Workday Q3 beats estimates

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Workday reported solid third quarter financial results Thursday after the bell.

The Software-as-a-Service provider reported a net loss of $110 million, or 57 cents per share.

Non-GAAP earnings were three cents per share on revenue of $409.6 million, up 34.2 percent annually.

Wall Street was expecting a loss of four cents per share on a revenue of $400 million.

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

In terms of guidance, Workday’s outlook for the year is on the light side compared to expectations. Workday is now forecasting fiscal 2017 revenue at around $1.28 billion. Analysts are expecting revenue of roughly $1.56 billion.

Workday’s shares ticked up around three percent in after hours trading.

Looking elsewhere on the balance sheet, Workday’s Q3 subscription revenues totaled approximately $335.7 million, an increase of 38.3 percent from the same period last year.

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