Shares of Workday Inc. fell. rose 5% in after-hours trading on Monday after the software company only met revenue expectations for the latest quarter, while announcing an artificial intelligence deal.
The company reported fiscal fourth-quarter net income of $1.2 billion, or 4.52 cents per share, while reporting a net loss of $126 million, or 49 cents per share, in the same period a year earlier. Net income in the fourth quarter reflects the release of $1.1 billion of valuation allowance related to deferred tax assets.
Based on rate, WDAY,
It earned $1.57 per share, while analysts were expecting $1.47 per share.
Workday reported revenue of $1.92 billion, up from $1.65 billion a year earlier and matching the FactSet consensus. Subscription revenue was $1.76 billion, which was also in line with the consensus.
The company also announced plans to acquire HiredScore on terms that were not disclosed in its release. Workday describes HiredScore as “a leading provider of AI-powered talent orchestration solutions.”
