Workday announces modest set of Q1 2023 results

Workday has announced results for Q1 2023 ended April 30, 2022, reporting total revenue of $1.43bn, up 22.1 percent year-on-year.

Workday’s subscription revenues totalled $1.27bn, an increase of 23.2 percent from the same period last year. The company reported a total subscription revenue backlog of $12.65bn, up 25.5 percent year-on-year.

Operating loss for the quarter was $72.8m, or negative 5.1 percent of revenues, compared to an operating loss of $38.3m, or negative 3.3 percent of revenues, in the same period last year.

Workday’s basic and diluted net loss per share was $0.41, compared to basic and diluted net loss per share of $0.19 in the first quarter of fiscal 2022.

During the quarter, Workday added 700 employees. It also unveiled plans to create 1000 new jobs over the next two years at its European headquarters in Dublin, Ireland.

Aneel Bhusri, co-founder, co-CEO, and chairman of Workday, said: “Workday had a strong first quarter, building on the fiscal 2022 acceleration of our business. I’m confident in our opportunity ahead and the enduring growth of Workday. Our focus remains on cultivating our culture, while driving innovation across finance and HR, and expanding the value we bring to some of the world’s largest organizations.”

Chano Fernandez, co-CEO of Workday, added: “Our continued global momentum and a healthy deal pipeline position us well to deliver a strong fiscal 2023. As we look ahead, we will continue to remain focused on our people, who are so critical to our success, as well as driving high rates of customer satisfaction through our industry investments, as well as our expanded innovation efforts with our partner ecosystem.”

Workday is raising its fiscal 2023 subscription revenue guidance to be in the range of $5.537bn to $5.557bn, representing year-on-year growth of 22 percent. It expects Q2 subscription revenue of between $1.353bn and $1.355bn, also representing 22 percent growth.

Workday is maintaining its fiscal 2023 non-GAAP operating margin guidance of 18.5 percent.