Workday’s revenue grew 33% in the first quarter
Workday (WDAY), a cloud-based human capital management vendor, announced its first quarter of fiscal 2020 (quarter ended April 2019) earnings on Tuesday, May 28. The company generated $825.1 million in revenue during the first quarter, an increase of 33% from the same quarter last year, beating Wall Street estimates of $814 million. The company made $701 million from subscription revenue, an increase of 34% YoY.
However, the company’s expenses grew faster than its revenue. The company reported total costs of $948.4 million during the first quarter, an increase of 37% from the year-ago quarter. The company generated a net loss of $116.3 million during the first quarter compared to a net loss of $74.4 million in the corresponding quarter last year. Excluding non-recurring items, the company made an adjusted profit of $0.43 per share, marginally beating analysts’ projection of $0.41 per share.
The company’s guidance beat analysts’ estimates
Workday acquired software company Adaptive Insights for $1.6 billion in 2018. Adaptive added ~150 standalone deals during the quarter, including deals with Airbus and Astra Zeneca.
The company also announced better-than-expected guidance for the current quarter. Workday expects to generate between $746 million to $748 million in the current quarter, which would represent growth of 32% YoY, while Wall Street was expecting $742 million.
Workday’s stock was down 5.3% in the first few minutes of trade on Wednesday. However, the stock is up 62.7% in the last 12 months.