(Reuters) -Workday reported third-quarter subscription revenue in line with Wall Street estimates on Tuesday, signaling softer demand and sending its shares down nearly 7% in extended trading.

The human resources software provider’s fourth-quarter subscription revenue forecast was also barely above estimates, hit by sluggish demand from certain higher education customers that depend heavily on federal funding.

Workday competes with Oracle, SAP and payroll providers such as Automatic Data Processing. Its customers include United Airlines, Visa and FedEx.

In an uncertain economy, some customers are tightening spend on platforms like Workday as they reassess budgets and timing.

The company expects fourth-quarter subscription revenue of about $2.36 billion, compared with analysts’ average

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