Cloud Computing: A Few Reasons Why Workday Can Continue Its Terrific Growth
July 7, 2014
Grazed from Fool. Author: Mukesh Baghel.
Cloud computing has opened up big opportunities for several players, and Workday’s first-quarter results indicate that it is making the most of it. Driven by strong demand for applications such as Workday Recruiting and Workday Financial Management, the company’s revenue has increased at a fast pace. Workday’s Human Capital Management (HCM) solutions have been selected by companies such as Hewlett-Packard, and this can act as a catalyst going forward.
Workday is aggressively investing in its products to land more clients in the face of competition from established players like Oracle. Even though the company posted a 74% year-over-year jump in revenue in the first quarter, its net loss widened due to investments in product development, marketing, and sales. However, the company’s outlook for the second quarter was better than expected, indicating the strong adoption of its solutions…
A robust outlook driven by appealing products
Workday expects second-quarter revenue in the range of $173 million-$178 million, exceeding the consensus estimate of $171.3 million. For the full year, the company sees revenue of $730 million-$750 million, the midpoint of which exceeds the consensus estimate of $735 million. Moreover, Workday expects its subscription revenue to grow 69%-73% year over year…
Read more from the source @ http://www.fool.com/investing/general/2014/07/07/a-few-reasons-why-workday-can-continue-its-terrifi.aspx