The cybersecurity specialist Okta exceeded expectations with its results for the third quarter of fiscal year 2025 and convinced investors on Wall Street. Revenue growth remained in double digits at 14 percent to $665 million, but it slowed compared to the previous quarters when increases of 16 and 19 percent were achieved.

Notable is the development in net income: Okta turned a previous year's loss of $81 million into a profit of $16 million. The operating result remained negative at minus $16 million, but showed a significant improvement compared to the previous year's figure of minus $111 million. The non-GAAP net profit rose by 53 percent to $121 million, which corresponds to a profit of $0.67 per share.

Our solid results in the third quarter were supported by consistently strong profitability and strong cash flow," commented CEO Todd McKinnon. Particularly the free cash flow of 154 million USD and an operating cash flow of 159 million USD highlight the positive development.

According to McKinnon, investments in partner ecosystems, the public sector, and large customers, in particular, benefit. These have contributed significantly to revenue growth, while Okta's focus on innovation and identity security positively impacts customer demand.

For the fourth quarter, Okta expects revenue between $667 million and $669 million, representing a growth of 10 to 11 percent compared to the previous year. The non-GAAP operating income is expected to reach $154 million to $156 million, while earnings per share are estimated at $0.73 to $0.74.

Okta is also optimistic for the full year: The company expects revenue of $2.595 to $2.597 billion, an increase of 15 percent. The operating result (non-GAAP) is expected to be $573 to $575 million, with earnings per share of $2.75 to $2.76.

Investors reacted positively: Okta's stock rose by 5.38 percent on the NASDAQ and closed at $86.11.