Summary
Workday, Inc.'s third-quarter fiscal year 2021 filing (period ending October 31, 2020) reveals continued strong revenue growth driven by its subscription services, which now constitute the vast majority of its top line. Total revenues increased by 18% year-over-year for the quarter. While the company reported a net loss, a significant improvement was observed compared to the prior year's period, indicating progress towards profitability. The company maintained a robust liquidity position with substantial cash, cash equivalents, and marketable securities. Key operational highlights include consistent growth in subscription services revenue, which benefited from an increased number of customer contracts. Despite some headwinds from the COVID-19 pandemic, such as a slight decrease in professional services revenue, the company demonstrated resilience. Management's focus remains on disciplined investment for long-term growth, particularly in product development and global expansion, while navigating the economic uncertainties posed by the pandemic. The company also proactively managed its debt obligations, including the reclassification of its 2022 Notes to current liabilities due to meeting early conversion criteria.
Financial Highlights
48 data points| Revenue | $1.11B |
| R&D Expenses | $419.96M |
| Operating Expenses | $1.12B |
| Operating Income | -$14.08M |
| Interest Expense | $16.37M |
| Net Income | -$24.34M |
| EPS (Basic) | $-0.10 |
| EPS (Diluted) | $-0.10 |
| Shares Outstanding (Basic) | 238.06M |
| Shares Outstanding (Diluted) | 238.06M |
Key Highlights
- 1Total revenues increased by 18% year-over-year to $1.11 billion for the three months ended October 31, 2020.
- 2Subscription services revenue grew by 21% year-over-year to $969 million, driven by an increased customer base.
- 3The company reported a net loss of $24.3 million for the quarter, a significant improvement from a net loss of $115.7 million in the prior year's comparable period.
- 4Workday maintained a strong liquidity position with $2.9 billion in cash, cash equivalents, and marketable securities as of October 31, 2020.
- 5Operating expenses increased by 7% year-over-year for the quarter, with significant investments in employee-related expenses due to headcount growth.
- 6Non-GAAP operating margins showed improvement, reaching 24.2% for the quarter, up from 15.2% in the prior year's comparable period.
- 7The 2022 Convertible Senior Notes were reclassified to current liabilities as they met the criteria for conversion by holders in the fourth quarter of fiscal 2021.