Cloud computing software pioneer Workday
) this afternoon reported
revenue and profit that easily topped analysts’ expectations, and raised its outlook for its subscription revenue
for the full year, sending its shares initially higher in late trading, thought they quickly gave up gains.
Revenue in the three months ended in July rose 40.6%, year over year, to $523 million, yielding EPS of 24 cents, excluding some costs.
Analysts had been modeling $507 million in revenue and 15 cents profit, on a non-GAAP basis.
For the full year
, the company raised its outlook for subscription revenue to a range of $1.75 billion to $1.757 billion, up from a prior forecast for $1.705 billion to $1.72 billion, and above consensus for $1.717 billion. That includes subscription revenue this quarter in a range of $450 million to $452 million, versus the average $435 million estimate.
CEO Aneel Bhusrisaid the results "underscore our belief that Workday is the leading provider of finance and HR in the cloud."
Added Bhusri, “not only did we see continued traction in finance, but now more than 30% of the Fortune 500 have selected Workday for core HR."
Coupling this success with our increasing strength among medium enterprises and strong adoption of new products like Workday Planning gives us great confidence in our ability to continue growing market share globally while keeping customer satisfaction among the highest in the industry.
Shares of Workday rose initial by a couple of points, but are now down 54 cents, or half a percent, at $107.
Workday Slips Despite FYQ2 Beat, Raises Year Subscription View