Many companies the recent time are showing more interest in cloud-based services for the huge benefits that it provide including the unlimited data storage and apps.
The company, which provides financial and human-resources software, late Monday said fourth-quarter sales rose 43 percent to $323.4 million. That topped estimates of $319.7 million, according to Bloomberg data. Workday also reported a narrower adjusted loss than was expected.
Chief Executive Officer Aneel Bhusri is benefiting from a growing customer list that shows businesses are moving more of their software to the cloud, holding off pressure from rivals and a global economy that’s struggling to gain momentum. The report comes less than a week after Salesforce.com Inc., which also delivers services via the Internet, issued a forecast that easily topped analysts’ estimates.
“Quietly and with little fanfare, we believe both the stock and the business
could be marking a turning point,” analysts at JPMorgan Chase & Co. said in a note. They upgraded the stock to overweight from neutral.