NEW YORK (TheStreet) -- Workday (WDAY) - Get Report stock is retreating 3.85% to $72.92 in after-hours trading on Tuesday even though the company's fiscal 2017 first quarter financial results exceeded expectations.
The Pleasanton, CA-based enterprise cloud applications provider reported non-GAAP earnings of 5 cents per share for the quarter ended April 30, while analysts were anticipating a loss of 2 cents per share.
Revenue increased 38% year over year to $345.43 million, beating estimates of $338.68 million for the latest quarter. Subscription revenue jumped 39% to $280 million.
"We continue to see increased customer adoption of Workday Financial Management as well as strong demand in EMEA and APJ as more organizations take finance and HR to the cloud," CEO Aneel Bhusri said in a statement.
Additionally, Workday set its fiscal second quarter revenue guidance at $371 million to $373 million, above analysts' projections of $370.88 million.
Separately, Workday has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, generally disappointing stock performance and feeble earnings per share growth.
You can view the full analysis from the report here: WDAY
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