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Jul 31, 2022
Workday Q2 2023 Earnings Report
Workday's Q2 2023 financial results were announced, demonstrating growth in total revenues and subscription revenues.
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
Revenue by Segment
Subscription Services Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com 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