Cloud operator Workday (NYSE:WDAY) has had a doozy of a run since its mid-October IPO; since going public, WDAY shares have clocked a sizzling 90% return.
So even after the company reported an impressive third quarter Wednesday night, it wasn’t too surprising to see the stock cool a little Thursday.
In its most recent quarter, WorkDay it snagged up new customers like DuPont (NYSE:DD), Johnson Controls (NYSE:JCI) and Yale University. The end result? A near-doubling of revenues to $72.6 million! The company also posted a 39-cent loss — better than an expected 49-cent loss.
Better yet, going forward, Workday is projecting revenues of $75 million to $79 million, easily beating a consensus estimate for $70.5 million.
Workday develops enterprise resource planning software, which helps companies manage core functions like HR and financials. Workday’s cloud platform has been making inroads against rivals like Oracle (NASDAQ:ORCL) and SAP (NYSE:SAP), which have been slow to make changes to their own product line. In fact, the company is benefiting from an upgrade cycle and customers now realize that cloud-based software is viable option.
To keep up the momentum, Workday has continued to push on innovation. The company plans to launch a new recruiting system and even a Big Data analytics platform. During the quarter, R&D expenses increased by 71% to $28.1 million.
Still, with nearly $800 million in the bank as of the end of October, Workday certainly has the resources to aggressively invest in its growth ramp.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.