Workday Q3 strong, subscription revenue totals $624 million

Workday said it's raising fiscal 2019 outlook and now expects subscription revenue of $2.375 to $2.377 billion.

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Workday delivered strong third quarter financial results Thursday that handily topped market estimates. The software-as-a-service provider reported a net loss of $153,000, or 70 cents per share.

Non-GAAP earnings were 31 cents per share on revenue of $743.2 million, up 33 percent annually. Subscription revenue was $624.4 million, an increase of 34.7 percent from the same period last year.

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Wall Street was expecting Q3 earnings of 14 cents per share on revenue of $723 million.

In prepared remarks, Workday CEO and co-founder Aneel Bhusri highlighted the company's momentum across its suite of products, including its finance and HR software.

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"We're pleased with our strong performance in Q3, which resulted in accelerated growth across our core business metrics and gives us great momentum heading into year-end," added Workday CFO Robynne Sisco. "We continue to prioritize investing in long-term growth initiatives, while delivering solid operating and cash flow margins over time."

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Looking ahead, Workday said it's raising fiscal 2019 outlook and now expects subscription revenue of $2.375 to $2.377 billion, or growth of 33 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 28 cents a share on revenue of $757.12 million.