Workday Sales Surge 20% - Tops Forecasts
August 28, 2020
Workday reported results for the fiscal 2021 second quarter ended July 31, 2020. The firm had earnings of 84 cents per share with only 66 cents per share as expected. On the top line of revenue, the cloud company chalked up $1.06 billion with only $1.04 billion anticipated.
It was a strong quarter despite the environment, with continued demand for our products as more organizations realize how mission critical cloud-based systems are in supporting their people and businesses through continuous change, said Aneel Bhusri, co-founder and co-CEO, Workday. As we navigate this unique time, we will continue to deliver new solutions that extend the power of Workday to help customers make more informed people and finance decisions, including how to safely return to work. We also are more committed than ever to our culture and core values, prioritizing our employees and the importance of equality in the workforce as we look to emerge stronger together with our customers and communities.
We executed extremely well in the second quarter and delivered solid results, with subscription revenue growth of 23.1% and non-GAAP operating margin of 24.3%, said Robynne Sisco, president and chief financial officer, Workday. As a result of our strong Q2 performance, we are raising our fiscal 2021 subscription revenue guidance to a range of $3.73 billion to $3.74 billion. We expect third-quarter subscription revenue of $948.0 million to $950.0 million. We are also raising our fiscal 2021 non-GAAP operating margin guidance to 18.0%. Despite the near-term uncertainty that remains, our first-half performance has reinforced our confidence in the fundamental strength of our business, and in the long-term opportunity that we see ahead.
2021 Second Quarter Results