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A reconciliation between GAAP and non-GAAP financial measures is available in our earnings release. Further information on these and other factors that could affect the company's financial results is included in filings we make with the securities and exchange commission from time to time, including the section titled risk factors in the annual report on Form 10-Q previously filed with the SEC. You can also find more detailed information on our supplemental materials, which includes trended financial statements and key metrics posted on our investor relations website.

Now, I'd like to turn the call over to Todd McKinnon. Todd?

Todd McKinnon -- Co-Founder and Chief Executive Officer

Thanks, Catherine, and thanks, everyone for joining us today. Our second fiscal quarter was another record quarter for Okta, with total revenue growing 57% and calculated billings growing 53% year over year, we continued to invest across our business while improving our bottom line. Operating margin improved over 300 basis points while free cashflow margin improved more than 500 basis points year over year. We also had a record quarter in terms of customer growth, especially in customers with over $100,000 of ARR, which grew 55% year over year.

We had a number of customer upsells and new wins in the quarter, of which I'll highlight a few. First, an existing Okta customer, 21st Century Fox, is using Okta as a key part of its zero-trust architecture to manage access for more than 30,000 employees and thousands of partners globally. This quarter, the company added API access management to streamline authorization and further strengthen the company's security posture.

A new customer win in the quarter was Meraki, a leader in networking solutions and a division of Cisco. Meraki was specifically looking for a lifecycle management solution for its 1,5000 employees. They chose Okta after evaluating other options. The Okta Integration Network was a strong selling point for Meraki, as they needed to connect custom applications to other existing cloud applications. Meraki selected Okta SSO, universal directory, multi-factor authentication, and lifecycle management to save on IT costs, improve productivity, and increase overall security.

NTT Data Services, a top-ten global IT services provider, was another new customer win in the quarter. They selected Okta to rework their identity platform, as their existing solution couldn't scale quickly to keep pace with their growth, particularly in M&A scenarios and for supporting their remote workforce. NTT selected Okta for SSO, universal directory, lifecycle management, and adaptive, multi-factor authentication. With Okta, NTT was able to execute their identity as a new perimeter strategy and centralize their employees' identities onto one unified platform.

We also added one of the world's largest asset management companies as a new customer in both customer and employee identity management this quarter. They selected Okta for two key initiatives -- one, to help modernize their customer-facing portals and better experience for their international customers, and two, to secure and expedite adoption of technologies that will make their 15,000 employees more productive.

This customer purchased our SSO, universal directory, adaptive multi-factor authentication, and lifecycle management products, across both customer and identity deployment to achieve these initiatives.

We're pleased with our consistently strong results and the momentum we're seeing, which is being driven by several factors. It starts with the significant market tailwinds in our favor. Every organization is moving to the cloud. Every company has to become a technology company and everyone is worried about security.

We are seeing identity become mainstream, as organizations recognize the critical role that identity plays in their environment. Our experience in the market has validated our view that identity is becoming more pervasive and imperative for our customers. We believe that the tailwinds driving customer demand for identity solutions are robust and that we are just beginning to capitalize on this rapidly growing opportunity.

Here are the four reasons why I think we're winning and that make us unique -- our technology, our customer-driven strategy, our expansion opportunities, and the network effects inherent in our business model.

First, we believe we have the best technology platform for identity in the market. Customers love Okta because our platform is secure, scalable, and reliable. We are benefiting from our brand, which is strengthening among CIOs and CISOs. Also, Okta enables a faster ROI for our customers. Many customers can deploy Okta in days or weeks, not quarters or years. The Okta Identity Cloud is independent and neutral.

In the real world, most organizations don't choose just one cloud platform. They will be running hybrid cloud architectures for a long time to come. We are uniquely positioned to consolidated all of the customer's applications to a single identity service. Okta's platform allows our customers to choose the best technologies without sacrificing security or stability, which our customers often refer to as helping them future-proof their environments.

Lastly, our technology is designed not only to have the best features and functionality, but also to address our customers' business pain points. We integrate at the workflow level so that users can automatically take advantage of the functionality across their modern cloud applications such as ServiceNow, Palo Alto Networks, and Box without weeks of custom configuration. Okta removes the friction from the process of moving to the cloud.

This brings me to the second reason we're winning -- our customer-drven strategy. Our customer-first focus is not just a slogan. It impacts everything we do, how we design and develop our technology, how we go to market, how we service our customers every day. So, as we look at our long-term product strategy, we strive to anticipate what will solve our customers' business pain points today and over time.

Let me give you some examples of specific pain points. One customer challenge we help solve is connecting customers or critical partners to corporate systems. For example, in making a blockbuster film, 21st Century Fox collaborates with over 200 companies, from content creation to content distribution. Okta connects Fox with key business partners that are connected into a digital supply chain. The success they have had with Okta over the years has resulted in multiple upsells. Another is modernizing IT, where customers are looking to move to the cloud or hybrid environment but need to integrate different systems and platforms under one control point.

At Oktane, the CISO of Allergan said M&A was a primary driver for their adoption of Okta. In just four years, they had acquired 44 companies and needed a cloud-based solution to quickly consolidate new companies and allow access across all entities. They had five HR systems, four ERP systems, and over 20 ways to onboard a contract employee. Okta allowed them to streamline this by serving as a single control point that sat as an integration layer on top of all of these systems.

In many cases, we are simply reducing friction within the company's IT infrastructure by replacing legacy systems. Our NTT win this quarter is a great example of how Okta was able to create a central source of identity for the company's highly remote workforce and streamline their access to dozens of cloud applications while improving the company's overall security posture, solving our customers' most acute pain points today and their most strategic pain points for the future is our imperative. They choose us because we respond to these problems quickly and effectively. Our success is aligned with our customers' success.

That leads to the third reason we're winning, which is our expansion-rich business model. We have multiple expansion opportunities with customers. With the same leading core technology platform, we service identity management for employees, contractors, and almost any type of customer application for an organization's many lines of business. Our ability to offer a single platform to solve identity challenges in all these different use cases gives us the opportunity to sell the Okta Identity Cloud across multiple areas within an organization.

Our customers, such as Allergan, Experian, and Farmers Insurance each started with Okta to solve an acute problem quickly and effectively, and many have since expanded with more users, more products, or by expanding into more use cases. This is what drives our dollar-based retention rate and contributes to our high growth rates. Our growth is coming from both new logo wins, as well as strong upsells. We believe there are many more use cases ahead of us.

Lastly, the network effect of over 5,500 integrations allow our customers to benefit from the power of the Okta Integration Network. The Okta Integration Network is a foundational part of our platform and driver of our success. Our customers leverage the Okta Integration Network to seamlessly connect across multiple technologies, such as applications, network security, workflow orchestration, and API management, making it easier for them to discover, deploy, manage, and administer all best of breed technologies securely.

So, in summary, our momentum is being fueled by both the market tailwinds and our ability to win. We are seeing identity become mainstream and the market coming to us. Our technology platform is highly differentiated and built to help solve our customers' pain points. We are maniacally focused on customer success. Lastly, our expansion opportunities and the powerful network effects that we create give us a critical advantage.

Before I pass it over to Bill, I wanted to briefly comment on our acquisition of ScaleFT. We were excited to announce the acquisitions in the quarter, which will help our capabilities in zero-trust security. We believe that continuous authentication and server access are the next essential features in a secure IT environment and that we will better equipped to deliver these capabilities with the technology from ScaleFT.

We remain focused on the same three strategic areas for long-term growth -- security, the Okta Integration Network, and customer identity. We're continuing to make great strides in these areas and look forward to diving deeper into our vision and growth opportunities at our investor day in a few weeks.

Thanks again for calling in today and I'll now turn it over to Bill to walk through the financials.

Bill Losch -- Chief Financial Officer

Thanks, Todd. Thanks again to everyone for joining us. I'll first go through our results for the second quarter fiscal year 2019 before getting into our outlook. We had another strong quarter, with revenue totaling $94.6 million, growing 57% year over year. Subscription revenue totaled $87.9 million in the second quarter, an increase of 59% year over year, and comprised 93% of our total revenue, up slightly from 92% in Q2 last year.

Professional services revenue was $6.7 million, an increase of 36% over the same period last year. Geographically, the US represented approximately 84% of our second quarter revenue, compared to 85% in Q2 last year. Approximately 16% of our second quarter revenue came from outside of the US, which represents growth of 63% over the same period last year. We continue to view our international business as another long-term growth driver.

Moving on to billings -- calculated billings for the second quarter totaled $109.4 million, an increase of 53% over Q2 last year. We were very pleased with our calculated billings growth and the underlying demand that continues to drive our business. Contributing to our high billings growth rate was better than expected booking familiarity in the quarter, the beneficial timing of certain invoices, and a few customers with multi-year upfront billings. Current calculated billings growth for the quarter was 50% year over year.

Our strong billings growth has also benefited from momentum within our customer base from new customer additions. The total number of customers at the end of the quarter came in at over 5,150. We saw our customers with ARR greater than $100,000 grow to 837, up 55% year over year, which was an acceleration from Q1.

We saw broad additions across our customer base and had record net new total customers and customers with ARR greater than $100,000, up 450 and 90, respectively, from the previous quarter. Our dollar-based retention rate for the trailing 12 months ended July 31st was consistent with last quarter at 121%, demonstrating the ongoing success we are having expanding within our existing customer base.

If we're turning to expense items and profitability, I would like to point out that I will be discussing non-GAAP results going forward. Our GAAP financial results along with the reconciliation between GAAP and non-GAAP results can be found in our earnings release as well as the supplemental materials posted on our investor relations website.

Subscription gross margin continues to be strong at 80.3%, up 130 basis points versus the second quarter last year. Our professional services gross margin was net 17.9% compared to negative 26.5% in the second quarter last year, primarily due to improving operational leverage. Total gross margin was 73.3% in the second quarter, up 300 basis points year over year. Gross profit was $69.3 million, up 64% year over year.

Turning now to operating expenses, sales and marketing expense for Q2 was $53.5 million, compared to $34.9 million in Q2 last year. This represents 57% of total revenue, an improvement from 58% in the second quarter last year, despite the impact form Oktane, our annual customer event, which moved from Q3 last year to Q2 this year.

As a reminder, Oktane will be in the first week of April next year, which is our first fiscal quarter. We continue to expect sales and marketing expense as a percentage of revenue to improve for the full year.

R&D expense in Q2 was $19.6 million compared to $12.5 million in Q2 last year. This represents a growth rate of 57% as we continue to invest heavily in the Okta Identity Platform and our Okta Integration Network. At the same time, R&D as a percentage of revenue came in at 21%, consistent with Q2 last year. G&A expense was $15.5 million for the second quarter compared to $9.2 million in the second quarter last year. G&A was 16% of revenue, slightly higher than 15% for Q2 last year.

Our total headcount was 1,392 as of July 31st, growing 27% over Q2 of last year. We continue to add headcount across the board as we support the growth of our business. We remain focused on responsible growth. As a result, we've seen continued improvement in our operating margin. Operating loss in the quarter was $19.2 million, which is a margin of -23%, compared to -23.6% in the same period last year, an improvement of 330 basis points.

As expected, we saw a sequential dip in our operating margin in the quarter, largely due to the costs associated with Oktane. Through the remainder of this year, we are planning to further ramp our hiring as we continue to invest in our go to market initiatives and innovation. However, we also expect an operating margin will continue to improve on a fiscal year basis.

Net loss per share in Q2 was -$0.15 with 106.7 million basic shares outstanding. This compares to a net loss per share in Q2 last year of -$0.15 with 93.6 million basic shares outstanding at the time. Operating cashflow was -$5.3 million in Q2. Operating cashflow margin was -5.6% compared to -10.4% in Q2 last year, an improvement of 480 basis points.

Free cashflow came in at a -$11.3 million in the quarter. Free cashflow margin was -12%, an improvement of 540 basis points compared to a -17.4% for Q2 last year. As expected, we also saw the impact of additional CapEx associated with our headquarter office expansion this quarter. We continue to expect to see variability in free cashflow margin due to this expansion, along with ongoing fluctuations in working capital.

Turning to the balance sheet, we ended the second quarter with $536 million in cash, cash equivalence, and short-term investments. This includes the net proceeds of $307 million from the convertible senior notes we issued in Q1. As Todd mentioned, we completed the acquisition of ScaleFT in the second quarter. This had an immaterial impact on revenue and EPS for the second quarter, and we expect the same for the full Fiscal Year 19.

Moving on to guidance, for the third quarter Fiscal 2019, we expect revenue in the range of $96 million to $97 million, representing a growth rate of 43%-45% year over year, non-GAAP operating loss in the range of $15 million to $14 million, non-GAAP net loss per share in the range of $0.12 to $0.11, assuming 109 million weighted shares outstanding.

For the full-year Fiscal 2019, we now expect revenue in the range of $372 million to $375 million, representing a growth rate of 45% to 46% year over year. Non-GAAP operating loss in the range of $59 million to $57 million, non-GAAP net loss per share in the range of $0.48 to $0.46, assuming 107 million weighted shares outstanding.

In summary, I'm very pleased with our strong performance this quarter and we look forward to building on this momentum in the second half of the year. We are well-positioned to continue capitalizing on market tailwinds and I'm encouraged by the consistently strong execution we have demonstrated. Going forward, we see opportunity for continued growth, as well as additional leverage in the model. We look forward to seeing you at our upcoming investor day on October 9th in San Francisco.

With that, Todd, Frederic, and I will take your questions. Operator?

Questions and Answers:

Operator

Thank you. Ladies and gentlemen, to ask a question at this time, please press *1 on your telephone keypad. If you're on a speakerphone, please make sure that your mute function is turned off to allow your signal to reach our equipment. Once again, that's *1 for any questions.

Our first question will come from Rob Owens with KeyBanc Capital Markets.

Rob Owens -- KeyBanc Capital Markets -- Analyst

Great. Thank you, guys for taking my question. If I look at customer count and growth there or customer count over $100,000 ACV, it seems like it's inflecting here. I'm curious -- are you seeing this as a function of better salesforce productivity, the market just opening up a little bit at this point? Given where you are in the lifecycle, it's surprising to see a modest inflection in growth to the positive here. Or are you seeing more partner-led types of opportunities that are helping?

Todd McKinnon -- Co-Founder and Chief Executive Officer

Hey, Rob. I think it's a couple things. The biggest opportunity for us over the last five years has been we've talked about these big tailwinds that are behind us -- move to the cloud, the prevalence on everyone's mind about security, every company trying to become more of a digital business -- those are big macro tailwinds.

I think the biggest opportunity for us has been getting that message out there that identity is really important to facilitate all of those transitions and to take advantage of all those transitions. I think what's happening is that message is getting out there. So, everyone knows they have to go to the cloud. Everyone knows they have to be secure and transform their businesses to digital. They're starting to realize more and more that identity is a key to that. That obviously is a very good for us and I think that is really what's driving that.

Rob Owens -- KeyBanc Capital Markets -- Analyst

Then I guess relative to the October quarter guidance, I'm curious what would cause the sequential flatness that you're guiding for at this point, given a) you've never seen it historically and given b) the customer velocity that you're seeing overall, why wouldn't you see more of a sequential uptick for October as compared to July? Thanks.

Bill Losch -- Chief Financial Officer

Rob, we've obviously been very pleased with the growth we've had. It's been very strong. As Todd said, it's really because the market is just a big opportunity for us. The forecast guide that we gave is growth of 43% to 45% year over year. So, we feel like that's a very strong guide. But that said, as you know, most of our business going forward is coming from large enterprise customers. As you know, those deals can have longer sales cycles, sometimes be a bit choppier. So, we're being prudent with our forecasting. That said, we feel there's a lot of opportunity and feel very positive about the business going forward.

Rob Owens -- KeyBanc Capital Markets -- Analyst

Great. Thank you.

Operator

Our next question will come from Terry Tillman with SunTrust Robinson Humphrey.

Terry Tillman -- SunTrust Robinson Humphrey -- Managing Director

Thanks for taking my questions and congrats on the results.

Todd McKinnon -- Co-Founder and Chief Executive Officer

Thanks, Terry.

Terry Tillman -- SunTrust Robinson Humphrey -- Managing Director

I guess the first question is related to pricing and packaging. You can see where you guys have added additional SKUs for some of your products. Like SSO, you've got an adaptive version or a higher price point version. A couple of the other products, I think, including MFA, it looks like you've got additional SKUs now, the higher price point SKUs and also other products that now there's a clear and transparent pricing model for it. I'm just kind of curious what kind of changes or impact are you seeing from some of these additional price points? Then I have a follow-up question. Thank you.

Todd McKinnon -- Co-Founder and Chief Executive Officer

As you mentioned, I think it's important to understand the platform is adopted by modules and by products and it's also adopted by users. You can start with customers, customer identity as your users or you can start with employees. You can add the other type of user. You can start with one product for customers and add multiple products for customers or start with one product for employees and add more products there.

We have a pretty consistent history of innovation in terms of building new capabilities into the platform and then providing those to customers as separately prices products or modules. What that does is it gives the customers a lot of flexibility on the various use cases they want to start with, show success and then build from that success.

I talked earlier in my comments about customer-success-driven culture. Hand-in-hand with that, you have to have this flexible platform that lets customers incrementally adopt and get value as they adopt it. So, what's happening more and more is full-fledged, multi-product, multi-use case adoption, which is driving some of our numbers. Hopefully that gives a better perspective on what's going on there.

Terry Tillman -- SunTrust Robinson Humphrey -- Managing Director

Yeah, it does. I appreciate that. I guess my follow-up question relates to at Oktane, I was really intrigued around Threat Insights and talking to customers and prospects. There seems to be a lot of interest in that. Maybe you can talk about where you are a couple months removed from Oktane and really your story around analytics. Because of all this usage, it seems like you are going to have a lot of power to really bring this analytics and threat insights to bear. How are you going to monetize it and what kind of impact is it having in the business in general? Thank you.

Todd McKinnon -- Co-Founder and Chief Executive Officer

Yeah. The value we can deliver to customers based on the data that the service generates is, I think, underappreciated about the potential value we can deliver there. So, we're really excited about that. We talked about Threat Insights, which is a new capability we talked about at Oktane. It's in early beta release. We're proving it out with a couple customers.

Basically, what it does is it gives customers broad-based insight into all the threats that are emerging across the entire platform and helps them take proactive security measures in the face of those threats for their own organization. It's really taking this data and then making the service more valuable because of this broad swath of data we have for each individual customer.

We're thinking about Threat Insights and what are the logical ways to expand that and make it broader and more impactful in terms of innovation and specifically initiative takes that data and exposes that to customers in a way that's helpful for them.

Operator

Next, we'll take a question from Alex Henderson with Needham & Company.

Dan Park -- Needham & Company -- Analyst

Hi, good afternoon. This is Dan Park on for Alex. Thanks for taking my question. I guess I know you noted that there was some strong progress with upsell in the quarter. I was wondering if you'd provide some additional color on what solutions were driving the upside.

Frederic Kerrest -- Co-Founder and Chief Operating Officer

Hey, Dan. Thanks for the question. This is Frederic. I think as you noted, we're continuing to see strong growth in net new customer additions by adding 450 for the quarter, but also, we continued with a strong dollar-based net retention rate of 121%. I think what you're seeing is as organizations start to find that the Okta service and platform can be deployed quickly to solve specific use cases, they get comfortable with what we're doing and they start to see a lot of other opportunities where they can expand their usage.

So, again whether they start with a workforce opportunity and then move to customer identity management or whether they start with a specific issue they're looking to solve and then they expand to other products, there are a lot of continued vectors of expansion in the service and we're fortunate that our customers are finding a lot of value with what we're doing for them.

Todd McKinnon -- Co-Founder and Chief Executive Officer

Yeah. I would just add the customer identity part of the product suite is newer. We introduced that second to the employee identity. As a result, it was earlier in the lifecycle in terms of maturity. That's really matured over the last several quarters. So, what you see is more and more companies starting with customer identity and then adding the employee identity later.

So, we talked about the large asset management new win in the customer. That started as a customer identity deal. So, that's happening more and more. Then also with that maturity, the add-on sales, companies that started with employee identity, but the add-on sale for customer identity is bigger because that product line is more mature now. Those are a couple trends I would highlight.

Dan Park -- Needham & Company -- Analyst

Okay. Thank you very much.

Operator

Our next question will come from Stering Auty with J.P. Morgan.

Sterling Auty -- J.P. Morgan -- Analyst

Thanks. Hi, guys. I just want to expand upon the answer you just gave. Todd, in your prepared remarks, you talked about keys for success. Expansion was one of those keys. What I'm wondering is how much of that expansion that you're seeing is what you just answered, which is the additional use cases and additional users versus expansion through selling additional products into those existing customers.

Todd McKinnon -- Co-Founder and Chief Executive Officer

I don't know the exact breakout of that. I know that to the extent of major shifts, the newer products like multi-factor authentication, adaptive multi-factor, advanced SSO, those are early in their lifecycles and they're growing fast. So, every quarter, they make more contribution. Then the dynamic I just mentioned in terms of customer identity is definitely true. The product is maturing. The build versus buy decision in the marketplace is becoming more well-known to be something you can buy. So, you're seeing more deals start with that and then bigger expansions because of that. That's an important dynamic there.

Frederic Kerrest -- Co-Founder and Chief Operating Officer

What I would add on that, Sterling, is don't get me wrong, we're very excited about those dynamics and the expansion within customers, but again, it's very early for the business. These are very, very big markets and there are a lot of opportunities with both net new customers as well as we get into more and more of the large enterprise, they have more and more opportunities where they can leverage the service. You think about large organizations like Allergan, where they have many, many different kinds of patients and doctor and clinician forward-facing websites. There are a lot of different ways that we can help them in what they're trying to do.

Sterling Auty -- J.P. Morgan -- Analyst

That makes sense. Just as a follow-up, I believe at Oktane, you mentioned a number of partnership announcements. I think VMware was one of the elements you were talking about. I'm just curious. I know it's still early days, but what kind of conversations are you getting from customers around that endeavor?

Frederic Kerrest -- Co-Founder and Chief Operating Officer

Yeah. We're very excited about the partnership with VMware. We had a good presence with them at their VMworld a couple weeks ago. We thought that the opportunity to expand with both net new customers and joint customers -- all these customers are thinking about a best of breed world, where it's a very heterogeneous environment. They're trying to manage a lot of infrastructure and devices, some of which are company-owned, some of which are bought by employees. They're trying to leverage the best technology out there.

What you see is a very strong demand for joint product, like what we have with VMware. So, it's early days for the partnership, as you mentioned, since Oktane was only a couple months ago, but I'm very excited about that and I think there's huge opportunity ahead.

Sterling Auty -- J.P. Morgan -- Analyst

Great. Thank you.

Operator

Once again, ladies and gentlemen, if you'd like to ask a question, please press *1 on your telephone keypad. If you're on a speakerphone, please make sure you pick up your handset before pressing the correspond digit. That's *1 for questions. Next, we'll go to Heather Bellini with Goldman Sachs.

Heather Bellini -- Goldman Sachs -- Analyst

Great. Thank you, guys, for taking the question. I just was wondering -- Todd, maybe this is for you -- how do you think the contribution of the dollar-based net expansion has changed over the years? I guess what I'm trying to think about is is there a way to characterize how much of that is coming from new seats how that might have changed over the last few years versus the addition of the new products that you've been successful with? Then I have a follow-up.

Todd McKinnon -- Co-Founder and Chief Executive Officer

Heather, I don't know the exact number. Even if I did know it, we haven't broken it out. So, I probably couldn't say it. But I do know that what I've talked about, what I mentioned for the previous couple answers is we're seeing progress in the newer products, like multi-factor authentication, advanced SSO, and so forth, smaller bases because they're newer, but we're happy with the progress there.

This dynamic on customer identity is real. Although I don't have the exact numbers, I do know that as the product has matured, we're leading more deals than we were when it was not as mature. It also continues to be bigger contribution to overall expansion. That's important because that's a big area for us.

If you look over the last couple years, we did an acquisition to help bolster this, the Stormpath acquisition. We're working on this a lot. We think it's a very important trend. We're happy to see progress there, although by no means are we done there. That market has a long way to run. So, we're just in the early stages of that.

Heather Bellini -- Goldman Sachs -- Analyst

I guess just to follow-up on what you just said, when you're adding things like MFA, for example, are people taking on bigger seat deployments right away than maybe the initial sale would have been on identity management, maybe the last time they signed on? Is there any way to think about how fast people are taking a bite out of -- how big the bite of the apple is when they start adding these new products versus kind of their initial sale?

Todd McKinnon -- Co-Founder and Chief Executive Officer

Yeah. So, I think a typical pattern is start with SSO for every employee and then add customer identity, which depending on the company, could be bigger to much bigger than the employee deal. It's not true for every company because some companies have a small number of customers relative to large employee bases, but generally speaking, the customer identity investment for certain companies could be bigger. Then you could add something like a multi-factor to the employee population. That's usually done for the entire employee population. It has an extra module, just like the original SSO deal was the entire population. So, we get a bump from that.

Heather Bellini -- Goldman Sachs -- Analyst

Okay. Great. My follow-up for Bill was going to be of the net increase, the 90-customer net increase in customers with ACV over $100,000, how many of those came from new logos?

Bill Losch -- Chief Financial Officer

A majority of those came from new logos, Heather. That's very positive. We're still seeing a lot of incremental billings and the majority of our incremental billings are coming from new logos. The point we've been making earlier about the expansion opportunities we have once we have a customer in place with a 121% net retention rate demonstrating that, we see a lot of value, obviously, once the customer is there but are still getting a lot of upside, so to speak, from new customers and new customers paying us a lot of money.

Heather Bellini -- Goldman Sachs -- Analyst

Great. Thank you so much.

Operator

Our next question will come from Gray Powell from Deutsche Bank.

Gray Powell -- Deutsche Bank -- Analyst

Great. Thank you very much. Just a couple questions -- I wanted to follow-up on customer identity. I know you just hit on this, but can you just help us think through the size of customer identity, like if a customer is spending $100,000 per year on the employee-facing products and then they purchase Okta for the external use case, what's the typical spend. Then did you say anything on the mix of new business that came in from the external use case?

Frederic Kerrest -- Co-Founder and Chief Operating Officer

Hey, Gray. This is Frederic. I'm happy to touch on that. When we think about customer identity, it's a pretty new market. Traditionally, it's been a build market. So, it's one where organizations would just set up the infrastructure themselves. They are now more and more realizing with things like scale, with things like security, the importance of performance for these large customer-facing systems that it becomes a buy decision. That's where we're getting involved. That's why when we talk about it being an early market but growing fast, that's the dynamic we're referring to.

I think what's interesting to think about is the market for custom-developed applications by companies in the world is huge. It's tens and tens of billions of dollars. All of these applications need to use identity. So, if you think about organizations who want to take Twilio off the shelf to use them for SMS communication and they want to take Stripe off the shelf to use it for payment, we want to make it very easy for them to take identity off the shelf with Okta and put it right into their application.

You're seeing that with every organization has got to do more when it comes to B2B, when it comes to business to consumer, when it comes to, as we talked about, patients and customers and all sorts of different use cases, and every organization has to look at this. It's hard to figure out exactly how that works and how customers think about it, but you can see that across the organizations, there's a lot of opportunities for those.

As Todd said, even small organizations could have large customer bases, so even with small companies, you'll see deals into the six and seven figures when it comes to the external customer identity management.

In terms of thinking about how that market is going to evolve, it's early but it's big and it's growing and we think it's going to be a very interesting market in the years ahead.

Gray Powell -- Deutsche Bank -- Analyst

Got it. Thank you very much. Just one more quick one -- it sounds like adaptive MFA is in pretty strong demand. How do you think the acquisition of Duo by Cisco impacts the competitive environment there, if at all?

Todd McKinnon -- Co-Founder and Chief Executive Officer

I think it's an interesting transaction from a couple perspectives. First of all, I think a lot of people don't realize this, but Duo is actually a really good partner of ours. We have a lot of joint customers. Our integration between Duo multi-factor authentication and the Okta Identity Cloud is really robust and delivers value to customers. I think that partnering with Cisco more broadly and Duo as part of Cisco is going to be great. We're very optimistic about that.

We do compete. We have our own multi-factor product that competes with Duo. I think that for many, many customers as well, our complete solution in terms of MFA and identity is what they want. So, we sell to them. We're confident that where we compete, we'll continue to do very well even if it's part of a different parent umbrella organization.

When I look at it from a macro perspective, when we started Okta, people thought cloud security and doing identity in the cloud was kind of a very forward-leaning thing to do. It's interesting that when you look at the old guard of technology in Cisco and someone that's really known for on premise and networks is really leaning in in terms of getting on board with cloud identity and cloud security. I think it's pretty exciting for where we are and the leadership we've shown in the market and where we can go from here.

Gray Powell -- Deutsche Bank -- Analyst

Got it. Thank you very much. Congrats on the quarter.

Todd McKinnon -- Co-Founder and Chief Executive Officer

Thank you. Appreciate it.

Operator

Our next question will come from Shaul Eyal with Oppenheimer.

Shaul Eyal -- Oppenheimer -- Managing Director

Thank you. Good afternoon, guys. Congrats also on my end, strong performance execution as well as guidance. I know Fred or Todd or Bill --

Todd McKinnon -- Co-Founder and Chief Executive Officer

We appreciate it.

Shaul Eyal -- Oppenheimer -- Managing Director

Absolutely. Europe also -- great acceleration. What's driving that? Is it just the overall demand? Is it country-specific? Is it VARs relations? Is it GDPR? Is it all of the above?

Bill Losch -- Chief Financial Officer

Yeah, it's Bill. I think it's primarily being driven by the market and the demand in the market. We're seeing, as you saw, growth of 63% year over year. So, it's even growing faster than what is a very, very healthy growth in the US. A lot of it is being driven and most of it, I think, is by demand in the market. Obviously, we're investing now to realize that demand and capitalize on that.

Shaul Eyal -- Oppenheimer -- Managing Director

Understood. I think going back and building a little bit on the prior question on Duo and Cisco -- Todd, you address your current partnership with Duo -- what can you tell us about some of the other partnerships with some of the other identity-related players? Whether it's CyberArk, whether it's Sailpoint -- how is that coming along?

Todd McKinnon -- Co-Founder and Chief Executive Officer

I'm happy to talk about this. As you mentioned, there are other very strong partners of ours out there that we do a lot with in identity. If you think about the Okta Integration Network as a core piece of the platform that we built, it's what allows our customers to derive a lot of value out of not only Okta, but the end to end use cases that we help them solve.

We have very good partnerships, as you mentioned, with providers like Sailpoint, like CyberArk, and many others. In fact, I don't know if anyone noticed yesterday -- Proofpoint put out a press release about a very tight integration that we have now with them to both prevent phishing attacks for employees, but also help remediate those kinds of attacks very quickly. That's just a great example of more and more technology partners finding great ways to integrate with our platform and our products to provide better solutions for both joint as well as prospective customers.

Shaul Eyal -- Oppenheimer -- Managing Director

Got it. Thank you so much. Good job. Good work.

Todd McKinnon -- Co-Founder and Chief Executive Officer

Thank you.

Operator

Our next question will come from Jonathan Ho with William Blair.

Jonathan Ho -- William Blair -- Analyst

Good afternoon. I just wanted to start out with ScaleFT. I wanted to better understand the opportunity set you see here. Maybe you're thinking around timing or adoption of, I guess, the zero-trust approach.

Todd McKinnon -- Co-Founder and Chief Executive Officer

Yeah. I'm happy to talk about that, Jonathan. We're really excited about ScaleFT -- relatively small, primarily R&D company we bought. Their product is something called Server Access Management, which essentially helps you give secure, auditable access from server admins in the cloud environments. We're excited about this for a couple reasons.

One is we think providing secure access for server admins is potentially a fruitful area for us. But also, to do that from a technological perspective, you have to be very good at knowing exactly what's happening on the device and doing continuous authentication of all the requests so that you can tightly control in a very flexible way who has access to what server resources.

We're excited about taking those pieces of technology and then broadening those out using the technology and applying them to the broader identity cloud so that we can provide that kind of super-flexible, very controlled access to any cloud resource from anyone to really democratizing that kind of access. That's this concept of zero-trust.

The concept of trying to trust the network perimeter is outdated. Things are coming from so many different places and so many different networks. You're going to so many different resources, many of which aren't even in your data center. You can't trust the network perimeter. You basically have to trust identity and you have to trust your identity system knows the person, device, and the resource and makes the right security access decisions in a flexible way.

That's really democratizing this concept and that's what we're excited about doing with some of the underpinning technology of ScaleFT.

Jonathan Ho -- William Blair -- Analyst

Got it. Relative to the incremental investments you talked about making in the second half, where do you see the most opportunity? Is this increasing the number of people in the salesforce? Is this investing in product? I just want to get a sense for where those dollars are going.

Frederic Kerrest -- Co-Founder and Chief Operating Officer

Yeah. Happy to talk about that, Jonathan. We're investing across the business. There's a lot of opportunity in R&D and in engineering and we're going to continue to be aggressive in these markets. They're big markets and we're early. We're going to continue to make sure we have the best technology out there and that our technology helps our customers be successful. We're going to continue with our customer-driven strategy. So, you're going to see us continue to invest in customer success and in all of those groups.

Of course, there's a big opportunity ahead of us, both in the workforce and customer identity parts of the business. You're going to see us continue to build out that salesforce, in particular, international, which we've touched on briefly, both in the prepared remarks as well as in the Q&A is a big opportunity for us. We're really excited about the momentum and we think about the momentum and we think that we can do a lot in this best of breed world. It's something we're excited to move forward with. So, basically, across the entire business.

Jonathan Ho -- William Blair -- Analyst

Got it. Great. Thank you.

Operator

And that does conclude our question and answer session today. At this time, I'd like to turn the call back over to Todd McKinnon for our closing remarks.

Todd McKinnon -- Co-Founder and Chief Executive Officer

So, thanks, everyone for joining us. We're really excited about the business and the future ahead of us. Also, we're having an investor day on October 9th in San Francisco. Hopefully, you can all make it. We're going to talk a lot about the future and some of the product stuff we've been working on and the go-to-market organization and our investments there. A lot of these questions we've talked about here on the call, we'll go into more detail in our thinking around some of these important long-term issues that are going to lead to our durable growth over the many years ahead.

So, thanks again. Appreciate your time and look forward to seeing you on October 9th.

Operator

That concludes our conference for today. Thank you for your participation.

Duration: 49 minutes

Call participants:

Catherine Buan -- Vice President of Investor Relations

Todd McKinnon -- Co-Founder and Chief Executive Officer

Bill Losch -- Chief Financial Officer

Frederic Kerrest -- Co-Founder and Chief Operating Officer

Rob Owens -- KeyBanc Capital Markets -- Analyst

Terry Tillman -- SunTrust Robinson Humphrey -- Managing Director

Dan Park -- Needham & Company -- Analyst

Sterling Auty -- J.P. Morgan -- Analyst

Heather Bellini -- Goldman Sachs -- Analyst

Gray Powell -- Deutsche Bank -- Analyst

Shaul Eyal -- Oppenheimer -- Managing Director

Jonathan Ho -- William Blair -- Analyst

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