Manraj Belvi's questions to Okta Inc (OKTA) leadership • Q2 2025
Question
Manraj Belvi of Bernstein noted that the average land ARR per new customer appears to be growing and asked what is driving this expansion. He also asked when an acceleration in current RPO (cRPO) could be expected.
Answer
CFO Brett Tighe explained that the company's strategy is 'land and expand,' focusing on getting customers in and driving value over time rather than maximizing the initial land deal. CEO Todd McKinnon added that success with large enterprises, which may have larger initial deals, is a key factor, but even these deals are just scratching the surface of the total potential. Regarding RPO, Tighe highlighted the positive trend in total RPO due to longer contract durations with large customers.