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Apr 30, 2024
Workday Q1 2025 Earnings Report
Workday's Q1 2025 financial results were announced, demonstrating revenue growth and margin expansion.
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.
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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