Charlotte Bedok's questions to Okta Inc (OKTA) leadership • Q2 2025
Question
Charlotte Bedok of JPMorgan Chase & Co. asked about performance in the SMB market and whether the net dollar retention rate is expected to remain at current levels.
Answer
CFO Brett Tighe confirmed that the SMB segment continues to be impacted by the macro environment, with its net retention rate below the overall company average. He stated that while gross retention remains healthy, the pressure on upsells due to macro factors and SMB weakness is expected to cause the net retention rate to tick down slightly in the second half of the year.