(Reuters) - Workday Inc (WDAY.O) reported better-than-expected quarterly revenue and profit, as more companies signed up for its cloud-based finance and human resources management software.
The Pleasanton, California-based company added nine “Fortune 500 customers” such as Home Depot (HD.N), Banco Santander (SAN.MC), General Electric (GE.N) and Chevron (CVX.N) to its platform, Chief Executive Officer Aneel Bhusri said on a post-earnings call on Tuesday.
Subscription services revenue, which accounts for more than 80 percent of the company’s total revenue, rose 33.7 percent to $490 million, beating analysts’ estimate of $481.1 million, according to Thomson Reuters I/B/E/S.
Workday has been benefiting from a trend of enterprises shifting to cloud-based applications to manage their payroll and human resources.
“We believe the 4Q sales strength of the company’s financials platform is the inflection point the Street has been seeking over the last two years,” Scott Berg, analyst at Needham & Co, told Reuters.
The company’s net loss widened to $89.1 million, or 42 cents per share, in the fourth quarter ended Jan. 31, from $88.3 million, or 44 cents, a year earlier.
Excluding items, the company earned 28 cents per share, beating analysts’ average estimate of 20 cents.
Total revenue rose 32.5 percent to $582.5 million, above analysts’ estimate of $573.7 million.
Shares of the company were, however, down 1.6 percent at $125.9 after the bell.
“I think the stock is marginally down because much of this was already baked in,” Needham’s Berg said.
Reporting by Laharee Chatterjee in Bengaluru; Editing by Maju Samuel