Workday stock fell on Wednesday after the enterprise software maker reported first-quarter earnings that topped estimates while revenue just edged by views. Workday subscription revenue guidance for the July quarter came in slightly above expectations.
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Pleasanton, Calif.-based Workday (WDAY) reported April-quarter earnings after the market close. Workday earnings were an adjusted 87 cents a share, up 97% from the year-earlier period. Revenue climbed 15.4% to $1.18 billion, including acquisitions.
A year earlier, Workday earnings were 44 cents a share on sales of $1.02 billion. Analysts expected Workday earnings of 73 cents a share on revenue of $1.16 billion for the period ended April 30.
The company sells software for human capital management, or HCM, such as payroll tools.
Workday Stock: Guidance Slightly Above Estimates
The software maker forecast July-quarter subscription revenue of $1.09 billion at the midpoint of guidance vs. analyst estimates of $1.08 billion.
Workday stock slipped 1.3% to near 234 in extended trading on the stock market today. Heading into the Workday earnings report, the software stock owned a Relative Strength Rating of 42 out of a possible 99, according to IBD Stock Checkup.
Workday stock has retreated from an all-time intraday high 282.77 set on Feb. 16 amid a broad downturn in software growth stocks.
While HCM-related growth has slowed, Workday expanded into financial management software with the acquisition of Adaptive Insights.
Workday said it had $2.99 billion in cash on its balance sheet as of April 30.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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