Shares of Workday erupt on earnings and subscriptions
By Robert Davis
22:17, 26 August 2021
Shares of workplace software company Workday erupted during after-hours trading when the company announced better-than-expected earnings and subscription revenue.
Workday was up more than 5% in after-hours trading on Thursday following the release of its latest earning figures. Shares trended near $260 per share after ending the regular trading session at $246.76.
The company reported revenue of $1.26bn for its fiscal Q2 2022, up 19% from a year ago. This revenue translated into $0.43 EPS for investors.
Subscriptions up
Similarly, subscription revenues increased 19.5% year-over-year while its backlog of subscription revenues ballooned to $6.88bn, up nearly $300m from Q1 2022.
Workday CEO Aneel Bhusri called the company’s Q2 2022 report “one of our strongest in company history” in a press release.
Analysts had anticipated earnings of $0.78 per-share on revenues of $1.24bn and subscription revenues of $1.1bn, according to MarketWatch.
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Looking forward
Workday is an enterprise-scale cloud computing and data management software company that offers its customers with Human Resource and Accounting services. The company relies on both direct sales of its products, semi-annual product releases, and its professional services to generate revenue, according to its annual report.
Meanwhile, the company seems keen on expanding its worldwide headcount. Workday says it plans to add more than 500 roles between its offices in Dublin, Ireland and Atlanta, Georgia, US.
Analysts expect Workday’s growing footprint to translate into subscription revenue of $1.13bn for Q3 2022 and total revenues of $4.45bn for the year.