Slide 1: Investor Presentation Q4 FY25
Investor Presentation Q4 FY25
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 Workday at a Glance
Slide 5: Workday by the Numbers
Workday Leading AI Platform by the Numbers For Finance, HR, Planning, Spend Management and Analytics $160B 11,000+ Global Customers Market Opportunity1 Operating across 175+ Countries $7.718B 16.9% YoY Growth Serving 60%+ of the Fortune 500 Fiscal Year 2025 Subscription Revenues Including 70%+ of th
Slide 6: The Workday Platform
The Workday Workday Workday Customer’s Industry Ecosystem Platform Marketplace Services Extensibility and Interoperability Workday Extend Workday Integration Cloud Experience Natural Language Interactions Unified Experience Mobile Partner Integrations The Workday Product Portfolio HR Finance Plannin
Slide 7: $160B TAM
$160B TAM TAM estimates based on Workday and third-party data as of 9.17.2024
Slide 8: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $8.800B FY26E2 18% CAGR Annual 98% Gross Revenue Subscription 28.0% Revenues FY26E2 Retention3 $4.546B FY22 510 bps Non-GAAP Operating Margin 22.9% FY221 1 Reconciliations of GAAP to Non-GAAP financial data included in the Appendix 2 FY26 subscription revenue and N
Slide 9: While Growing Responsibly
While Growing Responsibly Acting with Integrity Putting People First Protecting the Planet Delivering Responsible AI Skills Based Organization Net-Zero Carbon Footprint Developing trustworthy AI Investing in employee growth and Achieved net-zero carbon development by putting skills at solutions to d
Slide 10: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 11: Q4 & FY25 Financial Highlights
Q4 & FY25 Financial Highlights Q4 FY25 Quarterly Results Increase (Decrease) YoY Total Revenues $2.211B 15.0% Subscription Revenues $2.040B 15.9% GAAP Operating Margin 3.4% (70) bps Non-GAAP Operating Margin1 26.4% 244 bps Operating Cash Flows $1.113B 11.7% Free Cash Flows1 $1.026B 8.3% Fiscal Year
Slide 12: Q4 FY25 Customer Wins and Expansions
Q4 FY25 Customer Wins and Expansions
Slide 13: Q4 FY25 Business Highlights
Q4 FY25 Business Highlights • Workday announced the Workday Agent System of Record, which will enable organizations to manage their entire fleet of AI agents in one place. Workday also announced new role-based Illuminate agents for Payroll, Contracts, Financial Auditing, and Policy. • Workday named
Slide 14: Guidance Summary
Guidance Summary Q1 FY26 Quarterly Guidance Increase (Decrease) YoY Total Revenues $2.215B 11% Subscription Revenues $2.050B 13% 12-month Subscription Revenue Backlog n/a 14.5% - 15.5% Non-GAAP Operating Margin 28.0% 213 bps GAAP Operating Margin ~30 points lower than non-GAAP n/a Full Year FY26 Ful
Slide 15: Appendix
Appendix
Slide 16: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except number of shares which are reflected in thousands, percentages, and Three Months Ended January 31, Year Ended January 31, per share data) 2025 2024 2025 2024 Non-GAAP operating income Operating income (loss) $ 75 $ 79 $ 415 $ 183 Share-ba
Slide 17: Reconciliations of GAAP to Non-GAAP Data (cont'd)
Reconciliations of GAAP to Non-GAAP Data (cont’d) (in millions, except number of shares which are reflected in thousands, percentages, and Three Months Ended January 31, Year Ended January 31, per share data) 2025 2024 2025 2024 Non-GAAP diluted net income per share(3)(4) Diluted net income per shar
Slide 18: Reconciliations of GAAP to Non-GAAP Data
Reconciliations of GAAP to Non-GAAP Data (in millions, except percentages and per share data) Year Ended January 31, 2022 Non-GAAP operating margin(1) Operating margin (2.3) % Share-based compensation expense 21.6 % Employer payroll tax-related items on employee stock transactions 1.5 % Amortization
Slide 19: Cash from Operations to Free Cash Flows
Reconciliations of GAAP to Non-GAAP Data Cash from Operations to Free Cash Flows (in millions) Three Months Ended January 31, Year Ended January 31, 2025 2024 2025 2024 Net cash provided by operating activities $ 1,113 $ 996 $ 2,461 $ 2,149 Less: Capital expenditures (87) (48) (269) (232) Free cash
Slide 20: Supplemental Financial Information
Supplemental Financial Information Three Months Ended January 31, Year Ended January 31, (in millions) 2025 2024 2025 2024 Share-based compensation expense (1) Costs and expenses: Costs of subscription services $ 37 $ 31 $ 145 $ 120 Costs of professional services 28 28 114 116 Product development 17
Slide 21: Supplemental Financial Information (cont'd)
Supplemental Financial Information (cont’d) Three Months Ended January 31, Year Ended January 31, (in millions) 2024 2023 2024 2023 Acquisition-related costs Costs and expenses: Costs of subscription services $ 0 $ 0 $ 0 $ 0 Costs of professional services 0 0 0 0 Product development 3 0 11 0 Sales a
Slide 22: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures To provide investors and others with additional information regarding Workday’s results, the following non-GAAP financial measures are disclosed: non-GAAP operating income, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flows. Workda
Slide 23: 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
Slide 24: Other Business Metrics
Other Business Metrics Gross Revenue Retention Rate Gross revenue retention rate measures the percentage of recurring revenue retained from existing customers and is calculated by taking total annual recurring revenue (“ARR”) of our customers as of the corresponding prior period-end and comparing th
Slide 25: workday.
workday.