Workday Shares Worth Buying?

Benzinga Neuro | August 23, 2024

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The shares of Workday Inc. (NASDAQ:WDAY) experienced a nearly 13% surge in pre-market trading on Friday. This significant increase is attributed to the company’s impressive second-quarter results and an encouraging long-term outlook.

According to Benzinga Pro, at the time of writing, Workday was trading 12.51% higher at $259.99 after closing at $231.08 on Thursday.

Workday’s second-quarter revenue amounted to $2.08 billion, slightly exceeding the consensus estimate of $2.07 billion. The company’s adjusted earnings per share of $1.75 also surpassed analyst estimates of $1.65.

The software firm, known for its expertise in finance and human resources, concluded the quarter with a 12-month subscription revenue backlog of $6.8 billion, indicating a 16.1% increase year-over-year. The total subscription revenue backlog was reported at $21.58 billion, marking a 20.9% rise year-over-year.

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Workday generated $571 million in operating cash flows and $516 million in free cash flow during the quarter. The company ended the quarter with a substantial $7.37 billion in cash, cash equivalents, and marketable securities.

Looking forward, Workday projects its third-quarter subscription revenue to be around $1.955 billion, which signifies a growth of 16%. The company’s full-year revenue is anticipated to be in the range of $7.7 billion to $7.725 billion.

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Image by Coolcaesar via Wikimedia Commons

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari