Financial Data and Key Metrics Changes - Workday reported a 17% growth in subscription revenue, totaling $1.903 billion for Q2 2025 [19] - Total revenue for Q2 reached $2.085 billion, also reflecting a 17% increase [19] - The 12-month subscription revenue backlog (cRPO) grew by 16% to $6.80 billion [20] - Non-GAAP operating margin was reported at 24.9%, with non-GAAP operating income of $518 million [20] - Operating cash flow increased by 34% to $571 million, driven by strong collections [20] Business Line Data and Key Metrics Changes - Workday Financial Management crossed the 2,000 customer milestone, indicating strong growth in this segment [8] - The company experienced healthy growth in full suite wins, contributing to overall momentum [7] - Professional services revenue for Q2 was $182 million, contributing to the total revenue growth [19] Market Data and Key Metrics Changes - US revenue grew by 16% to $1.56 billion, while international revenue increased by 18% to $524 million [19] - The company reported strong performance in APAC and Japan, with significant wins in EMEA [10] - Workday was ranked as the market share leader for Worldwide SaaS ERP revenue in 2023 by Gartner [8] Company Strategy and Development Direction - Workday aims to balance growth and margin expansion, with a focus on core markets of HR and Finance [17] - The company is investing in AI innovations to enhance customer value and operational efficiencies [11] - Workday is expanding its partner ecosystem, which has significantly contributed to new annual contract value (ACV) [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment is consistent with previous quarters, indicating a new norm for IT spending [34] - The company expects subscription revenue growth in the mid-teens for FY '26 and FY '27, reflecting confidence in market opportunities [25] - Management emphasized the importance of operational efficiencies and targeted investments to support durable growth [26] Other Important Information - Workday announced a new $1 billion share repurchase program, reflecting commitment to returning capital to shareholders [21] - The company is preparing for its annual developer conference, expecting over 30,000 attendees [14] Q&A Session Summary Question: Additional efficiency at scale while investing in international - Management highlighted ongoing efforts to find efficiencies in global workforce strategy and technology [29] Question: Impact of elections and lower rates on short-term outlook - Management indicated that the current macro environment is expected to remain stable, regardless of external factors [34] Question: AI's impact on software landscape and customer spending - Management noted that customers are investing in AI alongside Workday, leveraging the company's clean data sets [37] Question: Confidence in mid-teens growth despite lower growth rate - Management cited strong partner contributions and international opportunities as key drivers of confidence in growth [39] Question: Growth initiatives review and potential sources of incremental growth - Management expressed confidence in current growth initiatives, particularly in financials and international markets [42] Question: Correlation between free cash flow margin and operating margin - Management indicated that while there may be differences, they are still ramping in several industries where payments do not correlate directly with revenue [53] Question: Vertical strength and pipeline perspective - Management confirmed continued strength in healthcare and higher education sectors, with multi-year opportunities [59]

Core Insights - Workday reported revenue of $2.09 billion for the quarter ended July 2024, reflecting a year-over-year increase of 16.7% and a surprise of +0.72% over the Zacks Consensus Estimate of $2.07 billion [1] - Earnings per share (EPS) for the quarter was $1.75, compared to $1.43 in the same quarter last year, resulting in an EPS surprise of +7.36% against the consensus estimate of $1.63 [1] Revenue Breakdown - Subscription revenue backlog reached $21.58 billion, exceeding the average estimate of $21.37 billion based on four analysts [3] - Subscription services revenue was reported at $1.90 billion, matching the average estimate from 10 analysts, with a year-over-year increase of +17.2% [4] - Professional services revenue amounted to $182 million, surpassing the estimated $173.42 million from 10 analysts, representing an increase of +11.8% compared to the previous year [5] Stock Performance - Workday shares have returned +5.9% over the past month, outperforming the Zacks S&P 500 composite's +2.2% change [5] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [5]

Investor Presentation Q2 FY25 Safe Harbor Statement This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancements or upgrades to our existing applications or plans for future applications; any projections of revenues, gross margins, earnings, or other financial items; and any statements of expecta ...

Revenue Performance - Total revenues for Q2 FY2025 were $2.085 billion, up 16.7% year-over-year, with subscription revenues of $1.903 billion, an increase of 17.2% from the same period last year[1]. - Total revenues for the three months ended July 31, 2024, increased to $2,085 million, up 16.7% from $1,787 million in the same period last year[12]. - Subscription services revenue reached $1,903 million for the three months ended July 31, 2024, compared to $1,624 million for the same period in 2023, reflecting a growth of 17.1%[12]. - For Q3 FY2025, Workday expects subscription revenue of $1.955 billion, representing growth of 16%[5]. Profitability Metrics - Operating income was $111 million, or 5.3% of revenues, compared to $36 million, or 2.0% of revenues, in the same period last year; non-GAAP operating income was $518 million, or 24.9% of revenues[1]. - Net income for the three months ended July 31, 2024, was $132 million, a significant increase from $79 million in the same period last year, representing a growth of 67.1%[12]. - Non-GAAP operating income for the three months ended July 31, 2024, was $518 million, compared to $421 million for the same period in 2023, representing a 23% increase[17]. - Workday's diluted net income per share was $0.49, compared to $0.30 in Q2 FY2024; non-GAAP diluted net income per share was $1.75, up from $1.43[1]. - The company reported a diluted net income per share of $0.49 for the three months ended July 31, 2024, compared to $0.30 for the same period in 2023, marking a growth of 63.3%[12]. Cash Flow and Financial Position - Workday's cash, cash equivalents, and marketable securities totaled $7.37 billion as of July 31, 2024[1]. - Cash provided by operating activities for the three months ended July 31, 2024, was $571 million, compared to $425 million in the same period last year, showing an increase of 34.4%[14]. - Free cash flows for the six months ended July 31, 2024, were $807 million, compared to $579 million for the same period in 2023, indicating a 39% increase[19]. - Cash, cash equivalents, and restricted cash at the end of the period were $1,649 million, compared to $1,448 million at the end of the same period last year, indicating an increase of 13.9%[14]. Subscription Backlog - 12-month subscription revenue backlog reached $6.80 billion, up 16.1% year-over-year, while total subscription revenue backlog was $21.58 billion, increasing 20.9% year-over-year[1]. Market Position and Shareholder Actions - Workday's market share for ERP Worldwide SaaS revenue was reported at 19.6% in 2023, the largest in the industry according to Gartner[4]. - The company announced a new share repurchase program to buy back up to an additional $1.0 billion of its Class A common stock[4]. - Workday now has over 70 million users under contract and more than 2,000 Workday Financial Management customers[3]. Cost and Expense Management - Total costs and expenses for the three months ended July 31, 2024, were $1,974 million, an increase from $1,751 million in the same period last year, reflecting a rise of 12.8%[12]. - Total share-based compensation expenses for the six months ended July 31, 2024, were $755 million, up from $722 million in the same period last year, reflecting a growth of 4.6%[13]. - Share-based compensation expenses for the three months ended July 31, 2024, were $370 million, compared to $352 million for the same period in 2023, reflecting a 5% increase[17]. - Capital expenditures for the three months ended July 31, 2024, were $55 million, down from $65 million in the same period last year, indicating a 15% decrease[19]. Future Guidance - The company updated its FY2025 subscription revenue guidance to between $7.700 billion and $7.725 billion, representing approximately 17% growth[5]. - The projected non-GAAP tax rate for fiscal 2024 and 2025 is set at 19%[23]. - Workday plans to exclude certain acquisition-related costs and realignment costs from its non-GAAP results starting fiscal 2025[20].

Workday, Inc. WDAY is expected to release earnings results for its second quarter, after the closing bell on Thursday, Aug. 22. Analysts expect the Pleasanton, California-based company to report quarterly earnings at $1.65 per share, up from $1.43 per share in the year-ago period. Workday is projected to report quarterly revenue of $2.07 billion, according to data from Benzinga Pro. On Aug. 21, Axonify signed a partnership agreement with Workday. Workday shares gained 0.5% to close at $233.51 on Wednesday. ...

Workday, Inc. (WDAY) recently entered into a partnership agreement with Axonify to improve frontline worker engagement and learning through leveraging their combined capabilities. Axonify specializes in mobilefirst learning management systems that utilize microlearning and AI-powered reinforcement to match the needs of today's frontline employees. Consequently, the Workday Human Capital Management product suite offers a comprehensive array of tools designed to support various aspects of workforce management ...

Workday, Inc. (WDAY) has unveiled its cutting-edge global HR and payroll solution in collaboration with Strada, aimed at providing organizations with a unified view of their payroll data to enhance business growth and success. Dubbed Workday Payroll provided by Strada, this solution leverages AI to analyze and interpret extensive HR and payroll data, providing predictive insights and supporting data-driven decision-making. It also aims to enable businesses to customize payroll services to meet local regulat ...

Partnership Provides Protiviti Additional Strength to Deliver Technology Modernization and Business Transformations for Clients MENLO PARK, Calif., Aug. 12, 2024 /PRNewswire/ -- Global consulting firm Protiviti today announced it has been named a Workday Services Partner by Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money. As a Workday Services partner, Protiviti will collaborate with Workday to manage customers' workforce programs and impleme ...

LAS VEGAS, Aug. 06, 2024 (GLOBE NEWSWIRE) -- WHAT: During Workday Rising 2024, Avaap will showcase two Workday transformation success stories to help leaders in the higher education and non-profit sectors prepare for change and modernization in their organizations and institutions. These sessions will address the benefits, preparation, and considerations required when transforming systems with Workday. Each session will address critical questions such as: What are best practices to gain executive buy-in? Wh ...

PLEASANTON, Calif., Aug. 2, 2024 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, plans to announce its fiscal 2025 second quarter financial results after market close on Thursday, August 22, 2024. The company will host a conference call at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to review its financial results and business outlook. A live webcast of the event will be available on the Workday Investor Relations site. T ...