According to a Grand View Research report published earlier this year, the global human resource management market is projected to grow 10.4% annually to $30 billion by 2025. The growth is expected to be driven by the need to replace legacy systems with improved human capital management platforms. Recently, SaaS-based HCM services provider, Workday (NYSE: WDAY) announced its quarterly results that continued to outpace market expectations.

Workday’s Financials

For the second quarter, revenues grew 28% over the year to $671.7 million, ahead of the Street’s forecast of $663.1 million. EPS of $0.31 was also ahead of the market’s forecast of $0.26 for the quarter. Previous coverage is available here.

By segment, subscription revenues grew 30% to $565.7 million and professional services revenues grew 17% to $106 million. The market was looking for subscription revenues of $559 million for the quarter.

For the current quarter, Workday expects to earn revenues of $721-$723 million, ahead of the Street’s forecast of $691.2 million. For the full 2019 fiscal year, Workday expects revenues of $2.765-$2.772 billion, ahead of the $2.704 billion consensus.

Workday’s Acquisition

The biggest news for Workday during the quarter was its $1.6 billion acquisition of Adaptive Insights. Over the past few years, Workday has been here to other cloud-based enterprise offerings. The acquisition of Adaptive Insights is a big step toward that goal. Adaptive Insights is a leading cloud-based provider of financial planning services. In May this year, Adaptive Insights had filed to go public and had disclosed revenues of $106.5 million in fiscal 2018 with a loss of $42.7 million. Workday plans to integrate the Adaptive Insights Business Planning Cloud with its suite of applications for finance and HR to deliver a solution that will help organizations plan, execute, and analyze performance better.