Workday Inc (NASDAQ:WDAY) reported strong quarterly results late Wednesday, but shares still dipped late in the day.

The on‑demand financial management and human capital management software vendor had a positive fiscal third-quarter thanks to its subscription revenue growth, which gained 37% thanks to an increase in its new customer growth, as well as higher sales with existing customers and higher renewal rates.

Workday posted earnings at a loss of $85.5 million, or 41 cents per share, which was narrower than the $110.1 million, or 55 cents per share it lost a year ago. ON an adjusted basis, the company earned 24 cents per share, topping analysts’ expectations of 15 cents per share, according to Thomson Reuters.

On the revenue front, the company saw its sales surge 34.3% compared to the year-ago mark to $555.4 million. Analysts were calling for a consensus estimate in revenue of $540.6 million.

Workday updated its full-year 2018 guidance as it now projects that it will rake in at least $1.78 billion in subscription revenue, topping its previous estimate of $1.75 billion to $1.76 billion.

“The outlook for the remainder of fiscal 2018 and beyond is bright as we continue to add new customers … and unlock new growth drivers,” CEO Aneel Bhusri said.

“We continue to invest for long-term growth, while delivering consistently solid operating and cash flow margins,” said Workday CFO Robynne Sisco.

WDAY stock fell 7.1% during regular trading hours and a further 1.7% after the bell.