On Wednesday, identity management software application business Okta reported incomes, blowing away Wall Street expectations. The next day saw Okta’s stock spike as high as 14% in intraday trading, bringing its market cap approximately simply shy of $7 billion.

By the end of the day, the stock closed at $6695, up over 10% from the opening bell, and more than two times what Okta was trading at this time in 2015.

It’s possibly not a surprise, as Okta reported a strong quarter with a 58% year-over-year income development and 55% development in clients. Okta produced income of $1056 million, smoothly beating Wall Steet expectations of $968 million. Okta likewise reported a change loss of 4 cents per share, much narrower than expert expectations of a loss of 11 cents per share.

For a software application as a service business, these outcomes are “magnificent,” states Alex Henderson, senior expert at Needham & Business, since a great deal of effort and time enters into offering memberships to brand-new clients.

“To grow a SaaS design at a 58 percent clip– it’s very tough to do that,” Henderson informed Company Expert.

Moving forward, experts think Okta has the possible to take on Microsoft’s identity management company. Like Microsoft, Okta makes offering to big clients the foundation of its company. Nevertheless, Okta sees its benefit as the reality that it works similarly well with cloud services from all suppliers, not simply Microsoft’s.

“We’re independent and neutral,” Frederic Kerrest, COO and co-founder of Okta, informed Company Expert on Thursday. “We’re the only ones driving that message in the market. They desire the versatility to utilize [Amazon Web Services] and [Microsoft Azure] and[Google Cloud Platform] They wish to be utilizing all sorts of various market innovations.”

Some likewise think that Okta has a benefit from the reality that Microsoft has a spotty track record in regards to cybersecurity, thanks mainly to a long history of bugs and vulnerabilities in the Windows os and other items. Today, under CEO Satya Nadella, Microsoft has actually invested greatly in turning things around, however the understanding still sticks around.

“Microsoft is rather polluted from the security market’s environment,” Henderson stated. “I understand [Microsoft CEO Satya] Nadella wishes to repair that however I do not see him arriving anytime quickly.”

Henderson recommends that Okta can utilize this vibrant to its benefit, and be viewed as a more relied on security business.

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Okta’s strong incomes and stock development is a likewise indication that security is transferring to secure users in the cloud, instead of the conventional design of locking servers below otuside attack. In reality, a security company concentrated on protecting an information center from attacks is ending up being a “insolvent principle,” Henderson states.

“The center of mass in security is moving,” Henderson stated. “It utilized to be the center of mass of security is inside the information center. It’s progressively vacating to the cloud.”

Okta likewise simply revealed that it included Albertsons, among America’s biggest grocery sellers, under its belt as a client. Kerrest thinks that the possible market for Okta is huge, and there’s a great deal of benefit still to be discovered.

“It’s the early days of the business,” Kerrest stated. “We’re extremely thrilled. We’re growing extremely quickly. We feel that without a doubt the very best times are ahead.”