NASDAQ$WDAY

Workday Inc A · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Achieved strong growth in revenue and customer base, driven by demand for HR, finance, and planning solutions.

Workday announced strong fiscal 2022 second quarter results, with total revenues of $1.26 billion, up 18.7% year over year, and subscription revenue of $1.11 billion, up 19.5% year over year. The company's customer community has grown to more than 55 million users, and more than half of the Fortune 500 have selected Workday.

  • Total revenues were $1.26 billion, an increase of 18.7% from the second quarter of fiscal 2021.
  • Subscription revenue was $1.11 billion, an increase of 19.5% from the same period last year.
  • The Workday customer community now includes more than 50% of the Fortune 500.
  • Workday has expanded its partnership with Google to include Google Cloud, in addition to Google’s expanded use of Workday applications.

Headline financials

Total Revenue

$1.26B

Previous: $1.06B+18.7%
EPS (adj)

$1.23

Previous: $0.84+46.4%
Total subscription revenue backlog

$10.6B

Previous: $8.6B+23.0%
12-month subscription revenue backlog

$6.88B

No prior period
Capital Expenditures

-$71K

Previous: -$1.76M+96.0%
Free Cash Flow

$106M

Previous: -$29.8M+454.8%
Net Income

$106M

Previous: -$28M+477.4%
Operating Income

-$1.12M

Previous: -$16.8M+93.3%
Gross Profit

$2.77M

Previous: $0.00
Cash & Equivalents

$1.09B

Previous: $1.24B-12.3%
Total Assets

$9.11B

Previous: $7.5B+21.5%
Stock-Based Comp

$265M

Previous: $251M+5.4%

Revenue & EPS history

Workday · Revenue · Quarterly

$1.26B

Q2 2022+18.7%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Workday · $1.26B total across 2 segments · Q2 2022

  • Subscription services
    $1.11B+19.5%
  • Professional services
    $147M+12.8%

Forward guidance

Workday is raising its fiscal 2022 guidance for subscription revenue to a range of $4.500 billion to $4.510 billion, growth of 19%. We expect third-quarter subscription revenue of $1.156 billion to $1.158 billion, 20% growth at the high end. We are also raising our fiscal 2022 non-GAAP operating margin guidance to 21.0%.

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 2022

Historical avgQ2 2022

+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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