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Jan 31, 2020

Workday Q4 2020 Earnings Report

Reported a strong Q4, driven by solid execution across the company.

Key Takeaways

Workday announced its Q4 and full year fiscal 2020 financial results, with total Q4 revenues reaching $976.3 million, a 23.8% increase year-over-year. Subscription revenue for the quarter was $839.7 million, up 24.7% year-over-year. The company is raising its fiscal 2021 subscription revenue outlook to a range of $3.755 billion to $3.770 billion.

Total revenues for Q4 reached $976.3 million, a 23.8% increase year-over-year.

Subscription revenue was $839.7 million, up 24.7% year-over-year.

Workday ended the fiscal year with significant momentum, including a record quarter for financial management applications.

Workday completed the acquisition of Scout RFP.

Total Revenue
$976M
Previous year: $789M
+23.8%
EPS
$0.5
Previous year: $0.41
+22.0%
Subscription Revenue Backlog
$8.29B
Gross Profit
$692M
Cash and Equivalents
$731M
Total Assets
$6.82B

Workday

Workday

Workday Revenue by Segment

Forward Guidance

Workday is raising its fiscal 2021 subscription revenue outlook to a range of $3.755 billion to $3.770 billion. The company expects first quarter subscription revenue to be $873.0 million to $875.0 million.

Positive Outlook

  • Raising fiscal 2021 subscription revenue outlook to a range of $3.755 billion to $3.770 billion.
  • Expecting first quarter subscription revenue to be $873.0 million to $875.0 million.
  • Ended the fiscal year with significant momentum.
  • Record quarter for financial management applications.
  • HCM solutions continue to see strong adoption.

Challenges Ahead

  • Risks related to the ability to successfully integrate Scout RFP’s operations.
  • Breaches in security measures.
  • Service outages, delays in the deployment of applications.
  • Failure of applications to perform properly.
  • Adverse changes in general economic or market conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income