Workday (NASDAQ: WDAY) reported its third quarter financial results after the closing bell on Tuesday. Workday reported better-than-expected results, sending shares 2.6% higher shortly after reporting.
For the quarter, Workday reported earnings of USD 0.53 per share on revenue of USD 938.1 Million. Analysts anticipated earnings of USD 0.31 per share on revenue of USD 920.1 Million.
The Company reported that revenue increased by 26.2% year-over-year, primarily driven by the growth in its subscription revenue. Workday also reported narrowing losses for the quarter, as operating losses was USD 110.3 Million compared to USD 182.8 Million a year ago.
On a non-GAAP basis, Workday reported operating income of USD 142.6 Million, compared to USD 49.7 Million the same quarter a year ago.
Subscription revenue totaled USD 798.5 Million at the end of the quarter, representing a 27.9% increase year-over-year. Subscription revenue backlog totaled USD 7.19 Billion, up 21.8% year-over-year. Analysts expected total revenues of USD 785 Million.
Workday’s professional services segment reported revenues of USD 139.58 Million, up from USD 118.77 Million the same period a year prior.
“Companies of all sizes and industries continue to select Workday, and we’re thrilled that as of the end of Q3, we have more than 3,000 customers and 42 million users,” said Aneel Bhusri, Co-Founder and Chief Executive Officer, Workday. “As our community grows, so do our applications. We recently announced plans to deepen our offering for the office of finance with the intended acquisition of Scout RFP. We also unveiled several ways our customers can leverage leading machine learning capabilities that are powering our applications – helping them to make more informed decisions as they navigate this changing world of work.”