Workday (WDAY) - Get Workday, Inc. (WDAY) Report shares were lower even after the provider of human-resources and finance applications posted better-than-expected first-quarter results, including a 15% jump in total revenue.
Shares of the Pleasanton, Calif., company at last check were down 2.2% to $231.85.
For the quarter ended April 30, Workday reported a loss of $46.5 million, or 19 cents a share, narrowed from the loss of $158.4 million, or 68 cents a share, in the year-earlier quarter. On an adjusted basis, the latest quarter's earnings came to 87 cents a share.
Total revenue reached $1.18 billion, while subscription revenue jumped 17% to $1.03 billion.
Analysts surveyed by FactSet were expecting the company to report adjusted earnings of 73 cents a share on revenue of $1.16 billion.
Operating cash flows were $452.4 million compared with $263.7 million in the prior year.
The company executed well "against an improving market backdrop,” Robynne Sisco, president and chief financial officer, said in a statement.
As a result, Sisco said, "we are raising our fiscal 2022 guidance for subscription revenue to a range of $4.43 to $4.44 billion, growth of 17%."
"We expect second-quarter subscription revenue of $1.095 billion to $1.097 billion, growth of 18%," Sisco said. "We are also raising our fiscal 2022 non-GAAP operating margin guidance to a range of 18% to 19%.”
Workday in March said it closed the acquisition of Peakon, an employee-success platform that converts feedback into actionable data, while analysts at J.P. Morgan added the company to the investment firm's analyst focus list.
In February, Workday beat Wall Street's fourth-quarter earnings expectations, but warned it was still facing headwinds related to COVID-19 business impacts.