Workday forecasts strong revenue as subscriptions jump

Mon Nov 25, 2013 4:31pm EST

* Third quarter adj loss $0.12/shr vs est. loss $0.17/shr

* Third quarter rev up 76 pct

* Shares jump 8 pct after the bell

Nov 25 (Reuters) - Workday Inc, a provider of Web-based human resources software, guided fourth-quarter revenue well above expectations after reporting a 76 percent jump in quarterly sales, helped by strong growth in subscriptions.

Workday's shares rose as much as 8 percent after the bell.

The company, which makes software to manage employee performance, payroll and expense, said it expects revenue to be $133-$138 million in fourth quarter. Analysts were expecting $128.9 million, according to Thomson Reuters I/B/E/S.

The company competes with Salesforce Inc and Oracle Corp in the fast-growing cloud software market but has yet to turn a profit.

Cloud computing technology, which lets customers access data from remote servers, is thought to be faster and cheaper than traditional in-house infrastructure.

Workday's net loss narrowed to $47.5 million, or 27 cents per share, in the third quarter, from $41.5 million, or 67 cents per share, a year earlier.

On an adjusted basis, the company reported a loss of 12 cents per share.

Revenue jumped 76 percent to $127.9 million. Subscription sales rose 82 percent to $93.9 million.

Analysts had expected a loss of 17 cents per share on revenue of $117.7 million.

Workday's customers include companies such as TripAdvisor Inc and Yahoo Inc.

The company's shares, which had a blockbuster listing last October, have risen more than 34 percent this year. They closed at $73.28 on Monday on the New York Stock Exchange.