Okta beats Q3 estimates, achieves positive free cash flow

The identity management firm grew its customer base to more than 5,600 organizations, adding 100 new customers with over $100,000 annual recurring revenue.

Okta published its third quarter financial results on Wednesday, beating market estimates and achieving positive free cash flow for the first time.

The identity management firm posted a non-GAAP net loss of $3.9 million or 4 cents per share. A year prior, the company posted a non-GAPP net loss of $17.9 million or 19 cents per share. Q3 revenue totaled $105.6 million, growing 58 percent year-over-year.

Also: Okta offers free multi-factor authentication with new product, One App

Wall Street was expecting a net loss of 11 cents per share on revenue of $96.93 million.

Okta's subscription revenue for the quarter came to $97.7 million, growing 58 percent year-over-year.

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The company attributed its growth to momentum in the enterprise. In Q3, Okta grew its total customers to more than 5,600 organizations. It added 100 new customers with over $100,000 annual recurring revenue, representing 55 percent year-over-year growth. Meanwhile, the company expanded deployments with major customers including the Transportation Security Administration (TSA), Sonoco, LendingClub and Albertsons.

Also: Okta rolls out new tools aimed at eliminating passwords

Okta was free cash flow positive for the quarter at $1.4 million, or 1.3 percent of total revenue. By comparison, a year prior Okta's free cash flow was negative $11.2 million.

"Our continued strength is a testament to the growing pervasiveness of identity," CEO Todd McKinnon said in a statement, "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."

For Q4, Okta gave an outlook of a non-GAAP net loss per share between 9 cents and 8 cents, on revenue between $107 and $108 million. Analysts are expecting a net loss of 11 cents per share on revenue of $99.87 million.