Okta, Inc. (NASDAQ:OKTA) Q3 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:00 pm ET

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Okta, Inc. (NASDAQ:OKTA) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Okta Third Quarter Fiscal 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Dave Gennarelli, Head of Investor Relations at Okta. Please go ahead, sir.

Executive
Dave Gennarelli

Good afternoon and thank you for joining us on today's conference call to discuss the financial results of Okta's third quarter of fiscal 2020. With me on today's call are Todd McKinnon, Okta's Co-Founder and Chief Executive Officer; Bill Losch, the Company's Chief Financial Officer and; Frederic Kerrest, the Company's Co-Founder and Chief Operating Officer.

Today's call will include forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding our financial outlook and market positioning. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements represent our management's beliefs and assumptions only as of the date made. Information on factors that could affect our financial results is included in our filings with the SEC from time to time, including the section titled Risk Factors in our previously filed Form 10-Q.

In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures and discussion of limitations of using non-GAAP measures versus their closest GAAP equivalents is available on our earnings release. You can also find more detailed information in our supplemental financial materials, which include trended financial statements and key metrics posted on our Investor Relations website.

On today's call, we will quote a number of numeric or growth changes as we discuss our financial performance. And unless otherwise noted, each such reference represents a year-on-year comparison. And now, I'd like to turn the call over to Todd McKinnon. Todd?

Executive
Todd McKinnon

Thanks, Dave. And thanks everyone for joining us today. Our third quarter results reflect another strong quarter of execution and financial performance. Total revenue grew 45%, subscription revenue grew 48% and remaining performance obligations or RPO grew 68% to over $1 billion. We added 400 new customers in the quarter, bringing our total customer count to over 7,400. We also continue to broaden our base of enterprise customers as demonstrated by the addition of 103 customers with annual contract value greater than $100,000. And once again, over half of these additions were from new customers.

The total number of 100,000 plus customers is now over 1,300 and increased over 40% year-over-year and over 90% since the beginning of last fiscal year. That's great progress as we continue to focus on broadening our enterprise business, with the investments we're making in our customer-facing teams and deepening our relationships with global systems integrators.

For a while now, we've talked about the three