Workday Inc (NASDAQ:WDAY) stock rose 10.57% (As on August 23, 11:15:50 AM UTC-4, Source: Google Finance) after the company delivered a solid earnings and revenue beat, announced a new $1 billion stock buyback plan and provided an upbeat long-term forecast. Net income for the quarter came to $1.2 billion, rebounding from a $126 million loss in the year-ago period. Workday said this number was boosted by a onetime $1.1 billion tax gain. During the quarter, Workday generated $1.903 billion in subscription revenue, plus $182 million in professional services revenue. Both of those numbers were better than expected, with analysts forecasting $1.897 billion and $175 million, respectively. The company reported that its 12-month subscription revenue backlog grew 16.1% YoY to $6.80 billion, while total subscription revenue backlog increased 20.9% to $21.58 billion. Operating cash flows were $571 million compared to $425 million in the prior year. Free cash flows were $516 million compared to $360 million in the prior year. Cash, cash equivalents, and marketable securities were $7.37 billion as of July 31, 2024.
WDAY in the second quarter of FY 25 has reported the adjusted earnings per share of $1.75, beating the analysts’ estimates for the adjusted earnings per share of $1.65. The company had reported the adjusted revenue growth of 17 percent to $2.09 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue of $2.07 billion. Non-GAAP operating income for the second quarter was $518 million, or 24.9% of revenues, compared to a non-GAAP operating income of $421 million, or 23.6% of revenues, in the same period last year.
Looking to the third quarter, Workday said its model calls for total revenue of $1.973 billion and subscription revenue of $1.81 billion, compared with the Street’s estimates of $1.917 billion and $1.758 billion.
For the full fiscal year, Workday reiterated its earlier call for total subscription revenue of $7.7 billion to $7.725 billion.
On the other hand, WDAY and Equifax, a global data, analytics and technology company, today announced a new strategic partnership to help make employment and income verifications for Workday customers employees easier and faster than ever before. By integrating Workday Payroll and The Work Number employment and income verification service from Equifax, Workday customers will be able to offer their employees seamless, instant verifications in support of their most important life events such as buying their first home. Workday’s new opt-in Employment Verification Connector For Equifax integration is expected to be available to all U.S. Payroll customers in 2025.