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

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.