Workday Stock Slides 14% Amid Soft Subscription Revenue Guidance

24 พ.ค.

Workday shares (WDAY) fell 14% in extended trading on Thursday after the company provided softer-than-expected current-quarter and full-year subscription revenue guidance. The company lowered its full-year subscription revenue forecast due to elevated sales scrutiny and lower customer headcount growth. Workday (WDAY) also announced a partnership with the Defense Intelligence Agency to modernize the government agency's human resources efforts. The company's updated subscription-revenue guidance reflects the elevated sales scrutiny and lower customer-headcount growth experienced during the quarter. However, Workday (WDAY) said its increased efficiencies helped boost its annual adjusted operating margin by half a percentage point to 25%.

For the three-month period ending April 30, the company posted net sales of $1.99 billion, slightly ahead of the consensus view. On the earnings front, it posted an adjusted profit of $1.74 per share, surpassing analysts' expectations of $1.58 a share. Workday (WDAY) announced late Thursday that the Defense Intelligence Agency (DIA) had selected it to modernize its human resources efforts, helping the company expand its footprint into the public sector.

Workday (WDAY) shares have trended higher since completing a double bottom pattern in November 2022, with momentum accelerating after the 50-day moving average crossed above the 200-day MA to generate a golden cross signal early last year. Investors should monitor how the stock responds to support near a key horizontal line around $238 that closely aligns with a significant November-price gap. A decisive close below this crucial level could lead to a deeper pullback to longer-term support at the $205 region.