Published on 29 Nov 2023 on Zacks via Yahoo Finance

Workday (WDAY) Q3 Earnings Beat Estimates, Revenues Surge Y/Y

Workday Inc. WDAY reported strong third-quarter fiscal 2024 results, with the bottom and the top line surpassing the respective Zacks Consensus Estimate. The company reported a top-line expansion year over year. Solid demand for its financial and human capital management (HCM) solutions in various end markets, including energy, automotive, transport, consumer packaging and healthcare, are key growth drivers. The ongoing investment initiatives in Japan to expand its market opportunity in the region is a positive. Focus on AI incorporation and introduction of AI-native products such as Workday AI Marketplace acted as a tailwind.

Net Income

Net income on a GAAP basis was $113.7 million or 43 cents per share against a net loss of $74.7 million or a loss of 29 cents per share in the year-ago quarter. The year-over-year growth was primarily due to higher revenues as the strategy to incorporate AI into the core of its products resonated well with the customers.Non-GAAP net income rose to $407.8 million or $1.53 per share from $257.9 million or 99 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 13 cents.