Workday Shares Fall 11% After Cutting Subscription Revenue Guidance
By Ben Glickman
Shares of Workday fell late Thursday after the company reduced its full-year outlook for subscription revenue.
The stock was down 11%, to $233.38, after hours. Shares are down about 5.5% so far this year as of Thursday's close.
The Pleasanton, Calif.-based human-resources software company said it now expects $7.7 billion to $7.725 billion in subscription revenue in the current fiscal year, down from its prior guidance of $7.725 billion to $7.775 billion.
Chief Financial Officer Zane Rowe said the company had seen greater scrutiny on sales and lower-than-expected customer headcount growth in the fiscal first quarter.
Revenue rose about 18%, to $1.99 billion, ahead of Wall Street's expectations.
The company reported a profit of $107 million, or 40 cents a share, in the quarter, also beating expectations. Workday roughly broke even in the year-ago period.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
May 23, 2024 19:20 ET (23:20 GMT)
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