Workday releases its Q3 2021 financial results

Workday has announced its financial results for the fiscal 2021 third quarter ended Oct. 31, 2020.

It comes as the company recently shared its position as a Leader in the 2020 Gartner Magic Quadrant for Cloud Financial Planning - Analysis Solutions, and launched the Workday Accounting Center as part of its 2020 Release.

As a result of the strong showing, the company says it raising its fiscal 2021 subscription revenue guidance to a range of US$3.773 billion to $3.775 billion.

"It was another strong quarter across our product portfolio with continued momentum in financial management – which has now reached 1,000 customers," says Workday co-founder and CEO Aneel Bhusri.

"We also had some of our largest Workday Human Capital Management go-lives to-date and record customer demand on the strategic sourcing front."

Total revenues were $1.11 billion, an increase of 17.9% from the third quarter of fiscal 2020. Subscription revenue was $968.5 million, an increase of 21.3% from the same period last year.

Operating loss was $14.1 million, or negative 1.3% of revenues, compared to an operating loss of $110.3 million, or negative 11.8% of revenues, in the same period last year.

Meanwhile, non-GAAP operating income for the third quarter was $268.1 million, or 24.2% of revenues, compared to a non-GAAP operating income of $142.6 million, or 15.2% of revenues, in the same period last year.

"In addition to several strategic wins in HR and finance, we also saw continued momentum selling into our existing customer base," says Workday co-CEO Chano Fernandez.

"Whether our employees were helping to innovate, drive awareness, close deals, or successfully supporting deployments – all in a fully virtual way – their commitment to our customers this quarter is evident, and I couldn't be prouder.

"As we look ahead, I remain confident in our ability to capitalise on the growth opportunity in front of us while helping to take our customers to new heights.

Net loss per basic and diluted share was $0.10, compared to a net loss per basic and diluted share of $0.51 in the third quarter of fiscal 2020.

Non-GAAP net income per diluted share was $0.86, compared to a non-GAAP net income per diluted share of $0.53 in the same period last year.

Operating cash flows were $293.8 million compared to $258.0 million in the prior year.

Cash, cash equivalents, and marketable securities were $2.95 billion as of Oct. 31, 2020.

"We executed well in an uncertain environment and delivered strong results, with subscription revenue growth of 21.3% and non-GAAP operating margin of 24.2%," says Workday president and CFO Robynne Sisco.

"Based on our strong third quarter, we are raising our fiscal 2021 subscription revenue guidance to a range of $3.773 billion to $3.775 billion.

"As we enter Q4, we are increasing our pace of investments to capitalise on the long-term opportunity that we see ahead.