Workday’s second quarter earnings edged past analysts’ expectations, while the company boosted its FY 2020 subscription revenue outlook.
The cloud-based financial management and human capital management software vendor reported a non-GAAP net earnings per diluted share of 44 cents, which is higher than the Street estimates of 35 cents. The EPS is also higher than the year-ago quarter’s 31 cents.
Revenue surged +32% from the prior year’s quarter to $887.8 million, also surpassing analysts’ expectation of $872.31 million.
The company’s subscription revenue for the quarter was $757.2 million, marking a +33.9% increase from the same period last year.
Some of the new customers that Workday added In the second quarter, included The Gap, Stanley Black & Decker, and Rockwell Automation in North America, and Stores Limited in Europe, and Buntings Group Limited in the Asia Pacific-Japan region.
Looking ahead, Workday projects fiscal full-year 2020 subscription revenue to range between $3.06 billion and $3.07 billion. For the third quarter, the company’s forecast for subscription revenue is between $783 million and $785 million.