* First-quarter adj loss $0.15/share vs est $0.18/share loss
* First-quarter revenue $91.6 mln vs est $86.9 mln
* Raises full-year revenue outlook
* Shares up 2 pct after market
May 22 (Reuters) - Workday Inc, a provider of Web-based human resources software, reported a smaller-than-expected quarterly loss as subscription revenue rose 85 percent, and the company raised its full-year revenue forecast.
The company, which makes software to manage employee performance, payroll and expense, raised its full-year revenue forecast range by $5 million to between $425 million and $440 million.
"Development efforts for Workday Big Data Analytics and Workday Recruiting are progressing as planned, and we see increasing customer demand for these new applications," co-founder and CEO Aneel Bhusri said in a statement.
The company competes with larger rivals 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. Internet-based software is easier to update, maintain and customize.
Workday shares had a blockbuster listing last October. The stock price has more than doubled since its debut at $28.
"Workday continues to gain traction in the core human capital management market, and we expect that the company will continue to pick away at Oracle's existing PeopleSoft installed base, as well as pursue new green-field opportunities," Evercore Partners Kirk Materne wrote in a pre-earnings note.
The company's net loss narrowed to 20 cents per share in the first quarter from 61 cents a year earlier. Excluding items, the company reported a loss of 15 cents per share.
Revenue rose 61 percent to $91.6 million. Subscription revenue rose to $68.4 million.
Analysts on average had expected an adjusted loss of 18 cents per share on revenue of $86.9 million, according to Thomson Reuters I/B/E/S.
Workday shares, which closed down 4 percent on Wednesday on the New York Stock Exchange, fell further after the company released results but reversed losses to trade up 2 percent at $66.73 in after-hours trading.