Dave Gennarelli: Let’s go to Rob Owens of Piper.
Rob Owens: Todd, obviously, a lot of management turnover over the last six months. So at a high level, just address what’s transpired? What’s first in terms of your agenda as you rebuild this team?
Todd McKinnon: Well, I think the team — speaking broadly, the team is incredibly strong. And I’m very happy with the team, specifically about Susan. I think the world of Susan, and I want to just thank her for her contribution and she’s an amazing person and an amazing executive. And after 30 years in operating roles, she’s going to retire now and spend time on Boards. And by the way, she’s going to — she’s already on a Board, and she’s going to be on many more. I think she’s going to be an amazing Board member. So, I think the world of her. And also one of the reasons is the team she’s built. It’s an amazing team that’s going to carry on with a deep bench of talent, and they’re going to take this strategy and this vision that we’re executing on.
And that team and the entire team is going to do a great job at it. So, it’s always hard to see people retire, especially someone of Susan’s ability. But the show must go on, and we’re going to do a search for her backfill. We’re going to look at internal candidates and external candidates. And although it’s going to be hard to find someone as good as her, we’re going to do a thorough search, and I have no doubt that we will.
Dave Gennarelli: Let’s go to Joe Gallo at Jefferies.
Joe Gallo: Hey guys. Thanks for the question. And I appreciate the comments on macro and prudence and baking in a worsening environment before it gets better. Maybe based on your conversations with customers, what is their viewpoint on cyber budgets in 2023 and when it can get better? Or is this malaise more of a long-term new normal? Thanks.
Todd McKinnon: Yes. It’s — we see the — like I mentioned earlier, just kind of repeating myself here, that it’s — the conversations are a little bit — there’s like a different story for every customer in terms of — some customers, particularly in the SMB segment are delaying purchases or reevaluating things. Some of our — this quarter or the past quarter, Q3 was one of our best quarters ever for large deals. So deals that were in process, mostly on the upsell side, the big entertainment conglomerate I talked about in the prepared remarks. This company has bought several companies over the last few years that were Okta customers. And when that happens, at some point, the success is overwhelming. So, they know that to move their whole global organization forward, it needs to standardize.
And this process happens over multiple years from the acquisitions to the success to the consensus building inside the company. And then when it happens, it happens regardless of the macro environment that’s hitting this company as hard as it’s hitting at other companies. So another example is the story of KeyBanc, which is — this is a consolidation play. They had several legacy vendors and disparate identity tool. So they look at the economy and say, we need to consolidate onto one identity platform and it helps there. But there’s other customers that are saying, hey, we’re going to maybe stick with what we have a little longer. So, it’s — it all adds up to validating the long-term trends we know that have been powering our success for a long time, and we’ll continue over the long term as well, but there’s just a lot of uncertainty in terms of how it plays out in the details and the timing of the progress over the next several quarters.
