🔬 📈 WORKDAY ANALYSIS
1
The stock of the cloud-based business software provider rocketed more than 9% higher on last Friday due to a better than expected second quarter. Workday generated $1.26 billion in revenue in the second quarter of fiscal year 2022. This was an almost 19 % increase over the previous year. In addition to that analysts' expectations of $1.24 billion were also outperformed. That was mostly due to an almost 20% increase in subscription revenue, which totaled $1.11 billion. "Our business continues to accelerate, fueled by growing demand from large enterprise customers for our industry leading HR, finance, and planning solutions to drive transformation at scale," Workday co-CEO Chano Fernandez said in a statement.
Fernandez added, "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."
The IT company has raised its subscription revenue forecast for the entire fiscal year of 2022.
It now expects this to increase by 19 percent year over year to between $4.5 billion and $4.51 billion ($4.3 billion in 2021). It also anticipates a year-end adjusted operating margin of 21%.
2
On 28.08.2020 the Workday stock built a channel ranging from $274.94 - $263.27.
WHAT DO I EXPECT NEXT?
3
I expect that the Workday stock continues to consolidate within the channel. As soon as the stock rises above $274.94 with higher than average volume, I might buy the stock. When the stock closes below $263.27 the trading scenario is not valid anymore.
What are your thoughts? Leave a comment down below 👇
