Workday, Inc. (WDAY) Bundle
A Brief History of Workday, Inc.
Workday, Inc. was founded in 2005 by Aneel Bhusri and Dave Duffield. It specializes in enterprise cloud applications for finance and human resources. Over the years, Workday has grown significantly through organic growth and strategic acquisitions.
Financial Performance in 2024
As of July 31, 2024, Workday reported total revenues of $4.075 billion for the six months ended July 31, 2024, representing a 17% increase from $3.471 billion in the same period of 2023.
| Metric | 2024 (6 Months) | 2023 (6 Months) | % Change |
|---|---|---|---|
| Total Revenues | $4.075 billion | $3.471 billion | 17% |
| Subscription Services Revenue | $3.719 billion | $3.152 billion | 18% |
| Professional Services Revenue | $356 million | $319 million | 11% |
Operating Income
Workday achieved a GAAP operating income of $175 million for the six months ended July 31, 2024, compared to $16 million in the prior year, marking a significant improvement in operating efficiency.
Cash Flow and Liquidity
For the same period, Workday reported free cash flows of $807 million, an increase from $579 million in 2023. The cash provided by operating activities was $943 million, compared to $703 million in 2023.
| Metric | 2024 (6 Months) | 2023 (6 Months) |
|---|---|---|
| Free Cash Flows | $807 million | $579 million |
| Cash Provided by Operating Activities | $943 million | $703 million |
Acquisitions
In March 2024, Workday acquired HiredScore, Inc. for a total purchase consideration of $530 million. This acquisition aims to enhance Workday’s capabilities in AI-powered talent orchestration solutions.
Share Repurchase Program
In February 2024, Workday's Board of Directors authorized a $500 million share repurchase program. In August 2024, an additional $1.0 billion share repurchase program was approved.
Geographic Revenue Distribution
For the six months ended July 31, 2024, Workday generated $3.054 billion in revenue from the United States and $1.021 billion from other countries.
| Geographic Area | 2024 (6 Months) | 2023 (6 Months) |
|---|---|---|
| United States | $3.054 billion | $2.609 billion |
| Other Countries | $1.021 billion | $862 million |
Future Outlook
As of July 31, 2024, Workday's subscription revenue backlog was $21.6 billion, with $6.8 billion expected to be recognized over the next 12 months, indicating strong future revenue visibility.
Workday continues to focus on expanding its market presence and enhancing its product offerings, leveraging its strong financial position and cash flow generation capabilities.
A Who Owns Workday, Inc. (WDAY)
Ownership Structure
As of 2024, Workday, Inc. (WDAY) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. Key shareholders include:
- Vanguard Group, Inc. - approximately 8.4% ownership
- BlackRock, Inc. - approximately 7.4% ownership
- Fidelity Investments - approximately 6.1% ownership
- State Street Corporation - approximately 4.5% ownership
- Insider ownership, including co-founders Aneel Bhusri and Dave Duffield, remains significant, with co-founder Aneel Bhusri holding about 5.1% of shares.
Top Institutional Investors
The table below illustrates the top institutional investors in Workday, Inc. as of 2024:
| Investor Name | Ownership Percentage | Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.4% | 22,500,000 |
| BlackRock, Inc. | 7.4% | 19,800,000 |
| Fidelity Investments | 6.1% | 16,200,000 |
| State Street Corporation | 4.5% | 12,000,000 |
| Aneel Bhusri (Co-Founder) | 5.1% | 13,500,000 |
Stock Performance and Market Capitalization
As of 2024, Workday's stock has shown notable performance trends:
- Current stock price: $223.10
- Market capitalization: approximately $56 billion
- 52-week range: $175.00 - $250.00
- Average daily trading volume: 2.1 million shares
Recent Share Repurchase Programs
Workday has instituted several share repurchase programs, which reflect its strategy to enhance shareholder value:
- February 2024 Share Repurchase Program: authorized up to $500 million
- August 2024 Share Repurchase Program: authorized up to $1 billion
- As of July 31, 2024, approximately $59 million remains available under the February 2024 program.
Financial Overview
Workday's financial performance provides additional context to its ownership and market position:
| Financial Metric | Q2 2024 (July 31, 2024) | Q2 2023 (July 31, 2023) |
|---|---|---|
| Total Revenues | $2.085 billion | $1.787 billion |
| Net Income | $132 million | $79 million |
| Operating Income | $111 million | $36 million |
| GAAP Operating Margin | 5.3% | 2.0% |
| Non-GAAP Operating Margin | 24.9% | 23.6% |
Conclusion on Ownership Dynamics
The ownership dynamics of Workday, Inc. reflect a balanced mix of institutional and insider ownership, with significant support from major investment firms. This structure, combined with robust financial performance, positions Workday favorably in the market.
Workday, Inc. (WDAY) Mission Statement
Workday, Inc., a leader in financial management and human capital management cloud applications, emphasizes a commitment to innovation and customer success. The company's mission is to help organizations manage their most valuable assets—people and money—through a unified platform that integrates artificial intelligence and analytics.
Company Overview
Founded in 2005, Workday has grown into a Fortune 500 company, serving over 10,500 customers globally as of 2024. The company's mission reflects its dedication to providing powerful, user-friendly solutions that drive business outcomes and enhance operational efficiency.
Core Values
- Innovation: Continuously enhancing products to meet evolving customer needs.
- Customer Success: Prioritizing customer satisfaction and outcomes.
- Diversity and Inclusion: Fostering an inclusive workplace that values diverse perspectives.
- Community Engagement: Actively participating in community initiatives and sustainability efforts.
Financial Performance Overview
As of July 31, 2024, Workday reported significant growth in its financial metrics, underscoring the effectiveness of its mission-driven approach:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $2,085 million | $1,787 million | 17% |
| Subscription Services Revenues | $1,903 million | $1,624 million | 17% |
| GAAP Operating Income | $111 million | $36 million | 207% |
| Net Income | $132 million | $79 million | 67% |
| Cash, Cash Equivalents, and Marketable Securities | $7,373 million | $6,657 million | 11% |
| Headcount | 19,908 | 17,887 | 11% |
Strategic Growth Areas
Workday's mission is supported by strategic investments in various growth areas, which include:
- Leveraging AI technology to enhance product offerings.
- Expanding the global footprint through international markets.
- Deepening partnerships to enhance customer solutions.
- Exploring strategic acquisitions to boost innovation.
Customer Engagement and Success
Workday focuses on driving sustainable long-term subscription revenue growth. The company’s approach involves:
- Increasing customer adoption of its full suite of applications.
- Enhancing customer support and user experience.
- Providing flexible payment terms to accommodate customer needs.
Conclusion
Workday’s mission statement is intricately linked to its operational strategies and financial performance. The company's commitment to innovation, customer success, and community engagement is reflected in its robust growth metrics and strategic initiatives.
How Workday, Inc. (WDAY) Works
Company Overview
Workday, Inc. specializes in providing enterprise cloud applications for finance and human resources, primarily targeting large organizations. Its solutions include financial management, human capital management, and analytics.
Financial Performance
As of July 31, 2024, Workday reported total revenues of $2.1 billion for the quarter, representing a 17% increase from $1.8 billion in the same quarter of 2023. For the first six months of fiscal 2024, revenues reached $4.1 billion, up from $3.5 billion in the prior year.
| Period | Total Revenues (in millions) | Subscription Services Revenues (in millions) | Professional Services Revenues (in millions) |
|---|---|---|---|
| Q2 FY 2024 | $2,085 | $1,903 | $182 |
| Q2 FY 2023 | $1,787 | $1,624 | $163 |
| 6 Months FY 2024 | $4,075 | $3,719 | $356 |
| 6 Months FY 2023 | $3,471 | $3,152 | $319 |
Subscription Revenue Backlog
As of July 31, 2024, Workday's total subscription revenue backlog was $21.6 billion, with an expected revenue recognition of $6.8 billion over the next 12 months. This marked a significant increase from the previous year's backlog of $17.8 billion.
Operating Income and Margins
For the three months ended July 31, 2024, Workday reported a GAAP operating income of $111 million, or 5.3% of revenues, compared to $36 million (2.0%) in the prior year. Non-GAAP operating income for the same period was $518 million (24.9%), up from $421 million (23.6%) year-over-year.
| Period | GAAP Operating Income (in millions) | Non-GAAP Operating Income (in millions) | GAAP Operating Margin (%) | Non-GAAP Operating Margin (%) |
|---|---|---|---|---|
| Q2 FY 2024 | $111 | $518 | 5.3% | 24.9% |
| Q2 FY 2023 | $36 | $421 | 2.0% | 23.6% |
Costs and Expenses
Total costs and expenses for the three months ended July 31, 2024, were $1.97 billion, an increase of $223 million (13%) compared to the same period in 2023. Key expense categories included:
| Cost Category | Q2 FY 2024 (in millions) | Q2 FY 2023 (in millions) |
|---|---|---|
| Costs of Subscription Services | $304 | $256 |
| Costs of Professional Services | $207 | $192 |
| Product Development | $649 | $610 |
| Sales and Marketing | $611 | $524 |
| General and Administrative | $203 | $169 |
Cash Flow and Free Cash Flow
Operating cash flows for the three months ended July 31, 2024, were $571 million, compared to $425 million in the same period of 2023. Free cash flow for the same period was $516 million, an increase from $360 million year-over-year.
| Period | Operating Cash Flows (in millions) | Free Cash Flows (in millions) |
|---|---|---|
| Q2 FY 2024 | $571 | $516 |
| Q2 FY 2023 | $425 | $360 |
Headcount and Employee Expenses
As of July 31, 2024, Workday's headcount was 19,908, an increase of 11% from 17,887 in the previous year. Employee-related expenses, including share-based compensation, were significant contributors to the overall cost structure.
Recent Acquisition
On March 29, 2024, Workday acquired HiredScore, Inc. for a total consideration of $530 million. This acquisition aims to enhance Workday's capabilities in talent acquisition and internal mobility.
How Workday, Inc. (WDAY) Makes Money
Revenue Streams
Workday, Inc. primarily generates revenue through two main streams: subscription services and professional services.
- Subscription services revenues accounted for approximately 91% of total revenues for the three and six months ended July 31, 2024.
- Professional services revenues accounted for about 9% of total revenues during the same period.
Financial Performance
For the three months ended July 31, 2024, Workday reported:
| Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | % Change |
|---|---|---|---|
| Total Revenues | $2,085 million | $1,787 million | 17% |
| Subscription Services Revenues | $1,903 million | $1,624 million | 17% |
| Professional Services Revenues | $182 million | $163 million | 12% |
For the six months ended July 31, 2024, the results were:
| Metric | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2023 | % Change |
|---|---|---|---|
| Total Revenues | $4,075 million | $3,471 million | 17% |
| Subscription Services Revenues | $3,719 million | $3,152 million | 18% |
| Professional Services Revenues | $356 million | $319 million | 11% |
Subscription Revenue Backlog
As of July 31, 2024, Workday's total subscription revenue backlog was approximately $21.6 billion, with $6.8 billion expected to be recognized in revenues over the next 12 months.
Operating Income and Margins
For the three months ended July 31, 2024:
| Metric | Value |
|---|---|
| GAAP Operating Income | $111 million |
| Non-GAAP Operating Income | $518 million |
| GAAP Operating Margin | 5.3% |
| Non-GAAP Operating Margin | 24.9% |
For the six months ended July 31, 2024:
| Metric | Value |
|---|---|
| GAAP Operating Income | $175 million |
| Non-GAAP Operating Income | $1,033 million |
| GAAP Operating Margin | 4.3% |
| Non-GAAP Operating Margin | 25.4% |
Cost Structure
For the three months ended July 31, 2024, Workday's costs and expenses were:
| Cost Category | Amount (in millions) |
|---|---|
| Costs of Subscription Services | $304 million |
| Costs of Professional Services | $207 million |
| Product Development | $649 million |
| Sales and Marketing | $611 million |
| General and Administrative | $203 million |
| Total Costs and Expenses | $1,974 million |
Cash Flow and Liquidity
For the three months ended July 31, 2024:
| Cash Flow Metric | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $571 million |
| Free Cash Flows | $516 million |
As of July 31, 2024, Workday had cash, cash equivalents, and marketable securities totaling $7.4 billion.
Headcount Growth
As of July 31, 2024, Workday's headcount was 19,908, an increase of 11% compared to the previous year.
Workday, Inc. (WDAY) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support