Workday Q3 subscription growth outlook trails Q2 pace despite raised full-year view
WDAY•Key quarterly metrics
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $2.65 bln | $2.64 bln (35 Analysts) |
| Q2 Adjusted EPS | Beat | $2.75 | $2.61 (36 Analysts) |
| Q2 EPS | $2.57 | ||
| Q2 Adjusted Operating income | Beat | $824 mln | $792.44 mln (33 Analysts) |
| Q2 Operating income | $313 mln | ||
| Q2 Subscription Revenue | $2.47 bln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Q2 results beat expectations
Workday said fiscal second-quarter revenue grew 12.8% year over year, slightly beating analyst expectations. Adjusted earnings per share for the quarter also beat analyst expectations.
The company repurchased 9.8 million shares for $1.3 billion and authorized an additional $4.0 billion buyback.
Q3 outlook points to slower subscription growth
Workday guided fiscal third-quarter subscription revenue growth at 12%, below the second quarter's actual 13.9% rate. The company expects third-quarter non-GAAP operating margin of 30.0%.
Workday raised its full-year non-GAAP operating margin outlook to 31.0% and said it expects full-year subscription revenue between $9.940 billion and $9.950 billion, up 13%.
