Enterprise cloud applications provider Workday (WDAY) is set to deliver its third quarter 2019 financial results after market close on Thursday, November 29. The recent acquisitions and the growth in customer satisfaction rate are expected to benefit Workday for the recently ended quarter.
The strong upbeat results and bullish outlook from Salesforce (CRM) quarterly results on Tuesday helped the cloud stocks to trade in the positive territory on Wednesday. At midday, Workday shares were up about 4%, Salesforce and Nutanix (NTNX) each up about 7%, Adobe (ADBE) and ServiceNow (NOW), each increased 6%.
Related: Workday Q2 2019 earnings conference call transcript
Workday announced its second quarter results in early September and the company beat earnings and revenue predictions of the Street. The software maker’s profit per share was $0.31, beating the consensus estimate by 5 cents. Revenue stood at $672 million, surpassing the analysts’ views of $663 million. However, the stock dropped after the earnings announcement due to the lower margin outlook, which was partly hurt by $1.5 billion acquisition of Adaptive Insights.
For the second quarter, subscription revenue jumped 30% year-over-year to $566 million, while subscription revenue backlog surged 26% to $5.5 billion. The company had guided Q3 subscription revenue to be in the range of $609 million to $611 million, representing a growth of 31-32%.
Workday, which provides cloud applications in the field of finance and human resource, has been reporting strong numbers consecutively for several quarters and this is expected to continue for its third quarter also. Apart from Adaptive Insights, the acquisitions of machine learning expertise companies Stories.bi and Rallyteam will benefit the company by strengthening its product offerings.
Workday (Nasdaq: WDAY) surpasses Q3 top and bottom line estimates, stock surges
The Pleasanton, California-based firm has over 31 million users and more than 2,300 customers from the Fortune 50 and Fortune 500 companies. Workday’s current customer satisfaction rate stands at 98%.
Year-to-date, Workday shares had given a positive return of 43% and in the past one year, they have gained 27%.
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