Okta Inc - Ordinary Shares - Class A

Q2 results: strong, broad-based growth (and AI momentum, but still “early”) - Management attributed Q2 performance to strength across workforce identity and customer identity, plus partner engagement and contribution from new products. - New products were ~30% of Q2 bookings; when any new product is included in a deal, average ACV uplift is ~40%. - They cited record bookings quarter for a non-Q4 (Q2), driven by pipeline conversion and deal expansions. - Upmarket strength: >20% growth in $1M+ ACV customers; now >600 customers with >$1M ACV. - AI security theme is catalyzing demand: “dozens” of AI-related deals won in Q2 (though Todd emphasized it’s still too small to show up materially in reported numbers yet).

AI product developments: “Okta for AI Agents” + ecosystem standards momentum (surprising/positive) - Launches/GA milestones discussed: - Agent Gateway: run-time policy enforcement + vendor-neutral protection across agent ecosystems (Claude Code, Cursor, GitHub Copilot, Salesforce Agentforce, MCP endpoints). - Okta for AI Agents—Core: GA-enabling path for regulated environments, positioning Okta as first independent neutral identity platform for AI agent governance in FedRAMP + HIPAA contexts. - DoD Impact Level 5 (IL5) authorization achieved—framed as a key step toward the DoD 2027 Zero Trust mandate. - Ecosystem integration standard: Cross-App Access / Enterprise Managed Auth—they said Anthropic released Enterprise Managed Auth for Claude connectors and Okta is the first identity provider supporting it (intended to reduce “agent integration uncertainty” and vendor lock-in). - AI agent governance pitch is identity-led: Okta argues identity is the “control plane” and customers want a single neutral place to discover, govern, and protect humans + non-humans + agents.

Partnership / M&A: Permiso acquisition to expand “identity security for AI” controls (opportunity) - Completed acquisition of Permiso (cloud-native identity security for human, nonhuman, and agentic identities in multi-cloud). - Plan: integrate Permiso into a unified security offering with existing ITP/ISPM, enhancing visibility into autonomous agent behaviors and adding real-time runtime controls. - Takeaway for investors: strengthens Okta’s AI security capability stack beyond “policy/authorization” into more agent behavior detection + runtime governance.