Workday Inc. shares rose in the extended session Thursday as the human-resources cloud-software company reported a strong quarter that topped Wall Street estimates, and hiked its guidance for the year.


stock rose 4% after hours, following a 0.3% rise in the regular session to close at $246.76.

The Pleasanton, Calif.-based company reported second-quarter net income of $105.7 million, or 41 cents a share, versus a loss of $28 million, or 12 cents a share, in the year-ago period.

Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.23 a share, compared with 84 cents a share in the year-ago period.

Revenue rose to $1.26 billion from $1.06 billion in the year-ago quarter, while subscription revenue rose nearly 20% to $1.11 billion from a year ago.

Analysts surveyed by FactSet had forecast 78 cents a share on revenue of $1.24 billion and subscription revenue of $1.1 billion.

“This quarter was one of our strongest in company history,” said Aneel Bhusri, Workday co-founder and co-chief executive, in a statement. “Our customer community has grown to more than 55 million users and more than half of the Fortune 500 have selected Workday,”

“We delivered an incredibly strong Q2, driven by exceptional execution against a rapidly improving backdrop,” said Robynne Sisco, Workday president and chief financial officer, in a statement. “As a result, we are raising our fiscal 2022 guidance for subscription revenue to a range of $4.500 billion to $4.510 billion, growth of 19%. We expect third-quarter subscription revenue of $1.156 billion to $1.158 billion, 20% growth at the high end. We are also raising our fiscal 2022 non-GAAP operating margin guidance to 21.0%.”

Analysts forecast subscription revenue of $1.13 billion for the third quarter, and $4.45 billion for the year.

Similarly, on Wednesday, cloud-based customer relationship-management software company Inc.

posted strong results and hiked its outlook for the year again.

Workday shares are up 16% over the past 12 months, while the First Trust Cloud Computing ETF 

is up 32% and the iShares Expanded Tech-Software Sector ETF 

is up 29%. Meanwhile the S&P 500 index 

 is up 28%, and the tech-heavy Nasdaq Composite Index 

 is up 28%.

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