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Jul 31, 2024
Workday Q2 2025 Earnings Report
Announced fiscal 2025 second quarter financial results with total revenues of $2.085 billion, up 16.7% year over year, and subscription revenues of $1.903 billion, up 17.2% year over year.
Key Takeaways
Workday reported a solid second quarter with total revenues of $2.085 billion, a 16.7% increase year-over-year, and subscription revenues of $1.903 billion, a 17.2% increase year-over-year. The company's operating income was $111 million, and diluted net income per share was $0.49. Workday is updating its guidance for the fiscal 2025 full year, projecting subscription revenue between $7.700 billion to $7.725 billion, representing growth of approximately 17%.
Total revenues were $2.085 billion, up 16.7% year-over-year.
Subscription revenues were $1.903 billion, up 17.2% year-over-year.
Operating income was $111 million, compared to $36 million in the same period last year.
12-month subscription revenue backlog was $6.80 billion, up 16.1% from the same period last year.
Revenue by Segment
Forward Guidance
Workday is updating its guidance for the fiscal year ending January 31, 2025, projecting subscription revenue between $7.700 billion to $7.725 billion, representing growth of approximately 17%, and a non-GAAP operating margin of 25.25%. For the third quarter ending October 31, 2024, Workday projects subscription revenue of $1.955 billion, representing growth of 16%, and a non-GAAP operating margin of 25.25%.
Positive Outlook
- Subscription revenue between $7.700 billion to $7.725 billion, representing growth of approximately 17% for fiscal year 2025.
- Non-GAAP operating margin of 25.25% for fiscal year 2025.
- Subscription revenue of $1.955 billion, representing growth of 16% for the third quarter of fiscal year 2025.
- Non-GAAP operating margin of 25.25% for the third quarter of fiscal year 2025.
- Reiterating full-year FY25 subscription revenue guidance while slightly raising expectation for FY25 non-GAAP operating margin.
Revenue & Expenses
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