Brett Tighe: Yes. I think there’s a couple of things, and Todd, you can follow up because I think you probably have a thought or two here, which is in terms of renewals, we haven’t really seen a material change in renewals. I think the good news is that gross retention rate remains in that mid-90% range like we’ve talked about at Investor Day, we talked about it today. And I think a quick reminder is, we’re fortunate enough to have long contract durations, right? It’s a little north of 2.5 years. And so, we have the opportunity to deliver value in these contracts. We don’t have to deliver it in the first 30 days, right? We wake up every morning and say how can we deliver value, customer success? I mean, you heard me at Investor Day talk about loving our customers as a key customer, a key to Okta value.
And you see that in these retention rates, right? I mean, you need identity. Every modern tech stack needs it, right? And so, that’s why you see the strength in the gross retention. That’s why you see the upsells and the net retention number of 122%, right? Because if you don’t get to deliver on the original promise of the original deal, it’s hard to get that upsell, but that’s why — but that’s why you see the strong numbers on gross and net. In terms of your question directly around invoicing, we haven’t really seen a material change on that either. Really, things have kind of more or less stayed the same here. But I think one of the things we’ve talked about is upsells continue to be a strength of our business, right? Once we get people in, they get successful.
So, that’s why you see these strong retention numbers.
Todd McKinnon: Yes. The workforce business is per named user seat sold in a contract with average duration of 2.5 years across the whole base. Customer identity is a monthly active user. So, one thing I talked to people about when — if someone has fewer employees, when that contract comes up for renewal, the per seat is going to be less — or not the per seat, but the number of seats they buy will be less. But that doesn’t mean there’s — they can still add more products or add more — get more value by buying IGA or by having a new use case around multifactor authentication or adding customer — monthly active users for customers. So it’s not — the workforce business is, to some degree, is tied the seat expansion or contraction, but there’s many other levers of expansion there as well.
Dave Gennarelli: Okay. Next, we’re going to go to Rudy Kessinger at D.A. Davidson.
Rudy Kessinger: What percent of your sales reps currently are what you would classify as fully productive? I know with the macro, maybe not anybody is really fully productive right now, but what percent are fully productive today? And when you think you can get that within six months?
Brett Tighe: Yes. I mean I don’t have the exact figure in front of me, but we are — like we talked about last quarter, last quarter was an all-time low in terms of ramped reps as a percentage of the total. Given the attrition numbers we’ve talked about today, the massive improvement there, we’ve bounced off the bottom, if you will. And so, we are turning in the right direction. But it’s not anywhere near where we want to be, and that’s why we continue to talk about being cautiously optimistic. We need to get that ramp level as a percentage of total back to more of a historical number, and that will take time, right? And you heard Todd talk about it. It’s not just about the definition of being ramped, right? Because we have a definition internally, just like every other company does.
It’s about getting them to certain thresholds and productivity, which usually comes with tenure that is sometimes after that “official” ramp time frame being over with. So, we need to continue to enable these folks, show them all these opportunities, show them success. And ultimately, that will result in our success because we’ll have a more productive field in the coming quarters and years.
