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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.
Workday
Workday
Workday Revenue by Segment
Revenue by Segment
Subscription Services Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com 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
Visualization of income flow from segment revenue to net income