Workday, Inc. Quarterly Report for Q2 Ended Jul 31, 2015

Summary

Workday, Inc. reported strong revenue growth for the three and six months ended July 31, 2015. Total revenues increased by 51% and 54% year-over-year, respectively, primarily driven by a robust 56% and 59% increase in subscription services revenue. This indicates continued market acceptance and demand for Workday's cloud-based HCM and financial management applications. Despite significant revenue growth, the company continues to operate at a net loss, with a loss of $69.4 million for the three-month period and $131.0 million for the six-month period. This is largely due to substantial investments in product development, sales, and marketing, reflecting the company's strategy to fuel long-term growth. The company's cash position remains strong, with over $1.9 billion in cash and marketable securities, providing ample liquidity for ongoing operations and strategic investments.

Key Highlights

• 1Total revenues increased by 51% year-over-year to $282.7 million for the three months ended July 31, 2015.
• 2Subscription services revenue grew by 56% year-over-year to $223.7 million for the three months ended July 31, 2015, highlighting strong demand for core offerings.
• 3Professional services revenue increased by 37% year-over-year to $59.0 million for the three months ended July 31, 2015.
• 4The company reported a net loss of $69.4 million for the three months ended July 31, 2015, consistent with its growth-focused investment strategy.
• 5Operating expenses, particularly in product development and sales & marketing, increased significantly as a percentage of revenue, reflecting ongoing investments.
• 6Cash and cash equivalents and marketable securities totaled $1.9 billion as of July 31, 2015, indicating a healthy liquidity position.
• 7The company reported positive free cash flow of $53.6 million for the six months ended July 31, 2015, a significant improvement from the prior year period.

Frequently Asked Questions