Workday (WDAY) late Thursday reported second-quarter earnings and revenue that topped estimates while subscription revenue guidance came in above expectations. WDAY stock rose on the news.
Pleasanton, Calif.-based Workday said July-quarter adjusted earnings were $1.23 a share, up 46% from the year-earlier period. Revenue climbed 18.7% to $1.26 billion, including acquisitions. Subscription revenue rose 19.5% to $1.11 billion, topping estimates of $1.09 billion.
A year earlier, Workday earnings were 84 cents a share on sales of $1.06 billion. Analysts expected Workday earnings of 78 cents a share on revenue of $1.24 billion for the period ended July 31.
The company sells software for human capital management, or HCM, such as payroll tools. It has expanded into financial software, which so far hasn’t been a big catalyst for Workday stock. Workday stock had $3.31 billion in cash and equivalents on its balance sheet as of July 31, giving it ammunition for acquisitions.
WDAY Stock: Guidance Tops Estimates
The software maker forecast October-quarter subscription revenue of $1.157 billion at the midpoint of guidance vs. analyst estimates of $1.131 billion.
Workday stock popped 5.5% to near 260 in extended trading on the stock market today. Heading into the Workday earnings report, WDAY stock had underperformed vs. other big-cap software companies.
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