Workday Boosts Forecast As Q3 Earnings Top Expectations

Cloud-based HR solutions provider Workday Inc (NYSE:WDAY) late Thursday posted better than expected third quarter results and slightly upped its full-year outlook.

The Pleasanton, CA-based company reported adjusted Q3 EPS of $0.03, which was a full $0.08 better than Wall Street analysts’ expectations for a net loss of $0.05. Total revenues rose 34.2% from last year to $409.6 million, also beating out estimates for $400.5 million.

Workday also noted that subscription revenues for its services rose 38.2% from the year-ago period to $335.7 million.

Looking ahead, WDAY forecast full-year 2017 revenues to range from $1.560 to $1.563 billion, up slightly from a prior outlook of from $1.548 to $1.558 billion. That new guidance could beat the Wall Street consensus estimate of $1.56 billion for the year.

Cash and cash equivalents amounted to $1.9 billion in the latest period, while unearned revenues were $1.0 billion, up a massive 42.6% from last year.

The company commented via press release:

“We had a strong third quarter and saw healthy demand across all major geographies and industries,” said Aneel Bhusri, co-founder and CEO, Workday. “We continue to lead with product differentiation, technology innovation, and real customer success, and believe these are significant differentiators for Workday in the market.”

Workday shares rose $1.40 (+1.72%) to $83.00 in after-hours trading Thursday. Prior to today’s report, WDAY had gained 2.41%, versus a 7.7% rise in the benchmark S&P 500 index during the same period.