Working Class ZeroWorkday reports quarterly earnings that miss the mark for the first time in many a year.
- WDAY clocked out almost 10% of its share price in after-hours trading thanks to a mixed earnings report. The software company reported an EPS of $0.83, falling short of analysts' $0.85, on revenues that rose 22% to $1.43bn – matching estimates.
- Its outlook… isn’t actually that bad. Subscription revenue was up 23% YoY, while also slightly improving its guidance on the revenue stream for 2023. Workday also still seems intent on its promise to create 1k new jobs in its Dublin offices.
- It’s the first time in 2 years Workday has missed quarterly estimates, which is perhaps why its share price took a knock quickly after the report dropped. However, with a recession potentially on the cards (and jobs looking shaky), Workday might unfortunately see an uptick in its human resources software usage come the end of the year.
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The results of a few extended WorkdaysCloud-based human resource management platform Workaday is reaping the rewards of its long hours with an earnings report that smashes estimates.
- Prices rallied nearly 7% in Tuesday morning trading after the business healthily topped on both ends with EPS of $0.78 on revenues that were up 21.6% to hit $1.38bn for the quarter, as well as reporting a 19% jump in FY revenue to come in at $5.14bn.
- It saw what Chairman Aneel Bhusri called “an unexpected acceleration” in its business during Q4. The jump was was fuelled by a robust environment for “finance and HR transformation initiatives” as the world adapts to the pandemic-induced shift to digital platforms.
- The success is expected to continue, with guidance topping estimates by calling for FY subscription revenue of $5.53bn. Cowen analyst Derrick Wood called the quarter the “latest affirmation of a rebound in back-office digital transformation spending”, which Workday is poised to benefit from.
Illustration by TradingView