Slide 1: Investor Presentation Q3 FY25
Investor Presentation Q3 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 Enterprise Platform by the Numbers For Finance, HR, Planning, Spend Management and Analytics $160B 10,500+ Global Customers Market Opportunity1 Operating across 175+ Countries $7.437B 17.3% YoY Growth Serving 60%+ of the Fortune 500 Trailing Twelve Month Subscription Revenue2 Includi
Slide 6: The Workday Platform and Suite
The Wo rkd ay Customers’ Pp | atfo rm Workday Marketplace Industry Ecosystem SESS | Extensibility and Interoperability Workday Extend Workday Integration Cloud | Experience Conversational Al Web Omni-Channel Mobile The Workday Suite Finance & © f28\ & 5 & B — : _ * Planning . ‘ndustry Solutions ©. A
Slide 7: Workday Delivers AI Differently
Workday Delivers AI Differently Quality Data Uniform data model, 70M+ users under contract, 800B+ transactions annually Platform Approach Embedded, not bolted on Trustworthy Transparent and human-centric
Slide 8: $160B TAM
$160B TAM TAM estimates based on Workday and third-party data as of 9.17.2024
Slide 9: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale 7.703B FY25E2 19% CAGR Annual 98% Gross Revenue Subscription 25.5% Revenue FY25E2 Retention3 $3.788B FY21 470 bps Non-GAAP Operating Margin 20.8% FY211 1 Reconciliations of GAAP to Non-GAAP financial data included in the Appendix 2 FY25 subscription revenue and Non
Slide 10: While Growing Responsibly
While Growing Responsibly Helping Others Protecting the Putting People First Acting with Integrity Innovate Planet VIBE Building Inclusive Companies Net-Zero Carbon Footprint Delivering Responsible AI Our commitment to value Investing to help organizations Achieved net-zero emissions in Developing t
Slide 11: Financial Highlights and Guidance
Financial Highlights and Guidance
Slide 12: Q3 FY25 Financial Highlights
Q3 FY25 Financial Highlights Q3 FY25 Results Increase YoY Total Revenue $2.160B 15.8% Subscription Revenue $1.959B 15.8% Total Subscription Revenue Backlog $22.19B 20.3% 12-month Subscription Revenue Backlog $6.98B 15.3% GAAP Operating Margin 7.6% 294 bps Non-GAAP Operating Margin1 26.3% 154 bps Ope
Slide 13: Q3 FY25 Customer Wins and Expansions
Q3 FY25 Customer Wins and Expansions
Slide 14: Q3 FY25 Business Highlights
Q3 FY25 Business Highlights ● Workday unveiled Workday Illuminate, the next generation of Workday AI, at its annual customer conference, Workday Rising. ● Workday introduced a set of new AI agents and a new Workday Assistant to streamline and simplify common HR and finance processes. ● Workday added
Slide 15: Guidance Summary
Guidance Summary Q4 FY25 Quarterly Guidance Increase YoY Total Revenue $2.180B 13% Subscription Revenue $2.025B 15% 12-month Subscription Revenue Backlog n/a 13.5% - 14.5% Non-GAAP Operating Margin 25.0% 101 bps GAAP Operating Margin ~20 points lower than non-GAAP n/a Full Year FY25 Full Year Guidan
Slide 16: Appendix
Appendix
Slide 17: 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 October 31, Nine Months Ended October 31, 2024 2023 2024 2023 Non-GAAP operating income (loss) Operating income (loss) $ 165 $ 88 $ 340 $ 104 Share-based compensation expenses 368 349 1,1
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, 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 % Amortizatio
Slide 19: Reconciliations of GAAP to Non-GAAP Data from Operations to Free Cash Flows
Reconciliations of GAAP to Non-GAAP Data from Operations to Free Cash Flows (in millions) Three Months Ended October 31, Nine Months Ended October 31, 2024 2023 2024 2023 1,34 1,15 Net cash provided by operating activities $ 406 $ 451 $ $ 9 3 Less: Capital expenditures (47) (60) (183) (183) 1,16 Fre
Slide 20: Q3 FY25 Supplemental Information
Q3 FY25 Supplemental Information Three Months Ended October 31, Nine Months Ended October 31, (in millions) 2024 2023 2024 2023 Share-based compensation expenses Costs and expenses: Costs of subscription services $ 35 $ 30 $ 108 $ 90 Costs of professional services 28 29 86 87 Product development 162
Slide 21: Q3 FY25 Supplemental Information (cont'd)
Q3 FY25 Supplemental Information (cont’d) Three Months Ended October 31, Nine Months Ended October 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 8 0 Sal
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, non-GAAP diluted net income (loss) per share, and free
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.