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Workday
🇺🇸 NASDAQ:WDAY
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Apr 30, 2020

Workday Q1 2021 Earnings Report

Workday's Q1 2021 financial results were announced, revealing revenue growth and strategic adjustments amid the COVID-19 pandemic.

Key Takeaways

Workday reported a solid first quarter with total revenues of $1.02 billion, up 23.4% year-over-year, and subscription revenue of $882.0 million, up 25.8% year-over-year. The company is adjusting its fiscal 2021 subscription revenue guidance due to the near-term impact of COVID-19 while raising its non-GAAP operating margin guidance.

Total revenues reached $1.02 billion, a 23.4% increase year-over-year.

Subscription revenue was $882.0 million, reflecting a 25.8% increase year-over-year.

The company is reducing its fiscal 2021 subscription revenue guidance to account for the near-term impact from COVID-19.

Workday is raising its fiscal 2021 non-GAAP operating margin guidance to 16.0%.

Total Revenue
$1.02B
Previous year: $825M
+23.4%
EPS
$0.44
Previous year: $0.43
+2.3%
Subscription Revenue Backlog
$8.19B
Previous year: $6.8B
+20.4%
Gross Profit
$713M
Cash and Equivalents
$1.21B
Total Assets
$7.23B

Workday

Workday

Workday Revenue by Segment

Forward Guidance

Workday expects second-quarter subscription revenue of $913.0 million to $915.0 million and fiscal 2021 subscription revenue in a range of $3.67 billion to $3.69 billion. The company is raising its fiscal 2021 non-GAAP operating margin guidance to 16.0%.

Positive Outlook

  • The company expects second-quarter subscription revenue of $913.0 million to $915.0 million.
  • Fiscal 2021 subscription revenue is projected to be in the range of $3.67 billion to $3.69 billion.
  • The company is raising its fiscal 2021 non-GAAP operating margin guidance to 16.0%.
  • Workday remains confident in the fundamental strength of its business model.
  • The company plans to operate with agility while continuing to drive innovation to support sustainable, long-term growth.

Challenges Ahead

  • The company is reducing its fiscal 2021 subscription revenue guidance to account for the near-term impact from COVID-19.
  • Unspecified risks related to the ongoing COVID-19 pandemic on our business, as well as our customers, prospects, partners, and service providers
  • Unspecified risks related to breaches in our security measures, unauthorized access to our customers’ or other users’ personal data, or disruptions in our data center or computing infrastructure operations
  • Unspecified risks related to service outages, delays in the deployment of our applications, and the failure of our applications to perform properly
  • Unspecified risks related to adverse changes in general economic or market conditions

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Workday