WDAY - Earnings call transcript Q2 2021

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Operator

Welcome to Workday's Second Quarter Fiscal Year 2021 Earnings Call. At this time, all participant are in a listen-only mode.

We will conduct a question-and-answer session towards the end of the call. And with that, I will now hand it over to Justin Furby, Senior Director of Investor Relations.

Justin Furby

Welcome to Workday's second quarter fiscal '21 earnings conference call.

Schlampp, have Sisco, our Tom prepared our Vice and we our Chano Bogan, remarks, call, President Chairman; Robynne Vice questions. Co-CEO; President Pete we the will Aneel Development Co-CEO; Bhusri, Fernandez, our of take On Product Executive following our and CFO;

close was simultaneously is webcast. market posted call on Our press of this being release our is issued after and website where

those emphasize most economic Securities are that call, Before our cause COVID-XX to the on impacts file some release ongoing such customer our financial risks, and pandemic actual on documents matters. we want additional set are to other that related get information have this guidance, Exchange risk from forth started, differ results, These and statements and and and results statements subject uncertainties with we the particularly information risks, to our those Form today Commission, quarterly press include based statements. including the on we and the on may in materially of business applications, we Please of to and regarding uncertainties operations statements of as demand, forward-looking our assumptions, assumptions and our report factors on recent the XX-Q the for to refer conditions. global including

measures from performance. non-GAAP measures, in believe are not or results. we These which useful GAAP and a be during addition, financial addition substitute measures will call, for today's of supplemental non-GAAP In as considered isolation to Workday's discuss we as in should

selected Relations the for of customers Also, the includes and Investor of link. be our is will press the a page monthly. replay our this GAAP with non-GAAP these the website. The next our Investor additional results, Relations You XX list website measures, of customers disclosures updated regarding on can in call earnings website page our and reconciliations comparable on release under of company webcast days including find available

be results Our third fiscal all October Aneel. it the our to comparable comparisons on Unless quarter let With XXXX. call period hand our in me otherwise XX, quiet XXXX. for period begins to over stated, will that, financial this of

Aneel Bhusri

Taylor. brightest are in some one to a crisis for an 'XX soul. demonstrate Thank position workmates of I'm good living us forward, Workday's who we in mostly health and and drive I'm and economic and and forward-thinking environment, in a delivered can remarkable social time their It's Workday moment you, change a a social move to demand Workday quarter have help leadership areas their crisis. be report a Officer, drive of most care companies proud across applications our with of end, navigating at unique our the all in call. fiscal results. challenging to QX pleased enterprise that a have offices the taken times, to in year addressing inequality Justin, and team accelerated by that minds our passionate crisis, continuing that leaders have Chief the a very by welcome across and Workday unique conference the Karen all that lives. inclusion as our into strong second To the earnings year We're their no driven be obviously will choose To an expect across from came quarter as we globe geographies. role to home from doubt second their HR. remember and simultaneously will success way, and diversity Diversity also Workday. more company we that continues This healthy Despite companies from for should for businesses strong to guided drive together working a and partner finance these a and and such product recruited

and belonging; hiring inclusive guiding strengthening building four number technologies; number one, our a two, culture of and number and have number four, developing principles: communities. We products three, diverse cultivating talent;

is metrics drive that and future. on team on focused We help success the us helping in identify these forward measure accelerated to and look Our progress priorities us our updating against you principles. will near

quarter of list. German customer Hartford, In had also companies Moving pleased on leader, Eli highlights. QX, where customer including to differentiator We additions, we Thyssenkrupp manufacturing with And added IB, Americas. notable Group. cloud that several to we including to Lilly the State as services migration HCM, business Air the one continues Oklahoma telecommunications strong another and success U.S. Fortune for the to Liquide, customer General I'm mention Workday a our HCM The Bridgestone had and Motors, the always, XX key remains Workday. of largest for the go-lives,

quarter, Comerica saw management. across in strong first at Nebraska financials both Turning product Sharp and We Healthcare, go-lives Group. continued momentum like selected Collective QX, core Bank Medicine. American Among Amenity in where HCM and would companies financials to platform to Financial notable I core financial's the and many Workday financial Prisma wins highlight win the The including a expanding line the at together Health and

served commercially adopters of core has recent In several be in offering Center, Accounting a this new went pleased CNA to Shelter that strategic Accounting on to differentiator as available and I'm fall. Insurance Workday addition, live wins. both as schedule Center is key say our Workday a financials of that early

with agency added as we the to as as market years, and X,XXX market the also in local we financials contractors, has as well for In success as and federal logical a state labs next DoD we employees government federal commercial expansion. this governments federal solutions step partnered FedRAMP we and and view and an HCM with provided have agency numerous a many authorization. quarter, us strong addition seek customer, this for our Indeed,

serve opportunity federal is this longer-term partnership, Our initial focus success marketplace. by to near-term the ensuring excited are we the on with but

Management, expanding that as quarter now rapid the and procurement support of to had time products ability around are once we excellent initiatives. some and supplier like looking to the them. solid Scout for We our value arms in the now are of companies their another RFP of Officer, quarter we support network three live including Fortune to where sourcing office Procurement Planning, Prism demand production. and than Chief provide customers. more that X,XXX Spend solutions our Turning the newer wins last appreciate announced Indeed, Scout CFO get suite their Adaptive the the for increasingly Analytics can and to saw Workday all XXX again

solutions of Workday people and the announced our power QX, development. that extend to machine In Workday Turning product new we Help employee experience, experience. availability learning-driven for Journeys,

addition, to foundation we our analytics, In better HR empower announced business leaders which people Prism availability decisions. people and make help of leverages to

in the I we monitor return joint to adoption cloud. last continue recently the partners, belief availability by a with their to had to Mark as announcement our call, systems another we to work and with the such accelerate also environment joint the with safe congratulations help return quarter, Salesforce planning that with announced to key time, IBM, catalyst of this serve Last and the -- earnings will the where as of We finance way, ultimately HR -- solution workplace. plan, during and customers this my our more the offerings shared quarter including schedule customers' great on

companies increasingly agile and their the business of importance results suggest flexible conversations my QX now with business systems leaders are realizing mission-critical strategic that processes in the to Our future. having support and

has oversee been great has and promoted to has customer out and Lastly, to time, back Workday. that colleague, of of Chano most of all more of activities, and I news services great EMEA Fernandez, success will expanded customer-facing many over my in aspects want is our his now exciting driven to including the an teams friend support as end and the and In amazing marketing. company. our joined his recently taken over on of more as Chano Chano leader the Co-CEO years. Workday sales, role, values-based He Co-President President XXXX responsibilities and

to worked work great and your years, also will great structure for remember Co-CEOs this followed and you to his the me. Workday. chapter for I'm that many model is and those him, a I for and progression for be partner five come. looking Over So Co-Founder, to us operated company. to and the the while, being Chano, my Chano you forward for Workday partner will for natural for Co-CEO Co-CEO almost And the for and your for years Dave and me. great Congratulations, have next who you thanks move personally I and expect you. to wholeheartedly QX to a as team a for of big hopefully a thrilled Workday for for for

Chano Fernandez

for the Board on Aneel. I'm It's on partner and I'm yourself, an with have grateful the in you to to globe exciting entire incredibly me. placed honor. exceptional our Thank trust the workmates ahead. across journey thrilled Dave you our you,

the Before begin performance to the macro my to with This, across good pleased the wanted March-April to businesses conversion strong frame. express progress, time update, for in and forward drove Aneel's the uncertainty, with in field providing comments and relative it improving the context I realizing Many appreciation along and I see our products. increasingly digital am echoing our QX this thanks strong transformation by settling to of seem we with regions, environment a need experienced our initiatives. be my QX. to and solid our to team their into was move especially in what segments, execution uncertain ongoing rates

and landed customers nine new FINS Global from second enterprise, performance large broad-based Our teams. XXXX back-to-base was net deals. X,XXX both included the new In results we and quarter two global strong and HCM

we We by From The FINS, performance quarter workforce and local products, products, financial of education state creation of with the Accounting quarter, America continuing regional highlighted health, extend team in of opportunities. a we're North also trend. Europe. and improving win XX% also people standouts, multi-quarter encouraged they Prism from but and government The across solid and have APAC learning, our government newly RFP where back-to-base and medium launched of It's also analytics. state by early, this some another again including driven strength the Scout saw we growth over delivered a our newest and enterprise by pipeline Center. growing Analytics, had Oklahoma, planning, including perspective, solid were in had team another and quarter, strength a pipeline

remain improve FY we forward, market dynamics head and that as cautiously Going year-end slowly we will approach into 'XX. optimistic

environment, optimistic of are to this we you. extremely turn the on Workday in the navigating times over Over to realize that will come newly President, With Robynne driving will opportunity Sisco. change. importantly, longer-term that, I from as our businesses it minted and increasingly Robynne. More of Congrats, importance

Robynne Sisco

I new look role. partnership Chano. to our forward Thanks, your continuing in you supporting and

despite quarter uncertain new onetime $XXX of continued and linearity a by strong solid $X.XX Subscription strong Professional As of was to briefly environment, million, on update ACV revenue backdrop billion. slightly year-over-year. XX% many Total a XX% net revenue the I'm then Aneel an was quarter new our was the backlog as driven The business noted, revenue Chano across new of was market customer was add-on billion our QX million backlog million, transformation and results, $X very guidance year-over-year. million, initiatives. a both the outside digital their recap the it services both by QX a improved second was execution against acceleration revenue growth up end benefit total. U.S. second business. and driven contract. second for going companies revenue total in at for open Subscription favorable bookings outperformance 'XX FY $XXX revenue and your XX% strong performance from $X.XXX and $XXX was the driven questions. quarter was the The of quarter up renewals, by and with of

retention, once of with be within at of $X.XX next strong XX%. Subscription gross upsells over renewal, recognized net over billion, XXX%. addition, retention again XX% revenue In backlog the XX experienced growth time the we includes and will renewals that was which months

of expenses, operating of driven combination moderation was hiring; outperformance growth quarter was and XX%. spending. and slower million, $XXX onetime some year-over-year, resulting marketing; continued cash collections to non-GAAP XX% Our by of was second canceled events. moderated operating top a a non-GAAP margin COVID-related QX overachievement; solid line of The for credits operating including travel and income in driven the by margin operating million, related operating flow $XXX

that our hardest with hit work existing, that terms, pandemic. it to and to long-term economics. This as both mind revenue, a and industry's specifically payment keep backlog continue new on near-term cash or flexible more subscription revenue the impact no headwind We flow acts flexibility though in request it's customers, to customer revenue, in has by important unearned payment subscription

XXXX and loan. capacity exited and cash of settled our note unused quarter, our from $XXX with funding cash second term million convertible to $X.X access the using line final marketable of $XXX revolving we quarter the proceeds securities billion million on of During our our We of credit. have

of with that by opportunity in of while not on results the aspirations. near-term to had backfilled and the from of down the extremely at we attrition key quarter. execution ahead quarter the was cautious primarily offset pace our support QX. approximately to was number quarter employee of see in The strategic the yet our levels support pleased QX. been long-term employees, of Our hiring total significant we growth the our positions end normal end growth by limited was workforce slightly a initiatives. XX,XXX on This recovery, focused And We're remain

guidance, our to environment, QX, outlined specifically, that remain approach outperformance which, in expect which quarter, market by only slowly to we term year-end. the Now challenging an we uncertain the improving turning we dynamics continue near continues we with despite as assumptions will governed last to and be face in

billion, our of FY we QX in $X.XX be revenue are 'XX of result growth. XX% subscription performance, $X.XX billion strong the range our to estimate XX% a to raising As to

QX million to now growth. expect XX% and $XXX in fiscal expect subscription to million QX. million, We to $XXX $XXX We professional be revenue be in services million $XXX 'XX our revenue

these the goals, deployments priority balanced customer highest healthy active. expect primes our of As partner ensure In we to in with approach is continues and support ecosystem terms be satisfaction. a our line customers' always, and our Workday of partner levels to drive successful and to

QX, non-GAAP QX high For approximately revenue we expect We to teens. the margin estimate be XX%. in operating subscription growth backlog

largely GAAP both view operating year For percentage XX%, margin the non-GAAP previous full full expect margin lower margin in result the line XX%. is over our to This quarter expected top now up is of non-GAAP XX of operating year. the the than full year, The the third our margin from approximately a and we be of improvement by points performance.

partners close remains hard FY times. at guidance customers and Our investment results million. 'XX to like continued I'd us and for thanking amazing which employees, work, deliver $XXX by our unchanged capital their during strong to QX allowed unprecedented support these

With strength the turn we that has performance and of confidence operator to business our Q&A. long-term that, the the reinforced I'll Our to Operator? it begin in first our fundamental opportunity half see over ahead.

Operator

Evercore [Operator line from Instructions] Our proceed ISI. first question questions. has come Please your the of Kirk Materne of with

Kirk Materne

and quarter promotion. the on Congrats deserved. Chano to on Well the congratulations

I with faulty. back think question of some a investors back-office software, HCM more in to that concern think was of bit Aneel. I think the would was and that for thesis line that ERP, companies the shoved categories traditional due were get namely my amongst priorities is the of clearly I these there to results, in Aneel, spending And COVID. terms maybe

are talk conversations And systems different you prioritization of if wondering to category relative put could some mission-critical ERP was in maybe of thinking about spend? around Workday terms today traditional the I So then in the having their you a vendors? why about versus other how you're customers

Aneel Bhusri

Kirk. Thanks,

So first vendor. of not piece most think all, important is an the I ERP we're

HR implement with quick long the I think of a the to very a X-year running really oriented environment. time. We're connotations ERP and systems in takes and to there's a that employees X- payback agile towards that implementations lot business are finance

side, not have and companies you employees And a just issues pandemic So with should for as facing center think on about the right now, and the with HCM, are simply, HR very front all the other the everybody. changing can't and pandemic, business companies radically, engagement back-office system, their that. they're on employee the system. to change processes But just also basis. an And legacy weekly them do with a had but systems

adaptive we're cloud some flexibility on holdouts with working to just saw into the just "Hey, of that go plunge we even So legacy really rapid planning where Similarly a we be books remotely can their X can to X the our system, the having decide, system starts live plans on side, to go the month completely and and core and though system were you a based middle basis within without live that accounting a anybody in the can the the generate ability companies finance need recreate months. pandemic." of the make on the office in systems that in close

invest embraced areas, And the in so these and still I continue in think to finance invest transformation important. are companies a they're place in And cloud. are very HR and to data that

Kirk Materne

that quick outperformance top Robynne, on the obviously, in line just the due And do hiring, on or the of or should the mentioned, due of a back top more raise if ability in was your we sort half? -- rather ask accelerate I sort line. hire outperformance -- on -- was back follow-up to more rather? the to most to change expect guidance for could outperformance In the you Robynne. margins of the in half, how to to you spend half accelerate back the year, guess, the to think I of And about

Robynne Sisco

Yes, Kirk.

said we we do last the see QX. expect improvements call So to slow in in that

reinvesting been in have assumption. planning and to along that the to half we So the continue of year, back we've all start

I in QX investing So in for credits events. as marketing, such onetime repeat start areas sales, we we won’t some as will mentioned canceled did product have that like technology. and before, And benefits

of a our the So in the half in plans that ability from to against to the and good execute payoff future. year we good about and feel invest back investment very those

Operator

with proceed has Our questions your of America the next Rangan Please line Lynch. Merrill of come of Kash from question Bank

Kasthuri Rangan

take fantastic Chano Chano, Aneel your this. Congratulations to quarter, for on congrats whoever or A promotion. question on you, to for a the and wants Workday team

which Workday at that pipeline be to if as it, for pent-up we And also, in do you event a didn't forward assuming HCM for be the build you tended there integrated a a of user opportunity your are calendar customer. Rising, look has to haven't the business just building 'XX for where business that conference and together you as field 'XX, just next look serve the as calendar pipeline, financial a cloud on, we taken thinking about demand system initiatives? see a year's that you going a is in guys how can far up spend you big if an is minute fine as great As

how in And So the integrated you Fortune segment the market, in seeing with that that to are of accelerate financials XXX is pipeline? the poised your what calendar HCM adoption of in XX? is

Aneel Bhusri

right to I the those person think questions. was answer Chano

So the to refer I'll Co-CEO.

Chano Fernandez

Thank you, Kash.

the we But appropriate customers is necessarily we've kind us. would relative special a seen installed build the a pipeline The which to financial and highlight quite what of from to you lot retail. and very we're together encouraged a which to present Rising hospitality vertical, pipeline doing build year. biggest introducing we our -- may are by next from are builder made technology to rising back a like faster like a challenges which later to there moving we here call pivot event what again. perspective, get team accelerates we to state is broadly we hopefully pipeline well instead, decision seeing that perspective. this big that and and be in I'm encouraging, is build with also aren't year-end is for areas. and Rising QX, that think and can services, right in local out, media out So primary more back we as year, explore most in of at But helpful From this the the we verticals, already to pre-COVID government I'm build a pipeline of this facing there year, off next And digital time. perspective, but one piping are the which businesses terms support us of I are also safe until closer in more improvement will right, prospects looking base of event pipeline, hold yet on on faster, isn't travel, saw what impact to like for cash. is And the now, levels, up stage

Kasthuri Rangan

the the pent-up in on HCM And financials, case? that financials for the if is market, possibly XXX demand Fortune the of segment

Chano Fernandez

is now in evaluations our point you seeing of What right to on indirectly that, we're talk in this of seeing at partners it if are there some and ourselves, number time. financials we're a going

of accelerate. a, some was corner customers place reflected are that improvement, environment on on But from of it we've the Again, we've that cash. the it's some And we clearly, to the evaluations well Aneel the in expecting, number So what and side. been as as mentioning. financial COVID are the taking happening mentioning, due as we fluid as turn that remains may uncertain and now, seen

difficult out. about, the call legacy realized there that out companies talking was our it's have environment, cannot But that of until to and increased this evaluations So agility systems. on Aneel has that need be flexibility and certainly, the number for

Operator

question is next of Murphy proceed JPMorgan. from the with with come Our Please Mark questions your line

Mark Murphy

say Chano, wanted I And congratulations. to

a change anecdotes modernizing from that is the we've core from a to leave single it You've be to that. every I I'm role how if going uncertain Well, just imprint of always Midas the how Because wait amidst many it can't curious builds system the had just is I'll question I touch Workday like finance that a just financials. pandemic we've had the to standpoint. seen on that heard a we've And survival here. and that so hesitation environment. of seen see in guess necessary at pretty overcoming on

Aneel Bhusri

Chano?

Chano Fernandez

the what to is is systems, modernize right? and financial challenges companies I some think can but anecdotal is -- this Kash, with the realizing need that across are commenting them of been I've I what of kind Mark, Yes, having again, say remotely. book the

offices are provide reports able I business you, Some the onto can selling, of while financial some to their being them required. having they download and having their changes that numbers, to challenges the tell right, are sneaking made are to people closed. customers basically

side, there, would partners we're say, the So a of to number seeing of clearly, understanding difficult the be would to the produce the the environment, you our has able anticipate is the might again, is accomplish caveat, with seeing increased from for evaluations myself that fluid repeat the an in We it's which modernization be to also, other uneven end. right, perspective, again, and might these need are say out that financial as on there and acceleration saying tasks. how yet. to survival overall quite the going expecting this evolve. I some that is It's early and to

Operator

Our next Stanley. questions your line Keith Please Morgan come with the of proceed from questions Weiss,

Keith Weiss

to to more strategic going quarter. nice related A you? do role new about that's operations? like now? up all? changing the role. something at of foresee between you Chano move your going Chano Aneel, do you Chano, do with on Very Or and day-to-day now kind working how for you on and responsibilities to how becoming is working question that the the guys And imagine you congratulations of into X of Co-CEOs with X be the guys as like Excellent. you think Co-CEO, Aneel Are dividing of the sort

Aneel Bhusri

our for services person then culture that of the go and of company. was important a on strategy our the and have. would Well, And so like that's where teams strategy product teams a teams I'm product we marketing, And that our customer half And of super person, it's too. more and and I and Chano taking maintain all personally me, future. with in working we to the venture back on great get we to lot

with too. employees And critical, is so working

the people two better it are was I And Dave, Dave experience when was Co-CEOs. job. best me and one and my like in much Workday, So it with like-minded than at were CEO

stronger able I'm I role thrilled And with am. Chano. So than the much share he's operational leader to to be

the And mix figure take -- time, we'll that And that so right really and going great friends, figure over are it over he's out. time. he's to we'll over things great out We're at. the

Chano Fernandez

Yes. Go ahead.

Keith Weiss

first. go you No,

Aneel Bhusri

No. on that, I would . like Chano comment too. to

Chano Fernandez

to as the I'm about and Aneel I'm Dave of the the very opportunity, and excited really thankful, clearly, said, Board. I rest and

get to excited are had be forward certainly, broader of I can go-to-market, really, to of the contributing whole, of rest each kind and clearly going much services And team. support good together we to well. a and complementary, quite Executive and But other's with point as very acquisition driving the as think we we relationship views really customer along as the areas. I from more of the company support success Robynne a the customer to and from Committee on

it's So allow honest, cut, clean of strengths we the Quite that right think have one now. a potentially -- good that be I breakout, have. but to both play us we to to the us

great. it's So

Keith Weiss

seems And Chano, pretty of the seeing like sounds it solution bit use I on the about kind to us and Workday. that expand exciting extend little talk workloads pretty greatly extend mentioned you platform? one you're set Can in. and Workday about really could cases can It last some you hand products. the of new sneak for that about you're you're initial people that great. put if a And one you encouraged the strengthening seeing talked the in a

Chano Fernandez

because to place over hand think from to that going a I I'm one to the much Pete one. he's in Schlampp better answer product that

Peter Schlampp

Yes. Thanks for the question.

their situations, instead the that Workday having they So you build tools they're extend us opportunity opportunity go in our more unique an provide of Extend because is need than I actually to us us. efficient become R&D to in to is revenue to It's ways first for thing as in able we to for that product would a more the customers, these remind and ways for find them.

So that's great.

early some seen looking cases. -- we've quarter, wins with We've seeing and said, been pipeline lots some this is we've as Now that great of use wins, great well. great Extend,

about think I we applications XXX have live today. different

built live this self-assessment ready. was determine they a they had capability were could to so work employees inside that went just a ready and that quarter to them of whether One as Extend, of getting company return self-assess were

Workday. extending use about is So just case, any Extend of the of area type surface

Operator

line the from Sachs. questions Please Heather of come has question with with proceed next your Our Goldman Bellini

Heather Bellini

And congrats on promotion. again, the Chano,

had know the question, a just related for best Robynne, I if I this to or throughout and the don't of but business, pace quarter. Aneel is Just you,

obviously results. had very You guys good

rightly so, But how gave if the share could quick you the of I about with Then of You quarter, conservative the the us? evolved guidance pace of for talk course a can follow-up. just quarter. kind over business have you

Aneel Bhusri

Robynne?

Robynne Sisco

Yes.

we good Heather, quarter. So linearity had actually, really this

our we than was had sales rates, strong good throughout mentioned time, continued and May more which So close strong really execution linearity, the he saw we that see call to our beat earnings in on to last added close had April. activity line top rates. And in Chano starting quarter, seen

And to what would that of Chano, terms seeing? you anything so in add were you

Chano Fernandez

we No, think A Heather, quarter. was throughout and say clearly, the part But big is quarter how straight-line, a price. kept also since the then, in the as as verticals But term, every we said a was as broader draw March hard of, course, reflected has near month the the closed biggest before, of has hit. again, well April, environment out that better right? solid put since a in I on that And hardest has performance our whole. as of linearity. been market I outlook and fluid improving impact and still the see remains is improved It's observation to the the that commented, completely it which

Heather Bellini

accelerate think introductory thought what that do probably of desire wholesale an then, financials that really been on accelerant of hearing? move to desire we're modern more that based to this this going you just people's you you're And the Is to do taken kind systems, through up that's a have and you follow cloud? what actually will trend, know a think comments, Aneel, Right. just to Great. do market people on longer make the think, I to shift. than that's your

Aneel Bhusri

end-to-end about accounting think running we now accounting that for external definitely Scout. have about We core core took I it many can and And were couple years talk have system. last there We ago, have we in at message. at them X that's want could to the X, have want the of breadth. I years, why agility, do. driver on-premise, legacy And think to with a We at of to you And big talk did world. to Workday They conversation accounting core analytics increasingly I start Analytics. the anything we core if -- is. to But look bigger - can critical we a The their about. it of X are They fleet. today's is don't then ready look to want flexibility think we our if set the didn't maybe today, look is talk we customer vendors your we They but with suite ago, fine. the Planning. the actually can for about the Accounting and the They years, didn't people And now move of certain factors, part Center. so just moving. wasn't years us the number accounting, system core industries, in business X is to have weren't that to want Prism accounting, and dealing procurement. need broadening that for so Today, build for cloud. just probably a were your scope else of now Planning. we replace

all the full and now really do we And So move when that much needs you think basket not add can needs, products that I everybody, just needs. pretty of driver. that one meets the bigger they with comfort a part their we have forward can cover together, their of that's of

Operator

line Our with your with proceed next questions questions come Capital Zukin Markets. Please Alex RBC of from the

Alex Zukin

quarter. Chano, Congratulations for as thrilled And well. the really you on

things, in on think, I answering deeper. you little want So I question, interesting a touched Kirk's dig to and maybe, it, but the one of Aneel,

new field and crisis impact as the One this interesting back pipelines more to diversity, kind of the actually you department, concerned seeing in are in up the executives remote your world, health, secular from longer to come work trajectory things the I HCM the of out term? guess this? is we talent sales of executive employee this of cycles, And impact is, we field HR starting Are recently inclusion picked point, and of conversation? power are increasing mental shift in this does or engagement, management, kind about of to getting question as growth this the seeing what our you business this

Aneel Bhusri

this the the had predict. health, I've think of and of talent, growth, new remotely, In world of around physical issue it's that goal, hard their never I number on And for the a mental are terms but health, working working become health, it’s that's one say our employee CEOS. But how to on conversations CEO working they skills would secular world of a I part a the so product many projects, one HCM are they doing priority different to how line.

CHRO the definitely the company. So position that within is to elevating

Alex Zukin

about of Robynne. then talk impacts headwinds that And term tailwinds? payment FX million Can kind you and any the accelerated just $X also or for one maybe on just guidance,

Robynne Sisco

Sure. Yes.

contract. who result a was terminate therefore, So to a a acquired the $X Workday by and customer was million non-Workday they their of customer, want

the several and years, So acceleration an your the a second question? have across that on front. event so of revenue which sorry, onetime that part of contract, the they prepaid the And remaining balance was what the caused gone should the Alex, contract, rest of I'm more of

Alex Zukin

or terms the the the Just headwinds guide? to to with in FX, of tailwinds related respect

Robynne Sisco

Yes. Really no out. impact FX to call

Operator

from line questions come with William with of Blair. proceed has question next Our Please Pfau the your Matt

Matt Pfau

Maybe of solutions the the get scope And running? time-to-value this of on perhaps the to is Congrats enterprises. and works on use type the driven response then quarter, of something to to the Workday what's the and COVID? to enterprises guys. potentially is of by large terms this I in first up that Launch could the of in Or for demand a Workday wanted Launch this solution ask all, of that faster sort large always pre-COVID? was expansion

Aneel Bhusri

Chano?

Chano Fernandez

Yes. And cost. terms was outcomes mean, both the in more of good basically Launch the it the across Thanks offering works time-to-value that of proven in on enterprise for Matt. your once always in clearly, question, resulting board. kind medium of was I was and predictability

more was and a idea the the enterprise. of the So customers. we're large bit to enterprise the large upper lower expand now, always on end initial on Right more

between something you fixed of it. It implementing say have we verticals. what basis. could the be full the X,XXX sometimes employees, to a mainly again, fee packetization predictability And X,XXX can of we'll and the are both Once time-to-value provide both basically X,XXX to across on the you offering. kind So all cost, of

Matt Pfau

anything couldn't customers of your And reaching it or do market opportunity in you adoption reach potentially does that previously? to accelerating terms

Chano Fernandez

proactive of customers on terms that impact and offering for for of those those looking looking and a implementation help sometimes offering have the the are faster, on quicker ROI, predicted customers surprises. that are definitely can fixed and will more time-to-value It quicker also that in cost,

those be So applying. accelerator an markets can definitely, we're it of some on

Operator

the from Please with come questions proceed Needman next your with Scott Our Company. Berg of line questions

Ryan MacDonald

looking the This the quarter. of you more Scott great a also the a and compared Congrats is And in that? year Adaptive strong into continued is traction Berg. back how saw Ryan for on you maybe MacDonald Could QX? then see half you on the little color there pipeline on provide for sales to results

Aneel Bhusri

to? want Tom, do you

Tom Bogan

Yes.

the So thanks for question, Ryan.

strength HCM with to characterize of as, -- into it I'd Planning selling customer the we Workday first, broader Workday So lot base. a Workforce continue progress Adaptive. the excellent And make

have planning, of training, be location, an importance that's the skills whether workforce for of teams a doing headcount lot that seen think increases I diversity. planning planning, our This effective really of organizations, it area criticality environment the success. many

aspects significant same important for to about our think their we've because -- their customers. think what also businesses that organizations last not financial at forward. doing and scenarios that are planning getting combinatorics we that customer increase activity COVID. I levels, run modern essential running business But talked continues systems interest understand think a I but as those Perhaps going are multiple in the time to the are of in seen customers about all that are

So customer seen we've demand. strong

As and have times this that's important Aneel said, Scout in rapid and environment. Adaptive both to value,

Ryan MacDonald

Excellent. for quarter wondering or follow-up seen at and into billing Robynne. And quarter requests for persist if then throughout just early all? here you've second I payment Robynne, guess just a terms from third customers as flexible

Robynne Sisco

Yes.

but So can as you We continue imagine, initial to got wave from we requests cover continue to hit, requests. do do first those we an see when customers.

request renewals. upon Some customers, we new see some

continue the those evaluate it makes rest expect likely will and We customers. to hardest case-by-case through to a continue give I basis of And relief this that that, on our hit do to where year.

Operator

Thank joining participation again quarter Workday's you on for thank conference. for you will gentlemen, your This today's and conclude us. call. Ladies earnings second XXXX

Workday (WDAY) 27 Aug 202021 Q2 Earnings call transcript