Workday beats Q4 expectations

The human resources SaaS provider posted record revenues and accelerated subscription revenue growth.

Workday reported its fourth quarter financial results on Monday, surpassing market expectations and posting its best quarter in company history.

The Software-as-a-Service provider reported non-GAAP earnings of seven cents a share. It posted record revenues of $436.7 million, up 35 percent annually.

Wall Street was expecting a non-GAAP loss of one cent per share on revenue of $430.2 million.

Workday's Q4 subscription revenues totaled $365.2 million, an increase of 39 percent from the same period last year.

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For the full fiscal year 2017, the human resources SaaS provider posted revenues of $1.57 billion, up 35 percent year-over-year. Subscription revenue for the year came to $1.29 billion, up 39 percent. Its non-GAAP net income for FY 2017 came to 12 cents a share, compared to a non-GAAP net loss of one cent per share last year.

"In Q4, we delivered the best quarter in company history to close out a very successful fiscal 2017," CEO Aneel Bhusri said in a statement. "Our strong performance was driven by a combination of our industry-leading products and technology, continued high levels of customer satisfaction, and our dedicated Workday team. We believe these are the right areas of focus to achieve another great year for Workday in the year ahead."

For fiscal 2018, the company expects total revenues to fall between $2.005 and $2.025 billion, representing growth of 27 percent to 29 percent.

The company recently landed some major deals, adding Walmart and Amazon as customers.