In Friday's premarket, Workday shares fell 8% as valuation concerns over its $510 million acquisition of VNDLY gripped the market.

By the end of January, the largest cash transaction should be completed. VNDLY's cloud-based platform aids businesses in managing contract employees such as consultants and freelancers.

At the end of October, Workday had $2.25 billion in cash and cash equivalents.

Workday's annual outlook was raised following better-than-expected third-quarter earnings, but the news of the merger overshadowed it. The corporation was able to enhance its yearly guidance once more as a result of the October quarter's performance.

Annual subscription revenue is now expected to be around $4.53 billion, up from $4.51 billion at the top end of the previous prediction.

Demand from large corporations for its Cloud-based finance and HR services grew 20% to $1.33 billion, helping the company maintain its pandemic-fueled pace. Subscription services brought in $1.17 billion in revenue in the third quarter.

It ended October with a backlog of $11 billion in subscription revenue, up 24%. $1.10 was the adjusted profit per share.