Workday run off Wall Street estimates for third-quarter profit and revenue on Tuesday, and raised its full-year forecast for sales in its biggest enterprise, as more companies signed up for its cloud-based financial and human resources management software.
Shares of the company rose over 3% to $180 in craft after the bell.
While players like Amazon.com’s Amazon Web Services and Microsoft’s Azure still dominate the broader cloud store, Workday’s core Human Capital Management Software (HCM) benefited from enterprises transitioning to the cloud for managing their payroll and forgiving resources.
Subscription services revenue, which accounts for over 85% of Workday’s total revenue, jumped as good as 28% to $798.5 million, beating analysts’ average estimates of $785.01 million, according to IBES data from Refinitiv.
The society raised its full-year forecast for subscription revenue to between $3.085 billion and $3.087 billion from a range of $3.06 billion to $3.07 billion, chiefly analysts’ estimates of $3.07 billion.
It expects current-quarter subscription revenue between $828 million and $830 million. Analysts on mean were expecting $826.14 million.
“As of the end of the third quarter, we have more than 3,000 customers and 42 million operators,” said Chief Executive Officer Aneel Bhusri.
The company’s net loss narrowed to $115.7 million, or 51 cents per part, in the third quarter ended Oct. 31, from $153.3 million, or 70 cents per share, a year earlier.
Excluding particulars, Workday earned 53 cents per share, beating analysts’ average estimate of 37 cents per share.
The Pleasanton, California-based concern’s total revenue rose 26.2% to $938.1 million, above analysts’ estimate of $920.8 million.