Some more stragglers continued to report quarterly results at the tail end of earnings season this week. Three earnings reports, featuring enterprise cloud applications company Workday (NASDAQ: WDAY), cloud-based identity and security specialist Okta (NASDAQ: OKTA), and semiconductor company Broadcom (NASDAQ: AVGO), stood out.
- Workday stock fell about 9% despite posting better-than-expected growth.
- Okta stock jumped about 20% after a blowout earnings release.
- Broadcom shares gained nearly 8% as bottom-line growth and revenue guidance surprised investors.
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For its second quarter of fiscal 2019, Workday posted revenue of $671.7 million, up 27.9% year over year. Though this was above a consensus analyst estimate for revenue of 633.1 million, Workday's year-over-year revenue growth rate marked a deceleration from 28.9% growth in Q1.
Notably, subscription revenue climbed 30.2% year over year to $565.7 million. Subscription revenue backlog increased 26% year over year to $5.5 billion.
Workday's non-GAAP earnings per share was $0.31, up from $0.24 in the year-ago period. On average, analysts were expecting non-GAAP EPS of $0.26.
Workday CEO Aneel Bhusri was pleased with how the period went, calling it "another strong quarter."
Shares of Okta surged because it posted revenue and earnings per share that crushed analyst expectations.
The company reported fiscal second-quarter revenue of $94.6 million, representing 57% year-over-year growth. This was well ahead of a consensus analyst estimate for revenue of $84.8 million. Okta's better-than-expected revenue growth was fueled by a 59% year-over-year increase in subscription revenue. Subscription revenue during the quarter accounted for 93% of total revenue.
Okta's non-GAAP loss per share was $0.15, narrower than a consensus estimate for a loss of $0.19.
Pointing to the company's acceleration in year-over-year growth in customers with more than $100,000 in annual recurring revenue during the quarter, Okta CEO Todd McKinnon said the trend is "a testament to the increasing strategic need for an identity solution as organizations move to the cloud." McKinnon added, "This need is pervasive and imperative, and I believe we are in the early stages of capitalizing on this high growth opportunity."
Shares of Broadcom jumped thanks to the company's strong fiscal third-quarter bottom-line growth and its better-than-expected revenue guidance.
The semiconductor company reported non-GAAP EPS of $4.98 on revenue of $5.06 billion. This represented 21% year-over-year non-GAAP EPS growth and 13% revenue growth. On average, analysts were expecting non-GAAP EPS and revenue of $4.83 and $5.07 billion, respectively.
Looking ahead, Broadcom gave guidance for fiscal fourth-quarter revenue of $5.4 billion, coming in higher than the consensus analyst estimate for sales of $5.35 billion. Broadcom CFO Tom Krause cited data center demand as a key driver for the company's growth, saying, "Datacenter demand is driving strong growth in more than 50 percent of our consolidated revenue."
Broadcom's free cash flow soared 52% year over year to $2.1 billion.
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