Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Workday gains after topping expectations, guidance seen as 'conservative'

Stock Markets Nov 30, 2022 07:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Workday (WDAY) gains after topping expectations, guidance seen as 'conservative'
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

By Senad Karaahmetovic

Shares of Workday (NASDAQ:WDAY) are trading nearly 9% higher in pre-open Wednesday after the company delivered better-than-expected earnings for its third quarter and modestly raised its full-year forecast.

Workday reported adjusted EPS of $0.99 on revenue of $1.60 billion to beat analyst expectations of $0.84 on revenue of $1.58B. Subscription revenue was up 22.3% year-over-year to $1.43B.

"There is no question that the current macro environment presents increased uncertainty, but, due to the great work of our employees and our continued innovation, we are confident in the long-term opportunity and our ability to navigate the road ahead," said Aneel Bhusri, co-founder, co-CEO, and chairman of Workday.

Workday now sees subscription revenue between $5.555B and $5.557B with the low end of the guidance raised from the prior $5.40B. WDAY also raised its 2023 non-GAAP operating margin guidance to 19.2%.

The company announced that its Board of Directors approved a new stock buyback program of up to $500 million of its Class A common stock.

“Our updated outlook reflects the ongoing momentum in our business and the power of our business model, while continuing to balance the current environment,” the company said in a statement.

Mizuho analysts cut the price target to $200 per share from $220 to reflect the recent contraction of peer average valuation multiple.

“In our view, Workday remains in a strong position to become the preeminent vendor in the back-office suite over the longer term. We reaffirm our Buy rating,” they said in a client note.

Morgan Stanley analysts said WDAY offered “conservative” guidance, which leaves room for better-than-expected performance.

“Workday again hewed closely to the template for a successful earnings call in time of macro volatility by 1) putting up a solid quarter,2) incorporating a more difficult macro environment into the outlook, and 3) reassuring investors you will protect operating margins and FCF. With the stock trading at 4X EV/CY24 Sales or 18X EV/CY24 FCF, we see an attractive entry point to one of the core SaaS franchises in software,” they wrote in a client note.

Workday gains after topping expectations, guidance seen as 'conservative'

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email