Shares of Okta (OKTA -0.28%) climbed 11.7% on Thursday, following the release of the identity management leader's fiscal 2022 third-quarter results.
Okta's revenue surged 61% year over year to $351 million. The gains were boosted by Okta's acquisition of secure access platform Auth0 in May. Excluding the $46 million in revenue that Auth0 contributed in the quarter, Okta's adjusted revenue rose 40%.
"We're maintaining the momentum of both Okta and Auth0 and are making great progress on the integration," Okta CEO Todd McKinnon said in a statement. "We're already seeing early success cross-selling into each other's customer bases and are on our way to capturing more of the massive identity market faster together."
Still, Okta's growth investments weighed on its profitability. The access management company generated a net loss of $221 million under generally accepted accounting principles (GAAP), compared to a loss of $73 million in the prior-year quarter. On an adjusted basis, Okta's checked in at $11 million, compared to a loss of $6 million in the year-ago period.
Fortunately, Okta sees much more growth ahead. Management guided for revenue to increase by 53% to $358 million in the fourth quarter. Though the company said investors should expect it to post an adjusted operating loss of approximately $35 million and a net loss per share of roughly $0.25.
"The three megatrends that have driven Okta's business over the past few years continue to drive our growth: the deployment of cloud and hybrid IT, digital transformation projects, and the adoption of zero trust security environments," McKinnon said during a conference call with analysts.