NASDAQ$WDAY

Workday Inc A · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Increased revenue and achieved profitability, driven by strong subscription growth and strategic investments.

Workday announced strong Q4 fiscal year 2024 results, with total revenues up 17% year-over-year to $1.9 billion and subscription revenues up 18% to $1.8 billion. The company reported operating income of $79 million, a significant improvement from the previous year's operating loss. Net income per share was $4.52 basic and $4.42 diluted, compared to a net loss per share in the same quarter last year.

  • Total revenues increased by 17% year-over-year to $1.9 billion.
  • Subscription revenues grew by 18% year-over-year to $1.8 billion.
  • Operating income was $79 million, a substantial improvement from the prior year's operating loss of $89 million.
  • Basic net income per share was $4.52, and diluted net income per share was $4.42, a significant increase from the previous year's net loss per share of $0.49.

Headline financials

Total Revenue

$1.92B

Previous: $1.65B+16.8%
EPS (adj)

$1.57

Previous: $0.99+58.6%
Total subscription revenue backlog

$20.9B

Previous: $16.5B+27.1%
12-month subscription revenue backlog

$6.6B

Previous: $9.68B-31.8%
Capital Expenditures

-$46.7M

No prior period
Net Income

$1.19B

Previous: -$126M+1045.1%
Operating Income

$79M

Previous: -$89M+188.8%
Gross Profit

$1.46B

Previous: $1.19B+22.5%
R&D Expense

$635M

No prior period
Stock-Based Comp

$345M

Previous: $361M-4.3%

Revenue & EPS history

Workday · Revenue · Quarterly

$1.92B

Q4 2024+16.8%vs Q4 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Workday · $2.54B total across 2 segments · Q1 2027

  • Subscription services
    $2.35B
  • Professional services
    $188M

Forward guidance

Workday anticipates fiscal year 2025 subscription revenue of $7.725 billion to $7.775 billion, representing 17% to 18% growth. The company expects a non-GAAP operating margin of approximately 24.5%.

Tailwinds

  • Subscription revenue guidance of $7.725B to $7.775B, indicating 17-18% growth.
  • Expected non-GAAP operating margin of approximately 24.5%.
  • Continued investments to support enduring growth.
  • Anticipated margin expansion as the business scales and optimizes.
  • Momentum building across key investment initiatives.

Headwinds

  • Incremental investments may impact short-term profitability.
  • Outlook contemplates continued margin expansion.
  • No specific negative aspects were explicitly outlined.
  • Guidance is based on current expectations and assumptions.
  • Future performance is subject to risks and uncertainties.

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 2024

Historical avgQ4 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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