Workday, Inc. (WDAY), a company providing enterprise cloud applications, has declined 8.02% in aftermarket trading session. Consequently, WDAY stock is trading at $275.10 at the time of the writing. The decline could be attributed to the announcement of quarterly results. On Thursday, WDAY closed the day at $299.09 after experiencing a decline of 0.60%.
Why WDAY Declining?
On Thursday, WDAY released the financial results for the third quarter of the fiscal year 2022. The quarter ended on 31st October 2021. The company had cash and cash equivalents of $1.29 billion on 31st October 2021. The total revenue generated by the company during the period was $1.32 billion against $1.10 billion for the same period of 2020. The total costs and expenses for the period were $1.30 billion against $1.12 billion for the same period of 2020. The company generated a net income of $43.41 million (or $0.17 per basic and diluted share) during the quarter against the net loss of $24.34 million (or $0.10 per basic and diluted share) during the same quarter of 20202.
Business Highlights
Alongside the financial results, WDAY also released the business highlights of the quarter. The company had announced the promotion of Doug Robinson to co-president. It also appointed Barbara Larson as chief financial officer. The company announced its intent to acquire VNDLY, an industry leader in cloud-based external workforce. It acquired Zimit, a configure price quote (CPQ) solution built for the services industry. Besides, Workday was named as the Leader in the 2021 Gartner® Magic Quadrant™ for Cloud HCM Suites for 1,000+ Employee Enterprises.
Executive Commentary
Aneel Bhusri, co-founder, co-CEO, and chairman of WDAY, while commenting on the results said that the company delivered another strong quarter as it continued to bring expansion into its addressable market through its diverse portfolio, which ultimately has supported the growth of the company. He further said that looking forward; the company would continue to accelerate its investments in its go-to-market efforts. That in turn would make the company’s financial stature stronger.
Future Outlook for WDAY
The last three months have proved to be scintillating for WDAY stock as it has increased more than 25% during the period. The prime reason for that is the association of positive sentiments with WDAY stock in the form of business expansion activities. Investors should keep a close eye on the related developments in upcoming quarters to make an informed decision regarding their investments.
