Workday Inc (NASDAQ:WDAY) shares moved higher in afterhours trade on Tuesday as the provider of enterprise cloud applications for finance and human resources professionals reported estimate-topping third quarter results.
For 3Q, Workday said its revenue rose 16.7% year-over-year to $1.87 billion, ahead of estimates of $1.84 billion.
Subscription revenue was $1.69 billion, up 18.1% from the same period last year.
Adjusted earnings per share (EPS) were $1.53, up from $0.99 in the year-ago quarter. Analysts had forecast adjusted EPS of $1.40.
“Workday delivered a strong quarter, demonstrating how organizations across industries and geographies are continuing to place their trust in Workday," Workday co-CEO Carl Eschenbach said.
The company also raised its full-year subscription revenue guidance to $6.598 billion, which represents a 19% year-over-year increase, from its prior expectation of 18% growth.
It also updated its adjusted operating margin guidance to 23.8% from its prior forecast of 23%.
Workday shares traded up 3.5% at US$245.64 after Tuesday’s closing bell.
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