Investing.com – Workday stock (NASDAQ:WDAY) climbed more than 7% in Friday’s premarket trading as the company revised its annual guidance on the back of strong demand from large corporates for its finance and HR applications.
The company expects annual subscription revenue between $4.50 billion and $4.51 billion, up 19%.
Third-quarter subscription revenue is expected to be between $1.15 billion and $1.15 billion, 20% higher at the top end.
A huge rise in remote work since the start of the pandemic has underpinned strong demand for its data storage and workflow support applications.
Total revenue in the second quarter rose 19% to $1.26 billion. Of this, subscription revenue was $1.11 billion, rising about 20% from the same period last year.
Expenses rose too but at a slower pace. The company booked $103 million in other income too as against an expense last year. All this combined to help the company spring back to a net profit of $105.7 million.
Earnings per share were $1.23 and topped analysts’ estimates.