Workday shares spike after subscription sales rise

Shares of Workday (WDAY) climbed 7 percent Thursday after the enterprise software company reported an increase in subscriber revenue.

Revenue from subscription services rose nearly 37 percent year over year to $306 million in the fiscal second quarter, the company said in its earnings release late Wednesday.

"Looking ahead, we anticipate third-quarter subscription revenues to be within a range of $331 to $333 million and third-quarter total revenues to be $398 to $400 million," CFO Robynne Sisco said in a statement.

However, current-quarter guidance for total revenue was below estimates, at $398 million to $400 million versus Reuters' expectation of $401.1 million.

The company also reported a net second-quarter loss per basic and diluted share of 55 cents, versus a 37 cent loss the same period last year.

Total quarterly revenue of $377.7 million topped expectations of $372.7 million, according to analysts polled by Reuters.

With Thursday stock gains, the stock recovered positive territory for the year and was up more than 21 percent over the last 12 months.

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