Workday (NASDAQ:WDAY) is a California-based company that provides enterprise cloud applications in the United States and around the world. Shares of Workday have dropped 2.75% in the year-to-date period as of close on Thursday, May 23, 2024. The stock is still up 35% year over year. However, Workday stock was down 9.27% in after-hours trading after the market close on the same day.
The company released its first quarter (Q1) fiscal 2025 earnings after the market closed on May 23. In Q1 FY2025, Workday reported total revenues of $1.99 billion – up 18.1% compared to the first quarter of fiscal 2024. Subscription revenues powered its performance with 18.8% growth to $1.81 billion. Meanwhile, operating income came in at $64 million – 3.2% of revenues. That was compared to an operating loss of $20 million or negative 1.2% of revenues in the previous year.
Workday reported diluted net income per share of $0.40 – up from diluted net income per share of $0.00 in Q1 2024. Moreover, non-GAAP diluted net income per share rose to $1.74 compared to $1.33 in the prior year. The company’s 12-month subscription revenue backlog reached $6.60 billion – up 17.9% compared to Q1 2024.
Despite the growth on revenue and earnings, Workday stock faced volatility due to decreased expectations for subscription revenues. Despite the post-earnings dip, Workday still looks geared up for strong earnings growth while boasting an immaculate balance sheet.
