Joe Van Drake's questions to Okta Inc (OKTA) leadership • Q2 2025
Question
Joe Van Drake from Scotiabank asked if achieving GAAP profitability is the new normal for fiscal '25 and '26, and whether the decline in sales and marketing spend will be a continued source of leverage.
Answer
CFO Brett Tighe stated that while Okta doesn't guide to GAAP profitability, the result reflects successful cost rationalization efforts that also allow for reinvestment in security. He confirmed sales and marketing has been a source of leverage. CEO Todd McKinnon added that the high-level goal is to operate at the Rule of 40, prioritizing growth within that framework while managing stock-based compensation.