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.