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Total Revenues: Workday’s total revenues reached $1.990 billion, marking an 18.1% increase from the first quarter of fiscal 2024.
- Subscription Revenues: Subscription revenues were $1.815 billion, up 18.8% year-over-year, reflecting continued growth in this core segment.
- Operating Income: The company reported an operating income of $64 million, compared to an operating loss of $20 million in the same period last year. Non-GAAP operating income stood at $515 million, representing 25.9% of revenues.
- Net Income: Diluted net income per share was $0.40, compared to $0.00 in the first quarter of fiscal 2024. Non-GAAP diluted net income per share was $1.74, up from $1.33 in the same period last year.
- Subscription Revenue Backlog: Workday’s 12-month subscription revenue backlog reached $6.60 billion, a 17.9% increase from the previous year. Total subscription revenue backlog was $20.68 billion, up 24.2% year-over-year.
- Cash Flows: Operating cash flows totaled $372 million, while free cash flows amounted to $291 million, demonstrating solid financial performance and cash generation capabilities.
- Share Repurchase: Workday repurchased approximately 0.5 million shares of Class A common stock for $134 million during the quarter.
- Strategic Initiatives: Workday continued to enhance its offerings and expand its partnerships, including the acquisition of HiredScore and collaborations with AWS and Google Cloud.
- Recognition and Awards: The company received accolades such as the Gartner Peer Insights Customers’ Choice distinction and recognition as one of the World’s Most Ethical Companies and America’s Best Employers For Diversity.
Financial Outlook:
- Full Year Guidance (Fiscal 2025): Workday revised its guidance for subscription revenue to be between $7.700 billion to $7.725 billion, with a non-GAAP operating margin of 25.0%.
- Second Quarter Guidance: For the fiscal 2025 second quarter, the company anticipates subscription revenue of $1.895 billion and a non-GAAP operating margin of 24.5%.
Earnings Call: Workday will host a conference call today to discuss its fiscal 2025 first quarter financial results and provide insights into its financial outlook.
Workday’s strong performance in the first quarter of fiscal 2025 underscores its continued growth trajectory and commitment to delivering value to customers and shareholders. With solid revenue growth, margin expansion, and strategic initiatives underway, the company remains well-positioned for long-term success in the dynamic market landscape.
