Okta, Inc. (OKTA) KeyBanc 2023 Emerging Technology Summit (Transcript)

Okta, Inc. (NASDAQ:OKTA) KeyBanc 2023 Rising Expertise Summit March 8, 2023 ET

Firm Members

Brett Tighe – CFO

Convention Name Members

Eric Heath – KeyBanc Capital Markets

Unidentified Firm Consultant

Nice. Let’s get began.

Eric Heath

I am Eric Heath of the enterprise software program staff right here at KeyBanc. Pleasure to have Brett Tighe right here with us with Okta and we even have Dave Gennarelli from IR right here as nicely.

Query-and-Reply Session

Q – Eric Heath

So Brett, let’s simply leap proper into it. Perhaps get the macro query out of the best way. So speak about out of your strains what you noticed within the macro, how issues type of transpired from 3Q to 4Q and perhaps into the early components of 1Q right here?

Brett Tighe

Yeah. There may be — when it comes to what we noticed in Q3 and This fall, really related indicators of macro degradation. So one of many issues that I feel a number of you’ve got heard me speak about is admittedly this new enterprise versus upsell combine and simply being rather more weighted towards upsells, in each the pipeline construct and in addition the gross sales within the quarters that — at Q3 and This fall.

In order that’s one main impression that we’re seeing. I imply it simply is smart, proper? Individuals purchase from distributors they belief and know and have lengthy relationship with. You possibly can see that in our gross retention charges. You possibly can see in our web retention charges, our clients have a tendency to essentially get pleasure from working with us. In order that’s one factor.

The opposite aspect is round contract period. We noticed a little bit of a contraction in contract period within the quarter in This fall particularly. And we imagine that is instantly associated to corporations simply being a bit bit extra considerate with their long-term contracts and ensuring they’re considerate about it as we