Workday, Inc. (WDAY) saw its loss widen to $114.07 million, or $0.57 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $77.81 million, or $0.41 a share. On an adjusted basis, net profit for the quarter was $6.63 million, when compared with net loss $0.37 million in the last year period. Revenue during the quarter surged 34.17 percent to $409.58 million from $305.27 million in the previous year period. Gross margin for the quarter expanded 235 basis points over the previous year period to 69.02 percent. Operating margin for the quarter stood at negative 26.83 percent as compared to a negative 22.99 percent for the previous year period.
Operating loss for the quarter was $109.88 million, compared with an operating loss of $70.17 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4.03 million compared to $0.84 million in the prior year period. At the same time, adjusted operating margin improved 71 basis points in the quarter to 0.98 percent from 0.28 percent in the last year period.
"We had a strong third quarter and saw healthy demand across all major geographies and industries," said Aneel Bhusri, co-founder and chief executive officer, Workday. "We continue to lead with product differentiation, technology innovation, and real customer success, and believe these are significant differentiators for Workday in the market."
Operating cash flow improves significantly
Workday, Inc. has generated cash of $239.18 million from operating activities during the nine month period, up 49.35 percent or $79.04 million, when compared with the last year period. The company has spent $187.34 million cash to meet investing activities during the nine month period as against cash outgo of $260.88 million in the last year period.
Cash flow from financing activities was $34.27 million for the nine month period, up 49.05 percent or $11.28 million, when compared with the last year period.
Cash and cash equivalents stood at $386.56 million as on Oct. 31, 2016, up 75.79 percent or $166.66 million from $219.89 million on Oct. 31, 2015.
Working capital declines
Workday, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,196.50 million as at Oct. 31, 2016, down 14.86 percent or $208.89 million from $1,405.39 million on Oct. 31, 2015. Current ratio was at 2.09 as on Oct. 31, 2016, down from 2.87 on Oct. 31, 2015.
Days sales outstanding went down to 48 days for the quarter compared with 49 days for the same period last year.
At the same time, days payable outstanding was almost stable at 19 days for the quarter, when compared with the previous year period.
Debt moves up marginally
Workday, Inc. has witnessed an increase in total debt over the last one year. It stood at $527.55 million as on Oct. 31, 2016, up 3.84 percent or $19.52 million from $508.03 million on Oct. 31, 2015. Total debt was 18.05 percent of total assets as on Oct. 31, 2016, compared with 20.23 percent on Oct. 31, 2015. Debt to equity ratio was at 0.46 as on Oct. 31, 2016, up from 0.45 as on Oct. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
