By Yasin Ebrahim
Investing.com - Workday (NASDAQ:WDAY) reported on Thursday third quarter results that beat analysts' forecasts, and raised its guidance for the full-year, supported by strong corporate demand for finance and HR digital transformations.
Workday shares lost more than 9% in after-hours trade following the report.
Workday announced earnings per share of $1.10 on revenue of $1.33 billion. Analysts polled by Investing.com anticipated EPS of 86 cents on revenue of $1.31 billion.
Looking ahead to fiscal 2022, the company raised its full-year guidance for subscription revenue to a range of $4.533 billion to $4.535 billion, growth of 20%.
Fourth-quarter subscription revenue was expected in a range of $1.216 billion to $1.218 billion, up 21% year-on-year, while operating margin guidance was raised to 22%.”
The company also said it had agreed to acquire VNDLY, a cloud-based external workforce and vendor management technology company, for $510 million.
The transaction is expected to close in the fourth quarter of Workday's fiscal year 2022, ending Jan. 31, 2022.
"Customers will be able to use Workday to manage the end-to-end process for permanent employees, while unifying the external workforce data from VNDLY, so they can better plan, execute, and analyze their total workforce," the company said.
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