Workday Q4 2024 Earnings Report
Key Takeaways
Workday announced strong Q4 fiscal year 2024 results, with total revenues up 17% year-over-year to $1.9 billion and subscription revenues up 18% to $1.8 billion. The company reported operating income of $79 million, a significant improvement from the previous year's operating loss. Net income per share was $4.52 basic and $4.42 diluted, compared to a net loss per share in the same quarter last year.
Total revenues increased by 17% year-over-year to $1.9 billion.
Subscription revenues grew by 18% year-over-year to $1.8 billion.
Operating income was $79 million, a substantial improvement from the prior year's operating loss of $89 million.
Basic net income per share was $4.52, and diluted net income per share was $4.42, a significant increase from the previous year's net loss per share of $0.49.
Workday
Workday
Workday Revenue by Segment
Forward Guidance
Workday anticipates fiscal year 2025 subscription revenue of $7.725 billion to $7.775 billion, representing 17% to 18% growth. The company expects a non-GAAP operating margin of approximately 24.5%.
Positive Outlook
- Subscription revenue guidance of $7.725B to $7.775B, indicating 17-18% growth.
- Expected non-GAAP operating margin of approximately 24.5%.
- Continued investments to support enduring growth.
- Anticipated margin expansion as the business scales and optimizes.
- Momentum building across key investment initiatives.
Challenges Ahead
- Incremental investments may impact short-term profitability.
- Outlook contemplates continued margin expansion.
- No specific negative aspects were explicitly outlined.
- Guidance is based on current expectations and assumptions.
- Future performance is subject to risks and uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income