About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Financial Data and Key Metrics - Subscription revenue in Q4 was $1.76 billion, up 18%, and full-year FY '24 subscription revenue was $6.6 billion, growing 19% [42] - Professional services revenue was $162 million in the quarter and $656 million for the year [42] - Total revenue in Q4 was $1.92 billion and for the full year was $7.26 billion, both growing 17% [42] - U.S. revenue in Q4 totaled $1.44 billion, up 16%, and international revenue totaled $478 million, growth of 21% [42] - 12-month subscription revenue backlog (CRPO) was $6.62 billion at the end of Q4, representing growth of 20% [43] - Non-GAAP operating income for the fourth quarter was $461 million, resulting in a non-GAAP operating margin of 23.9% [44] - Full-year non-GAAP operating income was $1.74 billion, reflecting a non-GAAP operating margin of 24% [44] - Q4 operating cash flow was $996 million, with full-year operating cash flow of $2.15 billion, growth of 30% [44] Business Line Performance - Extend saw new ACV double year-over-year in Q4, with over 850 Extend customers [20] - Health care grew new ACV over 50% in Q4, capping off a strong FY '24 [14] - Full platform wins in Q4 included Australian Stock Exchange, Boyd Gaming Corporation, and others [19] - HCM deployments in Q4 included AT&T, Northern Trust, and Whataburger [20] - Financial Management go-lives in Q4 included American University, Sagility Operations, and UMass Memorial Health [20] Market Performance - International markets, particularly EMEA and APAC, showed strong growth, with Japan driving strong new ACV growth in Q4 [13][22] - The U.K., Spain, and France delivered healthy new ACV growth in Q4 [21] - The U.S. Federal business saw the appointment of a new leader, Lynn Martin, to accelerate growth [24] Company Strategy and Industry Competition - The company is focusing on AI, with significant investments in AI capabilities and the planned acquisition of HiredScore [10][18] - Workday is expanding its international presence, with over half of its addressable opportunity in international markets [13] - The company is investing in industry-specific solutions, particularly in health care, education, government, and financial services [35] - Workday is enhancing its platform with AI-driven features, including generative AI use cases and AI-powered talent acquisition [18][34] Management Commentary on Business Environment and Future Outlook - Management highlighted the importance of trust in AI development and deployment, with Workday committed to responsible AI practices [10] - The company is optimistic about FY '25, with a focus on durable subscription revenue growth and margin expansion [41][46] - Management emphasized the strength of the company's partner ecosystem and its role in driving growth [25][27] Other Important Information - Workday repurchased $136 million of its shares in Q4 and authorized a new $500 million share repurchase program [45] - The company ended the quarter with $7.8 billion in cash and marketable securities [45] - Workday's FY '25 guidance includes subscription revenue of $7.725 billion to $7.775 billion, representing growth of 17% to 18% [46] Q&A Session Summary Question: Impact of new products and partnerships on growth rate [52] - The company reiterated its FY '25 guidance, reflecting confidence in its strategic growth initiatives, including AI, international expansion, and partnerships [56][57] Question: AI's impact on productivity, particularly in HR and talent management [59] - AI is expected to drive productivity gains, especially in talent acquisition, with the integration of HiredScore enhancing recruiting and internal mobility processes [60][61] Question: Subscription revenue beat and CRPO dynamics [63] - Subscription revenue came in ahead of guidance, with CRPO growth influenced by early renewals and strong demand [64][65] Question: Confidence in platform deals and pipeline for FY '25 [68] - The company is confident in its full platform approach, with strong growth in medium enterprise and large enterprise deals, particularly in health care and government [69][70] Question: Backlog growth and early renewals [72] - Backlog growth is influenced by early renewals, with variability expected quarter-to-quarter [74][75] Question: Vertical strategy and industry focus [79] - Health care, retail, hospitality, and financial services are key verticals driving growth, with strong performance in professional services and medium enterprise deals [80][82] Question: Large enterprise vs. medium enterprise traction [86] - Both large enterprise and medium enterprise segments showed strong growth in Q4, with medium enterprise snapping back after a soft first half of the year [89][90] Question: Margin and free cash flow outlook [92] - The company is balancing growth investments with margin expansion, targeting a non-GAAP operating margin of 24.5% in FY '25 [93][97] Question: CRPO growth and early renewal impact [100] - CRPO growth in Q4 included 1.5 points from early renewals, with variability expected in future quarters as the company laps periods of strong renewal activity [101][103] Question: Sales rep productivity and hiring plans [106] - The company is pleased with the productivity of new sales reps focused on Financials, with continued investment in go-to-market and product development [107][108] Question: Subscription revenue reacceleration and pipeline visibility [110] - The company is optimistic about subscription revenue growth in FY '25, driven by investments in Financials, international expansion, and AI [111][113]

Shares of Workday Inc. fell 8% in after-hours trading Monday after the software company merely met revenue expectations for the latest quarter, while announcing an artificial-intelligence deal. The company reported fiscal fourth-quarter net income of $1.2 billion, or $4.52 cents a share, whereas it reported a net loss of $126 million, or 49 cents a share, in the year-earlier period. Net income in the latest quarter reflected a $1.1 billion release of a valuation allowance related to deferred tax assets. ...

For the quarter ended January 2024, Workday (WDAY) reported revenue of $1.92 billion, up 16.8% over the same period last year. EPS came in at $1.57, compared to $0.99 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.91 billion, representing a surprise of +0.45%. The company delivered an EPS surprise of +9.03%, with the consensus EPS estimate being $1.44.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

Workday (WDAY) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.44 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.03%. A quarter ago, it was expected that this maker of human resources software would post earnings of $1.40 per share when it actually produced earnings of $1.53, delivering a surprise of 9.29%.Over the last four quarte ...

Acquisition Will Combine Industry-Leading Responsible AI Solutions to Elevate the Talent Acquisition Experience for Companies Around the World PLEASANTON, Calif., Feb. 26, 2024 /PRNewswire/ -- Workday, Inc. (NASDAQ:WDAY), a leading provider of solutions to help organizations manage their people and money, has entered into a definitive agreement to acquire HiredScore, a leading provider of AI-powered talent orchestration solutions, which enable companies to use data-driven insights to improve recruiting and ...

Revenue Growth - Fiscal 2024 Q4 total revenues were $1.9 billion, up 17% YoY, with subscription revenues of $1.8 billion, up 18% YoY[2][5] - Fiscal 2024 full-year total revenues were $7.3 billion, up 17% YoY, with subscription revenues of $6.6 billion, up 19% YoY[2][5] - Total revenues for the year ended January 31, 2024, increased to $7.259 billion, up from $6.216 billion in 2023, representing a 16.8% growth[24] - Subscription services revenue grew to $6.603 billion in 2024, a 18.6% increase compared to $5.567 billion in 2023[24] Cash Flow and Financial Position - Operating cash flows for fiscal 2024 were $2.1 billion, up 30% YoY, with free cash flows of $1.9 billion, up 46% YoY[5] - Cash and cash equivalents increased to $2.012 billion as of January 31, 2024, up from $1.886 billion in 2023[22] - Net cash provided by operating activities for the year ended January 31, 2024, was $2.149 billion, up from $1.657 billion in 2023[26] - Free cash flow for Q1 2024 was $948 million, compared to $617 million in Q1 2023[35] - Free cash flow for the fiscal year ended January 31, 2024, was $1.917 billion, compared to $1.293 billion in the previous fiscal year[35] Subscription Revenue Backlog - Total subscription revenue backlog reached $20.9 billion, up 27% YoY, with 12-month backlog at $6.6 billion and 24-month backlog at $11.7 billion, both up 20% YoY[5] Share Repurchase and Capital Allocation - Workday repurchased 1.8 million shares of Class A common stock for $423 million as part of its share repurchase program[5] - Workday's Board of Directors approved a new 18-month share repurchase program to repurchase up to an additional $500 million of Class A common stock[8] Leadership and Organizational Changes - Workday named Carl Eschenbach CEO effective February 1, 2024, with Aneel Bhusri transitioning to co-founder and executive chair[8] Acquisitions and Strategic Investments - Workday announced the acquisition of HiredScore, a leading provider of AI-powered talent orchestration solutions[8] Financial Performance and Margins - Workday reiterated fiscal 2025 subscription revenue guidance of $7.725 billion to $7.775 billion, representing 17% to 18% growth, with a non-GAAP operating margin of approximately 24.5%[6] - GAAP operating income for Q1 2024 was $79 million, with a non-GAAP operating income of $461 million, reflecting an operating margin of 23.9%[29] - For the fiscal year ended January 31, 2024, GAAP operating income was $183 million, with a non-GAAP operating income of $1.740 billion, reflecting an operating margin of 24.0%[29] - Net income for the year ended January 31, 2024, was $1.381 billion, a significant improvement from a net loss of $367 million in 2023[24] - Net income for Q1 2024 was $1.188 billion on a GAAP basis and $421 million on a non-GAAP basis, with diluted earnings per share of $4.42 (GAAP) and $1.57 (non-GAAP)[29] - Net income for the fiscal year ended January 31, 2024, was $1.381 billion on a GAAP basis and $1.549 billion on a non-GAAP basis, with diluted earnings per share of $5.21 (GAAP) and $5.84 (non-GAAP)[29] Balance Sheet and Liabilities - Workday's cash, cash equivalents, and marketable securities totaled $7.8 billion as of January 31, 2024[5] - Total assets grew to $16.452 billion in 2024, compared to $13.486 billion in 2023, a 22% increase[22] - Total current liabilities increased to $5.055 billion in 2024, up from $4.628 billion in 2023[22] - Unearned revenue grew to $4.057 billion in 2024, up from $3.559 billion in 2023, a 14% increase[22] - Total stockholders' equity increased to $8.082 billion in 2024, compared to $5.585 billion in 2023, a 44.7% growth[22] Capital Expenditures - Total capital expenditures for Q1 2024 were $48 million, including $46 million for capital expenditures excluding owned real estate projects and $2 million for owned real estate projects[35] - Total capital expenditures for the fiscal year ended January 31, 2024, were $232 million, including $228 million for capital expenditures excluding owned real estate projects and $4 million for owned real estate projects[36] Share-Based Compensation - Share-based compensation expenses for the year ended January 31, 2024, totaled $1.416 billion, compared to $1.295 billion in 2023[24] - Share-based compensation expenses for Q1 2024 were $346 million, contributing to the adjustment from GAAP to non-GAAP operating income[29] Tax Rate - The non-GAAP tax rate for fiscal 2024 and 2023 was 19%, reflecting a fixed long-term projected tax rate[33]

Workday, Inc. (WDAY) is set to release fourth-quarter fiscal 2024 results on Feb 26, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 13.23% on average.Based in Pleasanton, CA, the company is expected to have recorded higher revenues driven by solid demand for its human capital management (HCM) and financial management solutions, along with its wide-ranging product portfolio, which continues to attract customers across the market. Management’s focus on integrating advanced ...

Workday (WDAY) closed the latest trading day at $299.09, indicating a -1.9% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.3%.Heading into today, shares of the maker of human resources software had gained 7.64% over the past month, lagging the Computer and Technology sector's gain of 11.35% and outpacing the S&P 500's gain of 5.78% in that time.Market participants will be closel ...

The most recent trading session ended with Workday (WDAY) standing at $291.73, reflecting a -1.02% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.32%. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.2%.Prior to today's trading, shares of the maker of human resources software had gained 10.89% over the past month. This has outpaced the Computer and Technology sector's gain of 9.33% and the ...