Workday Shares Soar 10% Following Q2 Beat, Updates Guidance

Workday (NASDAQ: WDAY) shares rose more than 10% after-hours following the company’s reported Q2 results, with EPS of $0.86 coming in better than the consensus estimate of $0.79.

Revenue grew 21.9% year-over-year to $1.54 billion, compared to the consensus estimate of $1.52 billion. Subscription revenue was up 22.8% year-over-year to $1.37 billion.

"We continue to see a strong global demand for our products, underscoring how organizations are continuing to drive digital transformation across finance and HR to support the changing world of work," said Aneel Bhusri, co-founder, co-CEO, and chairman of Workday.

The company reiterated its guidance for full 2023-year subscription revenue in the range of $5.537-$5.557 billion, representing 22% year-over-year growth. The company raised its full-year non-GAAP operating margin guidance to 19.0%, reflecting the scalability of its model and its commitment to longer-term margin expansion.

For Q3, the company expects subscription revenue to be in the range of $1.418-$1.420 billion, representing a 21% growth.

By Davit Kirakosyan

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