Key TakeawaysWorkday posted better-than-expected third-quarter results but provided a current-quarter subscription revenue outlook below Wall Street expectations, sending shares in the software maker sharply lower in early trading on Wednesday.A bearish divergence has formed between the stock's November peak and the relative strength index, a technical occurrence that signals weakening buying momentum.Investors should monitor important support areas on Workday's chart around $237, $223, and $207 while also ...

Financial Data and Key Metrics Changes - Subscription revenue in Q3 was $1.959 billion, reflecting a 16% increase year-over-year [29] - Total revenue for the quarter reached $2.160 billion, also up 16% [29] - Non-GAAP operating income was $569 million, resulting in a non-GAAP operating margin of 26.3% [30] - The 12-month subscription revenue backlog (cRPO) was $6.98 billion, increasing by 15% [29] - Total subscription revenue backlog at the end of the quarter was $22.19 billion, up 20% [29] Business Line Data and Key Metrics Changes - Professional services revenue was $201 million, contributing to the total revenue growth [29] - More than 35% of new core customers in Q3 opted for the full suite of services [13] - The healthcare sector saw significant wins, including a major deal with CommonSpirit Health [12] Market Data and Key Metrics Changes - US revenue totaled $1.62 billion, while international revenue was $537 million, both growing at 16% [29] - The professional and business services sector became the third industry to exceed $1 billion in annual recurring revenue [11] - Government and higher education sectors showed strong performance, with 90% of wins in these industries being full suite [10] Company Strategy and Development Direction - The company aims for mid-teens subscription revenue growth through FY27 while expanding non-GAAP operating margins to 30% [27] - Focus on AI solutions is a key part of the strategy, with over 30% of customer expansions involving AI products [14] - The company is investing in its Financials business to drive demand for the full suite [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the federal government market, noting a significant opportunity as many systems remain on-premises [49] - The company anticipates a strong Q4 with a solid pipeline and expects to maintain its growth trajectory despite economic headwinds [75] - Management highlighted the importance of AI in driving future growth and customer engagement [62] Other Important Information - The company repurchased $157 million of its shares during the quarter [30] - The acquisition of Evisort, a document intelligence platform, was completed, enhancing AI capabilities [20] - A new strategic partnership was formed with NTT Data in Japan, expanding international growth opportunities [24] Q&A Session Summary Question: Can you discuss the deliverable issue in Q4 and its impact on FY26 guidance? - Management noted that strategic deals in Q3 had product deliverables that would affect revenue recognition, expecting a ramp-up in FY26 [38][39] Question: How is the federal business responding to government efficiency plans? - Management believes the focus on efficiency will drive demand for cloud solutions, positioning the company favorably in the federal market [49] Question: What is the outlook for employment indicators in the customer base? - Management indicated no significant changes in employment indicators but noted a moderation in expectations [52] Question: How confident is the company in maintaining mid-teen growth rates? - Management expressed confidence due to strong Q3 performance, AI momentum, and strategic partnerships [61][62] Question: What is the company's approach to AI monetization? - The company takes a multipronged approach, integrating AI into core offerings and pricing based on customer value [110][112]

For the quarter ended October 2024, Workday (WDAY) reported revenue of $2.16 billion, up 15.8% over the same period last year. EPS came in at $1.89, compared to $1.53 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.13 billion, representing a surprise of +1.57%. The company delivered an EPS surprise of +9.88%, with the consensus EPS estimate being $1.72. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

Workday (WDAY) came out with quarterly earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to earnings of $1.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.88%. A quarter ago, it was expected that this maker of human resources software would post earnings of $1.63 per share when it actually produced earnings of $1.75, delivering a surprise of 7.36%.Over the last four quarte ...

Investor Presentation Q3 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 ...

Workday CEO Carl Eschenbach walks to a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 14, 2023.Workday shares slipped as much as 8% in extended trading on Tuesday after the human resources and finance software maker issued a quarterly forecast that came in below Wall Street projections.Here's how the company performed in relation to LSEG consensus:Earnings per share: $1.89 adjusted vs. $1.76 expectedRevenue: $2.16 billion vs. $2.13 billion expectedWorkday's total ...

Financial Performance - Total revenues for Q3 fiscal 2025 were $2.160 billion, up 15.8% year-over-year[3] - Subscription revenues reached $1.959 billion, also reflecting a 15.8% increase from the previous year[3] - Operating income was $165 million, representing 7.6% of revenues, compared to $88 million (4.7% of revenues) in Q3 fiscal 2024[3] - Non-GAAP operating income for Q3 was $569 million, or 26.3% of revenues, up from $462 million (24.8% of revenues) year-over-year[3] - The 12-month subscription revenue backlog was $6.98 billion, an increase of 15.3% year-over-year[3] - Total revenues for the nine months ended October 31, 2024, were $6,235 million, compared to $5,337 million for the same period in 2023, reflecting a growth of 13.4%[17] - Operating income for Q3 2024 was $165 million, significantly higher than $88 million in Q3 2023, marking an increase of 87.5%[17] - Net income for the nine months ended October 31, 2024, was $432 million, compared to $193 million for the same period in 2023, representing a growth of 123.3%[17] Cash Flow and Investments - Cash provided by operating activities for the nine months ended October 31, 2024, was $1,349 million, compared to $1,153 million in the same period of 2023, an increase of 17%[19] - The company reported a net cash used in investing activities of $1,054 million for the nine months ended October 31, 2024, compared to $1,270 million in the same period of 2023[19] - The company experienced a net increase in cash and cash equivalents of $128 million for the nine months ended October 31, 2024, compared to a decrease of $319 million in the same period of 2023[19] - Free cash flows for the nine months ended October 31, 2024, were $1,166 million, compared to $970 million for the same period in 2023, indicating a 20.2% increase[25] Expenses and Margins - Workday plans to achieve a non-GAAP operating margin of 25.5% for fiscal 2025[8] - Workday's total costs and expenses for the nine months ended October 31, 2024, were $5,895 million, compared to $5,233 million for the same period in 2023, reflecting an increase of 12.7%[17] - Non-GAAP operating margin for the three months ended October 31, 2024, was 26.3%, compared to 24.8% in the same period of 2023[23] - Operating margin for the three months ended October 31, 2024, improved to 7.6%, up from 4.7% in the same period of 2023[23] - Share-based compensation expenses for Q3 2024 totaled $349 million, up from $349 million in Q3 2023[19] - Share-based compensation expenses for the three months ended October 31, 2024, were $368 million, compared to $349 million for the same period in 2023, reflecting a 5.4% increase[23] Future Projections and Strategic Initiatives - Workday expects fiscal 2025 subscription revenue to be $7.703 billion, indicating a growth of 17%[4] - The company announced the introduction of Workday Illuminate and new AI agents to enhance HR and finance processes[5] - Workday completed the acquisition of Evisort, an AI-native document intelligence platform[7] - The projected non-GAAP tax rate for fiscal 2024 and 2025 is set at 19%[30] - Workday plans to exclude certain acquisition-related costs and realignment costs from its non-GAAP results starting fiscal 2025[26] Shareholder Information - The weighted-average shares used to compute diluted net income per share increased to 268,549 thousand for Q3 2024 from 266,377 thousand in Q3 2023[17] - Non-GAAP diluted net income per share for the three months ended October 31, 2024, was $1.89, up from $1.56 in the same period of 2023, reflecting a 21.1% increase[23]

Core Insights - Workday has appointed Rob Enslin as the new president and chief commercial officer (CCO) to lead its global commercial strategy and drive revenue growth [1][3] - Enslin has over 30 years of experience in the technology sector, including leadership roles at UiPath, Google Cloud, and SAP, which positions him well to guide Workday's growth [2][3] - Enslin's appointment is effective December 2, 2024, and he aims to leverage Workday's AI capabilities to enhance its position in the ERP market [3] Company Overview - Workday is a leading enterprise platform that assists organizations in managing their people and financial resources, with a focus on AI integration [4] - The platform is utilized by over 10,500 organizations globally, including more than 60% of the Fortune 500 companies [4]

Fiscal Third Quarter Total Revenues of $2.160 Billion, Up 15.8% Year Over YearSubscription Revenues of $1.959 Billion, Up 15.8% Year Over YearPLEASANTON, Calif., Nov. 26, 2024 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, today announced results for the fiscal 2025 third quarter ended October 31, 2024.Fiscal 2025 Third Quarter Results Total revenues were $2.160 billion, an increase of 15.8% from the third quarter of fisc ...

In its upcoming report, Workday (WDAY) is predicted by Wall Street analysts to post quarterly earnings of $1.72 per share, reflecting an increase of 12.4% compared to the same period last year. Revenues are forecasted to be $2.13 billion, representing a year-over-year increase of 14%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during thi ...