Slide 1: Investor Presentation Q1 FY25
Investor Presentation Q1 FY25 Updated on August 22, 2024, see notes on slides 10, 19, 21, and 22
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 by the Numbers For Finance, HR, Planning, Spend Management and Analytics $142B+ Market Opportunity1 10,500+ Global Customers Operating across 175+ Countries $6.890B 18.3% YoY Growth Trailing Twelve Month Subscription Revenue2 Serving 60%+ of the Fortune 500 Includ
Slide 6: Workday Platform
Workday Platform FRAMEWORKS € True Cloud Performance * Availability » Continuous Delivery of Innovation » Single Version
Slide 7: Workday Delivers AI Differently
Workday Delivers AI Differently Quality Data Uniform data model, 65M+ global users1, 800B+ transactions2 Platform Approach Embedded, not bolted on Trustworthy Transparent and human-centric 1 Represents users under contract as of 4.30.2024 2 For the fiscal year ended 1.31.2024
Slide 8: Serving Organizations of all Sizes and Across Industries
Serving Organizations of all Sizes and Across Industries
Slide 9: Addressing One of the Largest Markets in Enterprise Software
HCM $58B Human Capital Workforce Planning Management/Workforce and People Analytics Management $142B+ Talent Management Payroll Employee Experience Addressing One of the Largest Markets FINS+ $84B in Enterprise Software Financial Management Financial Planning Spend Management Workday Extend Analytic
Slide 10: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $7.713B FY25E 19% CAGR Annual 95%+ Gross Revenue Subscription 25.0% FY25E3 Revenue1 Retention4 $3.788B FY21 420 bps Non-GAAP Operating Margin 20.8% FY212 1 CAGR calculation is based on FY21 actual subscription revenue and the mid-point of our FY25 subscription reve
Slide 11: While Growing Responsibly and Inclusively
While Growing Responsibly and Inclusively Our Employees Our Customers Our Communities VIBE Building Inclusive Companies Net-Zero Carbon Footprint Our commitment to value inclusion, Investing to help organizations gain Achieved net-zero emissions in fiscal valuable insights about equity within their
Slide 12: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 13: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights Q1 FY25 Results Increase (Decrease) YoY Total Revenue $1.990B 18.1% Subscription Revenue $1.815B 18.8% Total Subscription Revenue Backlog $20.68B 24.2% 12-month Subscription Revenue Backlog $6.60B 17.9% GAAP Operating Margin 3.2% 437 bps Non-GAAP Operating Margin1 25.9%
Slide 14: Q1 FY25 Customer Wins and Expansions
Q1 FY25 Customer Wins and Expansions
Slide 15: Q1 FY25 Business Highlights
Q1 FY25 Business Highlights • Workday is used by more than 60% of the Fortune 500, including HPE, Keybank, Salesforce, and Unum. • Added several full platform customers for Workday Financial Management and Workday Human Capital Management (HCM), including City of Milwaukee, H. Lee Moffitt Cancer Cen
Slide 16: Guidance Summary
Guidance Summary Q2 FY25 Quarterly Guidance Increase (Decrease) YoY Total Revenue $2.070B 16% Subscription Revenue $1.895B 17% 12-month Subscription Revenue Backlog n/a 15 - 16% Non-GAAP Operating Margin 24.5% 90 bps GAAP Operating Margin ~20 points lower than non-GAAP n/a Full Year FY25 Full Year G
Slide 17: Appendix
Appendix
Slide 18: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except percentages and per share data) Three Months Ended April 30, 2024 2023 Non-GAAP operating income (loss) Operating income (loss) $ 64 $ (20) Share-based compensation expenses 385 369 Employer payroll tax-related items on employee stock tra
Slide 19: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data Year Ended January 31, 2021 Non-GAAP operating margin(1) Operating margin (5.8)% Share-based compensation expenses 23.3% Employer payroll tax-related items on employee stock transactions 1.2% Amortization of acquisition-related intangible assets 1.4% Acquisit
Slide 20: Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows
Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows (in millions) Three Months Ended April 30, 2024 2023 Net cash provided by (used in) operating activities $ 372 $ 277 Less: Capital expenditures (81) (59) Free cash flows $ 291 $ 218
Slide 21: Q1FY25 Supplemental Information
Q1FY25 Supplemental Information (in millions) Three Months Ended April 30, 2024 2023 Share-based compensation expenses Costs and expenses: Costs of subscription services $ 38 $ 29 Costs of professional services 31 30 Product development 173 170 Sales and marketing 72 80 General and administrative 71
Slide 22: Q1FY25 Supplemental Information (cont'd)
Q1FY25 Supplemental Information (cont’d) (in millions) Three Months Ended April 30, 2024 2023 Acquisition-related costs Costs and expenses: Costs of subscription services $ 0 $ 0 Costs of professional services 0 0 Product development 1 0 Sales and marketing 0 0 General and administrative 2 0 Total a
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, non-GAAP diluted net income (loss) per share, and free
Slide 24: About Non-GAAP Financial Measures (cont'd)
About Non-GAAP Financial Measures (cont’d) • Amortization of acquisition-related intangible assets. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subj
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