06:20 AM EDT, 05/24/2024 (MT Newswires) -- (Updates with the stock move in the headline and the first paragraph.)

Workday (WDAY) shares were down 12% in premarket activity on Friday after the company cut its fiscal 2025 subscription-revenue guidance, taking the shine out of its Q1 earnings and revenue beat.

The company reported fiscal Q1 non-GAAP net income late Thursday of $1.74 per diluted share, up from $1.33 a year earlier.

Analysts polled by Capital IQ expected $1.58.

Total revenue in the quarter ended April 30 rose to $1.99 billion from $1.68 billion a year earlier.

Analysts polled by Capital IQ expected $1.97 billion.

The company expects fiscal Q2 subscription revenue of $1.895 billion.

The company cut its fiscal year 2025 subscription-revenue guidance to $7.70 billion to $7.725 billion from $7.725 billion to $7.775 billion.

Price: 228.80, Change: -32.10, Percent Change: -12.30