Shares in Workday Inc. surged by nearly 7% in late trading today after the enterprise resource planning software giant delivered solid earnings and revenue beats in its latest quarterly results.

For its fiscal third quarter that ended Oct. 31, Workday reported adjusted earnings per share of $1.53, up from 99 cents in the same quarter of last year, on revenue of $1.87 billion, up 16.7% year-over-year. Analysts were expecting $1.41 per share on revenue of $1.85 billion.

The company saw an operating income of $87.9 million, or 4.7% of revenue in the quarter, a turnaround from a loss of $26.3 million or negative 1.6% of revenues in the same period last year. On an adjusted basis, the figure was $462.1 million or 24.8% of revenues, up from $313.2 million or 19.7%.

Workday’s subscription revenue backlog sat at a whopping $18.45 billion as of the end of October, up 30.9% over the same quarter of last year. The company’s 12-month subscription backlog was $6.05 billion and its 24-month backlog was $10.58 billion, up 21.9% and 22.7%, respectively. Operating cash flow in the quarter was $450.8 million and Workday had $6.88 billion in cash, cash equivalents and marketable securities on hand as of the end of the quarter.

Recent business highlights include Workday announcing new artificial intelligence offerings at its annual Workday Rising user conference in September. AI is being embedded into the core of the Workday platform to automate human resource management and business tasks, such as payroll and expenses, while tracking and managing employee data.

Workday also announced new full platform customers for Workday Financial Management and Workday Human Capital Management, with new wins including AdventHealth Inc., Aurelius Group LLC, Bentley Systems Inc., Globe Life Insurance Co., Houston Methodist and Kern County.

“Our strategy to build AI directly into the core of our products continues to resonate with our customers and is fueled by our platform strategy, unrivaled dataset and emphasis on being human-centric,” Aneel Bhusri, co-founder, co-chief executive officer and chair of Workday, said in the company’s earnings release. “We unveiled a series of new AI capabilities at Workday Rising – including investments in generative AI and conversational AI – that will benefit all users with an emphasis on increasing productivity, growing and retaining talent, streamlining business processes, and driving better decision-making.”

For its outlook, Workday expects revenue of $1.913 billion in its fiscal fourth quarter and $7.25 billion for the full fiscal year.

Photo: Workday