Business

Workday Warns of ‘Elevated Sales Scrutiny’ in Warning for Software

(Bloomberg) — Workday Inc. shares fell the most in more than four years after the software maker cut its full-year subscription revenue forecast and said customers were more cautious with the orders.

Most read on Bloomberg

Subscription sales will reach $7.73 billion in the fiscal year ending in January, up from an earlier forecast of $7.78 billion, the Pleasanton, Calif.-based company said Thursday. Subscription revenue is a key metric for Workday, which provides software for business tasks, such as workforce management.

The stock fell 13% to $227.06 as of 10:36 a.m. in New York, the biggest intraday decline since March 2020. The stock is down 18% this year.

“Our updated subscription revenue guidance reflects the increased sales scrutiny and lower customer growth we experienced during the quarter,” Chief Financial Officer Zane Rowe said in a statement.

CEO Carl Eschenbach, who took over as sole CEO in February, is seeking growth by expanding sales abroad and entering new sectors in the United States.

For the fiscal first quarter, subscription sales rose 19% to about $1.82 billion, in line with the average analyst estimate. Earnings, excluding certain items, were $1.74 per share. Analysts on average expected $1.58, according to data compiled by Bloomberg.

“Clearly, the in-line results and downgraded outlook were below what investors were looking for,” Kirk Materne, an analyst at Evercore ISI, wrote in a note after the results were released.

(Updates with sharing scope moved from first paragraph)

Most read from Bloomberg Businessweek

©2024 Bloomberg LP

News Source : finance.yahoo.com
Gn bussni

Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
Back to top button