Workday stock falls 10% after subscription revenue forecast seen below estimates; unveils AI Marketplace
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Workday (NASDAQ:WDAY) on Wednesday announced several new generative AI solutions, including an AI Marketplace at its annual customer conference, Workday Rising.
However, the company's stock fell ~10% premarket on Thursday after it guided annual subscription revenue growth of 17% to 19% over the next three years, which as per analysts fell short of expectations, according to a Bloomberg note.
Workday was expected to reaffirm its 20%-plus subscription growth target, as per Bloomberg Intelligence.
On Wednesday the company unveiled the Workday AI Marketplace, noting that it will help its customers find and deploy certified artificial intelligence, or AI, and machine learning, or ML, partner solutions to boost their businesses.
The marketplace will have AI and ML apps which integrate with Workday data through APIs, and apps built via Workday Extend using Workday-trained large language models, or LLMS, according to the company.
Workday Extend helps organizations build customized applications on top of the Workday platform.
The company said that Marketplace is currently in beta with 15 early adopter partners, which include Amazon (AMZN), Accenture (ACN), and Vertex (VERX), among others.
Marketplace is expected to be live to customers in H1 2024.
Workday also announced generative AI capabilities to address common business challenges such as generating job descriptions, knowledge base articles, employee growth plans, and statements of work, and contract analysis and corrections.
In addition, the company introduced Workday AI Gateway within Workday Extend to enable developers to build intelligent and responsible apps using Workday AI.
"The Workday AI Marketplace will enable our customers to harness the incredible amount of AI innovation happening today while at the same time give them the peace of mind in knowing that each solution is proven, trusted, and meets Workday's stringent standards for responsible AI," said Aneel Bhusri, co-founder, co-CEO, and chair, Workday.
WDAY -10.06% to $207.60 premarket Sept. 28

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