For the quarter ended July 2023, Workday (WDAY) reported revenue of $1.79 billion, up 16.3% over the same period last year. EPS came in at $1.43, compared to $0.83 in the year-ago quarter.
The reported revenue represents a surprise of +0.76% over the Zacks Consensus Estimate of $1.77 billion. With the consensus EPS estimate being $1.25, the EPS surprise was +14.40%.
While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company’s underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock’s price performance.
Here is how Workday performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Subscription Revenue Backlog: $17.85 billion versus the nine-analyst average estimate of $16.69 billion.
- Headcount: 17887 versus the two-analyst average estimate of 18047.84.
- Geographic Revenues- Other countries: $442.20 million versus the two-analyst average estimate of $441.22 million.
- Geographic Revenues- United States: $1.34 billion versus $1.37 billion estimated by two analysts on average.
- Revenues- Subscription services: $1.62 billion compared to the $1.61 billion average estimate based on 27 analysts. The reported number represents a change of +18.8% year over year.
- Revenues- Professional services: $162.83 million versus $160.25 million estimated by 27 analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change.
View all Key Company Metrics for Workday here>>>
Shares of Workday have returned +0.1% over the past month versus the Zacks S&P 500 composite’s -2.1% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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