Shares in Okta Inc. and CrowdStrike Holdings Inc. rose in late trading today after both companies reported better-than-expected earnings and revenue in their most recent quarters.

For its third quarter that ended July 31, CrowdStrike reported adjusted earnings of $180 million, or 74 cents per share, up from $85.9 million, or 36 cents per share, in the same quarter of last year, on revenue of $731.6 million, up 37% year-over-year. Analysts had been expecting earnings per share of 56 cents on revenue of $724.13 million.

CrowdStrike’s strong figures were driven by customer growth, with annual recurring revenue growing 37% year-over-year to $2.93 billion as of the end of July. Subscription gross margin came in at 80% on an adjusted basis, up from 78% the year prior. CrowdStrike was sitting on $3.17 billion in cash and cash equivalents as of the end of the quarter.

Business highlights in the quarter include the company adding more cybersecurity features for protecting cloud environments in June. Features of the release include 1-Click XDR, a feature that automatically detects cloud instances that aren’t running the agent and installs it; Agentless Snapshot Scanning, which can scan cloud assets for security issues even when it’s not possible to install an agent; and Complete Cloud Attack Path Visualization, which helps administrators understand attack paths, the set of tactics that hackers use to breach a system.

“The AI-powered Falcon platform’s native capabilities across our cloud, identity, and next-gen SIEM businesses are unique in the market, in aggregate contributing well over half a billion dollars in ending ARR,” George Kurtz, co-founder and chief executive officer of CrowdStrike, said the company’s earnings release. “Our platform strategy sets us apart from the competition, resulting in high win rates as customers rapidly embrace Falcon to consolidate vendors, lower TCO and achieve better security outcomes.”

For its fiscal third quarter, CrowdStrike expects adjusted earnings per share of 74 cents on revenue of $775.4 million to $778 million. Analysts had been expecting 60 cents and $773.97 million.

“CrowdStrike’s ARR growth of 37% and consistent expansion within its existing customer base demonstrates the market’s sustained demand for premium cybersecurity products despite significant macroeconomic headwinds within the greater industry,” Jordan Berger, an analyst at global research firm Third Bridge Group Ltd., told SiliconANGLE. “Continued subscription gross margin expansion and an increase in full-year FY2024 guidance further signals healthy sales and operational resilience in an unstable climate.”

CrowdStrike shares rose just shy of 1% in late trading, which contrasts with Okta, whose shares jumped more than 9%.

For its fiscal second quarter, Okta reported adjusted earnings per share of 31 cents, up from 10 cents in the same quarter of last year, on revenue of $556 million, up 23% year-over-year. Analysts had expected 22 cents and $534.67 million.

Okta’s subscription revenue in the quarter came in at $542 million, up 24% year-over-year, its remaining performance obligations, or subscription backlog, was $3.03 billion as of the end of the quarter, up 8% year-over-year. The company was sitting on $2.11 billion in cash and equivalents as of July 31.

“Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year,” co-founder and Chief Executive Todd McKinnon said in the company’s earnings release. “We are building on our position as the leading independent identity partner.”

For its next quarter, Okta expects adjusted earnings of 29  to 30 cents per share on revenue of $558 million to $560 million. For its full fiscal year, the company expects $1.17 to $1.20 per share in adjusted earnings on revenue of $2.207 billion to $2.215 billion.

Alvina Antar, chief information officer at Okta, spoke with theCUBE, SiliconANGLE Media Inc.’s livestreaming studio, in July, when she discussed the role of identity in enterprise security.

“In the past, it was security [making] strategic decisions around what we need to do to be able to drive our overall strategy, and IT is in a position to execute without questioning the strategy,” Antar told theCUBE’s Dave Vellante. “That doesn’t fly, especially if you’re thinking about how to operate with an identity-first mindset and ensuring that what you’re enabling is this balance between security as well as the experience and that they’re not mutually exclusive.”

Image: CrowdStrike