Enterprise cloud applications provider Workday (WDAY) reported a 35% increase in the revenue to $788.6 million for the fourth quarter. Earnings rose 41 cents per share compared to 28 cents in the prior-year quarter. Analysts had expected Workday to post a profit of $0.32 per share on revenue of $777.3 million. Workday stock, which hit a fresh 52-week high ($199.45) during today’s regular trading session, increased 2% in the after-hours.
GAAP loss per share in the recently ended quarter widened to $0.47 from a loss of $0.42 per share in the prior-year quarter.
Subscription revenue, which accounts for the lion’s share of Workday’s total revenues, surged 37.5% year-over-year to $673.5 million for the quarter ended January 31, 2019. Revenue from Professional Services segment jumped 24% to $115.1 million. Subscription revenue backlog of $6.74 billion was up 30% annually.
For the fiscal year 2020, the company expects subscription revenue of $3.030 billion to $3.045 billion, representing year-over-year growth of approximately 27% to 28%.
Commenting on the Q4 results, CEO Aneel Bhusri said, “This was a strong close to fiscal 2019. It was not only a record quarter for Workday Financial Management, but we now have half of the Fortune 50 and approximately 40 percent of the Fortune 500 as Workday customers.”
Cloud giant Salesforce (CRM) is set to report its fourth quarter results on March 4, Monday. Shares of CRM also hit a fresh yearly high on today’s trading session.
Shares of Workday, which edged up 0.24% to $197.93 on Thursday, gained 24% since the beginning of 2019 and 36% in the past three months period.