Workday shares soared in after-hours trading Thursday after the company reported better-than-expected quarterly results and raised its full-year profit forecast on the back of demand for its artificial intelligence products.
The company said its sales for the first quarter, which ended April 30, rose 13% to $2.46 billion.
Net income was $222 million, or 87 cents per share, up from $68 million, or 25 cents per share, in the year-ago period.
Workday also raised its full-year adjusted operating profit margin forecast to 30.5% from 30%.
“Our core business is strong, our AI strategy is working, and we are working with the speed and focus we need to lead,” co-founder and CEO Anil Bhusri said in a company statement.
The company said the number of customers using its AI agents more than doubled from last quarter, with more than 4,000 customers currently using at least one AI product.
Workday’s annual revenue from its AI solutions is approaching $500 million, company president Gerrit Kazmaier said on a conference call with analysts.
“The 150th function in HR or finance isn’t going to change our business in a big way. The next agent application will change that,” says Bhusri.
