Workday, Inc. (NASDAQ: WDAY) reported its financial results for the quarter ended April 30, 2020, on Wednesday after the market closes. The bottom line missed analysts’ expectations while the top line exceeded consensus estimates.
The company posted a wider loss for the first quarter of 2021 due to higher costs and expenses despite a 23% jump in the top-line. Subscription revenue jumped by 26% year-over-year. Workday expects second-quarter subscription revenue of $913-915 million.
While remaining well-positioned for the long term, the company is lowering its fiscal 2021 subscription revenue guidance to account for the near-term impact from COVID-19. The subscription revenue outlook is cut to the range of $3.67-3.69 billion from the prior range of $3.755-3.77 billion.
The company lifted fiscal 2021 non-GAAP operating margin guidance to 16%. Workday remains confident in the fundamental strength of its business model and plans to operate with agility while continuing to drive innovation to support sustainable, long-term growth.