Workday Inc (NASDAQ:WDAY) stock fell 9.45% (As on May 27, 11:10:30 AM UTC-4, Source: Google Finance) after the company misses the earnings estimates for the first quarter of FY 22. Subscription revenue in the quarter rose 23% year-over-year, to $1.27 billion, while operating cash flow was $439.7 million, down from $454.2 million in the prior year. Non-GAAP operating income for the first quarter was $288.6 million, or 20.1% of revenues, compared to a non-GAAP operating income of $288.5 million, or 24.6% of revenues, in the same period last year. Cash, cash equivalents and marketable securities were $6.26 billion as of April 30. Meanwhile, the company intends to create 1,000 new jobs at its European headquarters in Dublin and plans to build a new HQ at Grangegorman in Dublin. The company also completed the issuance and sale of $3 billion aggregate principal amount of senior notes in an underwritten, registered public offering.

Further, building on its long-standing support of ESG, Workday shared its commitments to ESG as well as announced two new ESG solutions to help customers drive social and sustainability initiatives as they navigate evolving ESG regulations and corporate accountability standards.

WDAY in the first quarter of FY 22 has reported the adjusted earnings per share of 83 cents, missing the analysts’ estimates for the adjusted earnings per share of 85 cents. The company had reported the adjusted revenue growth of 22 percent to $1.43 billion in the first quarter of FY 22, which is inline with the analysts’ estimates for revenue of $1.43 billion. The company has Total Subscription Revenue Backlog $12.65B, which represents an increase of 26% and 24-month Subscription Revenue Backlog $7.97B, which represents an increase of 21%

For its fiscal second quarter of 2023, Workday predicted an adjusted operating margin of 17.5% on revenue of $1.517 billion to $1.519 billion. Q2 2023 24-month Subscription Revenue Backlog is expected to increase 20%.

For the full fiscal year of 2023, the company is predicting revenue of $6.187 billion to $6.2 billion. FY 23 Non-GAAP Operating Margin is expected to be 18.5% and Operating Cash Flows to be $1.610B.

Workday is also predicting subscription revenue of $1.353 billion to $1.355 billion in its second quarter and $4.537 billion to $5.557 billion for the full year. Both would be up 22% compared to the previous periods last year.