Slide 1: Investor Presentation Q3 FY24
Investor Presentation Q3 FY24
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancements or
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to financial results presented in accordance with US generally accepted accounting principles (GAAP), this presentation includes certain non-GAAP financial measures of performance. These non-GAAP financial measures are in addition to, and not a substitute for or
Slide 4: Workday at a Glance
Workday at a Glance
Slide 5: Workday Enterprise Management Cloud by the Numbers
Workday Enterprise Management Cloud For Finance, HR, Planning, Spend Management and by the Numbers Analytics $142B+ 10,000+ Global Customers Operating across 175+ Countries Market Opportunity1 $6.34B 20% YoY Growth Serving 50%+ of the Fortune 500 Trailing Twelve Month Subscription Revenues2 Includin
Slide 6: Workday Enterprise Management Cloud
Workday Enterprise Management Cloud True Cloud Scale • Elasticity • Performance • Availability • Continuous Delivery of Innovation • Single Version
Slide 7: Workday Delivers AI Differently
Workday Delivers AI Differently Quality Data Uniform data model, 65M+ users1, 600B+ transactions2 Platform Approach Embedded, not bolted on Trustworthy Transparent and human-centric 1 Represents users under contract as of 10.31.2023 2 For the fiscal year ended 1.31.23
Slide 8: Serving Organizations of all Sizes and Across Industries
Serving Organizations of all Sizes and Across Industries
Slide 9: Meaningful Market Opportunity
Meaningful Market Opportunity HCM $58B Human Capital Workforce Planning Management/Workforce and People Analytics $142B+ Management Talent Management Employee Experience Addressing One of Payroll the Largest Markets FINS+ $84B in Enterprise Financial Management Financial Planning Software Spend Mana
Slide 10: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $6.60B FY24E2 21% CAGR Annual 95%+ Gross Revenue Subscription 23.8% FY24E2 Revenues Retention3 $3.10B 1,040 FY20 bps Non-GAAP Operating Margin 13.4% FY201 1 Reconciliations of GAAP to Non-GAAP financial data included in the Appendix 2 As provided on Q3 FY24 Earning
Slide 11: While Growing Responsibly and Inclusively
While Growing Responsibly and Inclusively Our Employees Our Customers The World Around Us VIBE Building Inclusive Solutions Net-Zero Carbon Footprint Our commitment to value inclusion, Investing to help organizations gain Achieved net-zero emissions in fiscal belonging, and equity for all valuable i
Slide 12: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 13: Q3 FY24 Financial Highlights
Q3 FY24 Financial Highlights Q3 FY24 Results Increase (Decrease) YoY Total Revenues $1.87B 17% Subscription Revenues $1.69B 18% Total Subscription Revenue Backlog $18.45B 31% 12-month Subscription Revenue Backlog $6.05B 22% 24-month Subscription Revenue Backlog $10.58B 23% GAAP Operating Margin 4.7%
Slide 14: Q3 FY24 Customer Wins and Expansions
Q3 FY24 Customer Wins and Expansions
Slide 15: Q3 FY24 Business Highlights
Q3 FY24 Business Highlights • Announced new full platform customers for Workday Financial Management and Workday Human Capital Management (HCM), with new wins including AdventHealth, Aurelius Group, Bentley Systems, Globe Life, Houston Methodist, and Kern County. • Surpassed 5,000 core Workday Human
Slide 16: Guidance Summary
Guidance Summary Q4 FY24 Quarterly Guidance Increase (Decrease) YoY Total Revenues $1.913B 16% Subscription Revenues $1.755B 17% 12-month Subscription Revenue Backlog n/a 19% Non-GAAP Operating Margin 23.5% 500 bps GAAP Operating Margin ~20 points lower than non-GAAP n/a Full Year FY24 Full Year Gui
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended October 31, 2023 Share-Based (in thousands, except percentages and per Other Operating Income Tax and share data) GAAP Compensation Non-GAAP Expenses Expenses2 Dilution Effects3 Costs and expenses: Costs of subscription services $ 263,840 $
Slide 19: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended October 31, 2022 (in thousands, except percentages and per Share-Based GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses Expenses2 Dilution Effects3 Costs and expenses: Costs of subscription services $ 259,397 $
Slide 20: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Nine Months Ended October 31, 2023 Share-Based (in thousands, except percentages and per GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses Expenses2 Dilution Effects3 Costs and expenses: Costs of subscription services $ 758,551 $ (
Slide 21: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Nine Months Ended October 31, 2022 Share-Based (in thousands, except percentages and per Compensation Other Operating Income Tax and GAAP Non-GAAP share data) Expenses Expenses2 Dilution Effects3 Costs and expenses: Costs of subscription services $ 737,301 $ (
Slide 22: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Year Ended January 31, 2020 Share-Based Amortization of Debt (in thousands, except percentages and per Other Operating Income Tax and GAAP Compensation Discount and Issuance Non-GAAP share data) Expenses Expenses2 Dilution Effects4 Costs3 Costs and expenses: C
Slide 23: Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows
Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows Three Months Ended October 31, Nine Months Ended October 31, (in thousands) 2023 2022 2023 2022 Net cash provided by (used in) operating activities $ 450,775 $ 408,668 $ 1,153,355 $ 962,743 Less: Total capital expenditures1 (59,948
Slide 24: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures To provide investors and others with additional information regarding Workday’s results, we have disclosed the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) per share, and free cash flo
Slide 25: About Non-GAAP Financial Measures (cont'd)
About Non-GAAP Financial Measures (cont’d) • Other operating expenses. Other operating expenses includes employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets. The amount of employer payroll tax-related items on employee stock tra
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