Fiscal Second Quarter Total Revenues of $1.79 Billion, Up 16.3% Year Over Year
Subscription Revenues of $1.62 Billion, Up 18.8% Year Over Year
24-Month Subscription Revenue Backlog of $10.27 Billion, Up 22.7% Year Over Year
Total Subscription Revenue Backlog of $17.85 Billion, Up 32.5% Year Over Year
Workday, Inc. , a leader in enterprise cloud applications for finance and human resources, today announced results for the fiscal 2024 second quarter ended July 31, 2023.
Fiscal 2024 Second Quarter Results
- Total revenues were $1.79 billion, an increase of 16.3% from the second quarter of fiscal 2023. Subscription revenues were $1.62 billion, an increase of 18.8% from the same period last year.
- Operating income was $36.3 million, or 2.0% of revenues, compared to an operating loss of $34.1 million, or negative 2.2% of revenues, in the same period last year. Non-GAAP operating income for the second quarter was $421.4 million, or 23.6% of revenues, compared to a non-GAAP operating income of $301.6 million, or 19.6% of revenues, in the same period last year.1
- Basic and diluted net income per share was $0.30, compared to basic and diluted net loss per share of $0.25 in the second quarter of fiscal 2023. Non-GAAP basic and diluted net income per share was $1.45 and $1.43, respectively, compared to non-GAAP basic and diluted net income per share of $0.86 and $0.83, respectively, in the same period last year.2
- Operating cash flows were $425.3 million compared to $114.4 million in the prior year.
- Cash, cash equivalents, and marketable securities were $6.66 billion as of July 31, 2023.
Comments on the News
“We’re incredibly well positioned going into the second half of our fiscal year as Workday is increasingly seen as the system of trust for enterprises around the world,” said Carl Eschenbach, co-CEO, Workday. “Our customers – now representing more than 65 million users under contract – rely on Workday to manage critical business processes. Our growing customer base, continued global expansion, industry growth, and partner ecosystem momentum set us up for durable long-term success. These factors, combined with the diversity of our products, the strength of our value proposition, and our winning culture make Workday one of the most enduring software businesses of our time.”
“Workday delivered another strong quarter, driven by our ongoing focus on employees, customers, and innovation including our leadership in AI and ML,” said Aneel Bhusri, co-founder, co-CEO, and chair, Workday. “We’re seeing continued momentum with more than 3,000 customers sharing their data with our ML models, more than 50 million ML inferences processed per day, and multiple generative AI capabilities in development including several that we plan to unveil next month at Workday Rising. We believe this momentum will continue to grow as more companies look to Workday as their trusted partner in responsible implementation of AI and ML.”
“The strength of our Q2 results and momentum going into the second half of our fiscal year highlight the compelling opportunity ahead for Workday,” said Zane Rowe, chief financial officer, Workday. “We are raising our fiscal 2024 subscription revenue guidance to a range of $6.570 billion to $6.590 billion, representing 18% year-over-year growth. We expect third-quarter subscription revenue to be $1.678 billion to $1.680 billion, or 17% growth. In addition, we are raising our fiscal 2024 non-GAAP operating margin guidance to 23.5%, and we plan on maintaining a disciplined approach of investing in long-term growth while expanding margins.”
Recent Highlights
- Workday announced continued momentum for Workday Financial Management with new customers including KinderCare, Metropolitan Community College, Nordic Consulting Inc., Palomar Health, and The Medical College of Wisconsin. Workday also announced new Workday Human Capital Management (HCM) customers including Commercial Vehicle Group, Mercy Aged and Community Care, SoftwareOne AG, and Symrise AG.
- Workday saw continued momentum across its net new and existing customer base, surpassing 65 million users and more than 5,000 core Workday Financial Management and Workday HCM customers.
- Workday saw notable industry growth in Q2, with retail and hospitality joining financial services at $1 billion in annual recurring revenue.
- Workday demonstrated continued leadership in AI and ML, announcing the company’s generative AI strategy, and its work with policymakers to help shape the European Parliament’s amendments to the proposed AI Act.
- Workday named a Customers’ Choice in the 2023 Gartner Peer InsightsTM Voice of the Customer for Financial Planning Software report.3
- Workday Adaptive Planning was recognized by SIIA as Best Financial Management Solution. Workday HCM was also named a leader in The Forrester WaveTM: Human Capital Management Q2 2023.
- Workday continued to add to its leadership bench with the appointment of Emma Chalwin to chief marketing officer.
