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Oct 31, 2023

Workday Q3 2024 Earnings Report

Workday's Q3 2024 performance was marked by strong revenue growth and increased profitability.

Key Takeaways

Workday announced strong fiscal 2024 third-quarter results, with total revenues of $1.87 billion, up 16.7% year-over-year, and subscription revenues of $1.69 billion, up 18.1% year-over-year. The company raised its fiscal 2024 subscription revenue guidance to $6.598 billion, representing 19% year-over-year growth, and its non-GAAP operating margin guidance to 23.8%.

Total revenues reached $1.87 billion, a 16.7% increase year-over-year.

Subscription revenues totaled $1.69 billion, reflecting an 18.1% increase year-over-year.

Operating income was $87.9 million, compared to an operating loss of $26.3 million in the same period last year.

12-month subscription revenue backlog was $6.05 billion, up 21.9% year-over-year.

Total Revenue
$1.85B
Previous year: $1.6B
+15.7%
EPS
$1.53
Previous year: $0.99
+54.5%
Subscription Revenue Backlog
$18.5B
Previous year: $14.1B
+30.9%
Gross Profit
$1.4B
Previous year: $1.16B
+20.8%
Cash and Equivalents
$1.56B
Previous year: $1.58B
-0.8%
Free Cash Flow
$391M
Total Assets
$13.9B
Previous year: $12.4B
+12.4%

Workday

Workday

Workday Revenue by Segment

Forward Guidance

Workday raised its fiscal 2024 subscription revenue guidance to $6.598 billion, representing 19% year-over-year growth. The company also raised its fiscal 2024 non-GAAP operating margin guidance to 23.8%.

Positive Outlook

  • Raised fiscal 2024 subscription revenue guidance to $6.598 billion.
  • Subscription revenue growth represents 19% year-over-year growth.
  • Raised fiscal 2024 non-GAAP operating margin guidance to 23.8%.
  • Focus on investing to drive durable long-term growth.
  • Focus on expanding margins.

Revenue & Expenses

Visualization of income flow from segment revenue to net income