2023-05-26 09:20:55 ET
Workday ( NASDAQ: WDAY ) shares rose nearly 10% in pre-market trading on Friday as investment firm Monness, Crespi, Hardt described the cloud software maker's first-quarter results and guidance as "healthy."
"Workday continues to expand the reach of its cloud platform, pursue a large market opportunity, and execute well," analyst Brian White, who has a neutral rating on Workday, wrote in an investor note.
White raised his earnings estimates for the second-quarter to be $1.26 per share, but kept his revenue estimates the same for the quarter and "modestly" trimmed his full-year sales forecast.
Workday ( WDAY ) reported adjusted earnings of $1.31 per share for the first-quarter, generating $1.68B in revenue for the period, including $1.53B from subscriptions.
The company also raised its subscription revenue forecast for the full-year to be between $6.55B and $6.575B. Wall Street expects full-year revenues to be $7.195B.
In addition, White noted that the tone of the earnings call was "constructive" as Workday continues to execute well "in a challenging economic environment and building out a healthy pipeline."
"Furthermore, Workday touched on the opportunity to further leverage AI on its platform and we expect new generative AI innovations in the future," White explained.
Workday ( WDAY ) also said it would hire less employees in fiscal 2024 compared to fiscal 2023, while announcing former VMware CFO Zane Rowe as its new finance chief.
More on Workday
- Workday, Inc. Q1 2024 Earnings Call Transcript
- Workday: Strong Competitive Advantage And Strong Reputation
- Workday slips as Stifel downgrades on survey worries, increased competition
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Workday surges as Monness, Crespi, Hardt calls Q1 'healthy'