Workday, Inc. (NASDAQ:WDAY) shares were trading more than 3% higher Friday afternoon following the company’s reported Q2 results, with EPS of $0.86 coming in better than the Street estimate of $0.79.

Quarterly revenue increased 21.9% year-over-year to $1.54 billion, beating the Street estimate of $1.52 billion. Subscription revenue was $1.37 billion, representing a 22.8% year-over-year increase.

The company reiterated its guidance for full 2023-year subscription revenue in the range of $5.537-$5.557 billion, representing 22% year-over-year growth.

According to the analysts at Deutsche Bank, better than expected quarterly results benefited from closing the two largest deals that pushed out of the company's disappointing Q1. However, the overachievement did not flow through to the full 2023-year guidance, which remained unchanged.

The company expects the Q3 24-month backlog to grow 19% year-over-year, compared to the Street estimate of 20%. Subscription revenue is expected to be in the range of $1.418-$1.420 billion in Q3, representing a 21% year-over-year growth.