NASDAQ$WDAY

Workday Inc A · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a strong Q4, driven by solid execution across the company.

Workday announced its Q4 and full year fiscal 2020 financial results, with total Q4 revenues reaching $976.3 million, a 23.8% increase year-over-year. Subscription revenue for the quarter was $839.7 million, up 24.7% year-over-year. The company is raising its fiscal 2021 subscription revenue outlook to a range of $3.755 billion to $3.770 billion.

  • Total revenues for Q4 reached $976.3 million, a 23.8% increase year-over-year.
  • Subscription revenue was $839.7 million, up 24.7% year-over-year.
  • Workday ended the fiscal year with significant momentum, including a record quarter for financial management applications.
  • Workday completed the acquisition of Scout RFP.

Headline financials

Total Revenue

$976M

Previous: $789M+23.8%
EPS (adj)

$0.50

Previous: $0.41+22.0%
Total subscription revenue backlog

$8.29B

No prior period
Net Income

-$128M

No prior period
Operating Income

-$146M

No prior period
Gross Profit

$692M

No prior period
Cash & Equivalents

$731M

No prior period
Total Assets

$6.82B

No prior period
Stock-Based Comp

$234M

No prior period

Revenue & EPS history

Workday · Revenue · Quarterly

$976M

Q4 2020+23.8%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Workday · $976M total across 2 segments · Q4 2020

  • Subscription services
    $840M
  • Professional services
    $137M

Forward guidance

Workday is raising its fiscal 2021 subscription revenue outlook to a range of $3.755 billion to $3.770 billion. The company expects first quarter subscription revenue to be $873.0 million to $875.0 million.

Tailwinds

  • Raising fiscal 2021 subscription revenue outlook to a range of $3.755 billion to $3.770 billion.
  • Expecting first quarter subscription revenue to be $873.0 million to $875.0 million.
  • Ended the fiscal year with significant momentum.
  • Record quarter for financial management applications.
  • HCM solutions continue to see strong adoption.

Headwinds

  • Risks related to the ability to successfully integrate Scout RFP’s operations.
  • Breaches in security measures.
  • Service outages, delays in the deployment of applications.
  • Failure of applications to perform properly.
  • Adverse changes in general economic or market conditions.

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 Q4 2020

Historical avgQ4 2020

+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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