Workday (WDAY) Stock Smacked 8% Despite Beat, VNDLY Acquisition

Workday (NASDAQ: WDAY) shares dropped more than 8% after-hours following the company’s reported Q3 results, with EPS coming in at $1.10, beating the consensus estimate of $0.86. Quarterly revenue grew 20% year-over-year to $1.33 billion, compared to the consensus estimate of $1.31 billion. Subscription revenue grew 21% year-over-year to $1.17 billion, and total subscription revenue backlog grew 23.7% to $10.97 billion.

The company increased its fiscal 2020 guidance for subscription revenue. For the full 2022-year, the company anticipates revenue to be between $4.533 and $4.535 billion, while the consensus calls for total revenue of $5.11 billion.

For Q4, it expects subscription revenue of $1.216 to $1.218 billion, while the consensus calls for total revenue of $1.36 billion.

The company also announced its intention to acquire VNDLY, an industry leader in cloud-based external workforce and vendor management technology.

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