Workday tops Q1 expectations, lowers subscription revenue guidance

On Wednesday, Workday reported first-quarter results that topped estimates amid lowered expectations from the coronavirus lockdown. Total revenues came in at $1.02 billion, an increase of 23.4% from the first quarter of fiscal 2020. Yahoo Finance’s Myles Udland breaks down the company’s earnings report.

Video Transcript

SEANA SMITH: So I want to get to a bit of earnings that we've got after the bell today. Myles Udland is sorting through the headlines for us, and, Myles, let's start with Workday because we're seeing a big reaction in the stock after hours right now.

MYLES UDLAND: Yeah, the stock was up about 5% in the after-hours session. The company coming in and reporting earnings per share a little bit light, $0.44 adjusted against $0.47 that the Street was looking for.

Beating on the top line, however, bringing in [? $1.02 ?] billion in revenue. $994 million is what the Street had been looking for.

Now, the company did lower its outlook. But, you know, again, a company-- a SaaS play like a Workday, you beat on the top line. People are going to be excited about that, right? That's how this company is valued is a multiple of its revenue and, of course, revenue that is recurring.

Workday has been a part of this, you know, not quite a stay-at-home trade but certainly a remote-workforce sort of trade. And they would certainly view themselves as, you know, attractively positioned in a secular basis, so on and so forth.

The stock bottomed out right around $120 a share. Right now trading around $180 in the after-hours session.