Workday (WDAY) Earnings & Revenues Surpass Estimates In Q3
Zacks Investment Research | Dec 03, 2019 09:21PM ET
Workday Inc. (NASDAQ:WDAY) reported third-quarter fiscal 2020 non-GAAP earnings of 53 cents per share, which soared approximately 71% year over year and beat the Zacks Consensus Estimate by 39.5%.
Robust growth can primarily be attributed to an improvement of 26.2% in revenues, which totaled $938.1 million. The figure outpaced the Zacks Consensus Estimate for revenues by 1.9%. The upside was driven by solid growth in subscription and professional services revenues.
Quarter in Detail
Subscription services revenues (85.1% of total revenues) rallied 27.9% year over year to $798.5 million on the back of expanding customer base. The figure surpassed management’s guidance of $783-$785 million.
Workday ended the fiscal third quarter with more than 42 million users and 3,000 customers.
Further, synergies from Adaptive Insights acquisition and strength in product suite drove revenues in the reported quarter. Management is optimistic regarding the growing clout of Workday Financial Management, Business Planning Cloud, and Workday Prism Analytics offerings.
Backlogs from Subscription revenues came in at $7.19 billion, up 21.8% year over year, primarily on the back of growth in net new bookings and “add-on business and net retention.”
Professional services revenues (14.9% of total revenues) grew 17.5% from the year-ago quarter’s tally to $139.6 million and surpassed management’s guidance of $135 million.
Revenues outside the United States improved 38% to $234 million and contributed 25% to total revenues.
The company witnessed rapid deployment of HCM solution in the fiscal third quarter. The company added 11 Global 2000 and six Fortune 500 companies in the reported quarter.
Key deal wins include Royal Bank of Canada, Anheuser-Busch InBev, Magna International, and Sutter Health. Moreover, companies like the Dow Chemical Company (NYSE:DOW), Glencore (LON:GLEN) National AG, and Telstra Corporation, went live with Workday’s solutions during the fiscal third quarter.
Workday, Inc. Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.