Summary
Workday, Inc. (WDAY) reported its third-quarter fiscal year 2015 results for the period ending October 31, 2014. The company demonstrated significant revenue growth, with total revenues increasing by 68% year-over-year to $215.1 million, driven primarily by a 75% surge in subscription services revenue. Despite this top-line growth, Workday continued to operate at a net loss, reporting a net loss of $59.9 million for the quarter, compared to $47.5 million in the prior year period. This widening loss reflects substantial investments in product development and sales and marketing to fuel future growth. Key financial metrics show continued investment in growth initiatives, with operating expenses rising significantly. The company's balance sheet remains strong, with cash and cash equivalents and marketable securities totaling $1.8 billion. Management is focused on expanding the customer base and investing in application development and sales infrastructure, anticipating continued revenue growth while managing expenses for long-term profitability. Investors should note the significant share-based compensation expenses and the ongoing investments in growth, which contribute to the current net losses.
Financial Highlights
40 data points| Revenue | $215.07M |
| R&D Expenses | $85.27M |
| Operating Expenses | $266.54M |
| Operating Income | -$51.47M |
| Interest Expense | $7.78M |
| Net Income | -$59.91M |
| EPS (Basic) | $-0.33 |
| Shares Outstanding (Basic) | 184.31M |
Key Highlights
- 1Total revenues grew 68% year-over-year to $215.1 million for the three months ended October 31, 2014.
- 2Subscription services revenue increased by 75% to $164.4 million, indicating strong demand for Workday's core offerings.
- 3Professional services revenue grew 49% to $50.7 million, supporting the expansion of new customers.
- 4The company reported a net loss of $59.9 million ($0.33 per share) for the quarter, an increase from the $47.5 million loss in the prior year period.
- 5Operating expenses increased significantly, with Product Development expenses up 56% and Sales and Marketing expenses up 45%, reflecting continued investment in growth.
- 6Share-based compensation expenses more than doubled to $47.0 million for the quarter, a key factor in the increased net loss.
- 7Workday maintained a strong liquidity position with $1.8 billion in cash, cash equivalents, and marketable securities as of October 31, 2014.