Human resources software provider Workday cut its annual subscription revenue forecast on Thursday, citing concerns about lower customer headcount growth as a hiring slowdown and IT budget cuts soften demand for its payroll services.
The company sees subscription revenue for fiscal year 2025 in the range of $7.70 billion to $7.73 billion, down from its prior forecast of $7.73 billion to $7.78 billion.
"Our updated subscription revenue guidance reflects the elevated sales scrutiny and lower customer headcount growth we experienced during the quarter," said Workday CFO Zane Rowe.
For the second quarter, Workday expects subscription revenue of about $1.90 billion, nearly in line with analyst estimates, according to LSEG data.
Subscription revenue rose 18.8% to $1.82 billion in the quarter.
Persons:
Zane Rowe
Organizations:
U.S
Locations:
Pleasanton , California