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HR Software Maker Workday Disappoints With Weak Forecast

February 29, 2016

Workday Inc. Chairman & Co-CEO Aneel Bhusri InterviewWorkday Inc. Chairman & Co-CEO Aneel Bhusri Interview
Aneel Bhusri, chairman, co-founder chief executive officer of Workday.Photograph by David Paul Morris — Bloomberg/Getty Images

(Reuters) – Human resources software maker Workday forecast current-quarter revenue below analysts’ expectations amid wide-spread worries about signs of weak demand.

The company, which makes software to manage employee performance, payroll and expense, forecast revenue of $337 million-$339 million for the first quarter ending April.

Analysts on average were expecting revenue of $343.1 million, according to Thomson Reuters I/B/E/S.

Workday‘s shares (WDAY) were down nearly 3% in extended trading on Monday.

Shares of cloud-computing companies, including Workday, were hit this month after weak sales forecast from Tableau Software Inc sparked worries about valuations and potentially sluggish enterprise IT spending.

Workday reported a bigger net loss for the fourth quarter ended Jan. 31, hurt by higher spending on sales, marketing and product development.

The company’s net loss widened to $81.1 million, or 42 cents per share, from $59.5 million, or 32 cents per share, a year earlier.

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On an adjusted basis, the company reported a loss of 1 cent per share.

Revenue rose to $323.4 million from $226.3 million.

Analysts had expected a loss of 5 cents per share and revenue of $319.6 million.