Brett Tighe: Sorry, Madeline, you broke up a little bit on me, but I think you were saying the mix on cRPO was related more to upsell versus new business, is that…
Todd McKinnon: She said she calculated 90% of the cRPO came from existing customers.
Brett Tighe: Yeah. Okay. Yeah, I can’t say that I have that number at hand, Madeline, but what I will say is, as we’ve talked about in the past, our mix of business has shifted more toward upsells. We believe that’s related directly to the macro side of the house, really putting pressure on new business. And so, I think that’s why you’re seeing those numbers. I think we had a nice quarter from a new customer adds. Net adds was up 400. You heard Todd talk about the $1 million customers. Greater than $100,000 customers had a nice addition as well, an increase sequentially versus Q2. So, we do see new business helping us out, but we do see a headwind there due to the macro headwinds that although have stabilized, still are headwind to our growth in the business.
Todd McKinnon: Yeah. And one thing I can add there, hopefully, it’s helpful, is the new products. We have with — we have three amazing products to sell our existing customers. I mean, some customers have customer identity, but we still have a lot of customers to sell our customer identity to. And then we have many, many customers to sell Okta Identity Governance too. That thing is just starting to roll. It’s had some early success, but it’s been GA a little over a year now, starting to get a ton of traction. We had a couple of really important deals with the one I mentioned in my comments that we posted at the site was a global pharmaceutical company had a big OIG upsell and then the new GA of PAM. So, I don’t — I think we have a ton of new products from the pipeline to sell our customers and that’s what we’re making sure we operationalize those newer products and execute well in selling those.
And I think the 90-day delay on some of the new products could potentially be impactful at some point, but we’re not short of products for FY ’24 for sure — sorry, FY ’25 for sure.
Madeline Brooks: Got it. Thanks so much.
Dave Gennarelli: Yeah, let’s go to Eric Heath at KeyBanc.
Eric Heath: Hey, Dave, thank you. So, Todd, it’s great to see PAM is getting rolled out this week. I guess kind of two parts to the PAM opportunity. So, one, just what learnings can you draw from OIG to relay that into some similar early success into PAM, number one? And then, number two, just given PAM can be used to protect the customers Okta environment, is this something that you could potentially make available to customers at no extra charge just as it relates to protecting their own Okta environment?
Todd McKinnon: I think there’s — we’re really excited about privileged access. And I think the biggest — I think there’s a couple of lessons from OIG that are just, I would call them independent of any product area. So just new product introductions across the board, things like best practices to when to enable broadly, when do enable different segments of the market. Like one of the learnings from OIG was that it’s having much more success in larger enterprises than we expected. And so, I think we’ll roll that learning to PAM and will enable the larger enterprise sellers sooner than we did with OIG, because we anticipate that it could have the same phenomenon and exceed our expectations in larger enterprise. Another interesting phenomenon from OIG was that OIG is exceeding our expectations in kind of, call them, brownfield environments where they already have an existing governance solution.
So, we’ll bring those learnings to the PAM product as well. On the product direction, one area that is through the early access phase and now that we move into GA, one of the learnings on the product directions is that customers — the product’s main focus has been through the early limited — sorry, through the early access has been on servers, so Linux and Windows servers, Kubernetes clusters, managing access to these things, these kind of infrastructure-type resources. Customers find a lot of value in having us manage the privileged accounts in SaaS apps. So, we’re connected to Salesforce. We’re connected to Workday. We’re connected to GitHub, manage the privileged accounts in there. So that’s an exciting direction. As you mentioned, what is one of the most critical privileged account systems in the world, it’s Okta admin console.
So, we’re exploring ideas to better integrate that, and that’s going to be a big focus. And your idea about offering it for free to every Okta customer is a very interesting one, and this might be the first time ever I’ve taken product input on an earnings call, but I do take it.
Dave Gennarelli: Great. Next, let’s go to Gray Powell at BTIG.
Gray Powell: Okay. Great. Thanks for taking the questions. So yeah, I guess, kind of a modeling question here. Normally, I would expect sequential growth in cRPO in Q3 to be at a similar level to that of what you’ve seen in Q2. At least that’s what you’ve seen the last couple of years. This year, you added $54 million in net new cRPO. Last quarter, you added $71 million. So I know this is kind of rough, but like is it safe to say that the main difference there was the breach happening with like 10 or 11 days left in the quarter and then customers just taking a pause? Or is there something else that I should be thinking of? And then, the other part of the question would be, as we think of Q4 trends, like how much of a hangover is there? How much should we expect the lingering impact of the breach to be on conversations with customers?
