Workday Reports Q4 Results, Intends To Acquire HiredScore

Workday, Inc. WDAY reported its fourth-quarter financial results after the bell Monday. Here's a look at the highlights.

The Details:

Workday reported quarterly earnings of $1.57 per share which beat the analyst consensus estimate of $1.47 by 6.8%.

The company reported quarterly sales of $1.92 billion which met the analyst consensus estimate and represents a 16.77% increase over sales of $1.65 billion from the same period last year.

Workday reported its total subscription revenue backlog was $20.9 billion, up 27% from the same period last year. The company said its 12-month subscription revenue backlog was $6.6 billion, and 24-month subscription revenue backlog was $11.7 billion, both increasing 20% year over year.

Workday also announced its intent to acquire HiredScore, but did not disclose the terms.

“Workday’s results this quarter are a testament to the strength of our value proposition and the durability of our business,” said Carl Eschenbach, CEO of Workday.

“We’re seeing continued momentum with full platform customer wins and expansions within our base, strengthening international performance, growth of our partner ecosystem, and the seamless execution of nearly 19,000 Workmates across the globe – all setting us up for an incredible fiscal year 2025,” Eschenbach added.

Outlook: 

Workday reiterated its fiscal year 2025 subscription revenue guidance of between $7.725 billion and $7.775 billion, representing growth of 17% to 18%. The company expects fiscal year 2025 non-GAAP operating margin of approximately 24.5%.

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WDAY Price Action: According to Benzinga Pro, Workday shares are trading down 5.6% after-hours at $290.00 at the time of publication.

Image: Courtesy of Workday, Inc.