Workday achieved better results in the first quarter of the year than analysts had expected. The company has also raised its expectations for the next quarter and the whole of 2019, reports Silicon Angle.
Workday, which sells software for financial management and HR, reported a profit on certain costs of 43 cents per share. Turnover amounted to USD 825.1 million (approximately EUR 740 million). That is an increase of 33 percent compared to the previous year, and much better than expectations of Wall Street. Analysts had bet on a profit of 41 cents per share with a turnover of 814.3 million dollars.
The company also reported that in the first quarter, sales of its subscriptions increased by 34 percent to 701 million dollars. Professional sales amounted to 124 million dollars, an increase of 29 percent. However, the company was unable to achieve a net profit. The loss amounted to $116.3 million. That’s more than the $74.4 million net loss a year ago.
Yet this is the third consecutive quarter in which Workday has exceeded expectations. The company has now adjusted its expectations for the future. In the next quarter, the company expects sales of between $746 million and $748 million from subscriptions only, compared with the $741.7 million expected by analysts.
For the full year, Workday predicts that there will be $3.04 billion to $3.06 billion in revenue from subscriptions. Wall Street predicts $3.047 billion.
Cool reaction stock market
It is striking that shareholders and the stock markets reacted coolly to the positive news. Indeed, the price of Workday’s shares remained virtually the same in trading after closing time, after they initially fell. In regular trading, equities increased by one percent.
Workday has recently acquired various companies. One of them is Adaptive Insights, last June. Since then, the company has sold a new workforce planning module for the Adaptive Insights Business Planning Cloud, which is used to create and test complex business scenarios.
The new product is mainly a set of templates that can be used with the existing business planning engine. The product improves collaboration between the financial and HR departments for workforce planning, analysis and reporting.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.