20 C
London
Wednesday, May 29, 2024
HomeFinance NewsWorkday Stock Drops as New Management Cuts Revenue Forecast

Workday Stock Drops as New Management Cuts Revenue Forecast

Date:

Related stories

spot_img

Software maker Workday saw its stock price plummet by more than 8% after the company lowered its outlook for subscription revenue growth through fiscal 2027. At an analyst day, Workday announced that it now expects subscription revenue growth to be in the range of 17% to 19% for the next three fiscal years, down from its earlier target of 20%. While the revised forecast disappointed investors, analysts believe that the new management team is making the right strategic moves and that the targets will ultimately prove to be conservative. Workday has a new chief financial officer, Zane Rowe, and in early 2024, co-CEO Carl Eschenbach will become the sole CEO.

The analyst day took place alongside Workday’s customer conference in San Francisco, where the company emphasized opportunities in artificial intelligence and international expansion. Analysts note that the company is implementing new go-to-market initiatives that require time and investment to yield results, particularly in the international market. However, they believe that Workday’s overall margin targets are conservative and that the company has room to invest in areas such as AI and financial software. Prior to this decline, Workday’s stock had gained almost 38% in 2023.

Despite the lowered outlook, Workday remains a leader in the software industry, specializing in human capital management software and expanding into financial software. The company holds a strong Relative Strength Rating and had experienced significant gains prior to the announcement. While the market responded negatively to the revised forecast, analysts are optimistic about the company’s future under its new management team and believe that Workday has the potential for continued growth in the AI and international markets.

Source link

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here