NASDAQ$WDAY

Workday Inc A · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Workday's first quarter of fiscal year 2024 showed strong financial performance.

Workday announced a strong first quarter for fiscal year 2024, with total revenues of $1.68 billion, up 17.4% year-over-year, and subscription revenues of $1.53 billion, up 20.1% year-over-year. The company is raising the low end of its fiscal 2024 subscription revenue guidance to a range of $6.550 billion to $6.575 billion, representing 18% growth over the prior fiscal year. They are maintaining their fiscal 2024 non-GAAP operating margin guidance of 23%.

  • Total revenues were $1.68 billion, an increase of 17.4% from the first quarter of fiscal 2023.
  • Subscription revenues were $1.53 billion, an increase of 20.1% from the same period last year.
  • Non-GAAP operating income for the first quarter was $395.9 million, or 23.5% of revenues.
  • Non-GAAP basic and diluted net income per share was $1.32 and $1.31, respectively.

Headline financials

Total Revenue

$1.68B

Previous: $1.43B+17.4%
EPS (adj)

$1.31

Previous: $0.83+57.8%
Total subscription revenue backlog

$16.7B

Previous: $12.7B+31.6%
12-month subscription revenue backlog

$9.79B

Previous: $7.97B+22.8%
Capital Expenditures

-$322K

Previous: -$20K-1510.0%
Free Cash Flow

-$186K

Previous: -$102M+99.8%
Net Income

$136K

Previous: -$102M+100.1%
Operating Income

-$19.8M

Previous: -$72.8M+72.8%
Gross Profit

$55K

Previous: $1.06M-94.8%
Cash & Equivalents

$1.44B

Previous: $2.78B-48.0%
Total Assets

$13.3B

Previous: $12.8B+3.5%

Revenue & EPS history

Workday · Revenue · Quarterly

$1.68B

Q1 2024+17.4%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Workday · $1.68B total across 2 segments · Q1 2024

  • Subscription services
    $1.53B+20.1%
  • Professional services
    $156M-3.8%

Forward guidance

Workday is raising the low end of its fiscal 2024 subscription revenue guidance to a range of $6.550 billion to $6.575 billion, representing 18% growth over the prior fiscal year. They expect second-quarter subscription revenue to be $1.611 billion to $1.613 billion, also 18% growth. They are maintaining their fiscal 2024 non-GAAP operating margin guidance of 23%.

Tailwinds

  • Raising the low end of fiscal 2024 subscription revenue guidance.
  • Maintaining fiscal 2024 non-GAAP operating margin guidance of 23%.
  • Expecting second-quarter subscription revenue to be $1.611 billion to $1.613 billion, also 18% growth.
  • Strong first quarter performance.
  • Durable demand across solutions.

Headwinds

  • Did not provide GAAP operating margin guidance.
  • Forward-looking statements are subject to risks, uncertainties, assumptions, and changes in circumstances.
  • Breaches in security measures could impact results.
  • Service outages and delays in application deployment could impact results.
  • Macroeconomic events could impact business.

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 2024

Historical avgQ1 2024

+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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