Workday Q1 2025 Earnings Report
Key Takeaways
Workday announced solid Q1 2025 results with total revenues of $1.990 billion, up 18.1% year-over-year, and subscription revenues of $1.815 billion, up 18.8% year-over-year. The company's non-GAAP operating margin also expanded. Updated subscription revenue guidance reflects elevated sales scrutiny and lower customer headcount growth, while the margin outlook was increased due to a focus on driving increased efficiencies across the company.
Total revenues reached $1.990 billion, an 18.1% increase year-over-year.
Subscription revenues totaled $1.815 billion, up 18.8% year-over-year.
12-month subscription revenue backlog increased to $6.60 billion, up 17.9% year-over-year.
Total subscription revenue backlog was $20.68 billion, up 24.2% year-over-year.
Workday
Workday
Workday Revenue by Segment
Forward Guidance
Workday updated its guidance for fiscal year 2025 and provided guidance for the second quarter ending July 31, 2024.
Positive Outlook
- Subscription revenue between $7.700 billion to $7.725 billion for fiscal year 2025, representing growth of approximately 17%.
- Non-GAAP operating margin of 25.0% for fiscal year 2025.
- Subscription revenue of $1.895 billion for the second quarter of fiscal 2025, representing growth of approximately 17%.
- Non-GAAP operating margin of 24.5% for the second quarter of fiscal 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income