Workday Misses Adjusted Profit Expectations as Costs Rise During Pandemic

   By Micah Maidenberg 
 

Workday's Inc. missed profit expectations for its latest quarter as the company reported higher expenses amid the Covid-19 pandemic.

Overall, the provider of cloud-based financial management and human resources applications for businesses said its net loss widened to $158.4 million, or 68 cents a share, for its quarter that ended April 30, compared with a loss of $116.3 million, or 52 cents a share, the year earlier.

Excluding share-based compensation and after other adjustments, Workday reported a profit of 44 cents a share, 5 cents less than the consensus estimate for that metric as compiled by FactSet.

Workday said product-development expenses rose 28% for its quarter that ended April 30, while sales and marketing costs were up 17%. The company said it recently spent $79 million in one-time cash bonuses for employees working through the pandemic.

Workday reported $1.02 billion in revenue for the quarter, up 23% year over year and slightly more than the $1 billion that analysts expected.

The company said it in March and April it had more than 90 virtual customer go live with using Workday as their core systems for finance and human resources.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

May 27, 2020 16:38 ET (20:38 GMT)

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