Workday, Inc. (NASDAQ:WDAY) shares dropped more than 5% on Friday following the company’s reported disappointing Q1 results that missed on 24-month Subscription backlog.

EPS came in at $0.83, worse than the Street estimate of $0.86. Revenue was $1.43 billion, in-line with the Street expectations.

The backlog miss was attributed to several large deals pushing out of Q1, with management seeing no commonality across customer segment, product, or rationale for the delays.

The company expects Q2/23 revenue in the range of $5.537-5.557 billion, compared to the Street estimate of $6.2 billion. Full 2023-year revenue is expected to be in the range of $1.353-1.355 billion, compared to the Street estimate of $1.51 billion.