5 Interesting Learnings from Okta at $2.75 Billion in ARR
SaaStr
JUNE 18, 2025
Net Retention Compression: From 122% to 106% The Numbers : NRR dropped from 122% (Q2 FY23) to 106% (Q1 FY26) – a 16 point decline over 3 years The Learning : Plan for 4-6 points of NRR compression annually once you hit $1B+ ARR. The Gross Margin Ceiling Discovery The Numbers : Non-GAAP subscription gross margin plateaued at 83.9%
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