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NEW YORK (TheStreet) -- Shares of Workday (WDAY)  were increasing in after-hours trading on Wednesday as the Pleasanton, CA-based cloud computing application vendor posted better-than-expected revenue for the 2016 second quarter. 

After today's market close, Workday reported a 34% year-over-year increase in revenue to $377.7 million, surpassing analysts estimated $372.68 million. The company posted a loss of 4 cents per share, higher than analysts' projected loss of 2 cents per share.

For the 2015 second quarter, the company posted adjusted earnings of 2 cents per share on $282.7 million in revenue. 

Workday forecast 2016 third quarter revenues in the range of $398 million to $400 million, below Wall Street's expectations of $401.08 million in revenue. 

Subscription revenues grew 37% year-over-year to $306.2 million. 

The company announced last week that it would partner with IBM (IBM) in a seven-year deal allowing it to use the technology company's SoftLayer cloud services. 

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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate WORKDAY INC as a Sell with a ratings score of D+. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: WDAY

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