California based financial management and human capital management software provider, Workday Inc., announced its performance results for 2019’s third quarter on Tuesday. Having beaten the Wall Street forecast for quarterly revenue and profit, the stock was reported trading 3% higher on Tuesday. Following the upbeat report, the company also revised guidance for its full-year sales report.
Workday Remained Almost Flat On Average In The Stock Market In 2019
In the after-hours trading, the stock was reported to have hiked to $180. Much of the gain, however, was lost on Wednesday as the stock closed the regular session at $165. In extended trading, it managed to hit $173 again. The year-to-date performance for Workday has been fairly flat on average. Having opened the year at $160, share prices were seen as high as $224 in July, followed by a decline back to the year-to-date low of $152.
Due to the positive results in 2019’s Q3, the business is hopeful for its full-year sales as the list of companies opting for Workday’s cloud-based human resource and financial management software continues to expand.
Based on the Refinitiv’s data, analysts had estimates subscription services revenue for Workday to be reported at $785.01 million in the third quarter. The report, however, highlights that the company noted a 28% hike in subscription services revenue that was reported at $798.5 million.
Workday Expands Its Clientele To 42 Million Users
According to the experts, Microsoft’s Azure and Amazon’s Web Services continue to sustain their monopoly in the cloud market at large. However, the Human Capital Management Software (HCM) by Workday is beneficial for businesses that are in the initial phase of integrating their human resources system including payrolls to the cloud. Chief Executive Aneel Bhusri announced on Tuesday that by the end of Q3, Workday has expanded its clientele to 42 million users and 3,000 customers in total.
The guidance for full-year subscription revenue for Workday has been upgraded to $3.085 billion to $3.087 billion. Previously, it was capped at $3.07 billion. Analysts are also expecting $3.07 billion in revenue for Workday in the full-year report.
Workday also beat analysts’ estimate for earnings per share (EPS) by a significant margin. While EPS for the company was forecasted at 37 cents per share in the third quarter, the company printed a much higher 53 cents of earnings per share (excluding items).
Net loss for the company in Q3 that ended on October 31st, also narrowed from $153.3 million in the same quarter last year, to $115.7 million this year.