Workday Shares Are Sliding In Extended Trading: What's Going On?

Workday Inc WDAY shares are trading lower in Monday's after-hours session after the company reported fourth-quarter results and said it expects the environment to remain uncertain in the near term.

What Happened: Workday reported fourth-quarter revenue of $1.65 billion, up 19.6% on a year-over-year basis. The company's top-line results came in above average analyst estimates of $1.63 billion. Subscription revenues increased 21.7% year-over-year.

Workday reported fourth-quarter adjusted earnings of 99 cents per share, which beat estimates of 91 cents per share.

The company said it has a 24-month subscription revenue backlog of $9.68 billion, up 21.3% year-over-year. 

"Despite the unpredictable environment, we remain well-positioned to drive the future of work for our more than 10,000 customers thanks to our amazing employees and unique approach to embedding artificial intelligence and machine learning into the very core of our platform," said Aneel Bhusri, co-founder, chair and co-CEO of Workday.

In fiscal 2024, Workday said it plans to "double down" on strategic growth areas by investing in its customer base, focusing on key industries, evolving and investing in its partner ecosystem and focusing on innovation.

Workday maintained its fiscal 2024 subscription revenue guidance of $6.525 billion to $6.575 billion and increased its operating margin outlook to 23%, reflecting its strong fourth-quarter execution and the scale of its model, balanced with its "expectation that the environment will remain uncertain in the near-term."

See Also: Why Zoom Video Stock Is Zooming Higher After Hours

WDAY Price Action: Workday shares are down 2.72% at $179.90 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Workday.