Slide 1: Investor Presentation Q2 FY24
Investor Presentation Q2 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 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 sup
Slide 4: Workday at a Glance
Workday at a Glance
Slide 5: Workday Enterprise Management Cloud by the Numbers
Workday Enterprise Management Cloud by the Numbers For Finance, HR, Planning, Spend Management and Analytics $125B+ 10,000+ Global Customers Operating across 175+ Countries Market Opportunity $6.08B 21% YoY Growth Trailing Twelve Month Subscription Revenue1 Serving 50%+ of the Fortune 500 Including
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 and ML Differently
Workday Delivers AI and ML Differently Data Quality and Quantity Unified data-model; 65M+ global users1; 600B annual transactions Platform Approach Embedded, not bolted on Trustworthy Transparent and human-centric 1 Represents users under contract as of 7.31.2023
Slide 8: Serving Organizations of all Sizes and Across Industries
Serving Organizations of all Sizes and Across Industries
Slide 9: Addressing a Large and Expanding Opportunity
HCM $52B $125B+ Addressing a Large Human Capital Management/ Workforce Management Talent Management Workforce Planning and People Analytics Employee Experience and Expanding Payroll Opportunity FINS+ $73B <5% Financial Management Spend Management Financial Planning Platform Penetration Analytics Stu
Slide 10: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $6.58B FY24E 21% CAGR Annual 95%+ Gross Revenue Subscription 23.5% FY24E3 Revenue1 Retention4 $3.10B 1,010 FY20 bps Non-GAAP Operating Margin 13.4% FY202 1 CAGR calculation is based on FY20 actual subscription revenue and the mid-point of our FY24 subscription reve
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: Q2 FY24 Financial Highlights
Q2 FY24 Financial Highlights Q2 FY24 Results Increase (Decrease) YoY Total Revenue $1.79B 16% Subscription Revenue $1.62B 19% Total Subscription Revenue Backlog $17.85B 32% 24-month Subscription Revenue Backlog $10.27B 23% GAAP Operating Margin 2.0% 420 bps Non-GAAP Operating Margin1 23.6% 400 bps O
Slide 14: Q2 FY24 Customer Wins and Expansions
Q2 FY24 Customer Wins and Expansions
Slide 15: Q2 FY24 Business Highlights
Q2 FY24 Business Highlights • Workday announced continued momentum for Workday Financial Management with new customers including KinderCare, Metropolitan Community College, Nordic Consulting Inc., Palomar Health, and The Medical College of Wisconsin. Workday also announced new Workday Human Capital
Slide 16: Guidance Summary
Guidance Summary Q3 FY24 Quarterly Guidance Increase (Decrease) YoY Total Revenue $1.843B - $1.845B 15% Subscription Revenue $1.678B - $1.680B 17% 24-month Subscription Revenue Backlog n/a 21% Non-GAAP Operating Margin 23.5% 380 bps GAAP Operating Margin ~20 points lower than non-GAAP n/a Full Year
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended July 31, 2023 (in thousands, except percentages and per Share-Based GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses2 Dilution Effects3 Expenses Costs and expenses: Costs of subscription services $ 255,684 $ (29
Slide 19: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended July 31, 2022 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 $ 244,982 $ (25
Slide 20: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Six Months Ended July 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 $ 494,711 $ (59,2
Slide 21: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Six Months Ended July 31, 2022 (in thousands, except percentages and per Share-Based GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses2 Dilution Effects3 Expenses Costs and expenses: Costs of subscription services $ 477,904 $ (51,3
Slide 22: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Year Ended January 31, 2020 Amortization of Debt (in thousands, except percentages and per GAAP Share-Based Other Operating Income Tax and Dilution Non-GAAP share data) Compensation Expenses Discount and Issuance Expenses2 Effects4 Costs3 Costs and expenses: C
Slide 23: 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, and non-GAAP net income (loss) per share. Workday has p
Slide 24: 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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