WDAY Q2 2024 Earnings

Call Details

• Call Title: Workday, Inc. Q2 2024 Earnings Call
• Date: August 24, 2023 at 8:30 PM UTC
• Management Team:
  • Justin Furby (Vice President of Investor Relations)
  • Carl Eschenbach (Chief Executive Officer)
  • Aneel Bhusri (Co-CEO)
  • Zane Rowe (Chief Financial Officer)
  • Doug Robinson (Co-President)

Call Summary

Financial Performance

• Subscription revenue in Q2 was $1.62B, up 19% year over year.
• Professional services revenue in Q2 was $163M, leading to total revenue of $1.79B, growth of 16% year over year.
• Non-GAAP operating income for Q2 was $421M, resulting in a non-GAAP operating margin of 23.6%.
• Operating cash flow in Q2 was $425M, which benefited from the timing of collections in the quarter.
• Workday ended the quarter with $6.7B in cash and marketable securities on the balance sheet.
• Total workmates at quarter end were nearly 17,900, reflecting continued hiring in strategic areas.

Guidance

• FY24 subscription revenue guidance was raised to a new range of $6.57B to $6.59B, representing 18% year-over-year growth.
• Q3 subscription revenue is expected to be $1.678B to $1.68B, representing 17% year-over-year growth.
• FY24 professional services revenue guidance is maintained at $630M to $650M, and Q3 professional services revenue is expected to be $165M.
• FY24 non-GAAP operating margin guidance was raised to 23.5%, and Q3 non-GAAP operating margin is expected to be approximately 23.5%.
• GAAP operating margins are expected to be approximately 20 and 22 percentage points lower than non-GAAP margins for Q3 and the full year respectively.
• FY24 operating cash flow is expected to be $1.95B, representing 18% year-over-year growth, and FY24 capital expenditures are expected to be approximately $300M.