Workday, Inc. · NASDAQ:WDAY
Workday — Investor Day (September 2021)
145 slides from Workday's investor day presentation, Sep 21, 2021
Slide 1: Financial Analyst Day
Financial Analyst Day September 21, 2021
Slide 2: Agenda
Agenda Our Ambition Aneel Bhusri – Co-Founder, Co-CEO, and Chairman Chano Fernandez – Co-CEO Innovating for the Future Sayan Chakraborty – EVP, Technology Pete Schlampp – EVP, Product Innovation Q&A Break Capitalizing on Our Expanding Opportunity Doug Robinson – EVP, Global Sales The Path to $10B Ro
Slide 3: 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 4: Aneel Bhusri
Aneel Bhusri CO-FOUNDER, CO-CEO, AND CHAIRMAN
Slide 5: Targeting Sustained 20%+ Subscription Revenue Growth
$10B Total Targeting 20%+ Revenue Sustained 20%+ Subscription Revenue Growth FY22
Slide 6: Market Leader in HCM
Market Leader in HCM ~50% Subscription 1 Revenue 1 Fortune 500 $3.2B 1 As of 7.31.21 2 For the trailing 12 months ended 7.31.21
Slide 7: Broadening Our Footprint in FINS
Broadening Our Footprint in FINS 1,150+ 5,700+ 1,250+ Core FINS Planning Procurement Customers Customers Customers1 $1B 33% Subscription Revenue Business 2 Subscription Revenue Growth2 1 Includes Workday Strategic Sourcing 2 For the trailing 12 months ended 7.31.21 All customer counts as of 7.31.21
Slide 8: 70%+ Customers Live
70%+ Customers Live
Slide 9: Market Trends
Real-time Business Changing Workforce Market Competition for Trends Diverse Talent Finance Digital Transformation Proprietary Data and ML
Slide 10: Chano Fernandez
Chano Fernandez CO-CEO
Slide 11: Growth Strategy
ome oe oCHRO Growth Strategy
Slide 12: Growth Strategy
Growth Strategy oCFO
Slide 13: Growth Strategy
Growth Strategy International
Slide 14: Growth Strategy
Growth Strategy Medium Enterprise
Slide 15: Key Initiatives
Industry Verticals Key Evolving Go-to-Market Initiatives Focus on Platform Transform Our UX Leveraging Public Cloud
Slide 16: $10B
$10B
Slide 17: Sayan Chakraborty
Sayan Chakraborty EVP, TECHNOLOGY
Slide 18: Public cloud partners
servicenow ORACLE BE Microsoft A Adobe salesforce SADA
Slide 19: Our First Gen of the Cloud Is Next Level
First Generation Our First Gen of the Cloud Is Next Level Reliability/Availability 99.97% Uptime Scale 55M+ Workers; ~365B Transactions Performance 95.7% of Transactions in <1 Second Ambient Responsive, Omni-Channel, Native Mobile User XP Security 5 Trust Service Criteria; GDPR
Slide 20: Intelligent Data Core
Intelligent Data Core
Slide 21: Security Organizational Structure Business Process
Security Organizational Structure Business Process
Slide 22: Prism, Peakon, Adaptive, Scout, Insights
Prism Peakon Adaptive Scout Insights
Slide 23: Next Generation of the Cloud
First Generation of the Cloud Reliability/Availability Next Generation of the Cloud Scale Performance Ambient Public Cloud Innovation Security Extend Story
Slide 24: AWS
aws
Slide 25: Integration Cloud
Integration Cloud Integration Cloud
Slide 26: Workday Extend
Integration Cloud Integration Cloud WORKDAY EXTEND
Slide 27: Workday Extend Orchestrate
Orchestrate Integration Cloud Integration Cloud Orchestrate WORKDAY EXTEND
Slide 28: Workday Extend growth and developers
~80% YoY Growth 2,000+ Active Developers 13 SI Partners with Dedicated Extend Practices
Slide 29: Looking Ahead
First Generation Next Generation Looking of the Cloud Reliability/Availability Scale of the Cloud Public Cloud Innovation Extend Story Ahead ML for Customers Performance Ambient ML to Scale Operations Security
Slide 30: Intelligent Data Core
Intelligent Data Core
Slide 31: Intelligent Data Core
wee intelligent Data Core
Slide 32: Infrastructure
Projects Learning Scheduling Careers Recruiting Infrastructure Workload Balancing Capacity Optimization Defense In-Depth Dynamic Scale Machine Learning
Slide 33: Infrastructure
Infrastructure Workload Balancing Capacity Optimization Defense In-Depth Dynamic Scale Machine !!oval Learning
Slide 34: The Future of Work
First Next Looking The Ahead Future Generation Generation of the Cloud of the Cloud of Work Reliability/Availability Public Cloud Innovation ML for Customers Scale Extend Story ML to Scale Operations Performance Ambient Changing Nature of Employment Security Changing Application Boundaries
Slide 35: Slide 35
Slide 36: Planning, HCM, FINS, Analytics with Machine Learning
Planning HCM FINS Analytics Machine Learning Integration Layer Transactional Data Operational Data External Data
Slide 37: Pete Schlampp
Pete Schlampp EVP, PRODUCT
Slide 38: Next Generation Application Innovation
Next Generation Application Innovation
Slide 39: The 7 Imperatives To Accelerate Business
1. Continuous recalibration The 7 2. Run in the now 3. Mitigate uncertainty with Imperatives the full picture To Accelerate 4. Rewire processes in days Business 5. Shape a new future 6. Elevate human performance 7. Measure real-world impact
Slide 40: Plan, Execute, Analyze
Planning HCM FINS Analytics Plan Execute Analyze
Slide 41: Data-Infused Apps
Data-Infused Apps Plan Planning Execute HCM FINS Analyze Analytics
Slide 42: Data-Infused Apps: Accounting Center
Data-Infused Apps: Accounting Center Integration Layer Transactional Data Operational Data External Data
Slide 43: Own the Office of the CFO
Own the Office of the CFO We Are the Next Generation of Finance
Slide 44: Addressing oCFO Top Business Challenges
Addressing oCFO Top Business Challenges Shareholder Value Stakeholder Value Revenue Sustainability Cost Talent Capital Digital
Slide 45: Workday for the Office of the CFO
Workday for the Office of the CFO FP&A Controller Auditor Treasurer Payroll Procurement Report to Record Contract Expense to Staff to Procure Productivity Source Forecast to Report to Cash Reimburse Deliver to Pay to Pay to Pay OPEX / CAPEX General Ledger Contracts Expense Reports Project Management
Slide 46: oCFO Strategic Focus Areas
oCFO Strategic Focus Areas Meet Expand Drive Grow Customers Industry Finance Globally Where Leadership Automation They Are
Slide 47: Meet Customers Where They Are
Digital Create New Entities on Transformation Demand Workday Adaptive Meet Customers Planning Where They Are Corporate Finance Layer Core Finance Spend Transformation Management
Slide 48: Meet Customers Where They Are
Meet Customer Where They Are Workday Adaptive Spend Planning Management 5,700+ Customers 1,250+ Customers 30x Increase in Scenario Planning 1 3x Savings Goals2 ~16–20 Weeks Time to Value ~4 Weeks Time to Value 2 1 March 2020 2 Specific to Workday Strategic Sourcing
Slide 49: Workday Enterprise Finance Solution
Workday Enterprise Finance Solution Core Finance Corporate Create New Entities Transformation Finance Layer on Demand Corporate Finance ERP 1 ERP 2 ERP 3 ERP 1 ERP 2 Industry SCM Systems CRM
Slide 50: oCFO Strategic Focus Areas
oCFO Strategic Focus Areas Meet Expand Drive Grow Customers Industry Finance Globally Where Leadership Automation They Are
Slide 51: Expand Industry Leadership
Industry Innovations Professional Accounting Business Services Center Financial Services Healthcare Supply Expand Chain Management Industry Healthcare Scheduling Leadership Education and Government Professional Services Automation Tech and Media Student Retail and Hospitality Inventory Management
Slide 52: Expand Industry Leadership
Industry Innovations Professional Accounting Business Services Center Financial Services Healthcare Supply Expand Chain Management Industry Healthcare Scheduling Leadership Education and Government Professional Services Automation Tech and Media Student Retail and Hospitality Inventory Management
Slide 53: Quote-to-Cash for Services and Subscriptions
Quote-to-Cash for Services and Subscriptions CRM Professional Services Automation Financials Zimit transaction is expected to close in Q3 FY22
Slide 54: Expand Industry Leadership
Industry Innovations Professional Accounting Business Services Center Financial Services Healthcare Supply Expand Chain Management Industry Healthcare Scheduling Leadership Education and Government Professional Services Automation Tech and Media Student Retail and Hospitality Inventory Management
Slide 55: Expand Industry Leadership
Industry Innovations Professional Accounting Business Services Center Financial Services Healthcare Supply Expand Chain Management Industry Healthcare Scheduling Leadership Education and Government Professional Services Automation Tech and Media Student Retail and Hospitality Inventory Management
Slide 56: Expand Industry Leadership
Industry Innovations Professional Accounting Business Services Center Financial Services Healthcare Supply Expand Chain Management Industry Healthcare Scheduling Leadership Education and Government Professional Services Automation Tech and Media Student Retail and Hospitality Inventory Management
Slide 57: Workday Student Momentum
Workday Student Momentum 73% Of the Institutions Who Have Adopted a Cloud-based Student Solution Have Selected Workday1 3x The Number of Live Customers in Spring 2021 26 Total Customers Live 1 Tambellini Group
Slide 58: oCFO Strategic Focus Areas
oCFO Strategic Focus Areas Meet Expand Drive Grow Customers Industry Finance Globally Where Leadership Automation They Are
Slide 59: Review, Reconcile, Retrieve, Recommend
Review Reconcile Retrieve Recommend Machine Learning
Slide 60: oCFO Strategic Focus Areas
oCFO Strategic Focus Areas Meet Expand Drive Grow Customers Industry Finance Globally Where Leadership Automation They Are
Slide 61: Global FINS Footprint
Global FINS Footprint 54 120+ Country Operating Configurations Countries
Slide 62: Own the Office of the CHRO
Own the Office of the CHRO Positioned for the Perfect Storm
Slide 63: Addressing oCHRO Top Business Challenges
Addressing oCHRO Top Business Challenges Emergency Diversity and Response Belonging Employee Future-Proof Engagement Talent Worker Support Workforce Agility
Slide 64: Workday for the Office of the CHRO
Workday for the Office of the CHRO Talent Talent Compensation Operations Payroll Acquisition Development and Benefits Plan Develop Reward Adapt Resource Productivity to Hire to Perform to Retain to Succeed to Deliver to Pay Workforce Planning Performance Compensation Succession Planning Workforce Sc
Slide 65: oCHRO Strategic Focus Areas
oCHRO Strategic Focus Areas Leading Driving Enabling Grow Skills Employee Workforce Globally Movement Experience Agility
Slide 66: Skills Platform: Workday at the Center
Skills Platform: Workday at the Center Extend Payroll Learning Benefits Mat Labor/Market Assessment Data Data chi Analytics ng Recruiting Planning Absence Core HCM Scheduling Projects Third-Party Strategic Skills Data Integrations Career Hub Time Tracking Compensation Talent Marketplace
Slide 67: Skills Platform: Workday at the Center
Skills Platform: Workday at the Center Extend Payroll Learning Benefits Mat Labor/Market Assessment Data Data chi Analytics ng Recruiting Planning Absence Core HCM Scheduling Projects Third-Party Strategic Skills Data Integrations Career Hub Time Tracking Compensation Talent Marketplace
Slide 68: Skills Platform: Workday at the Center
Skills Platform: Workday at the Center Extend Payroll Learning Benefits Mat Labor/Market Assessment Data Data chi Analytics ng Recruiting Planning Absence Core HCM Scheduling Projects Third-Party Strategic Skills Data Integrations Career Hub Time Tracking Compensation Talent Marketplace
Slide 69: Skills Cloud Momentum
Skills Cloud Momentum Skill Translations Suggested Skills / Jobs for Candidates People Experience Today Recommended Learning Skills Verification Based on Skills Interest Skills Search Career Hub Skills Match Analysis Skills Gaps Learning Experience Talent Marketplace Skills Inference Candidate Skill
Slide 70: oCHRO Strategic Focus Areas
oCHRO Strategic Focus Areas Leading Driving Enabling Grow Skills Employee Workforce Globally Movement Experience Agility
Slide 71: Peakon and Workday Powering Employee Experience
Peakon and Workday Powering Employee Experience Voice of the Employee Delivers the “why” • Intelligent Listening Technology • Predictive Employee Experience Insights • Advanced NLP and Sentiment Analysis
Slide 72: Data-Driven Employee Experience and Engagement
Data-Driven Employee Experience and Engagement Integration Layer Transactional Data Operational Data External Data Sentiment Data
Slide 73: oCHRO Strategic Focus Areas
oCHRO Strategic Focus Areas Leading Driving Enabling Grow Skills Employee Workforce Globally Movement Experience Agility
Slide 74: Frontline Worker Experience with Workday Scheduling
Frontline Worker Experience with Workday Scheduling
Slide 75: oCHRO Strategic Focus Areas
oCHRO Strategic Focus Areas Leading Driving Enabling Grow Skills Employee Workforce Globally Movement Experience Agility
Slide 76: Global HCM Footprint
Global HCM Footprint 175 COUNTRIES 120 6 Payroll Partners Native Payroll
Slide 77: Revolutionizing Enterprise Software
Revolutionizing Enterprise Software Supplier Invoice Worktag Scheduling with Recommendation Interview Reminders Skills Integration Workday Orchestrate Supplier Invoice Compensation Automation My Shortcuts Survey Management Workday Extend Workday Maintain Non-English Success Plans Customer Payment Wo
Slide 78: Revolutionizing Enterprise Software
Revolutionizing Enterprise Software 10+ 20+ 1,000s New SKUs Solutions Enhancements Anticipated developments and innovations to come FY23–FY24
Slide 79: Doug Robinson
Doug Robinson EVP, GLOBAL SALES
Slide 80: Capitalizing On Our Expanding Opportunity
Capitalizing On Our Expanding Opportunity At IPO Today 325+ Core Customers 3,800+ Core Customers / 9,000+ Total Customers Focused on New Logos Focused on Both New Logos and Installed Base Core HCM Was Only Landing Point Multiple Landing Points Across oCHRO and oCFO Sales Coverage Focused on U.S. Glo
Slide 81: Capitalizing On Our Expanding Opportunity
Capitalizing On Our Expanding Opportunity Our Our Our Accelerating Broadening Enduring Expand oCFO oCHRO Opportunity Opportunity Opportunity
Slide 82: Installed Base Provides Solid Ground for Growth
Installed Base Provides Solid Ground for Growth 3,800+ 5,700+ Core Customers Planning Customers 50%+ Fortune 500 24% Global 2000 97% Customer Satisfaction
Slide 83: An Expanding Portfolio Targeting Our Key Buyers
An Expanding Portfolio Targeting Our Key Buyers >8x $10B+ Opportunity Within Represents subset of all available Add-On Our Customer Base Solutions add-ons (excluding industry solutions)1 2x 1x Core FIN Core FIN Core HCM Core HCM Core HCM 1 Add-on solutions include Workday Accounting Center, Expenses
Slide 84: Combined with Significant Go-to-Market Investments
Combined with Significant Go-to-Market Investments 70%+ ~20% Growth in Customer Base Sales Reps Over the Last Two Years ~80% Land Represents growth over the two-year period ended 7.31.21
Slide 85: Driving a More Balanced Mix of New ACV Bookings
Driving a More Balanced Mix of New ACV Bookings ~20% Expand ~80% Land FY20
Slide 86: Driving a More Balanced Mix of New ACV Bookings
Driving a More Balanced Mix of New ACV Bookings ~40% ~60% Expand Land Trailing 12 Months 7.31.21
Slide 87: Different Solutions at Different Maturity Curves
Different Solutions at Different Maturity Curves Product Attach Rates Recruiting ('14) 73% Time Tracking ('12) 65% Payroll ('08) 62% Learning ('16) 45% Expenses ('08) 35% Financial Planning ('18) 30% Procurement ('08) 26% Talent Optimization ('20) 23% Prism Analytics ('18) 20% Workforce Planning ('2
Slide 88: Largest Pipeline Opportunity Within Installed Base
Installed Base Is Important Core HCM/FINS Opportunity # 1 Largest Pipeline Opportunity Within Installed Base
Slide 89: Investing to Capitalize on Our Installed Base Opportunity
Investing to Capitalize on Our Installed Base Opportunity Increasing Sales Capacity Accelerating Account-Base Marketing Efforts Investing in Customer Success
Slide 90: Capitalizing On Our Expanding Opportunity
Capitalizing On Our Expanding Opportunity Our Our Our Accelerating Broadening Enduring Expand oCFO oCHRO Opportunity Opportunity Opportunity
Slide 91: Our Expanding Portfolio Targeting the oCFO
Our Expanding Portfolio Targeting the oCFO >3x 1 >2x >6x Industry Solutions Healthcare Supply Chain PSA FINS+ Add-on Student Opportunity Relative >3x >4x to Core FINS Accounting Center Accounting Center Extend Extend Other CFO Products Planning Planning Strategic Sourcing Strategic Sourcing Procurem
Slide 92: Finance Transformation Is Expected to Accelerate
Finance Transformation Is Expected to Accelerate Through 2024, 60% of In 2023, 30% of core Inquiry levels for 2021 are organizations will financial projects that up, showing that this consolidate Cloud Core were slated for 2024 and market is resilient, as many Financial Management 2025 will be under
Slide 93: Winning in Industry
Winning in Industry Healthcare Professional Services Financial Services E&G Retail and Hospitality Technology and Media
Slide 94: Winning in Industry
Winning in Industry Healthcare Professional Services 60% Financial Services E&G Of Deals Full Platform HR + FINS + Supply Chain Retail and Hospitality Technology and Media
Slide 95: Winning in Industry
Winning in Industry Healthcare Professional Services Financial Services E&G Retail and Hospitality Technology 40% FINS Attach Rate to Net New Deals and Media
Slide 96: Winning in Industry
Winning in Industry Healthcare Professional Services Financial Services ~75% E&G Retail and Hospitality Technology Competitive Win Rate with Workday Accounting Center and Media
Slide 97: Winning in Industry
Winning in Industry Healthcare Professional Services Financial ~60% FINS Attach Rate to Higher Education and Services Government Customers E&G Retail and Hospitality Technology and Media
Slide 98: Opening a Massive Ecosystem Opportunity
Opening a Massive Ecosystem Opportunity 14,000+ Certified Workday Resources in Our Ecosystem Workday Extend is Quickly Ramping: 2,000+ Developers And 250+ Live Apps Enabling Co-innovation Allows Us to Engage Partners More Strategically
Slide 99: Opening New Engagement Paths with oCFO
Opening New Engagement Paths with oCFO Workday Enterprise Adaptive Finance Planning Workday Federal Strategic Sourcing
Slide 100: Opening New Engagement Paths with oCFO
Opening New Engagement Paths with oCFO Workday Enterprise Adaptive Finance Planning ~ 20 Percentage Point Increase in Win Rates for Core HR/FINS When We Land First With Planning Workday Federal Strategic Sourcing
Slide 101: Opening New Engagement Paths with oCFO
Opening New Engagement Paths with oCFO Workday Enterprise Adaptive Finance Planning Workday Federal Strategic Sourcing
Slide 102: Investing to Capitalize on Our oCFO Opportunity
Investing to Capitalize on Our oCFO Opportunity Increasing Sales Rep Capacity Brand Investments Targeted at oCFO Focused Partner Investments
Slide 103: Capitalizing On Our Expanding Opportunity
Capitalizing On Our Expanding Opportunity Our Our Our Accelerating Broadening Enduring Expand oCFO oCHRO Opportunity Opportunity Opportunity
Slide 104: Our Expanding Portfolio Targeting the oCHRO
Our Expanding Portfolio Targeting the oCHRO >3x >4x >60% Peakon Time Tracking Other CHRO Products Of New HCM ACV1 From Talent Optimization Outside Of Core HCM Journeys/Help Workforce Planning People Analytics Learning Recruiting 1x Payroll Core HCM Core HCM 1 For the trailing 12 months ended 7.31.21
Slide 105: Plenty of HCM Runway in Large and Medium Enterprise
Plenty of HCM Runway in Large and Medium Enterprise Large Medium Enterprise Enterprise <25% ~10% Global 2000 Midmarket Customer Penetration Penetration As of 7.31.21
Slide 106: Our Biggest Market Still Has Room to Run
Our Biggest Market Still Has Room to Run United States <15% HCM $ PENETRATED ~50% OF GLOBAL HCM TAM IDC and Workday estimates
Slide 107: International Is an Important HCM Growth Driver
International Is an Important HCM Growth Driver International ~5% HCM $ PENETRATED ~50% OF GLOBAL HCM TAM IDC and Workday estimates
Slide 108: International: United Kingdom
International Is an Important HCM Growth Driver United Kingdom Market Leaders with 30%+ of the FTSE 100 600+ Customers and Approaching 100 FINS Native UK Payroll Investing Across ME and Customer Base Sales
Slide 109: International: France
International Is an Important HCM Growth Driver France Approaching 25% of CAC40 as Customers Native Payroll for France Investing Across Brand, Product Market Fit, and Sales Capacity
Slide 110: International: Germany
International Is an Important HCM Growth Driver Germany 35% of DAX40 are Customers Native Payroll Investment Significant Go-to-Market and Brand Investments
Slide 111: International: Australia
International Is an Important HCM Growth Driver Australia Increasing Investments in Our Land Sales Teams Native Payroll Investment Public Sector Opportunity
Slide 112: International: Japan
International Is an Important HCM Growth Driver Japan Doubling Our Field Sales Force Launched Our ME Business Reseller Relationship with IBM and Hitachi Solutions
Slide 113: Opening New Engagement Paths with oCHRO
Opening New Engagement Paths with oCHRO Federal Peakon
Slide 114: Opening New Engagement Paths with oCHRO
Opening New Engagement Paths with oCHRO Federal Peakon Opening up $2B+ HCM/FINS TAM
Slide 115: Investing to Capitalize on Our oCHRO Opportunity
Investing to Capitalize on Our oCHRO Opportunity Increasing Global Rep Capacity Accelerating International Marketing/Brand Investments Opening Up the Federal Market
Slide 116: Key Takeaways
Key Expanding Customer Share of Wallet Is a Significant Growth Driver Takeaways Our Broadening Finance Footprint Is Winning in the Market Positioned to Dominate the HCM Market
Slide 117: Robynne Sisco
Robynne Sisco PRESIDENT AND CFO
Slide 118: The Path to $10 Billion
The Path to $10 Billion Multiple Importance Compelling Growth of Retention Business Vectors Model
Slide 119: Our Innovation Expands Our Opportunity
Our Innovation Expands Our Opportunity Financial Management Human Capital Management $88B Payroll and Workforce Management Talent Management Addressable Opportunity Planning Analytics and Reporting 2019 Industry Solutions IDC and Workday Estimates
Slide 120: Our Innovation Expands Our Opportunity
Our Innovation Expands Our Opportunity Financial Management Human Capital Management Payroll and Workforce Management $105B+ Talent Management Planning Analytics and Reporting Addressable Industry Solutions Opportunity Spend Management Employee Experience Platform Accounting Center Current IDC and W
Slide 121: Across Both New Landing Opportunities…
Across Both New Landing Opportunities… ~11% Penetration into Our Addressable Customers Based on Core Customer Count as of 7.31.21
Slide 122: And Expanding Within Our Installed Base…
And Expanding Within Our Installed Base… $10B+ Addressable Installed Base Opportunity
Slide 123: HCM and FINS+ Both Important Growth Drivers
HCM and FINS+ Both Important Growth Drivers HCM Subscription Revenue1 FINS+ Subscription Revenue2 16% Growth $3.2B $2.7B 33% Growth $1.0B $0.7B Trailing TTM12 Months 7.31.20 Trailing TTM 12 Months 7.31.21 Trailing TTM12 Months 7.31.20 Trailing TTM12 Months 7.31.21 Ended Q2’21 Ended Q2’22 Ended Q2’21
Slide 124: HCM Provides Significant Runway
HCM Provides ~$38B HCM Market Opportunity Significant Runway <10% Penetration Key Growth Vectors/Investment Areas International Expanding Share of Wallet Medium Enterprise U.S. Federal Future Innovation M&A IDC and Workday estimates. Includes core HCM, Payroll, Talent Management, Time Tracking, Sche
Slide 125: Unlocking a ~$67B FINS+ Market Opportunity
Unlocking a ~$67B FINS+ Market Opportunity Massive FINS+ Opportunity <5% Penetration Key Growth Vectors/Investment Areas New Landing Points Expanding into Our HCM Base Medium Enterprise Deepening Our Future Innovation M&A Industry Presence IDC and Workday estimates. Includes Financial Management, An
Slide 126: The Opportunity Is Global
The Opportunity Is Global U.S. Subscription Revenue International Subscription Revenue 18% Growth $3.1B $2.6B 22% Growth $1.0B $0.8B Trailing LTM12 Months 7.31.20 Trailing LTM 12 Months 7.31.21 Trailing LTM12 Months 7.31.20 Trailing LTM12 Months 7.31.21 Ended Q2’21 Ended Q2’22 Ended Q2’21 Ended Q2’2
Slide 127: U.S. Still Has Lots of Room to Run
U.S. Still Has Lots ~$53B Market Opportunity of Room to Run <10% Penetration Key Growth Vectors/Investment Areas Large Enterprise/ Expanding Share of Wallet Medium Enterprise Fortune 500 Industry/U.S. Federal Future Innovation M&A IDC and Workday Estimates
Slide 128: International Markets Are Even Faster Growth
International ~$52B Market Opportunity Markets Are Even Faster Growth <5% Penetration Key Growth Vectors/Investment Areas Large Enterprise / Medium Enterprise M&A Global 2000 Deepening Our Expanding Share Future Innovation Industry Presence of Wallet IDC and Workday Estimates
Slide 129: The Path to $10 Billion
The Path to $10 Billion Multiple Importance Compelling Growth of Retention Business Vectors Model
Slide 130: Durable Retention Highlights Our Strategic Nature
Durable Retention Highlights Our Strategic Nature 95%+ Gross Revenue Retention Rate Defined as ARR of our customer base as of 7.31.21 divided by ARR from the same cohort as of 7.31.20 before upsells and excluding seat contraction/expansion and pricing increases.
Slide 131: And is Best-in-Class in Enterprise Software
And is Best-in-Class in Enterprise Software 98% Average Gross Revenue Retention Rate Average gross revenue retention over the last 20 quarters.
Slide 132: Fueling Strong Growth in Our Strategic Relationships
Fueling Strong Growth in Our Strategic Relationships $3M+ ACV Customers 256 28% CAGR 121 Q2 '19 Q2 '20 Q2 '21 Q2 '22
Slide 133: The Path to $10 Billion
The Path to $10 Billion Multiple Importance Compelling Growth of Retention Business Vectors Model
Slide 134: Targeting Sustained 20%+ Subscription Revenue Growth
$10B Total Targeting 20%+ Revenue Sustained 20%+ Subscription Revenue Growth FY22
Slide 135: HCM and FINS+ Sustaining Healthy Growth
HCM and FINS+ Sustaining Healthy Growth FINS+ Subscription Revenue1 HCM Subscription Revenue Driving FINS+ Subscription ~30% mix Growth of ~30% Sustaining High-Teens ~24% mix Subscription Growth in HCM ~19% mix ~70% mix ~76% mix ~81% mix 2 FY20 FY20 FY22E FY22E At At $10B $10B 1 FINS+ includes Workd
Slide 136: Significant Growth Opportunities Globally
Significant Growth Opportunities Globally International Subscription Revenue U.S. Subscription Revenue Accelerating International ~30% mix Subscription Growth to ~30% Sustaining High-Teens ~24% mix Subscription Growth in U.S. ~70% mix ~23% mix ~76% mix ~77% mix 1 FY20 FY20 FY22E FY22E At At $10B $10
Slide 137: Margin Expansion Highlights the Power of Our Model
Margin Expansion Highlights the Power of Our Model Non-GAAP Operating Margin 25% 21% 17-18% Margins Have More Than Doubled Over the Last Three Years 10% FY19 FY20 FY21 FY22E FY23E At $10B
Slide 138: Outpacing Normal Efficiencies that Come with Scale
Outpacing Normal Efficiencies that Come with Scale Non-GAAP Operating Margin Normalized Margin Progression 25% 21% 17-18% More Measured Hiring Levels in FY21 10% COVID-related Cost-savings FY19 FY20 FY21 FY22E FY23E At $10B
Slide 139: Investing For Long-Term Growth
Investing For Long-Term Growth Non-GAAP Operating Margin Normalized Margin Progression 25% 21% Increased Investments in Top ~18% Line Growth 10% COVID-related Cost-savings Phase Back Into the Model Rollout of Cash Performance Bonus Program FY19 FY20 FY21 FY22E FY23E At $10B
Slide 140: And Targeting 25% Margins at $10B
And Targeting 25% Margins at $10B Non-GAAP Operating Margin 25% 21% ~18% 10% FY19 FY20 FY21 FY22E FY23E At $10B
Slide 141: Targeted Non-GAAP Margins at $10 Billion
Targeted Non-GAAP Margins at $10 Billion Line Items Targeted Margins Gross Margins ~80% R&D/Revenue ~22% S&M/Revenue ~27% G&A/Revenue ~6% Operating Margin ~25% Operating Cash Flow Margin ~35%
Slide 142: Key Takeaways
Key Innovating for the Future Capitalizing on Our Expanding Opportunity Takeaways Compelling Business Model Significant Runway Beyond $10B
Slide 143: Appendix
Appendix
Slide 144: Operating Margin GAAP to Non-GAAP Reconciliation
Operating Margin GAAP to Non-GAAP Reconciliation (in $ thousands) FY19 FY20 FY21 Revenue 2,822,180 3,627,206 4,317,996 Operating Income (Loss) (463,284) (502,230) (248,599) Operating Margin % (16%) (14%) (6%) Non-GAAP Adjustments Share-Based Compensation 673,418 859,880 1,004,854 Other (1) 81,123 12
Slide 145: Thank You
Thank You workday.