Workday ups fiscal 2024 subscription revenue guidance, touts generative AI capabilities
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Workday (NASDAQ:WDAY) stock on Thursday rose nearly 4% in extended trading, after the enterprise management cloud software firm raised its fiscal 2024 subscription revenue guidance and touted its capabilities in generative artificial intelligence (AI).
Class A shares of WDAY added 3.6% to $232.95 after hours.
WDAY earned $1.43 per share on an adjusted basis in FQ2 2024, on revenue of $1.79B. Analysts were expecting adjusted earnings per share of $1.26 on revenue of $1.77B.
Workday's (WDAY) quarterly subscription revenue, a key sales metric, rose nearly 19% Y/Y to $1.62B, while its total subscription revenue backlog at the end of the quarter was $17.85B, up 32.5% Y/Y.
WDAY co-CEO Carl Eschenbach said more than 65M users under contract were now relying on the company to manage their business processes.
"We're seeing continued momentum with more than 3,000 customers sharing their data with our ML (machine learning) models, more than 50M ML inferences processed per day, and multiple generative AI capabilities in development including several that we plan to unveil next month at (company event) Workday Rising," WDAY co-CEO Aneel Bhusri said in a statement.
Workday (WDAY) also raised its fiscal 2024 subscription revenue guidance to a range of $6.57B to $6.59B from an earlier forecast of $6.55B to $6.575B. For FQ3, WDAY sees subscription revenue of $1.678B to $1.68B.

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