Dive Brief:
- Workday forecast current-quarter revenue that missed analysts' estimates after reporting a bigger net loss for the third quarter.
- Workday, which makes software to manage employee performance, payroll and expense, forecast revenue of $317 million-$320 million for the quarter ending January.
- Analysts on average were expecting revenue of $320.3 million, according to Thomson Reuters I/B/E/S.
Dive Insight:
Workday's net loss widened to $77.8 million in the third quarter that ended Oct. 31, from $59.9 million. Sales and marketing costs rose about 38.4%, while product development costs jumped 45.4%. Total costs increased about 41% to $375.4 million.
On an adjusted basis, the company reported break even earnings, according to Thomson Reuters I/B/E/S.
On a positive note, revenue rose 42% to $305.3 million, helped by strong subscription growth for the company's web-based human resource management software. Workday customers include Coca-Cola Co and Bank of America Corp.
