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Jul 31, 2023

Workday Q2 2024 Earnings Report

Reported strong second-quarter results, driven by focus on employees, customers, and innovation.

Key Takeaways

Workday announced strong financial results for the second quarter of fiscal year 2024. Total revenues reached $1.79 billion, a 16.3% increase year-over-year, with subscription revenues growing by 18.8% to $1.62 billion. The company raised its fiscal 2024 subscription revenue guidance to a range of $6.570 billion to $6.590 billion, representing 18% year-over-year growth.

Total revenues were $1.79 billion, up 16.3% year-over-year.

Subscription revenues were $1.62 billion, up 18.8% year-over-year.

Operating income was $36.3 million, compared to an operating loss of $34.1 million in the same period last year.

Basic and diluted net income per share was $0.30, compared to a net loss per share of $0.25 in the second quarter of fiscal 2023.

Total Revenue
$1.79B
Previous year: $1.54B
+16.3%
EPS
$1.43
Previous year: $0.83
+72.3%
Subscription Revenue Backlog
$17.9B
Previous year: $13.5B
+32.5%
Gross Profit
$1.34B
Previous year: $1.11B
+20.3%
Cash and Equivalents
$1.44B
Previous year: $2.49B
-42.3%
Free Cash Flow
$360M
Total Assets
$13.7B
Previous year: $13.2B
+3.7%

Workday

Workday

Workday Revenue by Segment

Forward Guidance

Workday raised its fiscal 2024 subscription revenue guidance to a range of $6.570 billion to $6.590 billion, representing 18% year-over-year growth. The company expects third-quarter subscription revenue to be $1.678 billion to $1.680 billion, or 17% growth. In addition, Workday is raising its fiscal 2024 non-GAAP operating margin guidance to 23.5%.

Positive Outlook

  • Fiscal 2024 subscription revenue guidance raised to $6.570B - $6.590B, representing 18% year-over-year growth.
  • Third-quarter subscription revenue expected to be $1.678B - $1.680B, or 17% growth.
  • Fiscal 2024 non-GAAP operating margin guidance raised to 23.5%.
  • Maintaining a disciplined approach of investing in long-term growth.
  • Expanding margins.

Revenue & Expenses

Visualization of income flow from segment revenue to net income