- Workday shares fell after the human resources technology provider cut its revenue outlook due to concerns about the economy.
- The company now expects annual revenue growth subscription revenue from 17% to 19% over the next three years.
- Co-CEO Carl Eschenbach said the company sees no change in macroeconomic challenges in the near future.
Stocks by Workday (WDAY) fell more than 8% Thursday after the human resources technology provider cut its revenue outlook due to economic uncertainties.
Workday told investors it now expects annual subscription revenue growth to be between 17% and 19% over the next three years. Previously, he predicted gains of 20% or more.
Co-CEO Carl Eschenbach said that for 18 months there had been talk of “macroeconomic challenges”. in the economy, and that the company was taking this into account, “because we don’t expect this to change in the near future.”
However, some analysts, including TD Derrick Wood of Cowen and Alex Zukin of Wolfe Research reportedly suggested that Workday's new management could be conservative in its outlook. Eschenbach became CEO last December and CFO Zane Rowe joined the company in May.
The news caused prices to plummet Workday shares at their lowest level since June.
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