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Workday Shares Fall 8.5% on Outlook for Sequential Drop in Backlog Growth

By Sabela Ojea

 

Shares of Workday dropped 8.5% to $281 in post-market trading after the company said it is cautiously optimistic about its first-quarter and full-year performances despite beating analysts estimates in the fourth quarter.

The cloud enterprise company for finance and human resources on Monday guided for a backlog of 18% for the quarter ending in April, reflecting a declining trend on a sequential basis.

In its third and fourth quarters, Workday reported higher backlogs of 22% and 20%, respectively.

The company reiterated its full-year subscription revenue guidance of $7.72 billion to $7.78 billion, representing growth of 17% to 18%, but reflected an outlook "for current macro conditions to persist throughout fiscal 2025," finance chief Zane Rowe said during an earnings call with analysts.

 

Write to Sabela Ojea at sabela.ojea@wsj.com

 

(END) Dow Jones Newswires

February 26, 2024 18:48 ET (23:48 GMT)

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