Workday saw revenues of $5.57 billion during its fiscal 2023, an increase of 22.5% from fiscal 2022. The company’s operating loss was $222 million, or negative 3.6% of revenues, compared to an operating loss of $117 million, or negative 2.3% of revenues. Non-GAAP operating income was $1.21 billion, or 19.5% of revenues, compared to $1.15 billion, or 22.4% of revenues last year.
During its fiscal fourth quarter, Workday’s revenue rose 19.6% to $1.65 billion. Subscription revenues rose 21.7% to $1.5 billion. The company’s operating loss stood at $89 million, or negative 5.4% of revenues. That compares to an operating loss of $101 million, or negative 7.3% of revenues, during last year’s fourth quarter.
Workday’s Co-CEO Aneel Bhusri said the company remains “well-positioned” in the market despite the unpredictable business environment. One reason: “[our] unique approach to embedding artificial intelligence and machine learning into the very core of our platform.”
‘Clear Strategy’ for Fiscal ’24
His co-CEO, Carl Eschenbach, said, “We have a clear strategy in place heading into fiscal 2024, and our land opportunity with net new finance and HR customers is wide open as we continue to gain ground with both large and medium-sized enterprises.”
In September 2022, Workday introduced new skills technology to help employers bring skills data into and out of its platform. With the new capability, Workday said it’s streamlining the compiling of skills data, which usually exists in multiple applications such as learning systems, skills assessments and labor market data. Workday said the system would provide a “single source of truth for skills data,” which would help employers gain insight into workforce skills while delivering a more personalized employee experience.
Eschenbach joined the company as co-CEO in December. He’ll hold the position through January 2024, when he will become sole CEO and Bhusri becomes executive chair. Eschenbach is a former partner at Sequoia Capital and at VMware.