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Workday, Inc., a leading provider of people and financial management solutions, has announced its fiscal 2025 second quarter results for the period ended July 31, 2024. The company reported robust financial performance, with notable growth in revenues, operating income, and cash flow. This positive performance underscores Workday’s role as a leading partner for organizations navigating the evolving landscape of HR and finance.

Fiscal 2025 Second Quarter Financial Highlights:

  1. Revenue Growth:
    • Total Revenues: $2.085 billion, up 16.7% from Q2 FY24.
    • Subscription Revenues: $1.903 billion, an increase of 17.2% year-over-year.
  2. Profitability:
    • Operating Income: $111 million, or 5.3% of revenues, compared to $36 million or 2.0% of revenues in Q2 FY24.
    • Non-GAAP Operating Income: $518 million, or 24.9% of revenues, up from $421 million or 23.6% in the same period last year.
    • Diluted Net Income Per Share: $0.49, compared to $0.30 in Q2 FY24.
    • Non-GAAP Diluted Net Income Per Share: $1.75, compared to $1.43 in the previous year.
  3. Subscription Revenue Backlog:
    • 12-Month Backlog: $6.80 billion, a 16.1% increase from the prior year.
    • Total Backlog: $21.58 billion, up 20.9% year-over-year.
  4. Cash Flow:
    • Operating Cash Flows: $571 million, compared to $425 million in the previous year.
    • Free Cash Flows: $516 million, up from $360 million in the prior year.
  5. Share Repurchase Program:
    • Shares Repurchased: Approximately 1.4 million shares of Class A common stock for $309 million.
    • Cash and Marketable Securities: $7.37 billion as of July 31, 2024.

Recent Highlights and Strategic Developments:

  1. Fortune 500 Inclusion:
    • Workday joined the Fortune 500 list for the first time, recognizing it among the largest U.S. companies by revenue.
  2. Customer Growth:
    • Over 70 million users under contract and more than 2,000 Workday Financial Management customers.
    • New customers include Clemson University, County of San Joaquin, and Presbyterian Healthcare Services.
  3. Innovations and Partnerships:
    • Global Payroll Strategy: Introduction of Workday Payroll provided by Strada and Global Payroll Connect for seamless integration with payroll providers.
    • AI and Technology Updates: New AI services for Workday Extend, Workday AI Marketplace, and Built on Workday program.
    • Strategic Partnerships: New collaborations with Equifax, Salesforce, and Kainos.
    • AI for Recruiting and Talent Mobility: Introduction of HiredScore AI for enhanced recruiter productivity.
  4. Board Decisions and Market Position:
    • Approval of a new share repurchase program to buy back up to $1.0 billion in Class A common stock.
    • Workday holds the largest market share in ERP Worldwide SaaS revenue at 19.6% according to Gartner.
    • Named a Leader in The Forrester Wave™ for Enterprise Resource Planning Solutions For Service-Centric Industries, Q2 2024.
  • Carl Eschenbach, CEO: “Workday delivered a solid quarter of growth and operating margin expansion, as businesses globally turn to Workday for navigating the future of work with our unified, AI-powered platform.”
  • Zane Rowe, CFO: “Our second quarter performance exceeded expectations, and we remain focused on balanced investment and efficiency to drive future growth.”

Workday’s strong fiscal Q2 2025 results reflect significant growth and strategic advancements, reinforcing its position as a leading provider of HR and financial management solutions. With continued innovation and a focus on customer success, Workday is well-positioned for sustained success in the evolving business landscape.

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