Workday has announced strong results for Q2 2022, with total revenues up 18.7 percent to $1.26bn in comparison with the same period last year. Wall Street had predicted the company would report revenue of $1.24bn for the quarter.
Subscription revenue was $1.11bn, an increase of 19.5 percent from Q2 2021, and the company has reported earnings of 41 cents a share, or $1.23 a share on a non-GAAP basis. Operating loss was $1.1m compared with $16.8m in the same period last year, while non-GAAP operating income for the second quarter was $291.8m.
Chano Fernandez, co-CEO of Workday, said: “Our business continues to accelerate, fuelled by growing demand from large enterprise customers for our industry leading HR, finance, and planning solutions to drive transformation at scale. Looking to the future, we are well positioned for the second half of the year and will continue to invest in our go-to-market strategy and our people, who are foundational to our success.”
Robynne Sisco, president and chief financial officer at Workday, added: “We delivered an incredibly strong Q2, driven by exceptional execution against a rapidly improving backdrop. As a result, we are raising our fiscal 2022 guidance for subscription revenue to a range of $4.5bn to $4.51bn, growth of 19 percent. We expect Q3 subscription revenue of $1.156bn to $1.158bn, 20 percent growth at the high end. We are also raising our fiscal 2022 non-GAAP operating margin guidance to 21 percent.”