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Workday Tops Estimates and Offers Upbeat Guidance

Subscription revenue comes in strong for cloud computing company Workday.
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Workday  (WDAY)  after the market close Thursday reported better-than-expected revenue and earnings for the fiscal second quarter. 

For the quarter ended July 31 non-GAAP earnings per diluted share came in at 84 cents on revenue of $1.06 billion, vs. 44 cents a share on sales of $887.8 million in the year-earlier period. 

Analysts had been expecting the company to report earnings of 66 cents a share on revenue of $1 billion, based on a FactSet survey of 30 analysts.

At last check Workday shares advanced 9.6% to $237.47. During the regular session the shares rose 1.4%.

Earlier this week, Workday shares rose sharply in the wake of strong earnings from  (CRM) . The report suggested a better-than-expected business climate for software companies during the economic shutdowns forced by the Covid-19 pandemic. 

“As a result of our strong Q2 performance, we are raising our fiscal 2021 subscription revenue guidance to a range of $3.73 billion to $3.74 billion," said Robynne Sisco, Workday's president and chief financial officer, in a statement. 

"We expect third-quarter subscription revenue of $948 million to $950 million. We are also raising our fiscal 2021 non-GAAP operating margin guidance to 18%."

Elsewhere Thursday, cloud stocks were generally lower. 

Among notable small- and medium-cap stocks in the cloud sector, losers outpaced gainers by 2-to-1. 

Akamai Technologies  (AKAM)  shares rose $1.68, or 1.49%, to $114.06. 

ANGI Homeservices  (ANGI)  shares fell 55 cents, or 3.85%, to $13.73.

The Global X Cloud Computing ETF  (CLOU) fell 6 cents, or 0.25%, to $23.95.

The First Trust Cloud Computing ETF  (SKYY)  traded flat at $81.92.