A：Okta's success with large customers in the third quarter was driven by strong performance in workforce upsells, particularly with new products like Okta Identity Governance, and Okta's unique ability to solve complex identity challenges across the entire enterprise landscape.

A：Some of the new products introduced by Okta include access identity, security posture management, identity threat protection with Okta AI, octa device access, and fine grain authorization. These products help customers reduce complexity while significantly improving their security posture, and they can be delivered as part of product suites to provide more value and simplify business interactions with Okta.

A：The addition of Okta for AI agents represents a new catalyst for growth because it addresses the critical business imperative of securing AI agents, which are becoming a new and powerful identity type. As AI adoption and deployment become more prevalent, securing these agents becomes essential to protect against identity-based attacks and to enable safe scaling of AI use within an organization.

A：The recent win with the financial services customer for Okta's AI security solution is significant because it demonstrates Okta's ability to secure AI footprints and to provide visibility, control, enhanced visibility, remediation capabilities, and protection for AI agents. The win also indicates that Okta is well-positioned to address the critical need for security in AI adoption and deployment, leading to a substantial increase in ACV compared to the customer's prior contract.

A：Okta is strategically positioned to capture the growth opportunity in AI security by being the only company able to secure AI with a modern and neutral platform. This allows it to deliver greater value to customers and drive the industry towards a more secure architecture for identity.

A：Okta's Go to Market specialization strategy is contributing to the company's financial performance by improving sales productivity, as evidenced by the continued positive trends across the company's go to market KPIs. This strategy is seen as the key to further success, particularly in driving future growth and achieving market leadership.

A：The recent settlement of the 2025 convertible notes, where the remaining principal amount of $510 million was paid in cash, had the impact of reducing the amount of cash, cash equivalents, and short-term investments on Okta's balance sheet. However, the company still ended the quarter with a strong balance sheet, consisting of nearly $2.5 billion in cash, cash equivalents, and short-term investments.

A：Okta's updated business outlook for the fourth quarter and full-year 2026 includes a total revenue growth of 11%, current RPO growth of 9%, a non-GAAP operating margin of 26%, and a free cash flow margin of approximately 29%. Previously, the company had expected total revenue growth of 10%, a non-GAAP operating margin of 25%, and a free cash flow margin of approximately 31% for the full year 2026.

A：Customers are convinced to consolidate when there is a catalyzing technological change such as cloud transformation, modernizing apps, or moving technology to leverage AI. This creates a need for a consolidated approach to identity management.

A：Companies have been shifting towards AI to take advantage of it and integrate AI workflows into their enterprise workflows. However, they face challenges as most current apps lack access to company data, while others give AI agents too much access, leading to security concerns and hesitance to implement these platforms.

A：Okta helps by figuring out who can access what for both people and AI agents, ensuring the right information is provided to the agents with appropriate security levels. This allows companies to observe the behavior and build the right use cases without overpermissioning.

A：The potential market for Okta's AI identity solutions is significant, with a projected TAM of several billions of dollars for workforce identity, customer identity, and the AIC identity layer. This is expected to be larger than the current markets they own and govern, providing a substantial growth opportunity.

A：Okta is releasing a new model that provides flexibility and security for AI integration, allowing companies to avoid being locked into a particular technology stack. This is important as customers seek an independent and neutral third-party access layer to manage their identity security effectively.

A：Okta is setting industry standards for cross-app access, which is now recognized as an extension of NCP protocol. This allows for more precise management and discovery of AI agents across multiple platforms and information repositories, enhancing the security and flexibility for customers.

A：The company is adding capacity due to confidence in the opportunity which includes securing AI and other new products. Growth in sales and marketing expenses over the last two quarters and the organization's ability to address the opportunity are contributing factors.

A：The speaker indicates that the organization is headed in the right direction, evidenced by growing sales and marketing expenses year over year. This reflects the organization's confidence and readiness to address the opportunity, which is reflected in the business's growth.

A：Traditional guidance is considered insufficient for Q4 due to its large size and the need to embed conservatism. The company will update guidance after Q4, which is their seasonally largest quarter, to provide a clearer outlook once the impact of the largest quarter is accounted for.

A：To estimate FY27 revenue, one should look at the Q4 guided current RPO and apply the annualized coverage ratio mentioned by the speaker for the past few years. Add professional services to the adjusted RPO figure to get a rough revenue approximation for the fiscal year.

A：The company has shifted to specialize in platforms and buyer personas due to an accelerated pace of product innovation. This change is important because it allows sellers to focus on specific capabilities, aligns with territory assignments and account changes, and supports executing the new go-to-market motion effectively.

A：The new go-to-market strategies and changes in territory assignments and account assignments are performing well. Productivity is sequentially increasing, and the company has many indicators that the significant shift in strategy is working out. The strategies have created space for focusing on new initiatives like Octa secures AI, which is resonating with customers.

A：The speaker believes that the portfolio is well-suited for agentic commerce, where websites and business ecosystems will increasingly implement artificial intelligence agents for tasks like customer support. Customer identity is crucial for ensuring the security of these agents and is relevant in securing the opportunities presented by agentic commerce.

A：A survey of enterprise customers revealed that 91% of them have AI agents in production, yet only 10% are confident in their security measures. This highlights a significant gap in the secure deployment of AI agents and emphasizes the need for greater security and visibility into agent deployment and usage.

A：Builders of AI agents face challenges such as ensuring discoverability of agents and ensuring they are only authorized to perform specific actions. The 0 platform addresses these by supporting cross app access and OAuth protocols for agent discovery and management, as well as fine-grained authorization for agents' privileges.

A：The Octa platform helps customers discover and manage AI agents by using identity security posture management tools. It can identify service accounts and their privileges, and, with the extension to NCP, discover AI agents that support the cross app access protocol.

A：The solution helps with privileged access by allowing agents to have appropriately vaulted tokens. It also includes governance for just-in-time provisioning of rights, ensuring that agents do not have overly permissive access and cannot be impersonated by threat actors.

A：An online mortgage company reported that implementing agentic workflows led to a 5x increase in conversion rates on mortgage applications. The absence of delays in approval processes due to automation improved the overall customer experience and resulted in a clear return on investment.

A：The business momentum is growing and is expected to positively affect next year's revenue growth. The speaker indicates that the changes made at the beginning of the year to further specialize in the markets have been effective and that the business momentum, along with the productivity and optimism observed within the organization, is moving in the right direction.

A：The sales realignment efforts and product suite changes have led to a more specialized approach in the go-to-market strategy. The company has specialized their demand generation teams for brand and pipeline generation work, and has had a focus on distinct personas which allows for a closer engagement with the needs of CIOs, CISOs, and developers. This has led to an opportunity for the field to innovate and improve specifically for personas like CIOs and developers, resulting in the refocusing of platforms like the Octa platform to better serve enterprise buyers.

A：The company views net retention as a healthy metric and expects it to continue over the long run, given the value it drives for customers. Net retention is currently tracking within the range of 106%, which aligns with past expectations. While precise guidance for Q4 is not provided, the company acknowledges the importance of focusing on growing faster due to the strong gross retention.

A：The new product introduction percentage has remained quite healthy as a percentage of total bookings. This is because, as the team becomes more familiar with the details of the products, they are better equipped to sell directly to economic buyers, which in turn leads to improved performance.

A：The outlook for Q4 is centered around market conditions and internal expectations rather than specific line items. Q4 is considered the seasonally largest quarter for the company, and they aim to execute well to finish the fiscal year (FY26) strongly. The guidance framework for Q4 is aligned with historical standards.

A：The company is seeing a trend towards consolidation, where customers are looking to manage their entire identity stack with a single control plane. A large Fortune 50 customer is undergoing a wholesale replacement of their identity points and is moving to standardize on Octa products. This is driven by cost reduction, better integration, and the need to connect all 5500 applications to their central identity system. The conversion process involves a change from a limited number of connected applications to a full integration of all applications into the Octa platform. This transition is expected to enable a future where agents can access every application controlled, governed, and managed by a single identity platform.

A：The current RPO guidance is $2.45 billion, which is used to calculate the coverage ratio by dividing this number by the projected FY 26 revenue to get a number that's approximately 79%.

A：Using FY 26 numbers is logical because it is the closest year to the upcoming FY 27, making it sensible for estimating purposes.

A：The new headcount added in Q3 is a mix of both go-to-market roles and positions in lower-cost regions to enhance capacity in areas like R&D and to build products faster.

A：The approach to securing AI agents is different for custom developed agents and those from packaged application vendors. The focus is on identity and agentic security, with an emphasis on controlling and monitoring access to ensure security across different platforms.

A：The company plans to address the multiplatform world by promoting flexibility in using different platforms and by advocating for strong security measures that allow companies to use a variety of platforms and pick the best content.

A：The company has started carving out territories for new logo acquisition and has introduced a hunter-farmer assignment in the US commercial business. The success in this approach has been positive, but it has not been extended to the enterprise business yet. The company is focusing on platform specialization and is considering adding hunter capacity as part of its annual planning.

A：The company is focusing on larger deals, evidenced by the growth of million-dollar deals in Q3 at 17%. This focus on larger deals is a key part of the company's growth strategy and investment focus.

A：The company is not overly concerned about seat count reductions as its products are priced differently from its competitors. It is confident in its customer identity business and believes that the new Agente products and the market expansion provide opportunities for offsetting any potential reduction in headcount.

A：The company's Agente products are priced per agent, which allows for a flexible deployment model, either augmenting headcount or operating independently at the front end of processes.

A：The company is well-diversified with its current and proposed products and is not affected by changes in the global workforce as it relates to traditional vendors and market ownership. The company is confident in its ability to define and win this new market and is well-positioned with customers and products.

A：The surge in inbound interest for managing agents is driven by the AU zero solution, which represents a larger opportunity as it addresses the need for securing agent identity in a rapidly evolving business environment.

A：The interests for AI agents are divided between online developer communities who find out about it through websites and upgrade to enterprise on their own, and enterprises influenced by CISOs or security buyers, which involve a more traditional sales motion.

A：Sales productivity is improving both quarter over quarter and year over year. Sales job openings are more than 100% year over year. The company is methodically adding capacity to ensure high productivity and not disrupt their low attrition rates, and they are confident in the ability of the sales team to be successful.

A：The strategy for adding sales capacity is methodical and cautious to maintain high productivity. They are adding capacity while ensuring that it works and does not disrupt the good tenure and low attrition rates currently present in the company. The exact numbers of capacity additions are not disclosed but are being planned carefully.

A：The company, being a leader in identity security, has a right of first refusal in all acquisitions. They see the acquisition as a positive sign and expect to benefit from it in the future as every platform company will try to make their identity management more generalizable, which is challenging to cover all use cases and integrations without a focused identity provider.

A：In the AI security space, the competitive landscape involves companies using software agents for various purposes such as security reviews, code checking, and testing. The speaker does not list specific competitors but implies that other companies are using AI agents in some form within their workflows.

A：The speaker describes AI agents as being available all the time to assist software engineers with various tasks such as code reviews and security assessments. They operate independently and provide access control, unlike human agents who may only be involved in lower-level workflow tasks. The speaker mentions that the number of AI agents per person ranges from 5 to 10.

A：The company plans to continue employing the Rule of 40 framework when managing the business. Although they have not provided specific guidance for fiscal year 27, they have seen significant margin increases in recent years and intend to lean more towards growth in the future once their plans for fiscal year 27 are finalized.