What happened

Shares of enterprise identity-management company Okta (OKTA -1.60%) impressed investors on Thursday with better-than-expected third-quarter results. The news sent shares higher, with the stock rising as much as 15.2%. As of 1:43 p.m. EST, the stock was up 12.8%

So what

Okta reported third-quarter revenue of $105.6 million, up 58% year over year. This easily beat a consensus analyst estimate for revenue of $99.9 million. The company's non-GAAP net loss per share for the period was $0.04, narrower than a loss of $0.19 in the year-ago quarter. This also beat a consensus forecast for a loss of $0.11 per share.

A person logging in securely on a laptop.

Image source: Getty Images.

Importantly, Okta said its third-quarter free cash flow, or cash from operations less capital expenditures, was positive for the first time.

The strong third-quarter earnings extend the company's recent momentum. In Q2, Okta similarly crushed expectations.

Now what

Okta CEO Todd McKinnon is optimistic about the company's continued prospects:

Our continued strength is a testament to the growing pervasiveness of identity and we believe we are well positioned to further benefit from these tailwinds as organizations continue their move to the cloud, while digitally transforming and securing their businesses.

The company boosted its full-year fiscal 2019 revenue outlook, guiding for revenue between $391 million and $392 million, representing 52% to 53% year-over-year growth. This is up from a previous outlook for fiscal 2019 revenue to be between $372 million and $375 million.