Workday (NASDAQ:WDAY) reported first-quarter earnings that surpassed analyst expectations, with an adjusted EPS of $1.74, $0.15 higher than the consensus estima

Workday Stock Plunges 12% on Weak Guidance


blog post cover photo

Image credit: FMP

Workday (NASDAQ:WDAY) reported first-quarter earnings that surpassed analyst expectations, with an adjusted EPS of $1.74, $0.15 higher than the consensus estimate of $1.59. Revenue also exceeded forecasts, reaching $1.99 billion compared to the anticipated $1.97 billion.

Despite these strong results, Workday's stock fell by 12% in pre-market today after the company provided a cautious subscription revenue guidance that unsettled investors. For the full fiscal year 2025, Workday projects subscription revenue between $7.700 billion and $7.725 billion, reflecting approximately 17% growth, with an adjusted operating margin of 25.0%. For the second quarter of fiscal 2025, the company expects similar subscription revenue growth of about 17%, with an adjusted operating margin of 24.5%.

The first quarter showed robust performance, with total revenues increasing by 18.1% to $1.990 billion compared to the first quarter of fiscal 2024. Subscription revenues grew by 18.8% year-over-year. Operating income also improved significantly, reaching $64 million, or 3.2% of revenues, up from a $20 million loss in the same period last year. Adjusted operating income rose to $515 million, or 25.9% of revenues, from $396 million a year ago.

Workday CEO Carl Eschenbach highlighted the solid revenue growth and adjusted operating margin expansion, while CFO Zane Rowe noted the alignment of first-quarter performance with expectations and the focus on efficiency, despite challenges such as increased sales scrutiny and slower customer headcount growth.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep