Shares in Okta Inc. were up over 15% in late trading today after the identity and access management company reported strong beats on revenue and earnings in its fiscal 2025 third quarter.

For the quarter that ended on Oct. 31, Okta reported adjusted earnings per share of 67 cents, up from 44 cents in the same quarter of the previous fiscal year, on revenue of $665 million, up 14% year-over-year. Both figures were strongly ahead of the 58 cents per share and revenue of $650 million expected by analysts.

Okta saw subscription revenue in the quarter of $651 million, up 14% year-over-year and net cash provided by operations of $159 million. Remaining performance obligations — a figure that represents the total value of contracted revenue yet to be recognized — sat at $3.658 billion as of the end of October, up 19% year-over-year.

Business highlights in the quarter included Okta expanding Auth0 capabilities to enhance scalability and security for developers on Sept. 24. The update included a more robust Auth0 free plan, which now allows up to 25,000 monthly active users, passwordless login options and unlimited social and Okta connections. Additionally, the company’s free plan now includes support for custom domains to help developers build branded, seamless user experiences from the start.

On Oct. 16, Okta expanded its Workforce Identity Cloud with new security enhancements and artificial intelligence governance tools.

The new security enhancements included the launch of “Governance Analyzer,” a service that seeks to reduce governance risks across the enterprise. The tool provides real-time risk assessments and actionable insights that allow managers to make faster, more informed authorization decisions.

Okta also introduced stronger user verification features to combat social engineering and deepfake attacks. The verification features include out-of-the-box integrations for identity verification that allow organizations to integrate third-party providers for secure employee and partner authentication.

“Our solid Q3 results were underpinned by continued strong profitability and cash flow,” co-founder and Chief Executive Todd McKinnon said in the company’s earnings release. “The focused investments we’ve made in our partner ecosystem, the public sector vertical and large customers are materializing in our business, with each of these areas contributing meaningfully to top-line growth.”

For its fiscal fourth quarter, Okta expects adjusted earnings per share of 73 to 74 cents on revenue of $667 million to $669 million — both ahead of estimates. For the full year, the company expects adjusted earnings of $2.75 to $2.76 per share on revenue of $2.595 billion to $2.597 billion.

Photo: Okta