Workday Q3 2023 Earnings Report
Key Takeaways
Workday announced its Q3 fiscal year 2023 results, with total revenues of $1.60 billion, a 20.5% increase year-over-year, and subscription revenues of $1.43 billion, a 22.3% increase year-over-year. The company's total subscription revenue backlog reached $14.10 billion, up 28.5% year-over-year.
Total revenues reached $1.60 billion, up 20.5% year-over-year.
Subscription revenues were $1.43 billion, up 22.3% year-over-year.
Total subscription revenue backlog was $14.10 billion, up 28.5% year-over-year.
The board of directors approved a share repurchase program to purchase up to $500 million of shares of its Class A common stock.
Workday
Workday
Workday Revenue by Segment
Forward Guidance
Workday is raising the low end of its fiscal 2023 subscription revenue guidance to a range of $5.555 billion to $5.557 billion, or 22% growth. The company is also raising its fiscal 2023 non-GAAP operating margin guidance to 19.2%.
Positive Outlook
- Raising the low end of fiscal 2023 subscription revenue guidance to $5.555 billion to $5.557 billion, representing 22% growth.
- Raising fiscal 2023 non-GAAP operating margin guidance to 19.2%.
- Solutions are vital for global organizations.
- Focus on industry investments.
- Driving innovation with open and connected partner ecosystem.
Challenges Ahead
- Current macro environment presents increased uncertainty.
- Operating loss was $26.3 million, or negative 1.6% of revenues
- Basic and diluted net loss per share was $0.29
- Non-GAAP basic and diluted net income per share was $1.01 and $0.99, respectively
- Ongoing momentum in business continues to balance the current environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income