NASDAQ$WDAY

Workday Inc A · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Workday's Q2 2021 financial performance showed strong growth with increased subscription revenue and raised fiscal year guidance.

Workday announced strong Q2 2021 results with total revenues of $1.06 billion, up 19.6% year-over-year, and subscription revenue of $931.7 million, up 23.1% year-over-year. The company raised its fiscal 2021 subscription revenue guidance to a range of $3.73 billion to $3.74 billion and non-GAAP operating margin guidance to 18.0%.

  • Total revenues increased by 19.6% year-over-year, reaching $1.06 billion.
  • Subscription revenue grew by 23.1% year-over-year, amounting to $931.7 million.
  • The company raised its fiscal 2021 subscription revenue guidance to $3.73 billion - $3.74 billion.
  • Non-GAAP operating margin for the quarter was 24.3% and the company raised its fiscal 2021 non-GAAP operating margin guidance to 18.0%.

Headline financials

Total Revenue

$1.06B

Previous: $888M+19.6%
EPS (adj)

$0.84

Previous: $0.44+90.9%
Total subscription revenue backlog

$8.6B

Previous: $7.03B+22.3%
Capital Expenditures

-$1.76M

Previous: -$34.1M+94.8%
Free Cash Flow

-$29.8M

Previous: $66.2M-145.0%
Net Income

-$28M

Previous: -$121M+76.8%
Operating Income

-$16.8M

Previous: -$122M+86.3%
Gross Profit

$0.00

Previous: $7M-100.0%
Cash & Equivalents

$1.24B

Previous: $620M+100.1%
Total Assets

$7.5B

Previous: $5.99B+25.2%
Stock-Based Comp

$251M

No prior period

Revenue & EPS history

Workday · Revenue · Quarterly

$1.06B

Q2 2021+19.6%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Workday · $1.06B total across 2 segments · Q2 2021

  • Subscription services
    $932M+23.1%
  • Professional services
    $130M-0.3%

Forward guidance

Workday is raising its fiscal 2021 subscription revenue guidance to a range of $3.73 billion to $3.74 billion. The company expects third-quarter subscription revenue of $948.0 million to $950.0 million. Workday is also raising its fiscal 2021 non-GAAP operating margin guidance to 18.0%.

Tailwinds

  • Raising fiscal 2021 subscription revenue guidance to $3.73B - $3.74B.
  • Expecting Q3 subscription revenue of $948M - $950M.
  • Raising fiscal 2021 non-GAAP operating margin guidance to 18.0%.
  • Continued demand for our products.
  • Delivering new solutions that extend the power of Workday.

Headwinds

  • Impact of the ongoing COVID-19 pandemic on our business.
  • Breaches in our security measures.
  • Service outages.
  • Adverse changes in general economic or market conditions.
  • Changes in sales, which may not be immediately reflected in our results due to our subscription model.

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 Q2 2021

Historical avgQ2 2021

+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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