NASDAQ$WDAY

Workday Inc A · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Workday's Q1 2023 results showcased revenue growth and strategic investments.

Workday announced a strong first quarter for fiscal year 2023, with total revenues of $1.43 billion, a 22.1% increase year-over-year, and subscription revenues of $1.27 billion, a 23.2% increase year-over-year. The company is raising its fiscal 2023 subscription revenue guidance and maintaining its non-GAAP operating margin guidance.

  • Total revenues reached $1.43 billion, up 22.1% year-over-year.
  • Subscription revenues totaled $1.27 billion, up 23.2% year-over-year.
  • The company is raising its fiscal 2023 subscription revenue guidance to $5.537 billion to $5.557 billion.
  • Workday intends to create 1,000 new jobs at its European headquarters in Dublin over the next two years.

Headline financials

Total Revenue

$1.43B

Previous: $1.18B+22.1%
EPS (adj)

$0.83

Previous: $0.87-4.6%
Total subscription revenue backlog

$12.7B

Previous: $10.1B+25.5%
12-month subscription revenue backlog

$7.97B

No prior period
Capital Expenditures

-$20K

Previous: -$171M+100.0%
Free Cash Flow

-$102M

Previous: -$218M+53.1%
Net Income

-$102M

Previous: -$46.5M-119.6%
Operating Income

-$72.8M

Previous: -$38.3M-90.1%
Gross Profit

$1.06M

Previous: -$1.75M+160.5%
Cash & Equivalents

$2.78B

Previous: $959M+189.4%
Total Assets

$12.8B

Previous: $8.62B+48.4%
Stock-Based Comp

$312M

Previous: $265M+17.7%

Revenue & EPS history

Workday · Revenue · Quarterly

$1.43B

Q1 2023+22.1%vs Q1 2022
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Workday · $1.43B total across 2 segments · Q1 2023

  • Subscription services
    $1.27B+23.2%
  • Professional services
    $163M+13.8%

Forward guidance

Workday is raising its fiscal 2023 subscription revenue guidance to be in the range of $5.537 billion to $5.557 billion, representing year-over-year growth of 22%. The company expects second quarter subscription revenue of $1.353 billion to $1.355 billion, representing year-over-year growth of 22%. They are maintaining their fiscal 2023 non-GAAP operating margin guidance of 18.5%.

Tailwinds

  • Fiscal 2023 subscription revenue is expected to be in the range of $5.537 billion to $5.557 billion, representing 22% year-over-year growth.
  • Second quarter subscription revenue is projected to be $1.353 billion to $1.355 billion, representing 22% year-over-year growth.
  • Fiscal 2023 non-GAAP operating margin guidance is maintained at 18.5%.
  • Continued global momentum and a healthy deal pipeline position the company well to deliver a strong fiscal 2023.
  • Focus remains on cultivating culture, driving innovation across finance and HR, and expanding value to organizations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-1.7%

Avg return

30 days after

41%

22 / 54 earnings

Positive

+20.5%

Q4 2016

Best reaction

-15.3%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-4.6%-7.6%-12.9%
Q4 2026-0.2%+2.9%-4.6%
Q3 2026-3.0%-8.7%-5.6%
Q2 2026-2.8%+0.9%+2.7%
Q1 2026-12.4%-11.8%-12.5%
Q4 2025+6.2%-0.3%-6.6%
Q3 2025-5.3%-6.6%+0.6%
Q2 2025+11.3%+13.3%+6.3%
Q1 2025-15.0%-17.1%-15.7%
Q4 2024-3.5%-4.6%-10.5%
Q3 2024+11.7%+15.7%+17.1%
Q2 2024+2.9%+5.0%+0.3%
Q1 2024+10.1%+6.6%+13.3%
Q4 2023+1.3%+4.6%+8.3%
Q3 2023+15.6%+17.7%+15.5%
Q2 2023+3.8%+2.4%-5.7%
Q1 2023-3.5%-5.0%-7.6%
Q4 2022+6.7%+6.7%+7.3%
Q3 2022-4.8%-8.8%-9.0%
Q2 2022+9.4%+11.0%+9.1%
Q1 2022-3.1%-3.3%+2.7%
Q4 2021-6.7%-5.6%-5.0%
Q3 2021-6.4%-4.7%+8.0%
Q2 2021+14.2%+13.2%+1.0%
Q1 2021+8.4%+5.7%+11.4%
Q4 2020-1.2%-5.0%-22.3%
Q3 2020-3.8%-3.3%-2.6%
Q2 2020-4.3%-5.6%-9.0%
Q1 2020-3.6%-3.1%-2.1%
Q4 2019-4.2%-7.8%-2.3%
Q3 2019+12.5%+13.2%+9.4%
Q2 2019-8.0%-6.2%-9.6%
Q1 2019-4.2%-2.3%-8.1%
Q4 2018-0.9%+2.7%-0.5%
Q3 2018-10.2%-15.8%-11.3%
Q2 2018+5.1%+4.2%+0.9%
Q1 2018+4.4%+2.7%-3.0%
Q4 2017-7.5%-6.4%-5.7%
Q3 2017-15.3%-12.8%-21.6%
Q2 2017+6.7%+4.3%+12.0%
Q1 2017+1.8%+5.4%-1.8%
Q4 2016+20.5%
Q3 2016-0.7%
Q2 2016+7.6%
Q1 2016-11.0%
Q4 2015-4.7%
Q3 2015-6.1%
Q2 2015-5.4%
Q1 2015+7.3%
Q4 2014+16.9%
Q3 2014+11.5%
Q2 2014-1.6%
Q1 2014-3.4%
Q4 2013-3.2%
Q3 2013
Q2 2012
Q1 2012
Q4 2011
Q3 2011

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