Carl Eschenbach, general director of Workday, speaks to the “Squawk Box” CNBC outside the World Economic Forum in Davos, Switzerland, January 23, 2025.
Gerry Miller CNBC
Business dayThe manufacturer of software for human resources and finances has reported better than expected quarterly results on Tuesday. Shares jumped over 10% in extended trade.
Here's how the company did compared to the LSEG consensus:
- Profit per share: USD 1.92 corrected compared to USD 1.78
- Income: Expected $ 2.21 billion vs. $ 2.18 billion
Revenues increased by 15% year -on -year in the quarter, which ended on January 31, in accordance with statement. Net profit dropped to USD 94 million, or 35 cents per share, from USD 1.19 billion, i.e. USD 4.52 per share, in the same quarter a year earlier.
“The period of the previous year benefited from $ 1.1 billion exemption of a valuation benefit related to American federal assets and postponed deferred taxes,” said Workday.
The company sees a greater demand for artificial intelligence tools.
“In fact, artificial intelligence is in the first place in every conversation with clients, potential clients and partners. They want to go beyond incremental performance profits, “said CEO Carl Eschenbach during a conference conversation with analysts. “They are also looking for Roi who helps them return to their activities,” added Eschenbach.
Eschenbach said that about 30% of expansion with existing customers attracted at least one AI product, according to the previous quarter. He said that additional AI products would be available over the following year.
Eschenbach said that the increase in the performance of the government department creates a chance for a business day, which has focused more on federal sales over the past one and a half years.
“The systems that they have, in particular ERP, HCM or financial systems, are very outdated,” he said. “In fact, most of them are still in the area, which means they are inefficient. And when we think about dog and what it can potentially do, if you want to increase government performance, you need to improve your systems – added CEO.
After becoming the only general director of Workday last year, he said that the company hired Google Gerrit Kazmaier, cloud director, to become the president of products and technologies. Sayan Chakraborta, which currently has this title, will retire after about a decade.
In the quarter Workday announced the employment of the former Uipath CEO Enslin seal As a new president and commercial director. Business day also he said He would use artificial intelligence to summarize employees' feedback in his Peakon product.
The company called up to 28% of the corrected operational margin with $ 2.05 billion in the first fiscal quarter. Analysts surveyed by Streetaccount expected a corrected margin of 26.7% and 2.06 billion dollars of revenues.
In the case of fiscal 2026, Workday sees a corrected margin of 28%, from $ 8.8 billion revenues from subscription, which means an increase of 14%. It is slightly higher than the forecast management in November.
From Tuesday's closure, work actions were flat from year to year, while the S&P 500 index increased by 1%.
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