Workday Results Beaten in Third Quarter; Acquisition of VNDLY
By Yasin Ebrahim
Investing.com – Workday (NASDAQ 🙂 on Thursday reported a third quarter better than analysts’ expectations and raised its guidance for the full year, supported by strong business demand for digital transformations in finance and HR.
Workday stocks lost more than 9% in after-hours trading as a result of the report.
Workday reported earnings per share of $ 1.10 on revenue of $ 1.33 billion. Analysts polled by Investing.com had expected EPS of 86 cents on revenue of $ 1.31 billion.
Looking ahead to fiscal 2022, the company has raised its annual subscription revenue forecast to a range of $ 4.533 billion to $ 4.535 billion, a growth of 20 percent.
Fourth-quarter subscription revenues were expected in the $ 1.216 billion to $ 1.218 billion range, up 21% year-over-year, while operating margin guidance was raised to 22. %.
The company also said it has agreed to acquire VNDLY, a cloud-based workforce management and external vendor technology company, for $ 510 million.
The transaction is expected to close in the fourth quarter of Workday’s fiscal 2022, ending January 31, 2022.
“Customers will be able to use Workday to manage the end-to-end process for permanent employees, while unifying VNDLY’s external workforce data, so they can better plan, execute and analyze their workforce.” total work, ”the company said.
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