Workday Beats Q3 Estimates, But Shares Drop 5%

Workday Inc WDAY announced results Monday for the fiscal third quarter ended October 31, 2014. Total revenues were $215.1 million, above estimates of $205.27 million, an increase of 68 percent from the third quarter of fiscal 2014. Subscription revenues were $164.4 million, an increase of 75 percent from same period last year.

The non-GAAP net loss per basic and diluted share for the third quarter was $0.03, better than estimates of a $0.10 loss and the non-GAAP net loss per basic and diluted share of $0.12 during the same period last year.


Operating loss was $51.5 million, or -23.9 percent of revenues, compared to an operating loss of $40.4 million, or -31.6 percent of revenues, in the same period last year.

"We had a strong third quarter and saw increasing customer demand globally," said Aneel Bhusri, co-founder and CEO, Workday. "We also welcomed a record number of customers to our eighth annual customer conference, Workday Rising, where we announced our newest suite of applications, Workday Insight Applications, to deepen the value our customers gain with one system in the cloud for finance and human resources."

"We are very pleased with our solid third quarter results," said Mark Peek, chief financial officer, Workday. "We generated record quarterly revenues and trailing twelve month operating cash flows. Looking ahead, we anticipate fourth quarter total revenues to be within a range of $219 and $222 million, or growth of 54 percent to 56 percent as compared to the prior year."

Workday traded at $87.76 in the after-hours session, down 5 percent.

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Posted In: EarningsNewsAfter-Hours Center
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