Slide 1: Investor Presentation Q3 FY23
Investor Presentation Q3 FY23
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 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 sup
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 9,500+ Global Customers $125B+ Market Opportunity Operating across 175+ Countries $5.30B 23% YoY Growth Trailing Twelve Month Subscription Revenue1 Serving 50%+ of the Fortune 500 Including
Slide 6: Workday Enterprise Management Cloud
Workday Enterprise Management Cloud A unique approach to enterprise software Best-in-Class Enterprise The Workday Applications Management Cloud Experience Platform Elevate Your A Partner Like The Power to Adapt Enterprise No Other Recognized as a Over 9,500 customers 97% Customer Cloud ERP Market Le
Slide 7: Serving Organizations of all Sizes and Across Industries
Serving Organizations of all Sizes and Across Industries
Slide 8: Addressing a Large and Expanding Opportunity
HCM $52B $125B+ Addressing a Large Human Capital Management/ Workforce Management Talent Management Workforce Planning and People Analytics Employee Experience and Expanding Payroll Opportunity FINS+ $73B <5% Financial Management Spend Management Financial Planning Platform Penetration Analytics Stu
Slide 9: Driving Profitable Growth at Scale
Driving Profitable Growth at Scale $4.5B FY22 21% CAGR Annual 95%+ Gross Revenue Subscription Revenue1 Retention3 $3.1B 22.4% FY20 900 FY22 bps Non-GAAP Operating Margin2 13.4% 1 CAGR calculations are based on FY20-FY22 results FY20 2 Reconciliations of GAAP to Non-GAAP financial data included in th
Slide 10: While Growing Responsibly and Inclusively
While Growing Responsibly and Inclusively ESG and Our Employees ESG and Our Customers ESG and 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 2020 and belonging, and
Slide 11: Q3 FY23 Highlights and Guidance
Q3 FY23 Highlights and Guidance
Slide 12: Q3 FY23 Financial Highlights
Q3 FY23 Financial Highlights Q3 FY23 Results Increase (Decrease) YoY Total Revenue $1.60B 20% Subscription Revenue $1.43B 22% Total Subscription Revenue Backlog $14.10B 28% 24-month Subscription Revenue Backlog $8.62B 21% GAAP Operating Margin (1.6)% (340 bps) Non-GAAP Operating Margin1 19.7% (530 b
Slide 13: Q3 FY23 Customer Wins and Expansions
Q3 FY23 Customer Wins and Expansions
Slide 14: Q3 FY23 Business Highlights
Q3 FY23 Business Highlights • Workday announced that its Board of Directors approved a share repurchase program, with a term of 18 months, to purchase up to $500 million of shares of its Class A common stock. • Workday announced its vision for a more open and connected partner ecosystem, which inclu
Slide 15: Guidance Summary
Guidance Summary Q4 FY23 Quarterly Guidance Increase (Decrease) YoY Total Revenue $1.630B - $1.632B 18-19% Subscription Revenue $1.483B - $1.485B 21% 24-month Subscription Revenue Backlog n/a 19% Non-GAAP Operating Margin 17.5% 30 bps GAAP Operating Margin ~23 points lower than non-GAAP n/a Full Yea
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended October 31, 2022 Share-Based (in thousands, except percentages and per GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses2 Dilution Effects3 Expenses Costs and expenses: Costs of subscription services $ 259,397 $
Slide 18: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Three Months Ended October 31, 2021 (in thousands, except percentages and per Share-Based GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses2 Dilution Effects3 Expenses Costs and expenses: Costs of subscription services $ 200,700 $
Slide 19: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Nine Months Ended October 31, 2022 Share-Based (in thousands, except percentages and per GAAP Compensation Other Operating Income Tax and Non-GAAP share data) Expenses Expenses2 Dilution Effects3 Costs and expenses: Costs of subscription services $ 737,301 $ (
Slide 20: Reconciliation of GAAP to Non-GAAP Data
Reconciliation of GAAP to Non-GAAP Data Nine Months Ended October 31, 2021 Share-Based (in thousands, except percentages and per Other Operating Income Tax and share data) GAAP Compensation Non-GAAP Expenses Expenses2 Dilution Effects3 Costs and expenses: Costs of subscription services $ 575,646 $ (
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, and non-GAAP net income (loss) per share. Workday has p
Slide 22: About Non-GAAP Financial Measures (cont'd)
About Non-GAAP Financial Measures (cont’d) • Other operating expenses. Other operating expenses includes employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets. The amount of employer payroll tax-related items on employee stock tra
Slide 23: Slide 23