Workday shares trade higher late Thursday after cloud-based enterprise HR and financial software provider better than expected results posted for the fiscal second quarter ended July 31.
For the quarter, Workday (ticker: WDAY) reported revenue of $1.26 billion, up 19% from a year ago, and slightly ahead of Street’s consensus estimate of $1.24 billion. Subscription revenues were $1.11 billion, up 20%, above the company’s projected $1.095 billion to $1.097 billion range. Non-GAAP earnings were $1.23 per share, well above the consensus of 78 cents. According to generally accepted accounting principles, the company earned 41 cents per share.
Workday says the backlog is now $10.5 billion, up 23% from a year ago. Operating cash flow in the quarter increased to $198.5 million, from $157.2 million in the same quarter a year earlier.
“This quarter was one of our strongest in company history,” Workday CEO Aneel Bhusri said in a statement. “Our customer community has grown to more than 55 million users and more than half of the Fortune 500 have chosen Workday.”
Workday was up 3.4% in late trading to $255.25. During the regular session, the stock rose 0.3% to $246.76.
For the October quarter, Workday sees subscription revenues ranging from $1.156 to $1.158 billion, ahead of the Street consensus of $1.113 billion. Workday expects full-year subscription revenues between $4.5 billion and $4.51 billion, ahead of Street’s consensus forecast of $4.44 billion. The company also said it now sees a full-year non-GAAP operating margin of 21%, up from a previous forecast of 18% to 19%.
Write to Eric J. Savitz at firstname.lastname@example.org