What happened
Shares of human-capital management cloud platform Workday (WDAY +1.93%) stock was on fire yet again in 2018, rising 56.9% during the year, according to data provided by S&P Global Market Intelligence. This adds to the company's 54% gain in 2017.
The stock's momentum in 2018 was driven by the company's strong customer and revenue growth during the year.
Image source: Workday.
So what
Workday's business grew rapidly in 2018. For the nine months ending Oct. 31, 2018, Workday's revenue jumped 30% year over year. Subscription revenue, which accounts for 84% of Workday's total revenue, increased 32% over this same time frame.
Capturing the company's strong performance, subscription revenue in the company's third quarter of fiscal 2018 increased 35% year over year -- a significant acceleration compared to the metric's 30% growth in Q2.
Now what
On the heels of such strong results, Workday boosted its outlook for its full year of fiscal 2019. The company expects full-year subscription revenue to be between $2.375 billion and $2.377 billion, representing about 33% year-over-year growth.
"We continue to prioritize investing in long-term growth initiatives, while delivering solid operating and cash flow margins over time," said Workday co-president and CFO Robynne Sisco in the company's third-quarter earnings release.
Check out the latest Workday earnings call transcript.
