Summary
Workday, Inc. reported total revenues of $618.6 million for the three months ended April 30, 2018, a 29% increase year-over-year, driven by a 31% increase in subscription services revenue. Despite revenue growth, the company continued to incur an operating loss of $71.3 million and a net loss of $74.4 million. This loss was primarily due to significant investments in product development and sales & marketing to support future growth. The company maintained a strong liquidity position with $3.4 billion in cash, cash equivalents, and marketable securities.
Financial Highlights
41 data pointsBeta
Financial Statements
Beta
| Revenue | $618.64M |
| R&D Expenses | $263.58M |
| Operating Expenses | $689.91M |
| Operating Income | -$71.26M |
| Interest Expense | $18.30M |
| Net Income | -$74.41M |
| EPS (Basic) | $-0.35 |
| Shares Outstanding (Basic) | 213.06M |
Key Highlights
- 1Total revenues grew 29% year-over-year to $618.6 million.
- 2Subscription services revenue increased 31% to $522.1 million, representing 84% of total revenues.
- 3Professional services revenue increased 20% to $96.5 million.
- 4The company reported an operating loss of $71.3 million and a net loss of $74.4 million.
- 5Investments in product development and sales & marketing increased significantly year-over-year to support growth initiatives.
- 6Cash, cash equivalents, and marketable securities totaled $3.4 billion as of April 30, 2018, indicating a strong liquidity position.
- 7The company's 0.75% convertible senior notes due July 15, 2018, were classified as current liabilities, and the 2020 notes became convertible at the holders' option in the next quarter.
Frequently Asked Questions
Workday reported total revenues of $618.6 million for the three months ended April 30, 2018, representing a 29% increase compared to the same period in the prior year. Subscription services revenue, the primary driver, grew by 31% to $522.1 million, while professional services revenue increased by 20% to $96.5 million.
No, Workday is not currently profitable on a GAAP basis. For the three months ended April 30, 2018, the company reported an operating loss of $71.3 million and a net loss of $74.4 million. This is consistent with their strategy of investing heavily in growth, particularly in product development and sales & marketing.
Workday maintains a strong liquidity position. As of April 30, 2018, the company had $3.4 billion in cash, cash equivalents, and marketable securities. Operating activities generated $184.2 million in cash during the quarter, demonstrating the company's ability to fund its operations and growth investments.
Investors should note the upcoming maturity of the $350 million 0.75% convertible senior notes due July 15, 2018, which have been classified as current liabilities. Additionally, the 2020 convertible notes are now convertible at the holders' option, which could lead to potential share dilution or cash outflow in the near future.