Workday logs profit beat and inks AI deal, but stock drops after earnings

Shares of Workday Inc. fell 5% in after-hours trading Monday after the software company merely met revenue expectations for the latest quarter, while announcing an artificial-intelligence deal.

The company reported fiscal fourth-quarter net income of $1.2 billion, or $4.52 cents a share, whereas it reported a net loss of $126 million, or 49 cents a share, in the year-earlier period. Net income in the latest quarter reflected a $1.1 billion release of a valuation allowance related to deferred tax assets.

On an adjusted basis, Workday
earned $1.57 a share, whereas analysts were modeling $1.47 a share.

Workday logged revenue of $1.92 billion, up from $1.65 billion a year before and matching the FactSet consensus. Subscription revenue equaled $1.76 billion, also matching the consensus view.

The company also announced plans to acquire HiredScore for terms not disclosed in its release. Workday described HiredScore as “a leading provider of AI-powered talent orchestration solutions.”

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