Workday Net Loss Widens

(RTTNews) - Cloud-based human resource software maker Workday, Inc. (WDAY) said Monday after the markets closed that its third quarter net loss widened from last year, as higher costs and expenses more than offset a 68% increase in revenue.

However, the company's adjusted loss per share was smaller than what analysts estimated and its quarterly revenue topped analysts' forecast. At the same time, the company gave an in line revenue outlook for the current quarter.

"We had a strong third quarter and saw increasing customer demand globally," said Aneel Bhusri, co-founder and CEO, Workday.

Workday shares are currently losing 8.37% in after hours trading after closing the day's regular trading session at $92.49, down 51 cents. The shares trade ina 52-week range of $64.21 to $116.47.

Workday, based in Pleasanton, California, operates as a cloud-based human resource and financial management software vendor. The company went public in October last year in an impressive initial public offering.

While Workday has recorded revenue growth over the past quarters and added new customers, its results have been bogged down by stock-based compensation expense and other costs.

For the third quarter ended October 31, 2014, the company reported a net loss of $59.9 million or $0.33 per share, compared to a net loss of $47.5 million or $0.27 per share for the year-ago quarter.

Excluding items, adjusted net loss for the third quarter was $5.3 million or $0.03 per share, compared to an adjusted net loss of $21.3 million or $0.12 per share in the prior year quarter.

On average, 28 analysts polled by Thomson Reuters expected the company to report a loss of $0.10 per share for the third quarter. Analyst' estimates typically exclude special items.

Total revenues for the third quarter rose 68% to $215.07 million from $127.87 million in the same quarter last year, with subscription revenue up 75%. Twenty-six analysts had a consensus revenue estimate of $205.27 million for the third quarter.

Total costs and expenses for the quarter jumped 58% to $266.5 million.

Looking ahead, the company forecasts fourth quarter total revenues to be in a range of $219 million and $222 million, or growth of 54% to 56% as compared to the prior year. Analyst currently expect the company to post revenue of $220.45 million for the fourth quarter.