Workday Inc (NASDAQ: WDAY) stock fell over 1.7% on 26th Feb, 2021 (as of 12:50:02 UTC-5; Source: Google finance) as the company’s fourth-quarter net loss narrowed as the developer of cloud applications saw revenue and subscriptions rise sharply over a year ago from businesses increasing their use of online services during the Covid-19 pandemic. The company has reported a loss of $71.7 million compared to a loss of $128 million, in the same quarter a year ago. The company has reported Non-GAAP operating income for the fourth quarter of $211.0 million, or 18.6% of revenues, compared to a non-GAAP operating income of $116.6 million, or 11.9% of revenues, in the same period last year.
Meanwhile, the strength in the HCM solutions was a critical contributor to the Q4 performance with notable customer additions in the quarter, including Nike, ABB, Anthem, Cognizant Worldwide, Cox Enterprises, First Rank Bank, Laboratory Corporation of America and Peakon paid retailers. The company also saw significant uptake across the newer solutions that support the office of the CHRO, including People Analytics, Alpine Journeys and Talent Marketplace. Further, the company had several strategic core FINS wins in Q4, including a Fortune 500 win of Franklin Tempesto, which included Accounting Center, Minnesota State Colleges and universities, Sentry Insurance, the University of Maryland, College Park, St. Jude Children’s Research Hospital and Vanderbilt University Medical Center. The company is excited by the accelerated pipeline of FINS opportunities, including emerging use cases with enterprise financing product based industries like retail and manufacturing, where recent wins include one of the nation’s largest pizza chain, Zoomies and exporting goods retailer with over 1,000 stores.
WDAY in the fourth quarter of FY 20 has reported the adjusted earnings per share of 73 cents, beating the analysts’ estimates for the adjusted earnings per share of 55 cents, according to FactSet. The company had reported the adjusted revenue growth of 16 percent to $1.13 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $1.12 billion. The subscription revenue reached $1.01 billion, up 20%. Subscription backlog rose 22% year over year, to $10.09 billion. Subscription revenue backlog that will be recognized within the next 24 months was $6.53 billion, growth of 19%. The company delivered the non-GAAP operating income for the fourth quarter of $211 million, resulting in a non-GAAP operating margin of 19%. The company generated operating cash flow for Q4 of $554 million, which is growth of 86%.