Strong First Quarter Leads to Workday Growth

Workday HQ

Workday’s fiscal results surged in 2023’s first quarter, which ended April 30, 2022. Fiscal first quarter total revenues of $1.43 billion were up 22.1% year over year. Subscription revenues were $1.27 billion, an increase of 23.2% from the same period last year.

Operating loss was $72.8 million, or negative 5.1% of revenues, compared to an operating loss of $38.3 million, or negative 3.3% of revenues, in the same period last year. Non-GAAP operating income for the first quarter was $288.6 million, or 20.1% of revenues, compared to a non-GAAP operating income of $288.5 million, or 24.6% of revenues.

Basic and diluted net loss per share was $0.41, weighed against basic and diluted net loss per share of $0.19 in the first quarter of fiscal 2022. Non-GAAP basic and diluted net income per share was $0.86 and $0.83, respectively, compared to 0.93 and $0.87, respectively, in the same period last year.

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Operating cash flows were $439.7 million compared to $452.4 million in the prior year. Cash, cash equivalents and marketable securities were $6.26 billion as of April 30, 2022.

‘A Solid Start to the Year’

“Workday had a strong first quarter, building on the fiscal 2022 acceleration of our business,” said Aneel Bhusri, Workday’s co-founder, co-CEO and chairman. Workday’s continued focus will “remain on cultivating our culture,” he said.

“We had a solid start to the year,” said CFO Barbara Larson. “As a result, we are raising our fiscal 2023 subscription revenue to be in the range of $5.537 billion to $5.557 billion, representing year-over-year growth of 22%. We expect second quarter subscription revenue of [between] $1.353 billion to $1.355 billion, representing year-over-year growth of 22%. We are maintaining our fiscal 2023 non-GAAP operating margin guidance of 18.5%, as we invest to capitalize on the long-term opportunity we see ahead.”

Workday intends to create 1,000 new jobs at its Dublin headquarters over the next two years. In addition, the company plans to build new a European headquarters at Grangegorman in Dublin, as well.

Image: Workday

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