NASDAQ$WDAY
Workday Inc A · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Announced Q4 2023 and full year financial results, demonstrating growth in total revenues and subscription revenues.
Workday reported a solid Q4 2023 with total revenues of $1.65 billion, up 19.6% year-over-year, and subscription revenues of $1.50 billion, up 21.7% year-over-year. The company's 24-month subscription revenue backlog reached $9.68 billion, a 21.3% increase year-over-year, and the total subscription revenue backlog was $16.45 billion, up 28.4% year-over-year.
- Total revenues increased by 19.6% year-over-year to $1.65 billion.
- Subscription revenues grew by 21.7% year-over-year to $1.50 billion.
- 24-month subscription revenue backlog increased by 21.3% year-over-year to $9.68 billion.
- Total subscription revenue backlog increased by 28.4% year-over-year to $16.45 billion.
Headline financials
Revenue & EPS history
Workday · Revenue · Quarterly
$1.65B
Revenue by segment
Workday · $1.65B total across 2 segments · Q4 2023
- Subscription services$1.5B+21.7%90.8%
- Professional services$151M+2.6%9.2%
Forward guidance
Workday expects fiscal year 2024 subscription revenue to be between $6.525 billion and $6.575 billion, representing growth of 17% to 18%. The company also anticipates a non-GAAP operating margin of 23.0%, which includes a 150 basis point increase resulting from a change in their useful life policy for servers and network equipment.
Tailwinds
- Maintaining the midpoint of preliminary fiscal year 2024 subscription revenue guidance.
- Increasing fiscal year 2024 non-GAAP operating margin outlook to the high end.
- Expecting subscription revenue of $6.525 billion to $6.575 billion, representing 17% to 18% growth.
- Anticipating non-GAAP operating margin of 23.0%, including a 150 basis point increase from a change in useful life policy.
- Strong fourth quarter execution.
Headwinds
- The environment will remain uncertain in the near-term.
- Unspecified risks related to macroeconomic events, security measures, service outages, competition, and regulatory factors.
- Potential delays or reductions in information technology spending.
- Changes in sales may not be immediately reflected in results due to the subscription model.
- Any unreleased services, features, or functions are subject to change at Workday’s discretion and may not be delivered as planned or at all.
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 2023
+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
| Quarter | Report date | Reaction (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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