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Workday Tops Estimates, Ups Guidance as Users Grow to 55 Million

Company forecasts third-quarter subscription revenue will grow 20%.
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Workday  (WDAY) - Get Workday, Inc. (WDAY) Report reported better-than-expected second-quarter results and offered upbeat guidance after the bell Thursday, citing strong customer growth.

The HR software and services company reported non-GAAP diluted net income per share of $1.23 on revenue of $1.26 billion.

In the same period a year ago, the company posted earnings of 84 cents a share on sales of $1.1 billion. 

Workday had been expected to report earnings of 78 cents a share, on sales of $1.2 billion, based on a FactSet survey of 26 analysts.

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“We delivered an incredibly strong Q2, driven by exceptional execution against a rapidly improving backdrop,” said Robynne Sisco, 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 $4.50 billion to $4.51 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%.”

Shares of Workday rose following the report. The stock gained $11.48, or 4.65%, to $258.24 in after-hours trading. In the regular session on Thursday, Workday shares rose 0.26%.

"Our customer community has grown to more than 55 million users and more than half of the Fortune 500 have selected Workday,” said Aneel Bhusri, co-founder, co-CEO, and chairman, in the statement. "We continue to invest in our employees to help drive innovation and customer satisfaction."

Last month, Workday lost its deal to provide HR software to Amazon.com.

Customer relationship software giant Salesforce.com  (CRM) - Get salesforce.com, inc. Report reported better than expected results this week sending shares higher Thursday

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