Workday (NASDAQ:WDAY) is a California-based company that provides enterprise cloud applications in the United States and around the world. Shares of Workday were down 1.96% in mid-morning trading on Tuesday, February 27. Meanwhile, the stock was still up 12% so far in 2024. The stock has encountered some turbulence after unveiling its most recent earnings report.

This company released its fourth quarter (Q4) and full-year fiscal 2024 earnings on February 26, 2024. In Q4 2023, total revenues rose 17% year-over-year to $1.9 billion. Meanwhile, subscription revenues increased 18% from the prior year to $1.8 billion. Operating income was reported at $79 million, which represented 4.1% of total revenues. That was compared with an operating loss of $89 million or negative 5.4% of revenues in the fourth quarter of fiscal 2023.

Diluted net income per share was reported at $4.42 in Q4 FY2024. That was up significantly from diluted net income per share of $0.49 in the previous year.

For the full year, total revenues reached $7.3 billion – up 17% compared to fiscal 2023. Moreover, subscription revenues jumped 19% to $6.6 billion. Operating income was reported at $183 million, which represented 2.5% of revenues. Meanwhile, Workday’s total subscription revenue backlog was $20.9 billion – up 27% compared to the same period in fiscal 2023. The 24-month subscription revenue backlog reached $11.7 billion – up 20% year over year.

Shares of Workday are still trading in favourable value territory compared to its industry peers. Meanwhile, its earnings are geared up for strong growth going forward.