Workday Zooms 7.8% on Upbeat Q4 Results

Cloud-based financial management software vendor Workday, Inc. (NASDAQ: WDAY) has reported better-than-expected results for the fourth quarter ended January 31, 2022.

Don't Miss our Black Friday Offers:

Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

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.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure