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Apr 30, 2023
Workday Q1 2024 Earnings Report
Workday's first quarter of fiscal year 2024 showed strong financial performance.
Key Takeaways
Workday announced a strong first quarter for fiscal year 2024, with total revenues of $1.68 billion, up 17.4% year-over-year, and subscription revenues of $1.53 billion, up 20.1% year-over-year. The company is raising the low end of its fiscal 2024 subscription revenue guidance to a range of $6.550 billion to $6.575 billion, representing 18% growth over the prior fiscal year. They are maintaining their fiscal 2024 non-GAAP operating margin guidance of 23%.
Total revenues were $1.68 billion, an increase of 17.4% from the first quarter of fiscal 2023.
Subscription revenues were $1.53 billion, an increase of 20.1% from the same period last year.
Non-GAAP operating income for the first quarter was $395.9 million, or 23.5% of revenues.
Non-GAAP basic and diluted net income per share was $1.32 and $1.31, respectively.
Workday
Workday
Workday Revenue by Segment
Revenue by Segment
Subscription Services Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Workday is raising the low end of its fiscal 2024 subscription revenue guidance to a range of $6.550 billion to $6.575 billion, representing 18% growth over the prior fiscal year. They expect second-quarter subscription revenue to be $1.611 billion to $1.613 billion, also 18% growth. They are maintaining their fiscal 2024 non-GAAP operating margin guidance of 23%.
Positive Outlook
- Raising the low end of fiscal 2024 subscription revenue guidance.
- Maintaining fiscal 2024 non-GAAP operating margin guidance of 23%.
- Expecting second-quarter subscription revenue to be $1.611 billion to $1.613 billion, also 18% growth.
- Strong first quarter performance.
- Durable demand across solutions.
Challenges Ahead
- Did not provide GAAP operating margin guidance.
- Forward-looking statements are subject to risks, uncertainties, assumptions, and changes in circumstances.
- Breaches in security measures could impact results.
- Service outages and delays in application deployment could impact results.
- Macroeconomic events could impact business.