Workday Inc. (WDAY) experienced a significant surge in its stock price, rising nearly 13% in pre-market trading on Friday. This dramatic increase can be attributed to the company’s impressive second-quarter financial results and a positive long-term outlook. According to Benzinga Pro, Workday’s stock was trading 12.51% higher at $259.99, compared to its closing price of $231.08 on Thursday.
The company’s second-quarter revenue reached $2.08 billion, surpassing the consensus estimate of $2.07 billion. Workday’s adjusted earnings per share also exceeded analyst expectations, coming in at $1.75 compared to the anticipated $1.65.
The software company, renowned for its expertise in finance and human resources solutions, ended the quarter with a strong 12-month subscription revenue backlog of $6.8 billion, representing a significant 16.1% increase year-over-year. The total subscription revenue backlog reached $21.58 billion, showcasing a remarkable 20.9% growth compared to the previous year.
Workday’s financial performance extended beyond revenue and earnings. The company generated $571 million in operating cash flows and $516 million in free cash flow during the quarter. Workday also maintained a substantial cash position, ending the quarter with $7.37 billion in cash, cash equivalents, and marketable securities.
Looking ahead, Workday projects its third-quarter subscription revenue to be approximately $1.955 billion, signifying a 16% growth. The company anticipates its full-year revenue to fall within the range of $7.7 billion to $7.725 billion. These projections suggest continued strong performance and growth for Workday in the coming quarters.
