Cloud-based financial management software vendor Workday, Inc. (NASDAQ: WDAY) has reported better-than-expected results for the fourth quarter ended January 31, 2022.
Following the upbeat results, shares of the company rose 7.8% to close at $246.85 in Monday’s extended trading session.
Revenue & Earnings
Workday reported quarterly revenues of $1.38 billion, up 21.6% from the same quarter last year. Further, the figure outpaced the consensus estimate of $1.36 billion. Subscription revenues, which grew 22.2% year-over-year to $1.23 billion, drove the overall growth in revenues.
The company’s earnings for the quarter stood at $0.78 per share and surpassed the consensus estimate of $0.71 per share. Workday had reported earnings of $0.73 per share in the same quarter last year.
Meanwhile, the company’s operating income rose 12.4% year-over-year to $237.1 million.
Management’s Take
The Co-CEO of Workday, Aneel Bhusri, said, “We closed out the year with another strong quarter that saw continued acceleration of our business, including a growing global workforce and a relentless focus on employees, customers, and innovation. We continue to see increasing demand for our broad suite of finance and HR solutions, as we help some of the world’s largest organizations – and more than 60 million users – navigate the changing world of work. This momentum, along with our employees’ continued commitment, gives me great confidence in the opportunity ahead.”
Stock Rating
Consensus among analysts is a Strong Buy based on 10 unanimous Buys. The average Workday stock prediction of $312.80 implies upside potential of 36.6% from current levels. Shares have declined 9.4% over the past year.
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