Entering the seasonally strongest fourth quarter, Workday lifted its fiscal 2020 subscription revenue outlook to a range of $3.085 billion – $3.087 billion compared to the prior range of $3.06 billion – $3.07 billion. The enterprise cloud service provider predicts fourth-quarter subscription revenue to be between $828 million and $830 million.
At the end of October 31, 2019, Workday had more than 3,000 customers and 42 million users. Last month, the company announced its intention to acquire Scout RFP, a cloud-based platform for strategic sourcing and supplier engagement, for $540 million. This transaction is expected to close in the fourth quarter of Workday’s fiscal year 2020, ending January 31, 2020.
Workday stock had gained 9% so far this year, while it declined about 1% in the past three months.