Slide 1: Investor Presentation Q4 FY23
Investor Presentation Q4 FY23
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 10,000+ Global Customers $125B+ Market Opportunity Operating across 175+ Countries $5.57B 22% YoY Growth Fiscal Year 2023 Subscription Revenue Serving 50%+ of the Fortune 500 Including 70%+ o
Slide 6: Workday Enterprise Management Cloud
Workday Enterprise Management Cloud True Cloud Scale • Elasticity • Performance • Availability • Continuous Delivery of Innovation • Single Version
Slide 7: Serving Organizations of all Sizes and Across Industries
Serving Organizations of all Sizes and Across Industries
Slide 8: 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 9: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $6.50B FY24E 20% CAGR Annual 95%+ Gross Revenue Subscription Revenue1 23.0% Retention4 960 FY24E3 $3.10B 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 revenu
Slide 10: While Growing Responsibly and Inclusively
While Growing Responsibly and Inclusively ESG and Our Employees ESG and Our Customers ESG and 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 2020 and belonging, and
Slide 11: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 12: Q4 & FY23 Financial Highlights
Q4 & FY23 Financial Highlights Q4 FY23 Results Increase (Decrease) YoY Total Revenue $1.65B 20% Subscription Revenue $1.50B 22% Total Subscription Revenue Backlog $16.45B 28% 24-month Subscription Revenue Backlog $9.68B 21% GAAP Operating Margin (5.4)% 190 bps Non-GAAP Operating Margin1 18.5% 130 bp
Slide 13: Q4 FY23 Customer Wins and Expansions
Q4 FY23 Customer Wins and Expansions
Slide 14: Q4 FY23 Business Highlights
Q4 FY23 Business Highlights • Workday announced the appointment of Carl Eschenbach to co-CEO to serve alongside Aneel Bhusri through January 2024, at which time Carl is expected to assume sole CEO responsibilities and Aneel will assume a full-time role as executive chair and will remain as chair of
Slide 15: Guidance Summary
Guidance Summary Q1 FY24 Quarterly Guidance Increase (Decrease) YoY Total Revenue $1.665B - $1.668B 16% Subscription Revenue $1.517B - $1.520B 19% 24-month Subscription Revenue Backlog n/a 20% Non-GAAP Operating Margin 21.5% 140 bps GAAP Operating Margin ~26 points lower than non-GAAP n/a Full Year
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended January 31, 2023 Share-Based (in thousands, except percentages and per GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses2 Dilution Effects3 Expenses Costs and expenses: Costs of subscription services $ 274,146 $
Slide 18: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended January 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 $ 220,208 $
Slide 19: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Year Ended January 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 $ 1,011,447 $ (106,1
Slide 20: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Year Ended January 31, 2022 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 $ 795,854 $ (85,713)
Slide 21: 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 Share-Based Other Operating Income Tax and Dilution share data) GAAP Compensation Expenses Discount and Issuance Non-GAAP Expenses2 Effects4 Costs3 Costs and expenses: C
Slide 22: 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 23: 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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