Dave Gennarelli: Trevor Walsh of JMP
Trevor Walsh: Todd, maybe best for you. Brett had mentioned the federal business as kind of one of the three priorities for the year. I noticed that you had announced the Okta for the U.S. Military launch earlier in the month. Just curious if that’s — can you just double-click us around, is that a broad net new opportunity or more just kind of incremental to what you might already be doing…
Todd McKinnon: Yes. First of all, public sector is doing really well. The three quarters this year, up 65% over the three quarters — first three quarters last year. So — which is great to see because it’s something we’ve been focusing on for a while. I think specifically on the federal opportunity, the .mil instance of Okta, which you can now sell with the certification of IL-4, you can now sell to the DoD for their use cases. It’s more than incremental. It’s a big new door to be opened for us. We’re right on — we’re working for the final paperwork to be returned on FedRAMP High, which is another federal certification that’s super important. So yes, I mean, the government needs identity just like every organization, every opportunity — or every sector needs identity, and that’s a big area of focus for us, and we’re glad to see some progress. But relatively speaking, we’re still early days in that big opportunity.
Dave Gennarelli: And our final question from Brad Zelnick at Deutsche Bank.
Brad Zelnick: I guess, most of the questions were asked, but I’ll throw a big picture one at you, Todd. It’s great to see you continue executing against your vision of building out a broader platform with SIEM identity governance and PAM in the pipeline. Consolidation has been the siren song of many security vendors over the course of time, yet security as an industry remains highly fragmented. As we look out in the many years to come, why is consolidation a viable strategy today for you in identity and why isn’t that Okta is positioned to be the winner?
Todd McKinnon: I mean, industries naturally fluctuate between consolidation and fragmentation. So, I think the key is not to think about — like are you — do you want to be fragmented or consolidating, the key is to think what are the right points of consolidation? And we believe identity is that point. We believe that if a company can consolidate their identity across customers or governance, around employees, then that’ll enable integration to a very broad and diverse technology landscape, which all these companies and organizations have, but most importantly, a broad and diverse and integrated security landscape. And it’s especially important in security, because security is adversarial. You don’t want to consolidate everything to one security vendor, and you don’t want to get one log analysis and endpoint and identity and network all from one company, because the attackers are going after that company.
You have no flexibility to swap out pieces and get your defenses more robust. So, we think the right point of consolidation is identity, and of course that has some security capabilities, lifecycle management and multifactor, but — and then that enables a tight integration to the entire security ecosystem, which will keep customers more robust and secure in the long term. That’s why we think it’s the right balance between the two.
Dave Gennarelli: Great. Well, that’s it for this afternoon. But before you go, we just want to let you know we’ll be at a few investor events this quarter. We’ll be at the Needham Growth Conference on January 12th. We’ll also be participating in several in-person and virtual bus tours over the course of December and January. So, we hope to see you at one of those events. And that’s it for our time. If you have any follow-up questions, you can reach us at investor@okta.com. Thanks.
Todd McKinnon: Thanks, everyone.
Brett Tighe: Thanks, everyone.