Workday Results Top Estimates; Outlook Upbeat

(RTTNews) - Cloud-based human resource and financial management software vendor Workday, Inc. (WDAY) said Monday after the markets closed that its third quarter net loss widened from last year, as costs and expenses continued to exceed revenue.

However, the company's quarterly adjusted loss per share was narrower than analysts expected and its quarterly revenue surpassed Wall Street expectations.

At the same time, the company forecast fourth quarter revenue above analysts' current consensus estimate.

"We had a solid third quarter, and we continue to be pleased with our progress as we build for the long term," said Mark Peek, chief financial officer, Workday. "We generated record quarterly revenues and continued our march toward profitability."

Workday shares are currently gaining 7.59% in after hours trading after closing the day's regular trading session at $73.30, down 77 cents or 1.04%. The shares trade in a 52-week range of $47.74 to $84.42.

Founded in 2005 by PeopleSoft veterans Dave Duffield and Aneel Bhusri, Workday went public in October last year through a blockbuster initial public offering.

For the third quarter ended October 31, 2013, the Pleasanton, California-based company reported a net loss of $47.5 million or $0.27 per share, compared to a net loss of $41.5 million or $0.67 per share for the year-ago quarter.

Excluding items, adjusted net loss for the third quarter was $21.3 million or $0.12 per share, compared to an adjusted net loss of $23.9 million or $0.39 per share in the prior year quarter.

On average, 26 analysts polled by Thomson Reuters expected the company to report a loss of $0.17 per share for the third quarter. Analysts' estimates typically exclude special items.

Total revenue for the third quarter jumped 76% to $127.87 million from $72.62 million in the same quarter last year, with subscription revenues up 82%. Twenty-four analysts had a consensus revenue estimate of $117.69 million for the third quarter.

Total costs and expenses surged 48% to $168.3 million from $113.5 million a year ago.

Looking forward, the company forecast fourth quarter revenue to be in the range of $133 million to $138 million. Analysts currently expect the company to post revenue of $128.91 million for the fourth quarter.