Workday Misses Adjusted Profit Expectations as Costs Rise During Pandemic
May 27 2020 - 4:53PM
Dow Jones News
By Micah Maidenberg
Workday's Inc. missed profit expectations for its latest quarter
as the company reported higher expenses amid the Covid-19
pandemic.
Overall, the provider of cloud-based financial management and
human resources applications for businesses said its net loss
widened to $158.4 million, or 68 cents a share, for its quarter
that ended April 30, compared with a loss of $116.3 million, or 52
cents a share, the year earlier.
Excluding share-based compensation and after other adjustments,
Workday reported a profit of 44 cents a share, 5 cents less than
the consensus estimate for that metric as compiled by FactSet.
Workday said product-development expenses rose 28% for its
quarter that ended April 30, while sales and marketing costs were
up 17%. The company said it recently spent $79 million in one-time
cash bonuses for employees working through the pandemic.
Workday reported $1.02 billion in revenue for the quarter, up
23% year over year and slightly more than the $1 billion that
analysts expected.
The company said it in March and April it had more than 90
virtual customer go live with using Workday as their core systems
for finance and human resources.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 27, 2020 16:38 ET (20:38 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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