Workday Inc (NASDAQ:WDAY) stock rose 2.55% (As on August 26, 11:35:26 AM UTC-4, Source: Google Finance) after the company reported higher subscription revenue and that it expects that momentum to continue in the third quarter. Net loss was $64.2 million, compared with a profit of $105.7 million, a year ago. Subscription revenues were $1.37 billion, an increase of 22.8% from the same period last year. Non-GAAP operating income for the second quarter was $301.6 million, or 19.6% of revenues, compared to a non-GAAP operating income of $291.8 million, or 23.2% of revenues, in the same period last year. Operating cash flows were $114.4 million compared to $198.5 million in the prior year. Cash, cash equivalents, and marketable securities were $6.29 billion as of July 31, 2022. 24-Month Subscription Revenue Backlog of $8.37 Billion, Up 21.7% Year Over Year. Total Subscription Revenue Backlog of $13.47 Billion, Up 27.4% Year Over Year.
WDAY in the second quarter of FY 23 has reported the adjusted earnings per share of 83 cents, beating the analysts’ estimates for the adjusted earnings per share of 79 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 21.9 percent to $1.54 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $1.52 billion.
Workday guided for third-quarter subscription revenue to be in the range of $1.418 billion to $1.42 billion, growth of 21%, Total Revenue is expected to be in the range of $1.582B – $1.584B and Non-GAAP Operating Margin to be of 18%
The company also raised its adjusted operating margin outlook to 19% for the fiscal year. Full-year guidance for subscription revenue was maintained between $5.54 billion and $5.56 billion, representing 22% year-over-year growth, Total Revenue is expected to be in the range of $6.187B – $6.207B and Operating Cash Flows to be of $1.640B.
Meanwhile, Workday achieved FedRAMP Authorized status at the Moderate security impact level, marking the company’s official entry into the U.S. federal government market. Workday was positioned by Gartner in the Leaders quadrant of the inaugural 2022 Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises based on completeness of vision and ability to execute. Workday announced that Wayne A.I. Frederick, M.D., president of Howard University, has been elected to its board of directors as an independent director.