By Sabela Ojea

Shares of Workday dropped 8.5% to $281 in post-market trading after the company said it is cautiously optimistic about its first-quarter and full-year performances despite beating analysts estimates in the fourth quarter.

The cloud enterprise company for finance and human resources on Monday guided for a backlog of 18% for the quarter ending in April, reflecting a declining trend on a sequential basis.

In its third and fourth quarters, Workday reported higher backlogs of 22% and 20%, respectively.

The company reiterated its full-year subscription revenue guidance of $7.72 billion to $7.78 billion, representing growth of 17% to 18%, but reflected an outlook "for current macro conditions to persist throughout fiscal 2025," finance chief Zane Rowe said during an earnings call with analysts.

Write to Sabela Ojea at

(END) Dow Jones Newswires

02-26-24 1848ET