Workday Reports Strong Q3 Earnings Beat, Revenue Growth

Workday Inc WDAY shares are moving higher after reporting a solid third-quarter earnings beat.

Earnings came in at 53 cents per share, beating estimates by 16 cents. Sales came in at $938.1 million, beating estimates by $17.32 million.

The company sees fourth-quarter subscription revenue of $828 million-$830 million.

"Companies of all sizes and industries continue to select Workday, and we're thrilled that as of the end of Q3, we have more than 3,000 customers and 42 million users," said Aneel Bhusri, co-founder and CEO, Workday.

"As our community grows, so do our applications. We recently announced plans to deepen our offering for the office of finance with the intended acquisition of Scout RFP. We also unveiled several ways our customers can leverage leading machine learning capabilities that are powering our applications – helping them to make more informed decisions as they navigate this changing world of work."

Highlights

• Total revenues up 26.2% year-over-year
• Subscription revenue up 27.9% year-over-year
• Subscription revenue backlog up 21.8% year-over-year

Workday shares traded higher by 2.6% in Tuesday's after-hours session after closing the regular session at $173.50 per share.