By Micah Maidenberg 
 

Workday Inc. said Wednesday that it is reducing its forecast for subscription-based revenue for its current fiscal year due to the effects of the Covid-19 pandemic.

The company said it now believes it will generate subscription-based revenue in the range of $3.67 billion to $3.69 billion for its fiscal 2021 year.

In February, the provider of cloud-based human resources and financial reporting software said it expected subscription-based revenue of $3.76 billion to $3.77 billion for the fiscal year.

The company also said Wednesday it expects its adjusted operating margin to be 16% for the fiscal year.

Workday shares gained 7.1% to $182.49 in after-hours trading.

Workday and Microsoft Corp. announced a new strategic partnership on Wednesday. Under the arrangement, Workday customers will also be able to run Workday Adaptive Planning, a planning tool for businesses focused on finance, sales and workforce issues, on Microsoft's Azure cloud.

Microsoft will adopt Workday Adaptive Planning for its global finance teams, the companies said.

 

Write to Micah Maidenberg at micah.maidenberg@wsj.com

 

(END) Dow Jones Newswires

May 27, 2020 16:54 ET (20:54 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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