys have a great history with CISOs and CIOs, they are decision makers and for customer identity, they are influencers, as Susan pointed out, are you guys using these efficiency use cases now? And can you tell about more examples? How are you driving these executive level kind of conversations around efficiencies?

You want to take that Susan?

Sure. Sure. Happy to take it. So we see workflows as a major upsell opportunity, and we see it happening over and over again. And such so much so that beyond enabling our salespeople, we've actually put a big enablement effort for it on the customer success side because really, that's what -- it's not just about -- it's not the upsell for us. It's about the impact and the automation that it's having across our customer base. And then what you heard from Sagnik was that we're going to make it easier now, we're going to package a bunch of the workflows. So right now, we have a number of different -- there's public slack groups that formed on their own Okta Admin users that have this whole viral thing going over sharing workflows and so number one, there's this community of sharing workflows and #2, we're going to make it easier now to package up these workflows for customers. And Sagnik you can touch on that if you...

Yes, like one thing we started doing a lot more share these stories even internally. So all our teams are better equipped both in terms of use cases, both ones that people are using, ones we should optimize for one we should build for as well as once we should highlight while selling like especially for workflows, some of the things we are hearing from customers far exceed even the way we thought the product will get used. We've had customers who have reached out to us saying, you are now part of our core engineering development process. So are you sure like you want us to keep using it that way because it's a very different -- and it's super, I think, inspiring that it's no longer just an orchestration tool like this is like something they are teaching their developers to build on top of, it's a core development platform piece. So there are many things coming out like that. And as we facilitate the more sharing of these ideas, I think the network effects will be really, really impactful.

And workflows, by the way, it's another great example of a platform component that binds both clouds together as well. We have a use case that we are looking into for one customer. where they have automated security incident response using workflows. And guess what? We have security events that are being generated in customer identity as well, not just in workforce identity. So now we've proven that we are able to trigger those workflows from both clouds and have like a single process that deals with those incidents inside their organizations. So that's a great example.

It's also a great way of fanning out our overall capabilities in development, like again, a specific example of workflows. There was an integration with a particular HR system. That we would have probably taken on a little later in terms of like how deep we go. One of our customers did a great job using workflows, building it themselves. What that means is now like if we facilitate the sharing of that, the next 10 people who need that integration don't have to block on us. So the overall stickiness of the platform increases without us being the bottleneck for innovation necessarily. So that's a great way of scaling our reach and stickiness without spending all the resources.

I mean the same dynamics of allowing our customers to do things that are not dependent, and we are blocking them has been 1 of the contributor factors for 0 success too because you can change everything on your own. If you want to do something special after a user logs in, you don't have to wait for us to do that integration, you don't have to wait for us to ship that specific integration out of the box. You can do it yourself. Seem very similar to what happens with workflows. Now that allows us to go and look at what people are doing in the real world. And we can tap kind of into that collective creativity out there and say, oh, everybody is doing the same thing. That's a great candidate for us to productize and to put it in the box for us. But we don't have to wait. They can do it right away.

I know we've spent a lot of time on this question.

It's a long answer.

It's not just workflows. I think we are seeing very similar trends with OIE, I'd rather -- great things about OIE is how customizable it is, and we are increasingly hearing from customers like really interesting things they are doing themselves leveraging the platform without blocking on us. So I think the more platform-centric approach we take, it will both expand our reach without us being bottlenecks and increased stickiness.

I think that's a great answer.

Good point.

You are users of things like these, too. Every time you go to Excel, you didn't wait for Microsoft to build a formula for you. You build your formula yourself. That's exactly what we're doing with workloads in extensibility in CIC as well.

Madeline Brooks with Bank of America over here. Just one question for you guys on the PAM front. So second delay for the PAM product. Just wondering the perception with your customers. Is that dissuading them a bit from considering your PAM product when it does get launched next year? And if so, or if you've heard of that, how are you trying to get ahead of that? And then secondly, with PAM as well. Have the delays been more on the product side because PAM is very technologically complex? Or have they been, as you said, just purely kind of internal resources and organization that way?

Yes. Really good questions. I just met with a very large customer of Okta, and they are very excited about PAM, and they see Advanced Server Access as the on-ramp. So they're busy going live with Advanced Server Access across several thousand servers, and they're excited about the update on PAM and they're going to add vaulting capabilities that it's going to bring when it comes out next year there. So they're on the on-ramp and they're excited about it. And I think in my conversations with customers, you see that over and over again, they're either they don't have anything for a PAM solution or they have something they don't love and they love to hear that we're going that way, and we talk about our vision and what we're going to provide there and what we're not going to provide there and why it's going to be better, and they're happy to be partners with us. In fact, the customer was talking with -- their feeling is like we want to partner, not a vendor here. and they feel like we're providing that capabilities. And Sagnik he's running all this, so he can talk about this more specifically, but there's been, I think, on the PAM strategy as it's evolved, there's 3 things that have happened over the last 1.5 years One is that I talked it a little bit about earlier. I think we thought we would be able to find some technology that would help us here, and we just weren't able to. Second thing is that we ended up adding more to the Advanced Server Access product than we thought. So the Kubernetes stuff you saw today, it's in Advanced Server Access. So if you're using Kubernetes and you want to manage that, the customer I was talking to, they're using it. They have Advanced Server Access. They love it. They're using it today. And then the third thing is, we talked a little bit about this earlier as well, which is I think we're being -- we're honing our strategy around who the buyer is. And the buyer is really the compliance and security and the more closely related to our traditional buyer in this case, for governance and for access management, IT, CISO compliance-type buyer versus there's another part of this whole space, which is more machine-to-machine inside of the infrastructure. And so I think we're -- it's all a little bit overlapping, but we're steering away from that buyer -- more of our core buyer as we craft the solution as we package the solution, deciding what's PAM and what's ASA?

Yes. In terms of specific execution, I mentioned, we are around 5 to 6 months back fundamentally changed how things are structured, and we're seeing really good positive impact of that on execution really setting us up well. The other thing we did, both for IGA and PAM is we are taking a long-term look. So there are 2 ways we could have built it. One is like take one use case, end to end and just focus on that, and we would have probably shipped that a little sooner. But then when people say, well, that's not enough. I need that next use case and that will then be another 6-month, 1-year project. By virtue of building some of the core fundamental building blocks early and making those extensible. What we are facilitating is, a, we'll have a great, like initial product. But after that, every use case we hear, the time to get those to market, hopefully, will be a lot shorter. So take something like PAM. Data integration, as you -- over time, as you get into like connecting with very specific vendors, you could have done a very vendor-specific approach, and you would have probably gotten your first vendor out sooner. But then over time, if you needed 5 vendors, it would take 5x the amount by building a common layer of protocols where you can say, okay, now, this is the part that the vendor has to provide and then like everything else just flows. That initial thing might have taken like 2 months, 3 months, but now the 5 other vendors can happen in parallel, they can do part of the work. So we are really setting us up for, I think, more continued faster execution.

So how confident are you in meeting next year's deadline for having it be generally available just given that there have been multiple delays? And that's it for me.

I'll put it this way. We thought a lot about making those commitments, so we have high confidence in them.

Like twice today, I've met the team who are super excited about the fact that we actually went and mentioned the date and they are confident and they seem excited.

You're talking about the team building it or the team that wants to buy it.

Jamie Keenan with Keenan Capital. Just over here. Just wanted to get your most recent take on the increasing pressure from Microsoft. They seem to be leaning more and more into their identity solution and getting a little more aggressive on the bundling front. So just kind of are you feeling that pressure? And if so, how are you defending against that and then or competing really -- and secondly, on the consumer side, which vendors are you seeing most often in terms of -- on the customer identity solution side?

I think Microsoft has been pretty serious about this for a long time. Especially from a high-level messaging and how passionate they are about owning identity. And I think there's a good reason for it because they saw in the old generation technology, there was a lot of lock-in with Active Directory and so they've been pretty aggressive for a long time. And they have, over the last 5 years, they've done a good job of building identity for Microsoft. Because 5 years ago, we had a lot of customers that we were just helping our customers do identity for Microsoft. And I think that dynamic has changed. Microsoft is pretty good at doing identity from Microsoft. And where we're adding all the value is really for everything else, which the good news is that everything else is a big pie, talking about other clouds, thousands of other applications, devices and iPhones and all the stuff that is the complex identity opportunity and problem for our customers. And that's really where we've really shined the heterogeneity with Okta Integration Network. And so I think that that's where we continue to do super, super well.

Okay. We have time for one more question.

I didn't answer the part about customer, do you want to...

On customer identity, I think we mentioned it before, it's like we see everything because people have been building stuff, assembling solutions with whatever they had at hand. So we see everything from legacy vendors or Microsoft too, there's people using Amazon's identity capabilities, which are also kind of like optimized for Amazon itself, there's use of open-source frameworks like. Facebook gives you an entire SDK to log in with Facebook but just with Facebook, not with anything else. And so depending on the path that people have followed, there's like different -- I want to be a little bit harsh. Different versions of Frankenstein that they build over time that it's just a lot of custom go, really, frankly. It's some components that they sourced from the market over years and a lot of code around it just to complete what they needed. Which is there's no one solution that gives them all, right? And so we don't really have -- except in the start-up, like I'm starting from scratch, new company, which they start with us, and it's great. There's no greenfield project for us. All our projects are brownfield. All our projects are deploying side-by-side, migrating over time and slowly moving over and customization on whatever they had before. They're all happy to throw away on that stuff, too.

It's Darren Baker from PRIMECAP. Thank you for spending the time with us today. I thought the presentations were definitely helpful on echoing a few other comments. I think the long-term vision around the universality of identity use cases and the efficiency and security benefits all of that, I think, resonates pretty strongly. But I think certainly, in the kind of market environment that we're in right now, there's just -- Todd I'll come back to your comment from earlier that the world is very different today than from where it was a year ago and not just because money is not free, but everybody -- your customers, I have to presume kind of have a lot of anxiety and uncertainty about the state of the economy and their businesses and things just like the rest of us do. And so I'd love to hear like as you're thinking out over the next kind of 12 to 18 months, and looking at your pipeline as it stands today and things like that, do you see changes in people's kind of behavior and the conversations that you're having when maybe they're thinking like -- you know what? I love the story here, but I'm just going to push this off another 6 months because I've got too many other things to deal with and too many constraints right now or I'd rather consolidate with an existing vendor or anything like that. Just help us think -- understand how you're thinking about kind of more of that near-term picture?

I didn't -- so I want to make it clear. I think me saying money was free. No, it's not. That was just this kind of the clearest way for me to put it into some but there's much more going on. I mean there's a war in Europe. There's -- I didn't mean to trivialize it at all like that. I just -- that's the simplest way for me to express kind of the starkest difference. Yes. But I think it is -- it's a very different world for a number of reasons, as you mentioned. I think everyone is making sure they're focused on the highest ROI things. And for us, we're fortunate that over the long period of time, the last 10 years, the next 10 years, these trends were, I think, catalyzing a little bit, but also, I think, benefiting from cloud and security and digital transformation there. I mean, in the economy, nothing is unrelated from each other, but I think we're positioned well given these long-term trends and that's why we're investing the way we're investing and thinking about -- in this new world, obviously, everyone is scrutinizing things more, and we're doing the same thing, but we're making sure we double down on things that are working and maybe making different decisions than we would have a year ago and other things.

All right. Thank you, Team Okta. Thank you, everybody, for coming today. I know there were some technical difficulties at the onset for the online audience that's been cleared up. A replay will be available very shortly. PDF of all the slides that we presented today are already online. You can grab there. And thank you so much for coming. And again, we have earnings on November 30, tune in then. Thank you.

Thanks everyone.

Thank you, everyone.