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Workday Drops After Q3 Report, Proposed Vndly Acquisition

Workday reported better-than-expected profit, proposed an acquisition and named two executives to key posts.
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Shares of Workday  (WDAY) - Get Workday, Inc. Class A Report dropped on Friday after the provider of finance and human-resources software reported better-than-expected earnings, unveiled a proposed acquisition and named a new co-president and CFO.

Workday shares at last check slipped 3.7% to $288.05. On Nov. 17 they had touched a 52-week high $307.81. 

Workday reported third-quarter earnings of $1.10 a share on revenue of $1.33 billion. Analysts surveyed by FactSet were expecting earnings of 87 cents a share on revenue of $1.31 billion. 

The Pleasanton, Calif., company continues "to expand our addressable market through our diverse product portfolio and multiple go-to-market levers,” Aneel Bhusri, co-founder, chairman and co-chief executive, said in a statement.

The company raised its fiscal 2022 subscription revenue growth to between $4.533 billion and $4.535 billion.

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Workday agreed to acquire Vndly, the Mason, Ohio, cloud-based external workforce and vendor management technology provider, for $510 million cash. 

The combination "will help customers better manage their evolving workforce dynamics," said Pete Schlampp, Workday's chief strategy officer. 

The transaction is expected to close in the fourth quarter ending Jan. 31, 2022. 

The company also said it named Doug Robinson co-president, effective immediately, working alongside Co-President Robynne Sisco. He'd joined Workday in 2010 and most recently was executive vice president of global sales.

And Workday named Barbara Larson chief financial officer, effective Feb. 1. She had joined the company in 2014 and most recently was s senior vice president of accounting, tax, and treasury.