Workday Inc (NASDAQ:WDAY) has delivered second-quarter revenue and earnings that beat analysts’ consensus, sending its shares higher in Friday premarket trading.
The California-based company, which provides cloud-based software solutions for human resources and financial management, also raised its full-year 2024 guidance, saying the momentum going into the second half of the year highlights “the compelling opportunity ahead.”
For the quarter ended July 31, 2023, the company reported a 19% increase in subscription revenues to $1.62 billion. It grew total revenue by 16% to $1.79 billion, beating the Zacks Consensus Estimate of $1.77 billion.
Adjusted, diluted earnings per share jumped 72% to $1.43, ahead of the $1.25 expected by Zacks.
"We're incredibly well positioned going into the second half of our fiscal year as Workday is increasingly seen as the system of trust for enterprises around the world," co-CEO Carl Eschenbach said in a statement.
"Our customers – now representing more than 65 million users under contract – rely on Workday to manage critical business processes. Our growing customer base, continued global expansion, industry growth, and partner ecosystem momentum set us up for durable long-term success.”
The company said it is seeing continued momentum with over 3,000 customers sharing their data with its machine learning (ML) models, more than 50 million ML inferences processed per day, and multiple generative artificial intelligence capabilities in development including several that it plans to unveil next month.
It raised its fiscal 2024 subscription revenue guidance to a range of $6.57 billion to $6.59 billion, representing year-over-year growth of 18%, and expects to achieve an adjusted operating margin of 23.5 % for the year.
Ahead of the market opening, the company’s shares were up 3% at $231.70.
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