NASDAQ$WDAY

Workday Inc A · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Workday's Q3 2024 performance was marked by strong revenue growth and increased profitability.

Workday announced strong fiscal 2024 third-quarter results, with total revenues of $1.87 billion, up 16.7% year-over-year, and subscription revenues of $1.69 billion, up 18.1% year-over-year. The company raised its fiscal 2024 subscription revenue guidance to $6.598 billion, representing 19% year-over-year growth, and its non-GAAP operating margin guidance to 23.8%.

  • Total revenues reached $1.87 billion, a 16.7% increase year-over-year.
  • Subscription revenues totaled $1.69 billion, reflecting an 18.1% increase year-over-year.
  • Operating income was $87.9 million, compared to an operating loss of $26.3 million in the same period last year.
  • 12-month subscription revenue backlog was $6.05 billion, up 21.9% year-over-year.

Headline financials

Total Revenue

$1.87B

Previous: $1.6B+16.7%
EPS (adj)

$1.53

Previous: $0.99+54.5%
Total subscription revenue backlog

$18.5B

Previous: $14.1B+30.9%
12-month subscription revenue backlog

$6.05B

Previous: $8.62B-29.8%
Capital Expenditures

-$1.42M

Previous: -$181K-686.7%
Free Cash Flow

$112M

Previous: -$74.9M+249.9%
Net Income

$114M

Previous: -$74.7M+252.2%
Operating Income

$87.9M

Previous: -$26.3M+433.8%
Gross Profit

-$807K

Previous: $4.51M-117.9%
Cash & Equivalents

$1.56B

Previous: $1.58B-0.8%
Total Assets

$13.9B

Previous: $12.4B+12.4%
R&D Expense

$619M

No prior period
Stock-Based Comp

$349M

Previous: $314M+11.1%

Revenue & EPS history

Workday · Revenue · Quarterly

$1.87B

Q3 2024+16.7%vs Q3 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Workday · $1.87B total across 2 segments · Q3 2024

  • Subscription services
    $1.69B+18.1%
  • Professional services
    $175M+4.7%

Forward guidance

Workday raised its fiscal 2024 subscription revenue guidance to $6.598 billion, representing 19% year-over-year growth. The company also raised its fiscal 2024 non-GAAP operating margin guidance to 23.8%.

Tailwinds

  • Raised fiscal 2024 subscription revenue guidance to $6.598 billion.
  • Subscription revenue growth represents 19% year-over-year growth.
  • Raised fiscal 2024 non-GAAP operating margin guidance to 23.8%.
  • Focus on investing to drive durable long-term growth.
  • Focus on expanding margins.

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 Q3 2024

Historical avgQ3 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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