When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Check price target & stock forecast for Workday here>>> While the ABR calls for buying Workday, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendati ...

Workday Inc. (WDAY) reported solid first-quarter fiscal 2025 results, with the bottom and the top lines surpassing the respective Zacks Consensus Estimate. The company reported revenue growth year over year, driven by solid customer wins across various industries, including education, financials, healthcare and more. Strategic expansions and strong contract renewals within the existing customer base also drove the top line. Management's strong focus on innovations, AI integration and international expansion ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

PLEASANTON, Calif., May 24, 2024 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, today announced that Carl Eschenbach, CEO, Workday, will present at the Jefferies Software Conference on May 29, 2024 at 9:00 a.m. Pacific Time / 12:00 p.m. Eastern Time. There will also be a live webcast of the event, available here. A replay of the presentation will be available on the Workday Investor Relations site for a minimum of 90 days af ...

Key Takeaways Workday (WDAY) shares plunged more than 11% in extended trading Thursday after the cloud-based professional services company provided softer-than-expected current-quarter and full-year subscription revenue guidance. For the current quarter ending July 31, the company guided subscription revenue coming in at $1.895 billion, missing estimates of $1.903 billion. Looking at the fiscal 2025 full year, the company trimmed its subscription revenue forecast to between $7.7 billion and $7.725 billion f ...

Financial Data and Key Metrics Changes - Subscription revenue for Q1 was $1.815 billion, representing a 19% increase year-over-year, with a 1-point benefit from the leap year [44] - Total revenue for Q1 reached $1.99 billion, growing 18% [44] - Non-GAAP operating margin for Q1 was 25.9%, driven by moderate revenue outperformance and lower expenses [60] - The 12-month subscription revenue backlog was $6.6 billion, reflecting an 18% growth [44] - The company updated its FY 2025 subscription revenue guidance to a range of $7.7 billion to $7.725 billion, indicating a growth of approximately 17% [45] Business Line Data and Key Metrics Changes - New financial management and full platform customers both increased by over 20% compared to Q1 of the previous year [35] - The healthcare sector saw new ACV growth exceeding 50% in Q1 [37] - The professional and business services vertical is on track to surpass $1 billion in annual recurring revenue [37] Market Data and Key Metrics Changes - U.S. revenue in Q1 totaled $1.49 billion, while international revenue was $497 million, both growing 18% [44] - The company experienced elevated scrutiny in sales cycles, particularly in EMEA, leading to fewer large deals closed compared to the previous year [34][62] - Despite challenges in some international markets, strength was noted in France, the Netherlands, and Japan [54] Company Strategy and Development Direction - The company is focusing on expanding its total addressable market through go-to-market changes and strategic partnerships [24] - Investments in AI capabilities are a priority, with over 50 AI use cases live in production and 25 generative AI use cases on the roadmap [36] - The company is enhancing its partner ecosystem, having built more pipeline in Q1 than in all of the previous year [19] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in customer headcount growth, which is expected to persist, impacting renewal contracts [3][34] - The company remains confident in its long-term growth strategy, emphasizing innovation and customer value delivery [48][63] - Management acknowledged increased deal scrutiny globally, particularly for large deals, but expressed optimism about the pipeline of big opportunities [82][120] Other Important Information - The company repurchased $134 million of its shares during Q1, reducing dilution by 1 million shares [61] - The company ended the quarter with $7.2 billion in cash and marketable securities [61] - The company plans to invest over GBP 550 million in its U.K. operations over the next three years [53] Q&A Session Summary Question: Impact of lower customer headcount growth - Management indicated that the slowdown in headcount growth aligns with broader economic trends, affecting contract renewals [10][34] Question: Guidance adjustments due to deal scrutiny - Management confirmed that the guidance was adjusted to reflect the impact of deal scrutiny and headcount trends, with confidence in the pipeline remaining strong [71][72] Question: Performance in EMEA - Management noted that the lower performance in EMEA was not due to execution issues but rather external factors affecting large deals [76][85] Question: AI and product innovation - Management highlighted the importance of AI capabilities and the positive reception of new AI products among customers [125][126] Question: Mid-market performance - Management reported solid performance in the medium enterprise segment, particularly in the U.S., with effective pricing and packaging strategies [103][110]

Workday (WDAY) reported $1.99 billion in revenue for the quarter ended April 2024, representing a year-over- year increase of 18.2%. EPS of $1.74 for the same period compares to $1.31 a year ago. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial ...

Workday (WDAY) came out with quarterly earnings of $1.74 per share, beating the Zacks Consensus Estimate of $1.57 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 10.83%. A quarter ago, it was expected that this maker of human resources software would post earnings of $1.44 per share when it actually produced earnings of $1.57, delivering a surprise of 9.03%. Over the last four qu ...

Financial Performance - Total revenues for Q1 FY2025 were $1.990 billion, an increase of 18.1% year-over-year[6] - Subscription revenues reached $1.815 billion, up 18.8% compared to the same period last year[6] - Non-GAAP operating income was $515 million, representing 25.9% of revenues, compared to $396 million or 23.5% of revenues in the prior year[6] - Diluted net income per share was $0.40, compared to $0.00 in Q1 FY2024, while non-GAAP diluted net income per share increased to $1.74 from $1.33[6] - For the three months ended April 30, 2024, net income was $107 million, compared to a net loss of $0 million in the same period of 2023[20] - Non-GAAP operating income for the same period was $515 million, up from $396 million in 2023, reflecting a non-GAAP operating margin of 25.9%, compared to 23.5% in 2023[23] - The diluted net income per share for the three months ended April 30, 2024, was $1.74, compared to $1.33 in 2023[23] Cash Flow and Expenditures - Operating cash flows were $372 million, compared to $277 million in the prior year, and free cash flows were $291 million, up from $218 million[6] - Free cash flows for the three months ended April 30, 2024, were $291 million, an increase from $218 million in 2023[26] - Cash provided by operating activities increased to $372 million in 2024, compared to $277 million in 2023[20] - Capital expenditures for the quarter were $81 million, compared to $59 million in 2023[20] - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,771 million, up from $1,456 million at the end of the same period in 2023[20] Subscription Revenue Backlog - The 12-month subscription revenue backlog was $6.60 billion, up 17.9% year-over-year, and total subscription revenue backlog increased 24.2% to $20.68 billion[6] - The company updated its full-year subscription revenue guidance to between $7.700 billion and $7.725 billion, reflecting approximately 17% growth[12] Share Repurchase and Acquisitions - Workday repurchased approximately 0.5 million shares of Class A common stock for $134 million[6] - The company repurchased $128 million of common stock during the quarter, with no repurchases in the same quarter of the previous year[20] - Workday completed the acquisition of HiredScore, enhancing its AI-powered talent acquisition capabilities[12] Partnerships and Collaborations - Workday expanded its partnership with AWS and formed a new collaboration with Google Cloud to enhance market reach[12] Other Financial Metrics - The company reported a significant increase in trade and other receivables, netting $509 million in 2024, compared to $473 million in 2023[20] - The company plans to exclude certain acquisition-related costs and realignment costs from its non-GAAP results starting fiscal 2025[27]

Fiscal First Quarter Total Revenues of $1.990 Billion, Up 18.1% Year Over Year Subscription Revenues of $1.815 Billion, Up 18.8% Year Over Year PLEASANTON, Calif., May 23, 2024 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, today announced results for the fiscal 2025 first quarter ended April 30, 2024. Fiscal 2025 First Quarter Results 1See the section titled "About Non-GAAP Financial Measures" in the accompanying financial ...