Business software provider Workday Inc. (WDAY), Wednesday said its first-quarter loss widened from a year ago, as higher expenses offset a surge in revenues. Nonetheless, adjusted loss and revenues for the quarter were better than what Wall Street anticipated. Looking ahead, the company lifted its full year revenue outlook.
Workday's revenue for the quarter grew 61 percent to $91.6 million from $56.8 million last year. Twenty-one analysts polled by Thomson Reuters expected revenues of $86.91 million for the quarter.
Pleasanton, California-based Workday provides software to corporations that helps in financial management and human resource management.
Subscription revenues jumped 85 percent to $68.4 million, as the company's client portfolio continued to grow. Workday added significant customers including Bristol Myers Squibb and Levi Strauss for Workday Human Capital Management as well as University of Miami for the full suite of Workday applications.
"Our Q1 results demonstrate that our business continues to perform well across all initiatives," said Aneel Bhusri, chairman, co-founder, and co-CEO, Workday.
Total costs and expenses increased to $124.3 million from $76.8 million last year, largely due to increases in research and development, sales and marketing and general expenses.
Workday, which went public last October, reported a first-quarter loss of $33.0 million, wider than the $20.3 million loss reported a year ago. On a per share basis, loss for the quarter narrowed to $0.20 from $0.61, due mainly to higher number of shares outstanding.
Adjusted loss for the quarter was $0.15 per share compared to $0.57 per share a year ago. On average, 23 analysts estimated a loss of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
Looking forward to the second quarter, Workday expect revenue in the range of $97 million to $101 million, or growth of 55 to 61 percent. Analysts currently estimate revenues of $99.00 million, or growth of 57.9 percent for the quarter.
For fiscal year 2014, the company now expect revenues in the range of $425 million to $440 million, or a growth of 75 to 80 percent. Analysts currently expect revenues of $433.25 million or 58.3 percent growth for the year.
Previously, Workday expected revenues of $420 million to $435 million for the full year.
WDAY closed Wednesday's regular trading at $65.75, down $2.74 or 4.00%, on the Nasdaq. The stock, however, gained $2.25 or 3.42% in after hours trade.
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