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Apr 30, 2021

Workday Q1 2022 Earnings Report

Workday's Q1 2022 financial results were announced, showing revenue growth and increased subscription revenue.

Key Takeaways

Workday announced strong Q1 2022 results with total revenues of $1.18 billion, a 15.4% increase year-over-year, and subscription revenue of $1.03 billion, a 17.0% increase year-over-year. The company raised its fiscal 2022 guidance for subscription revenue to a range of $4.425 to $4.440 billion, representing 17% growth, and expects Q2 subscription revenue of $1.095 billion to $1.097 billion, reflecting 18% growth. Workday also raised its fiscal 2022 non-GAAP operating margin guidance to a range of 18% to 19%.

Total revenues reached $1.18 billion, up 15.4% year-over-year.

Subscription revenue was $1.03 billion, up 17.0% year-over-year.

Total subscription revenue backlog was $10.08 billion, up 23.0% year-over-year.

The company raised its fiscal 2022 subscription revenue guidance to $4.425 - $4.440 billion.

Total Revenue
$1.18B
Previous year: $1.02B
+15.4%
EPS
$0.87
Previous year: $0.44
+97.7%
Subscription Revenue Backlog
$10.1B
Previous year: $8.19B
+23.1%
Gross Profit
$842M
Previous year: $713M
+18.1%
Cash and Equivalents
$959M
Previous year: $1.21B
-21.0%
Total Assets
$8.62B
Previous year: $7.23B
+19.3%

Workday

Workday

Workday Revenue by Segment

Forward Guidance

Workday raised its fiscal 2022 guidance for subscription revenue to a range of $4.425 to $4.440 billion, growth of 17%. They expect second-quarter subscription revenue of $1.095 billion to $1.097 billion, growth of 18%. The company is also raising its fiscal 2022 non-GAAP operating margin guidance to a range of 18% to 19%.

Positive Outlook

  • Fiscal 2022 subscription revenue guidance raised to $4.425 - $4.440 billion, representing 17% growth.
  • Second-quarter subscription revenue expected to be $1.095 - $1.097 billion, reflecting 18% growth.
  • Fiscal 2022 non-GAAP operating margin guidance raised to a range of 18% to 19%.
  • Strong execution against an improving market backdrop.
  • Continued demand for solutions and increased confidence in new bookings acceleration this fiscal year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income