Workday, Inc. · NASDAQ:WDAY
Workday — Investor Day (September 2016)
117 slides from Workday's investor day presentation, Sep 27, 2016
Slide 1: Financial Analyst Day
“oN workday. Vv Financial Analyst Day
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that involve risks, uncertainties, and assumptions. If any of these risks or uncertainties materialize or if any of these assumptions prove incorrect, the results of Workday could differ materially from the results expressed
Slide 3: Welcome
Welcome Mark Peek Co-President Workday Financial Analyst Day, September 27, 2016 3
Slide 4: Agenda
Agenda ► Overview Aneel Bhusri ► Planning and Analytics Mike Frandsen and Pete Schlampp Competitive Differentiation: Field Phil Wilmington ► Architecture Stan Swete and Dan Beck Deployment Jim Bozzini and Annrai O’Toole ► Financials Robynne Sisco ► Q&A Workday Financial Analyst Day, September 27, 20
Slide 5: Keynote Review
Keynote Review Aneel Bhusri Co-Founder and CEO Workday Financial Analyst Day, September 27, 2016 5
Slide 6: Financial Analyst Day
“oN workday. Vv Financial Analyst Day
Slide 7: DEMO
DEMO Workday Financial Analyst Day, September 27, 2016 7
Slide 8: Workday Financial Analyst Day, September 27, 2016
TM Workday Financial Analyst Day, September 27, 2016 8
Slide 9: Analytics and Planning
Analytics and Planning Mike Frandsen Pete Schlampp EVP VP Products, Support and Delivery Product Management Workday Financial Analyst Day, September 27, 2016 9
Slide 10: Workday Strategic Focus
Workday Strategic Focus Business Management Solutions Planning & Analytics Predict | Alert | Recommend | Trend Compare & Benchmark | Model Strategic Enterprise Administration Systems Strategic HR & FIN Processes Core Administrative Systems HR & FIN Records, Compliance, & Core Processing Back Office
Slide 11: Financial Planning Priorities
Financial Planning Priorities 1. Effective planning, budgeting, and forecasting 2. Monitoring and measuring performance Planning, budgeting, 3. Providing input for strategic decision making and forecasting 4. Managing compliance and internal controls ranked #1 5. Managing and mitigating business ris
Slide 12: Differentiating Through Analytics
Differentiating Through Analytics Data Discovery and Data Prep Planning, Budgeting, Forecasting Scorecards, KPIs, Insights Dashboards Functional & Operational Reporting Financial Statements Workday Financial Analyst Day, September 27, 2016 12
Slide 13: What You Need To Manage Your Business
What You Need To Manage Your Business Next Manage Operational Data, Ad-Hoc Visual Analytics Planning, Budgeting, & Forecasting Scorecards Predictive Analytics Management Reporting & Analytics Financial Consolidations Transactional Applications/Data (HR, Finance, Projects, Student) 13 Workday Financi
Slide 14: Competitive Landscape – Planning
Competitive Landscape – Planning FINANCIAL PLANNING WORKFORCE PLANNING Workday Confidential 14
Slide 15: Planning at the Center of Our $65Bn+ Opportunity
Planning at the Center of Our $65Bn+ Opportunity (4) ANALYTICS HEALTHCARE SOFTWARE & TECHNOLOGY LEARNING $19Bn+ PROFESSIONAL & BUSINESS SERVICES TALENT INSIGHTS FINANCIAL SERVICES (3) PLANNING FINANCIALS HCM (1) $27Bn+ RECRUITING $13Bn+ EDUCATION & STUDENT GOVERNMENT $1Bn+ PAYROLL & BENEFITS PROJECT
Slide 16: Use Case Driven Requirements
Use Case Driven Requirements Distribution via Desktop, Tablet, Mobile Ad-Hoc Visual Analytics Environment In-Memory Storage and Query Engine Self-Service Data Preparation Connection to Non-Workday Datasources and Data Ingestion Manage Operational Data, Ad-Hoc Visual Analytics 16 Workday Financial An
Slide 17: Analytics on Blended Big Data Sources
Analytics on Blended Big Data Sources Current approaches are cumbersome, insecure, stale, and inactionable HR and FIN operational reporting Financial and People Analytics (EPM / CPM / Data Warehouse / Tableau / Excel) Operational systems HR & FIN data Non-Workday data Workday Financial Analyst Day,
Slide 18: Why Platfora?
Why Platfora? Best in class technology Domain expertise in big data, modern BI End-to-end big data analytics solution Designed for the business user Product and vision alignment Workday Financial Analyst Day, September 27, 2016 18
Slide 19: Building a Native Experience
Building a Native Experience Organize, Find and Data Security Through Self-service Data Prep Search Data Sources in Native Organization of Workday and non- One Location Hierarchies Workday Data Access Data from Any Speed of Thought Device and a Single Visual Analysis and Application Discovery 19
Slide 20: One Location to Organize and Find Data Sources
One Location to Organize and Find Data Sources Easily view and select all of your data for analysis Workday and Non- Workday data in one location 20
Slide 21: Understanding and Sharing Data Securely
Understanding and Sharing Data Securely Govern your data with security inherited from your organizational hierarchies Provide rich descriptions and see relationships 21
Slide 22: From Raw Data to Analysis: Self-Service Data Prep
From Raw Data to Analysis: Self-Service Data Prep Blend, transform, and enrich Workday and non-Workday data Designed for business users, data admins, or citizen data scientists 22
Slide 23: Access to All Data on Any Device
Access to All Data on Any Device All data is accessible in detail on any device via Dashboards, Scorecards, and Reports 23
Slide 24: Speed-of-Thought Visual Analysis
Speed-of-Thought Visual Analysis Ad-hoc visual analysis environment to answer any business question Innovative in-memory lens technology for fast and interactive analysis Workday Confidential 24
Slide 25: Roadmap
Roadmap Near-term Long-term • Blend Workday and non-Workday Data • Ad-Hoc Visual Analysis • Self-Service Data Preparation + Data Catalog • And More… • Secure and Control non-Workday Data by Organizational Hierarchy • Output to Reports, Dashboards and Scorecards Today SEP 2017 MAR 2018 25
Slide 26: Q&A
fN workday. Built for the future: Q&A
Slide 27: Competition: Field Update
Competition: Field Update Phil Wilmington Co-President Workday Financial Analyst Day, September 27, 2016 27
Slide 28: Driving Our $65 Billion Opportunity
Driving Our $65 Billion Opportunity 33,000 Target Customers All Customers ~$65Bn All Customers, All SKUs Current Customers Current Customers 1,350+ Current SKUs Whitespace Current Customers ~$1Bn ~$2Bn All SKUs 28 Workday Financial Analyst Day, September 27, 2016
Slide 29: New Customers in the Last 12 Months
New Customers in the Last 12 Months Workday Financial Analyst Day, September 27, 2016 29
Slide 30: Broad Success Across Industries
Broad Success Across Industries Based on # of customers Tech Fin Mfg Healthcare Prof Retail Edu Ins Media Business Energy CPG Non- Travel Public Const Other Services Services Comms Services Profit Sector Workday Financial Analyst Day, September 27, 2016 30
Slide 31: Expanding International Coverage
Expanding International Coverage • 18+ Sales Offices • 120+ Sales Representatives • 17%+ of Revenue Nordics Japan Benelux Hong Kong UKI ASEAN France Germany Iberia Austria Australia Switzerland New Zealand Workday Financial Analyst Day, September 27, 2016 31
Slide 32: Sales Deployment Changes
Sales Deployment Changes Regions Industries Products Specialized Industry Teams Change in Deployment Model Workday Financial Analyst Day, September 27, 2016 32
Slide 33: Strong Attach Across Key Products
Strong Attach Across Key Products 370+ 240+ RECRUITING EXPENSES FY 16 540+ 165+ PAYROLL PROCUREMENT HUMAN CAPITAL FINANCIAL MANAGEMENT MANAGEMENT 510+ TIME TRACKING Workday Financial Analyst Day, September 27, 2016 33
Slide 34: Strong Attach Across Key Products
Strong Attach Across Key Products 690+ 370+ 370+ 240+ RECRUITING EXPENSES FY 17 760+ 540+ 240+ PAYROLL 165+ PROCUREMENT HUMAN CAPITAL FINANCIAL MANAGEMENT MANAGEMENT 750+ 510+ TIME TRACKING 19 50+ LEARNING PLANNING Workday Financial Analyst Day, September 27, 2016 34
Slide 35: Have We Reached the Tipping Point in Financials?
Have We Reached the Tipping Point in Financials? “By 2018, at least 25% of new core financial application deployments in large enterprises will be public cloud SaaS.” “Forrester estimates that the market for software-as-a-service (SaaS) applications is currently $52 billion, and it will grow by 24%
Slide 36: Accelerating Platform Sales
Accelerating Platform Sales 27% NA only – HUMAN CAPITAL FINANCIAL MANAGEMENT MANAGEMENT Net new customers 12% FY14 1H FY17 Workday Financial Analyst Day, September 27, 2016 36
Slide 37: Workday Replacement Statistics
Workday Replacement Statistics 395+ 130+ 90+ 280+ Oracle SAP Ultimate / NetSuite Payroll Providers Workday Financial Analyst Day, September 27, 2016 37
Slide 38: Strong Competitive Position
Strong Competitive Position Wins Against Competition Why Workday Wins Proven system with 1 95%+ customer satisfaction Lowest deployment risk with 2 70%+ customers live Other ~ 30% Legacy Referenceable customer base with 3 quantifiable impact ERP ~ 70% 4 Great ownership experience 5 Lower TCO Workday
Slide 39: Workday Financial Analyst Day, September 27, 2016
TM Workday Financial Analyst Day, September 27, 2016 39
Slide 40: Competition: Architecture
Competition: Architecture Stan Swete Dan Beck Chief Technology Officer SVP Product Marketing and Technology Strategy Workday Financial Analyst Day, September 27, 2016 40
Slide 41: What's The Difference
What’s The Difference We’re all saying the same things Doing Unified HCM frequent and FIN updates In the cloud Actionable Mobile first design analytics for “delightful” user experience Are we all the same? Workday Financial Analyst Day, September 27, 2016 41
Slide 42: Finance and HR - A Marriage Made in Cloud Heaven
Finance and HR - A Marriage Made in Cloud Heaven Eliminate Redundancy and Create Harmony with a Unified Cloud Suite One User Experience Elegant Simplicity Experience is consistent as you navigate across cloud services + No matter what the role, all users have a modern, consumer-like user experience
Slide 43: The Power of One
The Power of One Employee Data Organizational Data Payroll Data HR HR data drives crucial enterprise process ERP Budgeting Accounting Activity Approvals Controls Security 43
Slide 44: Selected Architectural Differences
Selected Architectural Differences SAP Oracle SAP S/4 Point of Differentiation Workday Success Netsuite Ultimate Fusion HANA Factors 1. Pure-play cloud 2. Metadata and abstraction 3. Single codeline 4. Generated UI 5. Single security model 6. Concurrent Read/Write 7. Native workflow Workday Financia
Slide 45: Selected Architectural Differences
Selected Architectural Differences SAP Oracle SAP S/4 Point of Differentiation Workday Success Netsuite Ultimate Fusion HANA Factors 1. Pure-play cloud 2. Metadata and abstraction 3. Single codeline 30 Acquisitions 12 Acquisitions 4. Generated UI (Taleo 9) (SFSF 5) 5. Single security model 6. Concur
Slide 46: Selected Architectural Differences
Selected Architectural Differences SAP Oracle SAP S/4 Point of Differentiation Workday Success Netsuite Ultimate Fusion HANA Factors 1. Pure-play cloud 2. Metadata and abstraction 3. Single codeline 4. Generated UI 5. Single security model 6. Concurrent Read/Write 7. Native workflow Workday Financia
Slide 47: Selected Architectural Differences
Selected Architectural Differences SAP Oracle SAP S/4 Point of Differentiation Workday Success Netsuite Ultimate Fusion HANA Factors 1. Pure-play cloud 2. Metadata and abstraction 3. Single codeline 4. Generated UI 5. Single security model 14 Hours / week 6. Concurrent Read/Write 7. Native workflow
Slide 48: Selected Architectural Differences
Selected Architectural Differences SAP Oracle SAP S/4 Point of Differentiation Workday Success Netsuite Ultimate Fusion HANA Factors 45 0 1. Pure-play cloud 2. Metadata and abstraction 3. Single codeline 4. Generated UI 5. Single security model 6. Concurrent Read/Write 7. Native workflow Workday Fin
Slide 49: Selected Architectural Differences
Selected Architectural Differences SAP Oracle SAP S/4 Point of Differentiation Workday Success Netsuite Ultimate Fusion HANA Factors 1. Pure-play cloud Encryption optional and 2. Metadata and abstraction 3. Single codeline 25% extra and 4. Generated UI Selective only 5. Single security model 6. Conc
Slide 50: Selected Architectural Differences
Selected Architectural Differences SAP Oracle Point of Differentiation Workday SAP HANA Success Netsuite Ultimate Fusion Factors 1. Pure-play cloud 2. Metadata and abstraction 3. Single codeline 4. Generated UI 5. Single security model 6. Concurrent Read/Write 7. Native workflow Workday Financial An
Slide 51: Selected Architectural Differences
Selected Architectural Differences SAP Oracle SAP S/4 Point of Differentiation Workday Success Netsuite Ultimate Fusion HANA Factors 1. Pure-play cloud 2. Metadata and abstraction 8 Workflow engines…+1 3. Single codeline Approvals = 4. Generated UI 5. Single security model Only 9 Workflow engines 6.
Slide 52: Why Architecture Matters to Customers
Why Architecture Matters to Customers Proven performance Transactions and Continuous changes and scalability: Analytics together: by the customer: • With continuous • Insight into the business • To make the software fit improvement to both the business • Analytics that drive decision-making • To kee
Slide 53: Proven Performance
Proven Performance Proven performance and scalability 1200 > 1000 Live Customers 140+ with > 20K employees 800 400 0 9/12 11/12 1/13 3/13 5/13 7/13 9/13 11/13 1/14 3/14 5/14 7/14 9/14 11/14 1/15 3/15 5/15 7/15 9/15 11/15 1/16 3/16 5/16 7/16 Workday Financial Analyst Day, September 27, 2016 53
Slide 54: Performance Request Volume vs. Response Time
Performance Request Volume vs. Response Time Proven performance and scalability 3.5 3,000 3.0 2,500 Response Time in Seconds 2.5 2,000 # of UI Requests 2.0 1,500 Millions 1.5 1,000 1.0 500 0.5 0.0 0 Average Response Time (s) Total UI Request Workday Financial Analyst Day, September 27, 2016 54
Slide 55: The Path to Zero Downtime
The Path to Zero Downtime Proven performance and scalability 23 1,350+ HOURS CUSTOMERS Average Update Time 330+ CUSTOMERS 3.75 HOURS Customers
Slide 56: Performance: SLA Comparison
Performance: SLA Comparison Proven performance and scalability UPTIME SLA EXCLUSIONS TO 99.5% PERFORMANCE 99.5% None Yes 99.5% 5 Days No Emergency maintenance 99.5% Major maintenance 2/yr No Data Center Migrations 2 Days 99.5% Track Qtrly No 99.5% Emergency No Track Qtrly Workday Financial Analyst D
Slide 57: Questions for the Competition
Questions for the Competition Proven performance and scalability 1 How many live customers do you have running core HCM or Financial Management in the cloud with 20,000 Employees? With 100,000 Employees? 2 Do you have a performance SLA? 3 What is your median transaction response time across all clou
Slide 58: Why Architecture Matters to Customers
Why Architecture Matters to Customers Proven performance Transactions and Continuous changes and scalability: Analytics together: by the customer: • With continuous • Insight into the business • To make the software fit improvement to both the business • Analytics that drive decision-making • To kee
Slide 59: Transactions and Analytics Together
Transactions and Analytics Together Transactions and Analytics together Workday Financial Analyst Day, September 27, 2016 59
Slide 60: Hybrid Transactional / Analytical Processing
Hybrid Transactional / Analytical Processing Transactions and Analytics together Traditional Transactional / Analytical Processing IMC-Enabled Hybrid Transactional / Analytical Processing Transactions Analytics ` TP Operational Database Data Integration Data Warehouse HTAP Application Data Mart In-M
Slide 61: Questions for the Competition
Questions for the Competition Transactions and Analytics together 1 Can large reports be run on the latest data without blocking updates? 2 Do your analytics use the same security model as your transactions? 3 Can you take action on data in a report? Workday Financial Analyst Day, September 27, 2016
Slide 62: Why Architecture Matters to Customers
Why Architecture Matters to Customers Proven performance Transactions and Continuous changes and scalability: Analytics together: by the customer: • With continuous • Insight into the business • To make the software fit improvement to both the business • Analytics that drive decision-making • To kee
Slide 63: Application Changes by Workday
Application Changes by Workday Continuous change 1,350+ CUSTOMERS Now GA All on the same version PSA Planning FIN Procurement Payroll UK Inventory Learning HCM Cloud Payroll Expenses Cloud Integration Payroll Time Grants Big Data Recruiting Student Insights Student Payroll Student Connect U.S. Conne
Slide 64: Changes Created By Customers
Changes Created By Customers Continuous change 3200+ 460+ 300+ Delivered Reports Delivered Business Delivered Integrations Process Definitions +262K +160K 1.2M Custom Business Total Integrations Custom Reports Process Definitions Workday Financial Analyst Day, September 27, 2016 64
Slide 65: Supporting Business Change
Supporting Business Change Continuous change Large M&A Large Restructuring Serial M&A + 5 acquisitions in 5 years + + “Without Workday I don’t think we’d have been able to accomplish the merging and transition of HR 13 acquisitions in 7 years between the two companies in such an efficient way in onl
Slide 66: Architecture Evolution
Architecture Evolution Continuous change Workday Financial Analyst Day, September 27, 2016 66
Slide 67: UI Service Evolution
UI Service Evolution Continuous change HTML5 Flex HTML 2005 2010 Today Workday Financial Analyst Day, September 27, 2016 67
Slide 68: Persistence Evolution
Persistence Evolution Continuous change Main tenanted data store Distributed, highly available Data from external systems Large scale data processing, Non-traditional schema K/V store Big Data processing machine learning evolved over time Documents, attachments Insight applications External data imp
Slide 69: Questions for the Competition
Questions for the Competition Continuous change 1 Do you have a single data model, workflow engine, and security model across all offerings and all customers? 2 Are all configurations (e.g. custom reports, workflows, integrations) converted to the latest update without customer involvement? 3 Do you
Slide 70: Live, referenceable, successful customers
Live, referenceable, successful customers Power of Workday Financial Analyst Day, September 27, 2016 70
Slide 71: Competition: Deployment
Competition: Deployment Jim Bozzini Annrai O’Toole EVP Chief Technology Officer Customer Operations Europe Workday Financial Analyst Day, September 27, 2016 71
Slide 72: Workday Technology Enables Rapid Deployments
Business Process Framework Workday Technology Enables Rapid Deployments Integrations User Experience 70%+ Live Enhanced Tooling Workday Financial Analyst Day, September 27, 2016 72
Slide 73: Ecosystem Growth: Certified Resources
Ecosystem Growth 6 Certified Resources Current 5 4 Thousands 3 2 1 0 FY14 FY15 FY16 FY17 (projected) Workday Financial Analyst Day, September 27, 2016 73
Slide 74: Most Experienced Partners: Certified Resources
Most Experienced Partners 6 Certified Resources Current 5 4 Thousands 3 2 1 0 FY14 FY15 FY16 FY17 (projected) Workday Financial Analyst Day, September 27, 2016 74
Slide 75: Commercial Customer Average Time to Live
Commercial Customer Average Time to Live Months 14 Customers > $3Bn 12 10 8 6 Customers < $3Bn 4 2 0 Q116 Q1 Q2 16 Q2 Q3 Q3 16 Q4 Q4 16 Q1 Q1 17 Q2Q2 17 FY 2016 FY 2017 Based on deployment start date and actual/projected initial go-live Workday Financial Analyst Day, September 27, 2016 75
Slide 76: Components of a Workday Deployment
Components of a Workday Deployment FOUNDATION Workday Financial Analyst Day, September 27, 2016 76
Slide 77: Innovation: Three Elements of Success
Innovation: Three Elements of Success C APAB I L I T I E S USEFULNESS OWNERSHIP Functional- Increase Usage- Little talked about- Total Addressable Market Stickiness “Underbelly” Workday Financial Analyst Day, September 27, 2016 77
Slide 78: Workday - A Visual
Workday - A Visual Workday Financial Analyst Day, September 27, 2016 78
Slide 79: Effort Drivers
Effort Drivers Data Tenant Management Management Transactional Reference Data Data Configuration Management It’s like a 1,000,000 piece jigsaw! Workday Financial Analyst Day, September 27, 2016 79
Slide 80: Ownership Innovation Objectives
Ownership Innovation Objectives Reduce overall effort Eliminate largest Higher win rate and deployment cost barrier of entry OWNERSHIP Workday Financial Analyst Day, September 27, 2016 80
Slide 81: Indicative Cost Ratios
Current State of the Problem 10x Professional Services Software HW & SW Infrastructure Infrastructure & Operations Customer Application Support Indicative Cost Ratios 10 x 1.0x On Premise Legacy Cloud Early Workday Workday Today Workday Future Workday Financial Analyst Day, September 27, 2016 81
Slide 82: Approach to Empowering Customer Self-enablement
Approach to Empowering Customer Self-enablement Automate repetitive Friendly data Friendly configuration technical tasks management content management Consumer UI Instrumentation for observation and diagnostics Workday Financial Analyst Day, September 27, 2016 82
Slide 83: What We've Done
What We’ve Done Comprehensive Tools and Applications Prescriptive Implementation Methodologies Workday Delivered… CloudLoader OX Customer Central Initial Tenant Configuration Customer Data Configuration Tenant Building Loading Migration Workday Technology Stack Production Tenant Big Data Service Wor
Slide 84: Results to Date
Results to Date Time (in hours) Tasks (number) Pre “tooling” 183 Post “tooling” 1 Pre “tooling” Post “tooling” 32 1.2 Workday Financial Analyst Day, September 27, 2016 84
Slide 85: Multiple Benefits
Multiple Benefits New Tooling Driving down cost & complexity Consultants Customers Workday Financial Analyst Day, September 27, 2016 85
Slide 86: DEMO
DEMO Workday Financial Analyst Day, September 27, 2016 86
Slide 87: Workday Financial Analyst Day, September 27, 2016
TM Workday Financial Analyst Day, September 27, 2016 87
Slide 88: Financial Update
Financial Update Robynne Sisco Chief Financial Officer Workday Financial Analyst Day, September 27, 2016 88
Slide 89: Focus Area #1: Growth
workday. Focus Area # 1: Growth
Slide 90: A Different View of Our $65 Billion Opportunity
A Different View of Our $65 Billion Opportunity 33,000 Target Customers All Customers ~$65Bn All Customers, All SKUs Current Customers Current Customers 1,350+ Current SKUs Whitespace Current Customers ~$1Bn ~$2Bn All SKUs 90 Workday Financial Analyst Day, September 27, 2016
Slide 91: Our $65Bn+ Opportunity
Our $65Bn+ Opportunity (4) ANALYTICS HEALTHCARE SOFTWARE & TECHNOLOGY LEARNING $19Bn+ PROFESSIONAL & BUSINESS SERVICES TALENT INSIGHTS FINANCIAL SERVICES (3) PLANNING FINANCIALS HCM (1) $27Bn+ RECRUITING $13Bn+ EDUCATION & STUDENT GOVERNMENT $1Bn+ PAYROLL & BENEFITS PROJECTS(2) INVENTORY CONNECT $8B
Slide 92: Our $65Bn Opportunity in Context
Our $65Bn Opportunity in Context The largest segment in cloud enterprise software… …A small fraction of IT spending 36% $1.3 Tn 30% 4% IaaS + SaaS 17% Growing >40% 9% 8% ERM CRM Collaboration Content Other Source: IDC 2016 Source: Pacific Crest Securities, “The Second Decade of SaaS & Rise of Smart
Slide 93: Significant Expansion Opportunity Beyond Core
Significant Expansion Opportunity Beyond Core $4.00+ Payroll Time Tracking Benefits Recruiting Represents Learning Sub-set of Planning all available Expenses add-ons Procurement Projects $2.00 Inventory Core FIN Core FIN $1.00 Core HCM Core HCM Core Core HCM HCM Workday Financial Analyst Day, Septem
Slide 94: Demonstrated Strong Attach Rates
Demonstrated Strong Attach Rates 60% Payroll 50% Time Tracking 40% Recruiting 30% 20% Projects 10% 0% FY 12 FY 13 FY 14 FY 15 FY 16 Workday Financial Analyst Day, September 27, 2016 94
Slide 95: Delivering Growth at Scale
Delivering Growth at Scale $1,091M TTM Subscription Revenue $132M Growth Q2 FY13 Q2 FY14 Q2 FY15 Q2 FY16 Q2 FY17 $1,387M TTM Subscription $236M Billings Growth Q2 FY13 Q2 FY14 Q2 FY15 Q2 FY16 Q2 FY17 Workday Financial Analyst Day, September 27, 2016 95
Slide 96: Focus Area #2: Predictability
Focus Area # 2: Predictability 96
Slide 97: Eight Consecutive Quarters of 100%+ $ Renewal
Eight Consecutive Quarters of 100%+ $ Renewal 100%+ 100%+ 100%+ 100%+ 100%+ 100%+ 100%+ 100%+ Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 8% of billings 10% of billings Workday Financial Analyst Day, September 27, 2016 97
Slide 98: Unearned Revenue and Backlog Supports Visibility
Unearned Revenue and Backlog Supports Visibility Backlog ST Unearned Revenue LT Unearned Revenue $2.5Bn $0.7Bn FY 13 FY 14 FY 15 FY 16 Workday Financial Analyst Day, September 27, 2016 98
Slide 99: Focus Area #3: Profitability
Focus Area # 3: Profitability 99
Slide 100: Efficient Customer Acquisition
Efficient Customer Acquisition CAC (GAAP TTM Average) 2.6 x 2.4x 1.6x 1.5x 1.4x Source: Goldman Sachs Wall Street Equity Research, Standalone SaaS Companies with > $500M ARR, “Benchmarking Software: Efficient Models Outperforming YTD,” September 13, 2016 Workday Financial Analyst Day, September 27,
Slide 101: Strong Lifetime Value
Strong Lifetime Value $1 ARR > $9 LTV Workday Financial Analyst Day, September 27, 2016 101
Slide 102: Gross Margin (Non-GAAP)
Gross Margin (Non-GAAP) Subscription Gross Margin % 85.2% 84.5% 84.3% 81.1% 79.7% FY 13 FY 14 FY 15 FY 16 1H FY 17 Services Gross Margin % 16.8% 14.6% 12.4% 11.0% 8.8% FY 13 FY 14 FY 15 FY 16 1H FY 17 Workday Financial Analyst Day, September 27, 2016 102
Slide 103: Operating Expenses % of Rev
Operating Expenses % of Rev Sales & Marketing Product Development General & Administrative Operating Expenses % Rev Operating Expenses % Rev Operating Expenses % Rev 44% 11% 36% 39% 34% 9% 36% 32% 31% 8% 33% 30% 8% 31% 7% FY 13 FY 14 FY 15 FY 16 1H FY 17 FY 13 FY 14 FY 15 FY 16 1H FY 17 FY 13 FY 14
Slide 104: Demonstrating Leverage at Scale
Demonstrating Leverage at Scale 1% Non-GAAP TTM Operating Margin Scaling with Growth - 41% $319M Strong Momentum in TTM Operating Cash Flows $2M Q2 FY13 Q2 FY14 Q2 FY15 Q2 FY16 Q2 FY17 Workday Financial Analyst Day, September 27, 2016 104
Slide 105: Strong Balance Sheet (As of 7/31/16)
Strong Balance Sheet (As of 7/31/16) Assets Bn Cash & Marketable Securities $2.1 Other Current Assets $0.3 Other Assets $0.4 Total Assets $2.8 Liabilities Current Liabilities $0.2 Unearned Revenue $1.0 Convertible Notes $0.5 Total Liabilities $1.7 Stockholders’ Equity Total Stockholders’ Equity $1.1
Slide 106: Long-Term Model (Non-GAAP)
Long-Term Model (Non-GAAP) Today Long-Term FY12 1HFY2017 Target Gross Margin 52% +20% 72% +3% 75% S&M 52% 31% as % of Revenue Product Development 45% 31%+ as % of Revenue G&A 10% 7% as % of Revenue Operating Margin (55%) +57% 2%+ +18% 20%+ Workday Financial Analyst Day, September 27, 2016 106
Slide 107: Q&A
fN workday. Built for the future: Q&A
Slide 108: workday.
fN workday. Built for the future:
Slide 109: Appendix
fN workday. Built for the future: Appendix
Slide 110: Subscription Services Gross Margin GAAP to Non-GAAP Reconciliation
Subscription Services Gross Margin GAAP to Non-GAAP Reconciliation (in $ thousands) FY13 FY14 FY15 FY16 H1 FY17 Subscription Services 190,320 354,169 613,328 929,234 586,231 Revenue Cost of Subscription 39,251 69,195 102,476 149,869 100,579 Services Subscription Services 79% 80% 83% 84% 83% Gross Ma
Slide 111: Professional Services Gross Margin GAAP to Non-GAAP Reconciliation
Professional Services Gross Margin GAAP to Non-GAAP Reconciliation (in $ thousands) FY13 FY14 FY15 FY16 H1 FY17 Professional Services 83,337 114,769 174,532 233,112 136,922 Revenue Cost of Professional 77,284 107,615 162,327 224,558 125,900 Services Professional Services 7% 6% 7% 4% 8% Gross Margin
Slide 112: Sales and Marketing Operating Expense GAAP to Non-GAAP Reconciliation
Sales and Marketing Operating Expense GAAP to Non-GAAP Reconciliation (in $ thousands) FY13 FY14 FY15 FY16 H1 FY17 Revenue 273,657 468,938 787,860 1,162,346 723,153 Sales and Marketing 123,440 197,373 315,840 434,056 266,668 Expense Expense as % of Sales 45% 42% 40% 37% 37% Non-GAAP Adjustments: Sha
Slide 113: Product Development Operating Expense GAAP to Non-GAAP Reconciliation
Product Development Operating Expense GAAP to Non-GAAP Reconciliation (in $ thousands) FY13 FY14 FY15 FY16 H1 FY17 Revenue 273,657 468,938 787,860 1,162,346 723,153 Product Development 102,665 182,116 316,868 469,944 303,664 Expense Expense as % of Sales 38% 39% 40% 40% 42% Non-GAAP Adjustments: Sha
Slide 114: General and Administrative Operating Expense GAAP to Non-GAAP Reconciliation
General and Administrative Operating Expense GAAP to Non-GAAP Reconciliation (in $ thousands) FY13 FY14 FY15 FY16 H1 FY17 Revenue 273,657 468,938 787,860 1,162,346 723,153 General and Administrative 48,880 65,921 106,051 148,578 86,888 Expense Expense as % of Sales 18% 14% 13% 13% 12% Non-GAAP Adjus
Slide 115: TTM Operating Margin GAAP to Non-GAAP Reconciliation
TTM Operating Margin GAAP to Non-GAAP Reconciliation Q2 FY13 Q2 FY14 Q2 FY15 Q2 FY16 Q2 FY17 (in $ thousands) TTM TTM TTM TTM TTM Revenue 199,128 353,337 616,255 974,996 1,351,846 Operating Loss (88,850) (136,453) (202,227) (222,894) (304,161) Operating Margin (45%) (39%) (33%) (23%) (22%) Non-GAAP
Slide 116: GAAP to Non-GAAP Reconciliations – FY12
Long Term Model GAAP to Non-GAAP Reconciliations – FY12 Share- As % of As % of (in $ thousands) GAAP based Other (1) Non-GAAP Revenue Revenue Comp Revenue 134,427 134,427 Cost of Revenue 65,368 (628) 64,740 Gross Margin 51% 52% Sales and Marketing 70,356 52% (839) 69,517 52% Product Development 62,0
Slide 117: GAAP to Non-GAAP Reconciliations – H1 FY17
Long Term Model GAAP to Non-GAAP Reconciliations – H1 FY17 Share- As % of As % of (in $ thousands) GAAP based Other (1) Non-GAAP Revenue Revenue Comp Revenue 723,153 723,153 Cost of Revenue 226,479 (20,627) (1,168) 204,684 Gross Margin 69% 72% Sales and Marketing 266,668 37% (39,846) (1,797) 225,025