Workday $WDAY Beats Q4 Expectations: EPS at $1.57, Sales Hit $1.92B; Plans Acquisition of HiredScore

– Workday ($WDAY) reported Q4 earnings:
  – Adjusted EPS: $1.57 (Estimated: $1.47)
  – Sales: $1.92 billion (Estimated: $1.91 billion)
  – Subscription Revenue: $1.8 billion
  – Announced intention to acquire HiredScore
  – FY25 Subscription Revenue Guidance: $7.725 billion to $7.775 billion (Estimated: $7.77 billion)

– Operational and Financial Updates:
  – Board of Directors approved a 25% increase in quarterly dividend to $1.51 per share.
  – Approved an additional $1.0 billion share repurchase program.

– FY’25 Outlook:
  – Expecting FY25 Non-GAAP Operating Margin of Approximately 24.5%

– Leadership Commentary:
  – CEO Carl Eschenbach stated, “This quarter’s results demonstrate the strength of Workday’s value proposition. We’re seeing momentum with customer wins and expansions, strengthening international performance, and growth of our partner ecosystem.”
  – Executive Chair Aneel Bhusri expressed excitement about growth opportunities ahead, attributing Workday’s success to a focus on innovation enabling customers to transform how they manage their people and finances.
  – CFO Zane Rowe highlighted momentum across investment initiatives in Q4 and FY24 results, reiterating FY25 subscription revenue guidance with expected growth of 17% to 18% and a non-GAAP operating margin of approximately 24.5%.

Brokerages on WorkDay

– Baird upgraded Workday ($WDAY) from $277 to $316, with an “Outperform” rating.
– Goldman Sachs revised their rating to “Buy” and raised the price target to $310 from $270.
– Barclays adjusted their target downward to $316 from $326.
– Needham increased their target to $350 from $300.
– Stifel raised their target to $290 from $250.
– Mizuho elevated their target to $325 from $290.
– Citi maintained a “Neutral” rating with a $293 target.
– Canaccord Genuity raised the target to $305 from $290.

Median Price Target (PT):
  – Current: $316
  – Previous: $300

Highest Price Target (PT):
  – Current: $350
  – Previous: $326

Lowest Price Target (PT):
  – Current: $290
  – Previous: $250