UPDATE 2-Ariba Q2 adjusted profit narrowly beats estimates

* Q2 adj. EPS $0.15 vs est. $0.14

* Q2 rev $84.7 mln vs est. $85 mln

* Sees Q3 adj EPS $0.15-$0.17 vs est $0.14

* Sees Q3 rev $83 mln-$85 mln vs $85.1 mln

* Shares up 7 percent

April 30 (Reuters) - Ariba Inc (ARBA.O), which provides procurement software and consulting services, posted an adjusted quarterly profit that beat estimates by a cent as it benefited from a jump in subscription software revenue, and forecast better-than-expected third-quarter earnings.

"Their on-demand business model seems to be resonating well with customers, which is very important given the current environment and they will continue to deliver better on their top line relative to their peers," analyst Richard Williams at Cross Research said.

They will continue to perform all the better if they can keep their services from being hit, he added.

For the third quarter, the company expects its services and other revenue to be at the lower end of its forecast range of $120 million to $124 million.