Workday beats revenue and profit estimates on higher subscription revenue

(Reuters) - Workday Inc reported better-than-expected quarterly profit and revenue on Tuesday, as it enrolled more companies for its cloud-based financial and human resources software. The Pleasanton, California-based company's shares rose 2.62% to $218.44 in extended trading. Subscription services revenue, which accounts for 85% of the company's total revenue, rose 34.3% to $701 million (554 million pounds), beating analysts' estimates of $693.9 million, according to IBES data from Refinitiv

Reuters May 29, 2019 03:06:22 IST
Workday beats revenue and profit estimates on higher subscription revenue

Workday beats revenue and profit estimates on higher subscription revenue

(Reuters) - Workday Inc reported better-than-expected quarterly profit and revenue on Tuesday, as it enrolled more companies for its cloud-based financial and human resources software.

The Pleasanton, California-based company's shares rose 2.62% to $218.44 in extended trading.

Subscription services revenue, which accounts for 85% of the company's total revenue, rose 34.3% to $701 million (554 million pounds), beating analysts' estimates of $693.9 million, according to IBES data from Refinitiv.

Professional revenue grew 28.5% to $124 million, above estimates of $120 million.

Workday has been benefiting from a trend of enterprises shifting to cloud-based applications to manage their payroll and human resources.

With the acquisition of cloud-based business performance management software maker Adaptive Insights last year, Workday attempts to become a one-step solution for all back-office services for small and medium sized businesses in this fiercely competitive market.

The company forecast current quarter subscription revenue between $746 million and $748 million. Analysts on average were expecting $741.7 million.

Workday also raised its 2020 subscription revenue outlook to a range of $3.045 billion to $3.060 billion. Analysts were expecting $3.047 billion.

The company's net loss widened to $116.3 million, or 52 cents per share, in the first-quarter ended April 30, from $74.4 million, or 35 cents, a year earlier.

Excluding items, Workday earned 43 cents per share, beating analysts' average estimate of 41 cents per share.

Revenue rose 33.4% to $825.1 million, above analysts' estimate of $814.3 million.

(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Shailesh Kuber)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
India

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes

The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province
India

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province

Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth
India

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth

Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.