Q2 2027 Okta Inc Earnings Call Transcript
Key Points
- Record Q2 bookings and strong ACV growth acceleration across both workforce and customer identity platforms.
- New products, including Okta for AI agents, contributed approximately 30% of bookings, with an average ACV uplift of about 40% when included in deals.
- Strong large enterprise momentum, with over 20% growth in $1M+ ACV customers, now exceeding 600 such customers.
- Strategic partnerships and ecosystem expansion, including Anthropic's support for cross-app access and over 25 new integrations, enhancing Okta's neutral positioning.
- Successful acquisition of Permiso strengthens AI security offerings with advanced threat detection and runtime controls.
- AI-related revenue remains immaterial to overall financials, with management noting it won't be material in FY27.
- Professional services revenue declined to approximately 1% of total revenue due to strategic shift to GSI partners, impacting revenue growth by about one point.
- Free cash flow margin guidance includes a one-point impact from lower interest income due to stock repurchases and debt settlement.
- Competitive landscape is fragmented with confusion, requiring Okta to invest heavily in customer education and clarity.
- Guidance philosophy remains prudent, with Q3 CRPO growth expected at 11-12%, potentially not reflecting full momentum.
Hi, everyone. Welcome to Okta's second quarter of fiscal 2027 earnings webcast. I'm Dave Gennarelli, Senior Vice President of Investor Relations at Okta. Presenting in today's meeting will be Todd McKinnon, our Chief Executive Officer and Co-Founder, and Brett Tai, our Chief Financial Officer. Eric Kelleher, our President and Chief Operating Officer, will join the Q&A portion of the meeting. At around the same time that the earnings press release hit the wire, we posted supplemental commentary to the IR website.
Today's meeting will include forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1,995, including but not limited to statements regarding our financial outlook and market positioning.
Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
