November 19, 2015 / 9:56 PM / 4 years ago

UPDATE 1-HR software maker Workday's revenue forecast misses estimates

(Adds details, shares)

Nov 19 (Reuters) - Human resources software maker Workday Inc forecast current-quarter revenue that missed analysts’ estimates after reporting a bigger net loss for the third quarter.

The company’s shares were down 5 percent in after-hours trading on Thursday.

Workday, which makes software to manage employee performance, payroll and expense, forecast revenue of $317 million-$320 million for the quarter ending January.

Analysts on average were expecting revenue of $320.3 million, according to Thomson Reuters I/B/E/S.

Workday’s net loss widened to $77.8 million, or 41 cents per share, in the third quarter ended Oct. 31, from $59.9 million, or 33 cents per share.

Sales and marketing costs rose about 38.4 percent, while product development costs jumped 45.4 percent.

Total costs increased about 41 percent to $375.4 million.

On an adjusted basis, the company reported break even earnings, according to Thomson Reuters I/B/E/S, while analysts had estimated a loss of 4 cents per share.

Revenue rose 42 percent to $305.3 million, helped by strong subscription growth for its web-based human resource management software.

Workday, whose customers include Coca-Cola Co and Bank of America Corp, said subscription revenue rose 47.6 percent to $242.7 million.

Up to Thursday’s close, Workday’s shares had fallen about 11 percent since hitting a year high of $95.17 in February.

Reporting by Abhirup Roy in Bengaluru; Editing by Don Sebastian

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