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Reuters
22-05-2025
- Business
- Reuters
Workday forecasts lukewarm quarterly subscription revenue, shares fall
May 22 (Reuters) - Workday (WDAY.O), opens new tab forecast second-quarter subscription revenue in line with Wall Street expectations on Thursday, anticipating weakening client spending on its human capital management software due to economic uncertainty, sending its shares down 5% in extended trading. The human capital management industry is grappling with softening spending by enterprise clients due to economic uncertainty that has pressured tech budgets. "We remain focused on executing in this uncertain environment and are reiterating our fiscal 2026 subscription revenue guidance of $8.8 billion," said Chief Financial Officer Zane Rowe. Workday expects subscription revenue of $2.16 billion for the second quarter. It also announced a new buyback program to acquire an additional $1 billion worth of shares. The company competes against Oracle (ORCL.N), opens new tab and SAP ( opens new tab in the large enterprise space, both of which have larger overall back-office application businesses. Competition in the human capital and financial management software market is increasing, which could lead to pricing pressure, analysts have said. The U.S. Office of Personnel Management, the federal human resources agency at the heart of billionaire Elon Musk's DOGE efforts to slash the federal workforce, earlier this month canceled a contract it had awarded to Workday. The contract for a new cloud-based HR platform was awarded without seeking bids from rivals. Workday's total revenue for the first quarter, ended April 30, came in at $2.24 billion, compared to estimates of $2.22 billion, according to data compiled by LSEG. It reported subscription revenue of $2.06 billion, while analysts were expecting $2.05 billion. On an adjusted basis, Workday earned $2.23 per share in the quarter, compared with estimates of $2.01 apiece.
CNA
22-05-2025
- Business
- CNA
Workday forecasts lukewarm quarterly subscription revenue, shares fall
Workday forecast second-quarter subscription revenue in line with Wall Street expectations on Thursday, anticipating weakening client spending on its human capital management software due to economic uncertainty, sending its shares down 5 per cent in extended trading. The human capital management industry is grappling with softening spending by enterprise clients due to economic uncertainty that has pressured tech budgets. "We remain focused on executing in this uncertain environment and are reiterating our fiscal 2026 subscription revenue guidance of $8.8 billion," said Chief Financial Officer Zane Rowe. Workday expects subscription revenue of $2.16 billion for the second quarter. It also announced a new buyback program to acquire an additional $1 billion worth of shares. The company competes against Oracle and SAP in the large enterprise space, both of which have larger overall back-office application businesses. Competition in the human capital and financial management software market is increasing, which could lead to pricing pressure, analysts have said. The U.S. Office of Personnel Management, the federal human resources agency at the heart of billionaire Elon Musk's DOGE efforts to slash the federal workforce, earlier this month canceled a contract it had awarded to Workday. The contract for a new cloud-based HR platform was awarded without seeking bids from rivals. Workday's total revenue for the first quarter, ended April 30, came in at $2.24 billion, compared to estimates of $2.22 billion, according to data compiled by LSEG. It reported subscription revenue of $2.06 billion, while analysts were expecting $2.05 billion.
Yahoo
17-05-2025
- Business
- Yahoo
Paycom Grows on Big Money Support
PAYC provides payroll and human capital management software to U.S. businesses with 50 to 10,000 employees, with a goal of helping companies serve employees from recruitment to retirement. Along with payroll, Paycom offers time and attendance, talent management, and benefits solutions. They're proving popular with customers, including many who were newly onboarded within the last quarter. On the earnings front, PAYC's first-quarter 2025 report showed total quarterly revenue of $531 million, which is a 6% increase on a year-over-year basis. Recurring and other revenue hit $500 million, reflecting a 7% rise. PAYC holds $521 million with no debt and returned $21 million to shareholders in the first quarter via dividends along with $5 million in share repurchases (with another roughly $1.5 billion planned). The company guided higher too, calling for an 8% year-over-year gain in annual revenue. It's no wonder PAYC shares are up 25% this year – and they could rise more. MoneyFlows data shows how Big Money investors are once again betting heavily on the forward picture of the stock. Institutional volumes reveal plenty. In the last year, PAYC has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in PAYC shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of technology names are under accumulation right now. But there's a powerful fundamental story happening with Paycom. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PAYC has had strong sales and earnings growth: 3-year sales growth rate (+21.5%) 3-year EPS growth rate (+38.8%) Source: FactSet Also, EPS is estimated to ramp higher this year by +10.8%. Now it makes sense why the stock has been generating Big Money interest again. PAYC has a track record of strong financial performance. Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term. Paycom has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It's made the rare Outlier 20 report multiple times in the last year. The blue bars below show when PAYC was a top pick…sending share values up: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The PAYC revival isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds long positions in PAYC in personal and managed accounts at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights. This article was originally posted on FX Empire Duolingo Demand, Earnings Lift Shares Career Learners Make Stride Agnico Eagle's Strong Gold Production Attracts Big Money Sportradar Group Scoring with Big Money Loar Soars on Big Money Buys Revenue Gains, Bold Guidance Lift ADMA Shares
