Workday (WDAY) Earnings & Revenues Surpass Estimates In Q4
Zacks Investment Research | Feb 27, 2020 10:04PM ET
Workday Inc. (NASDAQ:WDAY) reported fourth-quarter fiscal 2020 non-GAAP earnings of 50 cents per share, which beat the Zacks Consensus Estimate by 25% and surged 22% year over year.
Robust growth can primarily be attributed to an improvement of 23.8% in revenues, which amounted to $976.3 million. The top line outpaced the Zacks Consensus Estimate for revenues by 1.1%. The upside was driven by solid growth in subscription and professional services revenues.
Quarter in Detail
Subscription services revenues (86% of total revenues) rallied 24.7% year over year to $839.7 million on the back of expanding customer base. The figure surpassed management’s guidance of $828-$830 million.
Workday ended the fiscal fourth quarter with 45% of the Fortune 500, precisely 60% of the Fortune 50, as HCM customers and penetration in the Global 2000 clientele of up to 20%.
Management is optimistic regarding the growing clout of Workday Financial Management, Business Planning Cloud, and Workday Prism Analytics offerings. Further, synergies from Adaptive Insights acquisition and strength in product suite drove revenues in the reported quarter.
Backlogs from Subscription revenues came in at $8.29 billion, up 23% year over year, primarily on the back of growth in net new bookings and deal renewals, and net retention of customers.
Workday, Inc. Price, Consensus and EPS Surprise
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