Workday (WDAY) Stock: $360 Price Target From Needham

By Amit Chowdhry ● Nov 29, 2021
  • The shares of Workday Inc (NASDAQ: WDAY) have received a $360 price target from Needham. These are the details.

The shares of Workday Inc (NASDAQ: WDAY) have received a $360 price target from Needham. And Needham analyst Scott Berg increased the price target from $310 while maintaining a “Buy” rating on the shares.

Workday noted that the company’s third quarter results were very good with accelerating 24-month subscription backlog growth, subscription revenue growth, and 24-month RPO bookings growth. And Berg added that the highlight of the quarter was the initial FY23 subscription growth guidance of 20% — which improves visibility for subs revenue growth to accelerate over FY22 levels.

These are the Q3 fiscal 2022 results for the quarter:

— Total revenues were $1.33 billion, an increase of 20.0% from the third quarter of fiscal 2021. Subscription revenue was $1.17 billion, an increase of 21.0% from the same period last year.

— Operating income was $23.9 million, or 1.8% of revenues, compared to an operating loss of $14.1 million, or negative 1.3% of revenues, in the same period last year. And non-GAAP operating income for the third quarter was $332.2 million, or 25.0% of revenues, compared to a non-GAAP operating income of $268.1 million, or 24.2% of revenues, in the same period last year.

— Basic and diluted net income per share was $0.17, compared to a basic and diluted net loss per share of $0.10 in the third quarter of fiscal 2021. And non-GAAP basic and diluted net income per share was $1.15 and $1.10, respectively, compared to a non-GAAP basic and diluted net income per share of $0.92 and $0.86, respectively, in the same period last year.

— Operating cash flows were $384.7 million compared to $293.8 million in the prior year.

— Cash, cash equivalents, and marketable securities were $3.55 billion as of October 31, 2021.

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