Workday Inc, on Thursday, came up reporting revenue that beat analyst expectations as its cloud-based human resources and financial software attracted more of the customers, which also able the company to raise its revenue forecast for next year.
Signing up of more customers to its products highlights the Workday’s efforts of getting bigger share in a market that is fiercely competitive and its goal of becoming a one-stop solution for back-office services and benefitting more corporate customers by turning them to its cloud-based application to manage their human resources and payroll needs.
Stanley Black & Decker, Rockwell Automation and The Gap are the prominent names among others that Workday has added to its list of human capital management customers in North America during the reported quarter while adding an insurance company as a new customer to its cloud-based financial management services during the same period.
According to estimates by Gartner, in 2019, cloud products will be seeing growth rate of 17.3% in to reach $206.2 billion mark.
In the second quarter, Workday’s revenue from the subscriptions grew by 34% to $757.2 million, after which the firm raised its subscription revenue forecast for fiscal 2020 between $3.06 billion and $3.07 billion from previous forecast of $3.05 billion to $3.06 billion. Workday also forecasted third-quarter subscription revenue of between $783 million and $785 million while analysts, on average, were expecting it to be about $782.6 million.
In the quarter ended July 31, the company faces a net loss of $120.7 million or 53 cents per share that came more than loss of $86.2 million, or 40 cents per share made by the company in year ago quarter.
Workday’s total revenue in the reported quarter saw a rise of 32% to $887.8 million that beat the $872.3 mark estimated by the analysts for the same.