Workday Sales Beat Estimates on Cloud-Computing Demand
November 29, 2012
Grazed from Bloomberg. Author: Ryan Faughnder.
Workday Inc. (WDAY), a maker of Web-based human-resources software, reported third-quarter revenue that beat analysts’ estimates as more companies switched to its cloud-computing tools to manage their workforces. In its first quarterly report since becoming a publicly traded company, Workday had a loss excluding some items of 39 cents a share, the company said in a statement yesterday. Analysts predicted a loss of 49 cents, the average of estimates compiled by Bloomberg. Sales in the quarter ended Oct. 31 doubled to $72.6 million, compared with projections for $64 million.
Workday, founded in 2005 by co-Chief Executive Officers Dave Duffield and Aneel Bhusri, makes applications to help corporations manage human resources and financial records. As large companies adopt more online tools, Workday is drawing customers away from enterprise software companies such as Oracle Corp. (ORCL) and SAP AG. (SAP) Those two, along with Salesforce.com Inc. (CRM), also make Web-based software for businesses…
“The vast majority of business software is 5 to 10 years old, and corporate customers are making the decision to upgrade,” Richard Davis, an analyst at Canaccord Genuity Inc., said in an interview. “Oracle and SAP are not going away. They’re just not going to have 100 percent market share between them.”…
Read more from the source @ http://www.bloomberg.com/news/2012-11-28/workday-sales-beat-estimates-on-corporate-cloud-computing-demand.html