Workday Reports Strong Q2, Names Fernandez Co-CEO

Workday reported better-than-expected second quarter results and named Chano Fernandez co-CEO with Aneel Bhusri.

The company reported a second quarter net loss of 12 cents a share on revenue of $1.96 billion, up 19.6% from a year ago. Non-GAAP earnings per share checked in at 84 cents.

Wall Street was expecting Workday to report revenue of $1.04 billion with non-GAAP earnings of 66 cents a share.

As Fernandez becomes co-CEO, Bhusri will focus on product and technologies and corporate functions. Fernandez will cover customer services, support and success. Robynne Sisco will be president and CFO.

Fernandez was previously president of EMEA and Asia Pacific and Japan and was co-president of Workday.

The management change comes at a good time was Workday is seeing strong demand.

Bhusri said the quarter was strong as enterprises move toward cloud-based systems.

As for the outlook, Workday said it expects third quarter subscription revenue of $948 million to $950 million. For fiscal 2021, Workday is projecting subscription revenue of $3.73 billion to $3.74 billion.

Second quarter developments include:

• Workday launches Workday Help, Journeys, People Analytics
• Workday, IBM offer new AI solution to COVID-19 challenges as enterprises return to the office
• Workday expands fast-track implementations to large enterprises