Workday Q3 tops market estimates
Workday delivered strong third quarter financial results Wednesday that handily topped market estimates.
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The software-as-a-service provider reported a net loss of $80.1 million, or 41 cents per share.
Non-GAAP earnings were 24 cents per share on revenue of $555.4 million, up 34.3 percent annually. Subscription revenue was $436.6 million, an increase of 37 percent from the same period last year.
Wall Street was expecting Q3 earnings of 15 cents per share on revenue of $540.59 million. Despite the earnings beat, Workday's share slipped slightly after hours.
Workday CEO and co-founder Aneel Bhusri said the company has seen strong customer growth surrounding the company's HCM and Financial Management products.
"We delivered another strong quarter with subscription revenue up 37%, driven by strong net new customer growth, continued add on sales with existing customers, and high renewal rates," added Workday CFO Robynne Sisco.
Looking ahead, Workday said it's raising fiscal 2018 outlook and now expects subscription revenue of $$1.780 to $1.782 billion, or growth of 38 percent. Details were not yet available on the company's outlook for the current quarter or fiscal year. However, analysts are looking for Q4 earnings of 15 cents a share on revenue of $556.33 million.