Workday stock drops after earnings miss, slightly higher outlook

The shares of Workday Inc. fell in the extended session on Thursday after the cloud software company reported gains that lost Wall Street consensus and slightly raised its forecast.

WDAY Labor Day,
+ 2.21%
shares fell 9% after hours, after a 2.2% gain in the regular session to close at $ 168.15.

“We’ve had a good start to the year as organizations around the world continue to choose Workday as their strategic partner in finance and human resources,” said Barbara Larson, CFO of Workday, in a statement. “As a result, we are increasing our 2023 tax subscription revenue.”

Workday increased its subscription revenue to a range of $ 5.55 billion to $ 5.56 billion, from a previous range of $ 5.53 billion to $ 5.55 billion, while analysts surveyed by FactSet have already forecast subscription revenue of $ 5.55 billion for the year.

The company also expects subscription revenue of about $ 1.35 billion for the second quarter, in line with what analysts expect.

The California-based Pleasanton-based company posted a loss of $ 102.2 million in the first quarter, or 41 cents a share, compared to a loss of $ 46.5 million, or 19 cents a share. in the period of last year.

Adjusted earnings, which exclude share-based compensation items and other items, were 83 cents per share, compared to 87 cents per share in the period last year.

Revenue rose to $ 1.34 billion from $ 1.18 billion in the year-ago quarter, while subscription revenue rose 23 percent to $ 1.27 billion from a year ago.

Analysts had predicted 85 cents per share of revenue of $ 1.34 billion and subscription revenue of $ 1.26 billion.

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