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Apr 30, 2022

Workday Q1 2023 Earnings Report

Workday's Q1 2023 results showcased revenue growth and strategic investments.

Key Takeaways

Workday announced a strong first quarter for fiscal year 2023, with total revenues of $1.43 billion, a 22.1% increase year-over-year, and subscription revenues of $1.27 billion, a 23.2% increase year-over-year. The company is raising its fiscal 2023 subscription revenue guidance and maintaining its non-GAAP operating margin guidance.

Total revenues reached $1.43 billion, up 22.1% year-over-year.

Subscription revenues totaled $1.27 billion, up 23.2% year-over-year.

The company is raising its fiscal 2023 subscription revenue guidance to $5.537 billion to $5.557 billion.

Workday intends to create 1,000 new jobs at its European headquarters in Dublin over the next two years.

Total Revenue
$1.44B
Previous year: $1.18B
+22.1%
EPS
$0.83
Previous year: $0.87
-4.6%
Subscription Revenue Backlog
$12.7B
Previous year: $10.1B
+25.5%
Gross Profit
$1.03B
Previous year: $842M
+22.5%
Cash and Equivalents
$2.78B
Previous year: $959M
+189.4%
Total Assets
$12.8B
Previous year: $8.62B
+48.4%

Workday

Workday

Workday Revenue by Segment

Forward Guidance

Workday is raising its fiscal 2023 subscription revenue guidance to be in the range of $5.537 billion to $5.557 billion, representing year-over-year growth of 22%. The company expects second quarter subscription revenue of $1.353 billion to $1.355 billion, representing year-over-year growth of 22%. They are maintaining their fiscal 2023 non-GAAP operating margin guidance of 18.5%.

Positive Outlook

  • Fiscal 2023 subscription revenue is expected to be in the range of $5.537 billion to $5.557 billion, representing 22% year-over-year growth.
  • Second quarter subscription revenue is projected to be $1.353 billion to $1.355 billion, representing 22% year-over-year growth.
  • Fiscal 2023 non-GAAP operating margin guidance is maintained at 18.5%.
  • Continued global momentum and a healthy deal pipeline position the company well to deliver a strong fiscal 2023.
  • Focus remains on cultivating culture, driving innovation across finance and HR, and expanding value to organizations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income