Workday Loss Widens

(RTTNews) - Cloud-based human resource software maker Workday, Inc. (WDAY) said Tuesday after the markets closed that its first quarter net loss widened from last year, as higher costs and expenses more than offset a 57% increase in revenue.

However, the company's adjusted loss per share was smaller than what analysts estimated and its quarterly revenue topped analysts' forecast. At the same time, the company gave a slightly down-beat revenue outlook for the current quarter.

"We had a strong first quarter and welcomed a record number of new customers to the Workday community," said Aneel Bhusri, co-founder and CEO, Workday.

Workday shares are currently losing 5.95% in after hours trading after closing the day's regular trading session at $92.49, up 31 cents. The shares trade ina 52-week range of $74.32 to $97.40.

Workday, based in Pleasanton, California, operates as a cloud-based human resource and financial management software vendor. The company went public in October 2013 in an impressive initial public offering.

While Workday has recorded revenue growth over the past quarters and added new customers, its results have been bogged down by stock-based compensation expense and other costs.

For the first quarter ended April 30, 2015, the company reported a net loss of $61.6 million or $0.33 per share, compared to a net loss of $59.4 million or $0.32 per share for the year-ago quarter.

Excluding items, adjusted net loss for the first quarter was $4.0 million or $0.02 per share, compared to an adjusted net loss of $23.9 million or $0.13 per share in the prior year quarter.

On average, 35 analysts polled by Thomson Reuters expected the company to report a loss of $0.08 per share for the first quarter. Analyst' estimates typically exclude special items.

Total revenues for the first quarter rose 57% to $250.96 million from $159.74 million in the same quarter last year, with subscription revenue up 63%. Thirty-two analysts had a consensus revenue estimate of $245.00 million for the first quarter.

Total costs and expenses for the quarter jumped 44% to $304.4 million.

Looking ahead, the company forecasts second quarter total revenues to be in a range of $270 million and $274 million, or growth of 45% to 47% as compared to the prior year. Analyst currently expect the company to post revenue of $220.45 million for the fourth quarter.