Workday Q2 2023 Earnings Report
Key Takeaways
Workday reported a strong second quarter with total revenues of $1.54 billion, a 21.9% increase year-over-year, and subscription revenues of $1.37 billion, a 22.8% increase year-over-year. The company is maintaining its fiscal year 2023 subscription revenue guidance and raising its non-GAAP operating margin guidance to 19.0%.
Total revenues reached $1.54 billion, up 21.9% year-over-year.
Subscription revenues totaled $1.37 billion, reflecting a 22.8% year-over-year increase.
Total subscription revenue backlog increased by 27.4% year-over-year.
Non-GAAP operating margin guidance was raised to 19.0% for fiscal year 2023.
Workday
Workday
Workday Revenue by Segment
Forward Guidance
Workday is maintaining its guidance for fiscal 2023 subscription revenue to be in the range of $5.537 billion to $5.557 billion, representing 22% year-over-year growth. The company expects third quarter subscription revenue of $1.418 billion to $1.420 billion, growth of 21%. Workday is raising its fiscal 2023 non-GAAP operating margin guidance to 19.0%.
Positive Outlook
- Fiscal year 2023 subscription revenue is projected to be in the range of $5.537 billion to $5.557 billion, representing 22% year-over-year growth.
- Third quarter subscription revenue is expected to be between $1.418 billion and $1.420 billion, indicating a 21% growth.
- Fiscal 2023 non-GAAP operating margin guidance has been raised to 19.0%.
- The company sees strong global demand for its products.
- Workday strategy focuses on delivering significant value to customers.
Challenges Ahead
- Macroeconomic events may impact the business.
- Security breaches could disrupt operations.
- Service outages and delays in application deployment could occur.
- Competitive factors may create pricing pressures.
- Delays or reductions in information technology spending could affect results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income