Workday Ramps up Full Year Outlook After Second Quarter Results Top Street View

Cloud computing company Workday (WDAY) raised its full year revenue outlook late on Tuesday as it posted better-than-expected results for its top and bottom lines which was buttressed by a jump in subscriptions.

The Pleasanton, California-headquartered company, which provides enterprise cloud applications for financial management and human capital management, generated total revenue of $671.7 million in the quarter ended July 31, up 27.9% from the corresponding quarter of the prior year and ahead of the consensus estimate of analysts polled by Capital IQ for $663.4 million.

The lion’s share of revenue came from subscriptions, up 30.2% at $565.7 million while professional services revenues rose by 16.8% to $106.1 million.

Adjusted earnings per share rose to $0.31 during the quarter, up from $0.24 a year earlier and ahead of the Street’s projection for $0.26 per share.

Going forward, the company said it is raising its fiscal 2019 revenue outlook and now expects subscription revenue of $2.341 to $2.348 billion, or growth of 31%. For the third quarter, it said that it is targeting subscription revenue of between $609 and $611 million, representing 31% to 32% growth.