Workday Says Software Demand Likely Hurt by Pandemic in 2021
- New deals hard to come by in struggling economy, company says
- Software maker reports quarterly sales that topped estimates
Workday’s shares have gained 40% this year, closing at $230.80 in New York.
Photographer: Michael Short/BloombergWorkday Inc. executives said the pandemic-fueled recession will likely crimp software demand next year, putting a damper on a positive earnings report and turning shares down in extended trading.
The company said some customers of its human resources and accounting tools are struggling and new business is harder to find as the coronavirus continues to spread. Executives, speaking on a conference call, expressed optimism about their business, but said Covid-19 has created so much uncertainty that they couldn’t give a forecast for fiscal 2022, which begins in February. Shares, which had jumped as much as 6.3% in extended trading, lost all those gains during the call, declining about 3%.