Slide 1: Investor Presentation Q4 FY24
Investor Presentation Q4 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 U.S. 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 o
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+ Market Opportunity1 10,000+ Global Customers Operating across 175+ Countries $6.6B 19% YoY Growth Fiscal Year 2024 Subscription Revenue Serving 50%+ of the Fortune 500 Including 70%+
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, 800B+ transactions2 Platform Approach Embedded, not bolted on Trustworthy Transparent and human-centric 1 Represents users under contract as of 1.31.2024 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 $7.75B FY25E 20% CAGR Annual 95%+ Gross Revenue Subscription 24.5% FY25E3 Revenue1 Retention4 $3.79B 440 FY21 bps Non-GAAP Operating Margin 20.1% FY212 1 CAGR calculation is based on FY21 actual subscription revenue and the mid-point of our FY25 subscription revenu
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: Q4 & FY24 Financial Highlights
Q4 & FY24 Financial Highlights Q4 FY24 Quarterly Results Increase (Decrease) YoY Total Revenue $1.92B 17% Subscription Revenue $1.76B 18% GAAP Operating Margin 4.1% 950 bps Non-GAAP Operating Margin1 23.9% 540 bps Operating Cash Flows $996M 44% Free Cash Flows1 $948M 54% Full Year FY24 Full Year Res
Slide 14: Q4 FY24 Customer Wins and Expansions
Q4 FY24 Customer Wins and Expansions
Slide 15: Q4 FY24 Business Highlights
Q4 FY24 Business Highlights • Officially named Carl Eschenbach CEO effective February 1, 2024. Aneel Bhusri remains integral to the organization as co- founder and as executive chair. • Announced it has entered into a definitive agreement to acquire HiredScore, a leading provider of AI-powered talen
Slide 16: Guidance Summary
Guidance Summary Q1 FY25 Quarterly Guidance Increase (Decrease) YoY Total Revenue $1.973B 17% Subscription Revenue $1.810B 18% 12-month Subscription Revenue Backlog n/a 17.5 - 18.5% Non-GAAP Operating Margin 24.5% 100 bps GAAP Operating Margin ~24 points lower than non-GAAP n/a Full Year FY25 Full Y
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended January 31, 2024 Employer Payroll Tax- Share-Based Amortization of (in millions, except percentages and per Related Items on GAAP Compensation Acquisition-Related Income Tax Effects(2) Non-GAAP share data) Expenses Employee Stock Intangible
Slide 19: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Year Ended January 31, 2024 Employer Payroll Tax- Share-Based Amortization of (in millions, except percentages and per GAAP Compensation Related Items on Non-GAAP share data) Acquisition-Related Income Tax Effects(2) Expenses Employee Stock Intangible Assets T
Slide 20: Reconciliation of GAAP Operating Cash Flows to Free Cash Flows
Reconciliation of GAAP Operating Cash Flows to Free Cash Flows Three Months Ended January 31, Year Ended January 31, (in millions) 2024 2023 2024 2023 Net cash provided by (used in) operating activities $ 996 $ 694 $ 2,149 $ 1,657 Less: Total capital expenditures(1) (48) (77) (232) (364) Free cash f
Slide 21: 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 22: 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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