Human resource software provider Workday (NASDAQ: WDAY) surpassed second-quarter fiscal 2020 earnings and revenue estimates. Non-GAAP earnings of $0.44 per share and revenue of $887.8 million beat analysts estimates of $0.35 profit per share and $872.3 million of revenue.
Subscription revenue for the quarter rose 34% year-over-year to $757.2 million, which was above the range set by the management. Subscription revenue backlog came in at $7.03 million, up 27.2% year-over-year.
Workday stock was up 2.8% immediately following the announcement. WDAY shares have gained 20% in the year-to-date period, compared to 23% growth achieved by the industry.
The upbeat results prompted Workday to raise its fiscal 2020 subscription revenue outlook to a range of $3.06 billion – $3.07 billion, compared to the prior range of $3.045 billion to $3.060 billion.
For the third quarter, the enterprise cloud service provider expects subscription revenue to be between $783 million and $785 million.
“It was a strong quarter, with continued global customer momentum across the Fortune 500 and Global 2,000, as more organizations look to Workday for the ability to plan, execute, and analyze in one system powered by machine learning,” CEO Aneel Bhusri said.
Earlier this month, two research firms, Mizohu and Compass Point, initiated coverage on the stock with Buy ratings. Mizuho said the company’s cloud and analytics platforms are game-changers that have the potential for $1 billion valuations.