By Maria Armental
Workday Inc. raised its subscription revenue projection for the year, following better-than-expected third-quarter results including a 21% subscription revenue increase amid the coronavirus pandemic. Here's what you need to know.
LOSS: The net loss narrowed to $24.3 million, or 10 cents a share, from $115.7 million, or 51 cents a share, a year earlier. On an adjusted basis, profit rose to 86 cents a share from 53 cents a share. Analysts surveyed by FactSet expected a loss of 40 cents a share, or adjusted profit of 67 cents a share.
REVENUE: Total revenue rose to $1.11 billion from $938.1 million a year earlier. Analysts expected $1.09 billion.
BACKLOG: Subscription revenue backlog rose to $8.87 billion, up 23% from the previous year.
OUTLOOK: The company said it now expects subscription revenue to reach $3.77 billion to $3.78 billion, compared with its earlier view of $3.73 billion to $3.74 billion.
PANDEMIC: Company officials had pointed to higher subscription bookings as companies adapted to business conditions during the pandemic and pressed forward with digital transformation initiatives and the migration to cloud-based solutions. The company extended flexible payment terms to some customers, on a case-by-case basis. That, they noted, would affect cash flow and unearned revenue. On Thursday, co-Chief Executive Chano Fernandez said: "In addition to several strategic wins in HR and finance, we also saw continued momentum selling into our existing customer base." Chief Financial Officer Robynne Sisco said the company would increase its pace of investments as it entered the fourth quarter.
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(END) Dow Jones Newswires