Workday announces Q4 and FY2022 results

Workday, a leader in enterprise cloud applications for finance and human resources, today announced results for the fiscal 2022 fourth quarter and full year ended January 31, 2022. Total Revenues of $1.38 Billion, Up 21.6% Year Over YearSubscription Revenues of $1.23 BillionSubscription Revenue Backlog of $12.81 Billion, Up 26.9% Year Over Year. Operating Cash Flows of $1.65 billion, Up 30.1% Year over Year.

Fiscal 2022 Fourth Quarter Results

Total revenues were $1.38 billion, an increase of 21.6% from the fourth quarter of fiscal 2021. Subscription revenues were $1.23 billion, an increase of 22.2% from the same period last year.

Operating loss was $101.0 million, or negative 7.3% of revenues, compared to an operating loss of $73.3 million, or negative 6.5% of revenues, in the same period last year. Non-GAAP operating income for the fourth quarter was $237.1 million, or 17.2% of revenues, compared to a non-GAAP operating income of $211.0 million, or 18.6% of revenues, in the same period last year.

Basic and diluted net loss per share was $0.29, compared to a basic and diluted net loss per share of $0.30 in the fourth quarter of fiscal 2021. Non-GAAP basic and diluted net income per share was $0.82 and $0.78, respectively, compared to a non-GAAP basic and diluted net income per share of $0.77 and $0.73, respectively, in the same period last year.

Fiscal Year 2022 Results

Total revenues were $5.14 billion, an increase of 19.0% from fiscal 2021. Subscription revenues were $4.55 billion, an increase of 20.0% from the prior year.

Operating loss was $116.5 million, or negative 2.3% of revenues, compared to an operating loss of $248.6 million, or negative 5.8% of revenues, in fiscal 2021. Non-GAAP operating income was $1.15 billion, or 22.4% of revenues, compared to a non-GAAP operating income of $867.2 million, or 20.1% of revenues, in the prior year.

Basic and diluted net income per share was $0.12, compared to a basic and diluted net loss per share of $1.19 in fiscal 2021. Non-GAAP basic and diluted net income per share was $4.20 and $3.99, respectively, compared to a non-GAAP basic and diluted net income per share of $3.06 and $2.93, respectively, in the same period last year.

Operating cash flows were $1.65 billion compared to $1.27 billion in the prior year.

Cash, cash equivalents, and marketable securities were $3.64 billion as of January 31, 2022.

Comments on the News

"We closed out the year with another strong quarter that saw continued acceleration of our business, including a growing global workforce and a relentless focus on employees, customers, and innovation,"

said Aneel Bhusri, co-founder, co-CEO, and chairman, Workday. 

"We continue to see increasing demand for our broad suite of finance and HR solutions, as we help some of the world's largest organizations – and more than 60 million users – navigate the changing world of work. This momentum, along with our employees' continued commitment, gives me great confidence in the opportunity ahead."

"Our solid fourth quarter results demonstrate our global momentum with new Fortune 500 customer wins, growing interest in our expanding portfolio of solutions, and the closing of several strategic deals across multiple industries,"

said Chano Fernandez, co-CEO, Workday.

"Looking ahead, the pipeline for fiscal 2023 is strong, as we look to continue investing in our people and go-to-market strategies to deliver on our customers' future needs."

"Our exceptional fourth quarter and full-year fiscal 2022 results reflect the broad-based momentum that we see across the business,"

said Barbara Larson, chief financial officer, Workday.

"Given the strength in our fourth quarter and our optimism that the environment will remain robust for finance and HR transformation initiatives, we are raising our guidance for fiscal 2023 subscription revenue to be in a range of $5.530 billion to $5.550 billion, representing year-over-year growth of 22%. We are also raising our fiscal 2023 non-GAAP operating margin guidance to 18.5%. Our market position has never been stronger, and investing to support long-term growth remains our priority."

Recent Highlights

Workday increased its workforce by more than 20% in fiscal year 2022, which brings its total employee count to more than 15,200 global employees.

Workday announced continued investment in leadership with the appointments of Sheri Rhodes to chief customer officer and Patrick Blair to president of the Americas, helping support the company's growing momentum on the path to $10 billion in revenue.

Workday completed its acquisition of VNDLY, which will give customers a unified workforce optimization solution for managing all types of workers—salaried, hourly, contingent, and outsourced—and support a holistic talent strategy.

Workday continues to see growing industry momentum within the financial services and retail industries. More than 70% of financial services companies in the Fortune 500 have selected Workday, and over 50% of the 2021 NRF Top 100 Retailers have selected Workday to manage and optimize their retail operations.

Workday was listed on Corporate Knights' index of the world's most sustainable firms, which is based on an assessment of nearly 7,000 public companies with revenue over US$1 billion.

Earnings Call Details

Workday plans to host a conference call today to review its fiscal 2022 fourth quarter and full year financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

Workday uses the Workday Blog as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

1. Non-GAAP operating income excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, and amortization expense for acquisition-related intangible assets. See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

2. Non-GAAP net income per share excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, non-cash interest expense related to our convertible senior notes, and income tax effects. See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

For more information about Workday, visit workday.com.

Source: Workday newsroom