* Shares climb after Q3 beats, Q4 forecast strong
* Major clients added as Workday battles larger rivals
SAN FRANCISCO Nov 28 Workday Inc
forecast better-than-anticipated quarterly revenue growth as the
provider of Internet-based corporate software accelerates the
growth of its widening client portfolio, helping drive a gain of
4 percent in its shares.
Workday, which sells human resources and financial tools to
help manage companies, doubled fiscal third-quarter revenue and
is predicting sales growth of 74 percent to 83 percent in the
current three months, to between $75 million and $79 million.
That exceeded Wall Street's average prediction for $70.7
The fast-growing company vies with larger rivals Salesforce
Inc and Oracle Corp in the rapidly expanding
field of cloud software but has yet to turn a profit.
It debuted in October in the biggest technology listing
since Facebook Inc went public in May. Its shares have almost
doubled since it debuted at $28.
The company, headed by ex-PeopleSoft executives David
Duffield and Aneel Bhusri, remains among the most richly valued
of cloud computing plays on Wall Street, favored by analysts for
its growth potential and flexible software.
Last quarter, it added DuPont and Johnson Controls
to its growing stable of major corporate clients, the
company said in its results filing.
Revenue leapt to $72.6 million in the fiscal third quarter.
For the current three months, Workday is forecasting revenue
growth of 74 to 83 percent.
The company posted a net loss of $41.3 million or 67 cents a
share, more than double the $19.7 million or 66 cents of a year
earlier, before the issuance of IPO stock. Stripping out certain
one-time items, its non-GAAP loss came to 39 cents a share,
smaller than the loss of 59 cents expected on average by
analysts, according to Thomson Reuters I/B/E/S.
Cloud computing technology, which lets customers access data
from remote servers, is thought to be faster and cheaper than
traditional in-house infrastructure. Internet-based software is
deemed easier to update, maintain and customize.
Workday and peers like Cornerstone OnDemand Inc are
thus grabbing market share from larger tech players like Oracle,
SAP AG and International Business Machines Corp
as these larger companies digest recent acquisitions in
the human resources software sector.
Workday's stock was up 4 percent at $55.20 in after hours
trade, from a close of $53.19 on the New York Stock Exchange.