Fiscal Fourth Quarter Total Revenues of $1.65 Billion, Up 19.6% Year Over Year
Subscription Revenues of $1.50 Billion, Up 21.7% Year Over Year
24-Month Subscription Revenue Backlog of $9.68 Billion, Up 21.3% Year Over Year
Total Subscription Revenue Backlog of $16.45 Billion, Up 28.4% Year Over Year

Fiscal Year 2023 Total Revenues of $6.22 Billion, Up 21.0% Year Over Year
Subscription Revenues of $5.57 Billion, Up 22.5% Year Over Year
Operating Cash Flows of $1.66 Billion, Up 0.4% Year Over Year

PLEASANTON, Calif., Feb. 27, 2023 -- Workday, Inc. (NASDAQ: WDAY), a leader in enterprise cloud applications for finance and human resources, today announced results for the fiscal 2023 fourth quarter and full year ended January 31, 2023.

Fiscal 2023 Fourth Quarter Results

• Total revenues were $1.65 billion, an increase of 19.6% from the fourth quarter of fiscal 2022. Subscription revenues were $1.50 billion, an increase of 21.7% from the same period last year.


• Operating loss was $89.0 million, or negative 5.4% of revenues, compared to an operating loss of $101.0 million, or negative 7.3% of revenues, in the same period last year. Non-GAAP operating income for the fourth quarter was $305.3 million, or 18.5% of revenues, compared to a non-GAAP operating income of $237.1 million, or 17.2% of revenues, in the same period last year.¹


• Basic and diluted net loss per share was $0.49, compared to basic and diluted net loss per share of $0.29 in the fourth quarter of fiscal 2022. Non-GAAP basic and diluted net income per share was $1.00 and $0.99, respectively, compared to non-GAAP basic and diluted net income per share of $0.82 and $0.78, respectively, in the same period last year.²

Fiscal Year 2023 Results

• Total revenues were $6.22 billion, an increase of 21.0% from fiscal 2022. Subscription revenues were $5.57 billion, an increase of 22.5% from the prior year.


• Operating loss was $222.2 million, or negative 3.6% of revenues, compared to an operating loss of $116.5 million, or negative 2.3% of revenues, in fiscal 2022. Non-GAAP operating income was $1.21 billion, or 19.5% of revenues, compared to a non-GAAP operating income of $1.15 billion, or 22.4% of revenues, in the prior year.¹


• Basic and diluted net loss per share was $1.44, compared to basic and diluted net income per share of $0.12 in fiscal 2022. Non-GAAP basic and diluted net income per share was $3.73 and $3.64, respectively, compared to non-GAAP basic and diluted net income per share of $4.20 and $3.99, respectively, in the prior year.²


• Operating cash flows were $1.66 billion compared to $1.65 billion in the prior year.


• Cash, cash equivalents, and marketable securities were $6.12 billion as of January 31, 2023.

Comments on the News

"We closed our fiscal year with another solid quarter, further reinforcing the strength of our value proposition as more organizations continue to select Workday to help manage their people and finances," said Aneel Bhusri, co-founder, co-CEO, and chair, Workday. "Despite the unpredictable environment, we remain well-positioned to drive the future of work for our more than 10,000 customers thanks to our amazing employees and unique approach to embedding artificial intelligence and machine learning into the very core of our platform."

"We have a clear strategy in place heading into fiscal 2024, and our land opportunity with net new finance and HR customers is wide open as we continue to gain ground with both large and medium-sized enterprises across the globe," said Carl Eschenbach, co-CEO, Workday. "We are doubling down in strategic growth areas by investing in our customer base, focusing on key industries, evolving and investing in our partner ecosystem, and relentlessly focusing on innovation. I am excited for the year ahead as we work together to execute on Workday's path to becoming one of the largest and most profitable software companies in the world."

"Our solid fourth quarter and full-year fiscal 2023 results underscore the durable demand for our solutions, as organizations of all sizes continue to prioritize finance and HR modernization," said Barbara Larson, chief financial officer, Workday. "We are maintaining the midpoint of our preliminary fiscal year 2024 subscription revenue guidance while increasing our fiscal 2024 non-GAAP operating margin outlook to the high end. We now expect subscription revenue of $6.525 billion to $6.575 billion, growth of 17% to 18%, and non-GAAP operating margin of 23.0%, which includes a 150 basis point increase resulting from a change in our useful life policy for servers and network equipment. Our outlook reflects our strong fourth quarter execution and the scale of our model, balanced with our expectation that the environment will remain uncertain in the near-term."¹

Recent Highlights

• Workday announced the appointment of Carl Eschenbach to co-CEO to serve alongside Aneel Bhusri through January 2024, at which time Carl is expected to assume sole CEO responsibilities and Aneel will assume a full-time role as executive chair and will remain as chair of the Board of Directors.


• Workday appointed Sayan Chakraborty to co-president, Robynne Sisco to vice chair, and elected Mark Hawkins as an independent director of its Board of Directors.


• Workday now serves the financial management and HR needs of more than 10,000 customers globally, which includes over 50% of the Fortune 500 and more than 25% of the Global 2000.


• Workday's continued industry focus continues to pay off with growing momentum within the retail industry, with more than 50% of the retail organizations in the Fortune 500 having selected Workday, and able to benefit from the newly introduced AI and ML-based demand forecasting, which helps drive greater accuracy and cost effectiveness in the retail space.


• Workday announced a $250 million expansion of its Workday Ventures fund to power innovation in AI and ML.


• Workday released its first-ever commercial at the Big Game on Sunday, February 12, focused on what it means to be a "rock star" in the workplace.


• Workday was listed on JUST Capital's 2023 JUST 100, which ranks America's largest publicly traded companies on the most important issues as determined by the American public, including the environment, how companies treat employees and customers, and how they support their communities.

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