Workday share price down in after-hours trading as software company reports widening losses despite surge in revenues
Share price in Workday fell in after-hours trading this evening as losses grew for the software company despite a surge in revenues.
The California-headquartered company announced net losses of $289.9m (£208.2m) for its year ended January 2016, down further from a net loss of $248m the year before.
However, the company, which makes human resources software, also revealed that its total revenues had risen to $1.2bn for the year, up 48 per cent from the prior year's $787.9m. Revenues from subscriptions had also grown significantly to $929.2m, an increase of 52 per cent from $613.3m.
Share price in the company dropped in after-hours trading, trading down 1.1 per cent at $59.80.
"We ended financial year 16 on a high note with a very strong fourth quarter across product lines and around the world," remarked Aneel Bhusri, co-founder and chief executive of Workday.
Mark Peek, co-president and financial chief, added: "Workday finished a very strong fiscal 2016 with a great fourth quarter."
For its fourth quarter of its 2016 financial year, the software company reported total revenues of $323.4m, up 43 per cent from $226.3m for the same period the year before, although net losses fell further to $81.1m, down from $59.5m.