Workday Reports Q4 Loss, But In Line

(RTTNews) - Workday Inc (WDAY), the cloud-based human resource software maker, Wednesday said its fourth-quarter loss widened from a year ago, hurt mainly by stock-based compensation expense and other costs that offset a surge in revenues. The loss for the quarter was in line with Wall Street estimates, while revenues topped expectations.

The company also provided strong outlook for the first quarter.

"The fourth quarter ended another very successful year for Workday, which was marked by strong customer growth and product innovation," said Aneel Bhusri, co-founder and chief executive officer, Workday.

"In the year ahead, we will focus on strategic initiatives including continued investment in our financial management product, growth of our presence in the education and government industries, and expansion of the business globally."

Workday, which went public last October in a scintillating IPO, has been growing its business in Europe and expanding presence in Japan, as evidenced from its strong subscription revenues.

The company also had unveiled plans to provide German customers with a modern cloud alternative to legacy enterprise software.

All said, its results have been weighed down by stock-based compensation expenses and the latest quarter was no exception.

For the fourth quarter, Workday reported a net loss of $59.5 million, compared with a loss of $56 million last year. On a per share basis, loss remained unchanged at $0.32.

Excluding one-time items, adjusted loss for the quarter was $0.06 per share, compared with a loss of $0.13 per share in the prior year.

On average, 35 analysts polled by Thomson Reuters expected a loss of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

The Pleasanton, California-based company's revenues surged 59 percent to $226.3 million from $141.9 million a year ago. Thirty-two analysts had a consensus revenue estimate of $222.9 million for the quarter.

For the first quarter, the company expects revenues of $242 million to $245 million, while analysts currently expect $239.5 million.

For the full year 2015, the company projects revenues of $1.12 billion to $1.14 billion, while analysts currently expect $1.13 billion.

WDAY closed Wednesday at $93.94, up $0.91 or 0.98%, on a volume of 2 million shares on the NYSE. In after hours, the stock gained $1.07 or 1.14% at $95.01.