Workday Q4 2022 Earnings Report
Key Takeaways
Workday's Q4 2022 results showed strong growth with total revenues reaching $1.38 billion, a 21.6% increase year-over-year, and subscription revenues of $1.23 billion, up 22.2% year-over-year. The company's 24-month subscription revenue backlog grew by 22.2% to $7.98 billion, and the total subscription revenue backlog increased by 26.9% to $12.81 billion.
Total revenues were $1.38 billion, up 21.6% year-over-year.
Subscription revenues reached $1.23 billion, a 22.2% increase year-over-year.
Operating loss was $101.0 million, or negative 7.3% of revenues.
Non-GAAP net income per share was $0.78.
Workday
Workday
Workday Revenue by Segment
Forward Guidance
Workday is raising its guidance for fiscal 2023 subscription revenue to be in a range of $5.530 billion to $5.550 billion, representing year-over-year growth of 22%. The company is also raising its fiscal 2023 non-GAAP operating margin guidance to 18.5%.
Positive Outlook
- Fiscal 2023 subscription revenue to be in a range of $5.530 billion to $5.550 billion, representing year-over-year growth of 22%.
- Fiscal 2023 non-GAAP operating margin guidance to 18.5%.
- Strong pipeline for fiscal 2023.
- Continued investment in people.
- Continued investment in go-to-market strategies.
Challenges Ahead
- Ability to implement plans with respect to VNDLY or any other acquired companies.
- Impact of the ongoing COVID-19 pandemic.
- Breaches in security measures.
- Service outages or delays in application deployment.
- Failure of applications to perform properly.
Revenue & Expenses
Visualization of income flow from segment revenue to net income