WDAY - Earnings call transcript Q2 2022

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Operator

Welcome to Workday's Second Quarter Fiscal Year 2022 Earnings Call. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session towards the end of the call. I will now hand it over to Mr.

Justin Furby, Vice President of Investor Relations.

Justin Furby

operator. you, Thank Second Workday’s XXXX Conference Earnings Welcome Quarter Call. to Fiscal

Schlampp, we On President and Pete President have Chano call, Product and Executive Development. of Fernandez, and our Bhusri Sisco, Aneel the Vice Robynne our CFO; our Co-CEOs;

take remarks, prepared Following questions. will we

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

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

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

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

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

Aneel Bhusri

you to good second for today and and quarter terms over the own combined in came earnings exceeding afternoon, of in fiscal XXXX Justin, into us that one strongest best years. of accelerate acceleration everyone. but across this digital pleased HR of call. business to in Thank company you, pace three first of half the the We When for even quarters year joining year growth was Thank history. our the expecting QX expectations. our is with our ACV QX, is our year report I’m finance

exceptional product and share me go-to-market the let Our our Fortune execution. of continues of by on will growing some will driven now to of customer and on leadership which position outlook XX from Workday. our are includes for shortly a XX% in the portfolio community broadening Robynne share QX. of specifics provide of million highlights half year. XXX the live first the approximately our success raised second users Chano and more growth The But Workday strengthen XX%

start ACM. Workday Let’s with

differentiated suite Our has stronger. innovator with and position market as leader been an our never of products

investments other with of ACM and Workday CVS Kitchen Pizza We many Management Services, current Health, to family with welcomed attract In Mayo our customers many Cement AG Iberdrola, and customers we continue continue new their along customers. QX, new to us. to Heidelberg grow the California

Wholesale for highlight our While Old that current of would Club I many our wins to Amongst Industries, go Dominion. includes these us delivering them. important on excellent on to and lives are BJ’s delivering focused like to, new very the equally QX, remain and commitments service customers Harman we International

In selling addition back the full a success start report install from history base, with a with Peakon got Peakon. our this pleased in to delivering Peakon early core for true Peakon great even off ACM, first into we strong incredible product testament the our team. to quarter I’m and to the growth was largest quarter better

the We suite and also of finance traction offerings. acceleration broader strong accounting of including collectively for adoption the expanded that and set of center CFO continue of a spend our see digital applications. by our driving office to transformations believe management, offerings the We management financial of combination our of are planning,

Workday the success. strategy to highlight fact, business, where their adaptive customers was they meeting In QX showcasing in are ACV the of planning in continues significant growth XX% nearly drive

we addition, in momentum continue core to build deployments. our see In financial

University customers Markets. financial Cinemark U.S.A., Wise Corporation. America University friends core of System California, Fox Notable of KeyBanc go-lives in QX included North and include Southern Wisconsin and the core New

growth. on Moving focused our product levers long-term are to on innovation we the capabilities extending additional broadening front, for platform to create and our

opportunity recent continue for have internationally, quarter great on intention Payroll Germany. seizing our Workday to we announced deliver As and and to a the example, we Australia this

compelling levers these our and markets. to growth are deliver we’re of excited to know, these for very you payrolls As country-specific customers, solutions as

business our moderate recently the has transformation challenges that authority business heavily to to employees in people continue for digital to our federal levels help Authorization Switching order in impact the estimated this plan we company you valued, Workday for the ensure recognized. spring business of our in we’ll of real-time this organizations. our level our systems satisfaction Robynne achievement billion beyond. note, them our in the business. of fiscal will to revenues and that we Federal are across insights motivated, extending our sustain cash half culture announced their and year, to and work feel achieved that properly momentum further reflection confidence invest on happy to On we great of grow $XX update front, our also in customers. agencies and critical starting to QX outstanding half With and Management program, deliver to to direct a advance first FedRAMP, ready highest to their With to gain belief seeing materially bonus in help the or margin is We This position at XXXX, acceleration operate our have people later accelerate be with a back year. we our for companywide status Risk year the XXXX. the a full makes expectations modernize

Workday’s couldn’t I my higher. look ahead, for As future optimism be

a Chano have on companies to over I’ll their Chano. We With opportunity you, journeys. and significant front turn in finance to Over and it to as of in that, embark team continue transformation great global us a place Fernandez. our co-CEO HR

Chano Fernandez

thank us joining and Aneel, you to you, for everyone Thank today.

management broad-based, mentioned, Aneel new in strong HR solutions, demand to combined we with QX, expected. execution, fantastic a and had customers. we in As FINS pace a and driven our improving solid for very enterprise was rapidly environment The menu business large strength accelerate causing outperformance is an enterprise QX highlighted cloud than at core even by landing by which faster growth

saw a the our office portfolio across strength also CHRO. customers CFO landing new in of and We expanding the solutions targeting

And strength solutions gateway EMEA, time. over drove in planning Workday steel large For our largest new selling we a in example, history. control including providing enterprise activity and QX, in our new of winning for significant level the us and into FINS customers in significantly core businesses Planning HCM

team, such of being portfolio. our from addition the is We momentum In solutions across look our base and performance customer our base had companies customer as seeing strategic continued as quarter health, core as spend in and sales we’ve LAN solid management, talent to performance, been a growth with partner. also Workday trusted strong another a to strength PEAKON, renewed of number Planning, and FINS, our expense QX

Loan largest and in the Fortune Management other distribution a Planning For one signed Ralph companies company. Spend in Google Lauren. we with Group had communication deals and we example, wins number with Secures, Mercy with And CME such on companies Health, a XXX of of as world’s

We a one It XX isn’t including energy And manufacturer, and is customers. customer number to extended notable Fortune back just XXX world’s largest a a landing a the to company the also Peakon solution wins of logos. Fortune new space our quarter, powerful had in of sell banks.

have North standout, teams as strong standpoint, performance from industries higher and healthy significant and outperform particular We all health acceleration a such with new France bookings including care performance including large driving segments, quarter, in this in our and PerkinElmer. ACV From continental was outstanding and other market, with our Europe, and across was Uptake international enterprise Spain. medium education. outperforming notable in including from in EMEA deals In globally America strength a geographic maintenance

pipeline half regions, our improving across to expect of we move are we momentum dynamics year. as We those seeing and market trends into the back and continue the rest-of-world

the over investing quarters, aggressively our in go-to-market discussed we’ve we’re last As exports. few

new added investment across in first headcount and XXXX install sales sales new significant of down capacity including international markets. global in as marketing, area Our largest teams, our FY base and of we half net in was the doubling both

We’re to QX. which our across on brand would to first In in drive enabled the our year, are And focused half beyond. very in continue marketing and expect and FY pleased XXXX initiatives. driving also investments, of evolution on These we accelerating key spend the we’re second with will growth growth who workmen QX solid more like than seeing pipeline such again I the half thank we’re have global a saw closing, XX,XXX strong in which us the results. the

as winning in enter the of and suite second we the incredibly half differentiated and positioned the year. growth is market, Our of well solutions we’re

keep momentum Robynne. CFO, Over turn Let’s going, our over the to President to and Robynne I will Sisco. and it you, now

Robynne Sisco

Thanks, good Chano, afternoon, and everyone.

Chano up up and improving driven at as driven billion, Twenty-four-month Subscription the the over backdrop business was XX%. with incredibly XX% transformation was favorable growth renewals revenue revenue XX%. on Services overperformance across billion, sales, in-quarter rapidly U.S. and mentioned, was Professional million, against organizations second XX% XX% was pace Revenue the quarter the Aneel market the up of customer billion, $XX.XX exceptional retention, $X.XX in billion. we outside again, revenue end total Finance. of QX, subscription and strong total. HR quarter second million, year-over-year, an XX%. once representing very and gross digital backlog Total in execution of $XXX $X.XX new by of backlog revenue was linearity of resulting As a an strong the year-over-year $XXX delivered $X.XX by accelerate

margin XX%. by flow was of a was QX expense Margin growth operating Our of in in non-GAAP variances. $XXX combination XX%. favorable overachievement cash operating $XXX outperformance line million, driven and resulting quarter a of Operating for was non-GAAP top income million, second the

In gain addition the also million during $XXX our one to from operations, mark-to-market profitability nearly venture’s our portfolio companies. strong successful recognized core of a from QX of IPO we

our mark-to-market extremely be see will to continue magnitude this of but equity will rare. gains adjustments from expect investments, We we

of half the X,XXX to Our we and larger of attracting over progress total We’ve full-year and very the top towards and extremely and enter the we momentum new investments net target increase bringing continue XX,XXX hiring successfully pleased be adding of well-positioned at half our added Overall, to year, XXX back people important our in than the first back as employees, to to employees in In Workday. the the more made end XXXX. in pace count of talent saw with integrated FY our of QX. employee the year. half we throughout we’re expect we’re important of QX, the

range to Based our XXXX $X.XX our For guidance be are we’re QX business, Subscription Now, our the $X.XX revenue, the growth. in raising and providing on guidance. estimate follows: we’re strong XX% FY and raising billion, in turning to QX billion seeing as to our momentum outlook of full-year we

revenue Subscription QX, at still levels customer $XXX $X.XXX the prioritize backlog million be to of success. we to we revenue as growth driving XX-month expect highest expect the continue XX%. of of $X.XXX we growth billion, high We XX% expect in Services billion and FY end, XXXX Professional For to

X growth number expect For of for QX million. Services Professional we priority. Investing $XXX revenue remains our

and generation, spending In the FY our half at roadmap. of the position in strategic pace addition investments accelerating hiring expect increased XXXX, to our advancing market to enhancing ramp we demand also of product with back non-headcount targeted specifically

X November points. Aneel impact Additionally, margins XXX will on basis bonus our plan new to by approximately take is expected the and mentioned effect QX

we QX is QX QX and margins and XX% full of year. XX for backdrop, percentage points the expect lower operating to margin that XX% Given margin non-GAAP XX% be approximately in than XX the in in operating the for full QX, year. and percentage points expected in GAAP by non-GAAP The

flow cash Given billion. our our raising are guidance operating performance, we strong XXXX also $X.X to FY

their capital We continued expect continue expansion. and work. continued support other to of for I’ll by investments employees, amazing customers hard our support thanking to $XXX growth business partners close customer our million and and

strategic half forward first analyst the driving hosting growth in will ahead accelerated I’ll our start strong begin look day on focus to remains that, the initiatives very of on to where as a and turn With over innovation beyond. year our Insights operator to share off We’re to FY September to virtual look growth. our on we XX the we Q&A. bookings and XXXX and We it

Operator

Thank Evercore question-and-answer Your you. your a ISI. conducting session. At with with this [Operator time, line question. comes we’ll from first be question Materne of proceed Kirk the Please Instructions]

Kirk Materne

perspective. expect pipeline you very upbeat happened just talk over you the when about gives that both at end deal And you’re Thanks deals growing much. last heading on see deals. magnitude quarter faster a the about deals cycles you was little of more Could seen ACV this was a you continuing wondering good this growth you in the six confidence you’ve more in you color about add-ons, it a coming more about a what to the wondering of more a cadence, Sure. the talk could quarter. into if bit really but in months? what congrats maybe year? half back getting pipeline? quarter growth. talk I quarter I perhaps weren’t why more around deal could know from Aneel whether to in little bit a multiproduct of see the Chano, And I What shorter, meaning acceleration that. you and Thanks? do Great the just add the the was

Aneel Bhusri

what of other over turn couple hear Chano. it CEOs comments from about I a I’ll make then I’ll to

They’re are and for finance. their business. they transformation going is part, realize pipeline in future that optimistic sitting that. the what’s sidelines business. on in back For they people pretty on not pandemic, And both it so, jump the Despite add to to to the actions. And, about CEOs of anymore. Maybe most the of we we the saw mind-set and can with also been have digital HR the onboard saw taking Chano

Chano Fernandez

Hope you’re Kirk. Hi, well.

the I core think in in to by new little growth was solid HR strength bit truly a customers. unpack QX highlighted based, broad landing

large outperformer. strength the with Europe. we significant and EMEA also would back call across But continue out the enterprise have I key in performance as regions, was particularly the mentioned. We as into a There theme bounce across business strong a healthy

CFO within good We our Last, landing there also well. in office not good and contributors of in the and were dynamic splash saw least, but as terms was products new performance renewal. of the solid install-based themes

very reflected just look and half. coming So across we’re whole, about as board ACM. the pipeline a I of Aneel least second what coming the and as it the acceleration at table initiatives right financials really digital what back to transformation would back when seeing highlight the and is the was in is said the we positive That the across at

Kirk Materne

CRPO for base headwind up follow at the assume one that When the backlog, from that Robynne, of on still of board. growth have impressive the just look could across we Robynne. XX-month quarter some expiry I it. has a obviously I really the

going if to bit we XXXX. apples-to-apples above would to have probably assume go expiry normalize fiscal And little that Thanks. fair? as into headwind we’re that. quarter, XX% been dissipate Is on that back, So if I for this that tried base should we a it

Robynne Sisco

ACV impact bookings, we seeing we’re accelerating roughly throughout FY focus an that how And couple dynamic backlog correct the at bookings. last all. is revenue that new reminder, subscription And in our on our Yeah, to to XXXX. quarter has And this expect a the ACV XX-month points business. be run a we impact which new on Kirk. holds, continues just that don’t no dynamic discussed we you’re XXXX as or still What of FY

growth really progress the you’re We’re have year that pleased this seeing even with we front, show our on on backlog up and that the headwinds despite in that numbers, renewal.

Operator

with of Please America. comes Your question Thill your of Brent with from Bank question. proceed next the line

Brent Thill

made much of Oh, back Thanks ask peripheral on Aneel, question the real quarter, around congratulations QX. nice last strategy these surround systems. account, a transactional I that with so to system comments question, goes my kind within you’ve to really for and surround great. the it some to wanted of taking the a

some You’re tipping when you. you there At time? expect those point really point might on running is planning. is system of more? happens procurement strength year Thank seeing core migration of the a or you like ramping. have what real sounds they’re over two a in certain conversions there -- that modules, It potential for a transactional one Is when these or

Aneel Bhusri

a in a for definitely And a in this a dynamic over systems normalized quarter for more it point modules see quarters. strong to that think strong that, back. running maybe few what financial core exit of that indicator few way, to try systems. XX%, doesn’t is and more pandemic up as important the there. might I with run a for We HCM, the demand quarter. coming the core Well, really we entry over financial hurt the planning financial next business as have combination the is businesses being saw of we saw It the we was But

the just -- more really It’s one it’s So dynamic. across board. than it’s

So add-on we strength saw modules. the in

for see great I’d to services, well. financial areas great and there, like accounting doors the have core for core accounting in some customers us continues also a center we accounting. opening of reviews, as has that product like We in highlight get important up to of did a large-volume just particular strength for out product traction that more really

Brent Thill

in obviously pandemic some of That’s I the great In ago, What hearing from about are that may, to now past, you’ve more, of transformation, if investments your you And back terms of office. office those are now in improve. that showing prices the willingness headwinds. the year to office the But exiting in please. HR about back of manager those one and are things? Clearly, coming make we’re seen the kind digital you CFO hear. results then, talked a the

Aneel Bhusri

Yeah.

hadn’t was from workforce whatever to, hard companies that to really through and systems mindset with could to I or work flexibility ability transformation go it offer. think the a the they the module had workforce, their to gone with for remote was that hybrid or Workday home that without run business like the

time. legacy really you’re it systems, on If hard a was

if folks got to the even the we a get think on modern some it. big I driver we pandemic, with issues And real still to We on with been Hey, said, so, that’s of And have dealing the around to move are got for us. system.

Brent Thill

Great to hear. Thanks Aneel. so much,

Operator

Your comes from Stanley. line question Morgan Weiss question. Please with the your of with proceed Keith next

Keith Weiss

this Excellent. guys, of a Thank couple nature question have seeing And Like taking -- terms guys difficult for very is transactions these in A half of -- you, the seeing quarter. into year very it’s strength And One, of in across been was of digging last your XXXX kind enterprise you’re the multi-part year. you questions of demand? first nice was get kind kind really of to the the question. of that big release two in of a -- what pent-up year the parts. just line.

last more transformation of sort sustained Have as motion, for kind of of year into the pipe as or overall digital initiatives getting upsell, is the of Has and you. lot in one real what up that a into the business happened upsell of motion, sort pipeline. And year. then an ends that growth XXXX? base combination good Thank been assuming of a I’m new last was new sort spots extra business similarly, there able new boost, propped So of in given demand of it pent-up FY of coming business a company. up balance the keep well door, up? how with you ramping the the new bright to well Or the

Aneel Bhusri

part. the take first I’ll

and forced it impacted transformation how no to and had year, there change some but in the move that’s half get and pandemic the first think I cloud the change people a of of pent-up a into into both. the There’s quickly think digital project is was mindset question about HR bit I the key for Finance. really demand

it be year, way today. long now I Even are time going While going last to I waited for slowed that might it’s have it’s down now that companies a acting think up, think had but picked forward.

think that? So Tommy you a forward. more demand, marketplace bit going add positive the a of in to change want pent-up but to [ph], I

Unidentified Company Representative

say would solution, seeing I analytics, accounting just and growth When global activity. To are on a just you significant all is new center we’re jointly contributing. that our right? across quarter people solid very or your one rates install not look they healthy it have and Keith, base, with single we [indiscernible], health or question,

think the healthy. and selling, cross we remains customer upselling So a base satisfied very

momentum really business, on it’s engines. So all building the good having

Keith Weiss

Excellent. you Thank job, Nice guys. you.

Operator

comes Murphy Your from Mark with proceed line question. Please next your of JPMorgan. the with question

Mark Murphy

and Yes. I’ll Thank add congrats. my you,

pipeline year you saw So Robynne, year. our this really, that thinking a the bookings, was would not until inflection later that back quarters to and convert into couple of next

cycle just year-end? kind the it more than Or normal? still you you up see towards did bit a pipeline conversion given faster relatively did So see of upside, lining of

Robynne Sisco

conversion Yeah. Chano, of very this rates maybe, Well pipeline half frontline being important very, have you the that the in and as good we that’s there. on We strong a on you and comment not I’ll changing QX back and always have did year, year. really know, let

Chano Fernandez

than and Clearly Mark. motions. core built pipeline second there’s was out year. from already the play more to quarterly the second out play products. It faster of of strength given started seeing half some coming obviously, has year. will half the last or the during will financials already this HCM that it land convert and faster. the some Those The Peakon convert or [indiscernible] core motions Hi, planning But the

Mark Murphy

We wanting the of cloud. some spending planned you. is you in to had they that now Okay. I bit I’m up a the of news, this the was of headlines been Do is during delta the their in sort pull move of the projects for know in intensify zero wondering pandemic, might paused that with quick wondering, the financing. -- the the cadence that XXXX, to a part issue they you. Aneel, or of a follow from they they’ve Thank think variant accelerate more Understood. to about and variant? that delta going XXXX? where defer consistent remaining or their

Aneel Bhusri

pushed we pandemic, would of year now. Time hit we better financials, we saw from more I with and out, projects such were into suggests I think last XXXX. unpredictable pulled into year. the pipeline thought would next this just out pipeline’s year be the Gartner projects our get world coming the variant. to will data for better. when XXXX think and be suggested continue into from will And projects going I The that for next and tell. delta should changing, pulled year It’s from get Right that get right getting that a some of And it next

Operator

Your line next Please question comes Canaccord. of with from question. your the proceed with c

DJ Hynes

hiring in here for and guys, year. first half questions. on nice wanted to about environment for start the of for the Thanks, I on one Robynne Maybe Two the progress the one and ask Chano. congrats Hey. front. that

allocate employees prior then, So, kind XXX to the plans of XX% you net than ramp a well does this in back-to-base of second second at half, different maybe right, said And about XX the you years? Robynne, maybe targeted. it might that would in if half, be gave how the reps? I X,XXX would new them the hunters headcount first just versus or as how between I in half, given XX% How Chano, talk have reps, seasonality, ago? two you’re year new think And in been as expected you sales internal compare

Robynne Sisco

year as plans. hiring been I this than ramp hiring hiring, have engine over some game would know, really the overall further it us have aggressive we point as really, to but know, DJ, year. recruiting XXX took you it of so the would hoped had because last lot on really time our a paused you So we with at along

that to had get going. we So

X,XXX going loaded. able going back be about the that back-end that engine hoped accelerate we’re surprising where into We what and good we hiring really not to maybe are it’s the of a bit targeting good recruiting We are hires those So coming be feel feel we half still into year we’re right than we slower good our now. but year. we the about feel of a had that start to little

DJ Hynes

Okay.

Chano Fernandez

you came. with Robynne not more to the that and I thing out of headcount would If giving first DJ, some the me thank than kind I I allocating ahead. God play team, would generous This just geographically, is looking be see angle and it’s that more say but this clearly, beyond we well. more markets opportunity is second significant be at sales as international today capacity FY in XXXX for where a not and half we’re year clearly will

mention. be that So I first would

land first across planning second to on The some balance the yes, need motions be also you consider would Peakon or strategic we have one clearly, the between of sourcing. or between new logo the install base. But

plays logo see So install motion. the land those activity, of We across and base across opportunity as some well. account new clearly into net

pivot today. those across and America North within picture markets balance our more So investment a clearly international with within

DJ Hynes

Yes.

color. guys. Okay. Thank Perfect. That’s you, helpful

Operator

line from the Stifel. Reback comes of proceed question your with Please next question. of Your Brad

Brad Reback

backlog super be about now that much. on If existing? of year-over-year, versus customers billion Great. we Thanks at increase very think where of a sort at the that’s are helpful. would we color Any $X.X point from half XX-month growth of new

Robynne Sisco

renewals so as shift bigger pointed as that than Brad, flat is new in can year-over-year. business, been the get it we’ve more earlier This we longer we process towards renewals net something have and out that will that for shift backlog you that year has component actually different Yeah. so been quite imagine, been we has in the some time.

net more to bit this And next so we’re but that a we year back of year renewals we normalized will as growth. expect get little that new trend getting reverse again more proportion towards a

Brad Reback

very Thanks much. Great.

Operator

the with from Michael line of Please your proceed comes question Turits next with Keybanc. Your question.

Michael Turits

is Congrats despite of revenue than and Great. seems It a it’s a what very year. Robynne, raise margin guys. of discussions aggressive has it it’s Hey, on the been the beat Very lots hiring just this upside. like on quarter. investment. more nice And and nice.

in change margin this that get came? to your such revenue is or a So this operating accelerating structure able and where all upside philosophy at you’re

Robynne Sisco

of was the our overperformance margin top good part Well, race line. on the

were So that from hiring as that’s of back QX to half year, some I the mentioned before, some a of into it. very just savings our as little expenses have from the big faster do some well. We had of programmatic a we spend. chunk we so And slip hoping

the doing have next we’re lot year, at a year. year though, in As impact this we full look year of next hiring keep that is mind a going

Some to place the of this the roll put we’re of in year year. programs in half will next into back going

expect layer certain in that in-person such costs we can will hopefully and return events again. doing also to back travel, We office that start as

program Additionally, continue and about Aneel the basis-point XXX a will next impact beyond. that talked about on margin, with bonus that into year

that top-line vary goals. a though plan, growth, plan Targets. the it it’s on hiring through in so, that time and But over remain from to performance-based the Keep our could with our vary so performance achieve against mind year expect we margins based our impact impact And consistent will we if results. fairly next on

about in keep when just all mind think So those of you longer-term things margins.

Michael Turits

some coming HCM And sounds then Can really us ACV? is is you Thanks. relative well. FINS Great. business give of where to like very going ACV helpful. That’s sense in

Robynne Sisco

our both Both strong guidance those in of this HCM So both raise, and ACV. pipeline growth overachievement to And to growth we’re contributed contributed both really well. in our as in across seeing we FINS saw year. and

Michael Turits

customers? it I’m total. I’m guess individual for HCM in levels trying I to just is larger saying coming not than individual pull of mean I of that at didn’t out in you. terms a deals,

Robynne Sisco

In terms pricing? of

Aneel Bhusri

world of the in cloud, finance, the companies they’re to moved biggest a HCM, world to CVS the absolutely in companies we the And like beginning in health. still, the are to. bigger yet haven’t We sell but

changing. right So time. say high but than at the is HCM that’s finance now, the they bigger I’d customer average And end equalize over will customer, the

Michael Turits

Okay. Thanks.

Operator

Research. proceed the line Alex from of question. comes with question next Your Wolfe of Zukin Please your

Alex Zukin

Thanks, taking question. for the guys,

mentioned I there you these a I lot guess that land is element interesting seems So more motions around one new is think of planning.

want coming much land higher. I going opportunity kind the expansion like is Because get bed new going and this those are from understanding. be does motion? for a it to or dollar-based into management. spend back mentioned You the of better bookings Peakon, is feel this now customers expansion of How

new--it’s are than you bit so was historically this different upsell a up land of when And the had a you large opening such little difficult. kind more but

Aneel Bhusri

particularly Yeah. course, still motions are HCM they’re Clearly These significant well, to core the base coming projects. is install we’re into a the from sell as providing new still of and FINS our course bigger ACV is us what the later of transformation whole. dollars getting volume, core land are customers to on expecting of cross of majority the on the that, off-selling much majority more transformation that clearly the the core from obviously but, on But, as the products.

Alex Zukin

of as out we and pre-COVID And pool? some layering this margins back kind them Understood. particularly about those possible bonus with get think maybe it the and and, of get some go-to-market year is tailwinds in bit the color on then to to motions dovetailing little year a model to question, Robynne, of travel for of the how next more on Michael’s on

Robynne Sisco

Yeah.

So Things comes uncertain. thing still are much in add we addition to Michael’s we’re have I back, it travel, question, that is go would my six months the to into until next still only like I guess commentary answering how year.

a we’ll when get at to later you I date a now we’ve little above it’s or right FY So beyond quarter XXXX with we another that and more closed on two? closer drivers hard share mentioned earlier. and margins the predict But

Chano Fernandez

that to having change smarter I just learned of think going work to add forward have I out on-site those everywhere. we get pandemic. how the entertainment think budgets, will We’ve even travel people would without when do and I

You can few trips do lot a or home. your of on And work meaningful really at office then activities. the concentrate you can from from

I and to don’t that’s think specific So Workday.

like specific were that that on to spending not spend lot I travel think a lot companies of a used that to again. that’s probably of just will money

Operator

take questions. will now two more We

of Your Barclays. with Lenschow question. question next with from your comes Please line the Raimo proceed

Raimo Lenschow

squeezing financial all had payrolls for from agree then Australia in congrats Thank and you of of on the a are in international that’s me I is like, functionality, announced new well. just can about HR a Hey. terms buildout. think terms you of in the that? Thanks I yet, that one The big the And me follow as capitalize opportunity. there functionality, bit Germany you little and importance you. talk Chano, We up. question quite

Chano Fernandez

Yeah, is of the providing to Having workforce and Raimo, strategy the solutions money over HCM. Australia. look importance a know you acknowledge country around understand we And are bigger capture manufacturing your same important the we how and the our market. for and can out for really local and number you management are well, there if them of payrolls at of our say tremendous to payroll payroll us part customers. I of companies,

more some So doors workforce international scheduling we international provider the time well, market. terms our looking [indiscernible] on of we it’s feel have we financials, it. strategic open of and and good very comes for to this as take for markets, consideration develop it more is been is to into in and significant customers as improvements pay management close that that loop, It’s so an really our couple the strategy, about initiatives even that can in just capabilities. we tracking the When are a keep for that within and think a going doing -- to critical always very customers today we to whole. expansion that terms our years to is our going do Obviously, us this a but knowing growth those,

I those. think the they highlighting if you look some analysts, at of are

keep of highlighting regulations, from in stronger customers, localizations too, terms in that those, the of well. local required. the terms perspective basically, just and and the of our They’re becoming an financials are we solution as international Some

today some that working customers our is and preferential our becoming live EMEA it’s us. in are those for when financial solutions, Honestly, are highlighted customers. that, now many than are becoming more in a of cases, other great Workday also successfully things right many with point So going as customers strength some a very and nicely

Raimo Lenschow

very of the talk sketching lot mapping then the When you. people do they you system for in out, to That’s you of one how activity to cadence do you up more clear. And seeing are what nine et Thank months’ follow changing out still we processes, projects terms system. finance to the want seeing six Are same sketch time there or first and -- towards showing are guys? and lead evolving want trying step to which pre-pandemic of of or acceleration realize those there’s terms urgency in and to as you kind a the see because well. me, What an out quickly are with we more is and there integrators, then of it, it, in up. also cetera, a from Perfect. you do how doing you people Thank here? bit little congrats

Chano Fernandez

great Yeah, you’re seeing more is taking What That obvious. is it’s question. a projects place.

A, been are the more saying, the many they’re As around clearly, But financial mapping taking and of more and phase. -- because with compared and customers worked what customers more integrators. for you are would place that of improving more there of projects faster are do the a that gradually understanding system with I there those some which as facing they And there arrow, is be is working they pandemic are kind transformation think urgency as what cloud. processes customers what which the kind were business things assays the this difficult doing B, that the have today, seeing the processes future being is call to well, have the being there during is transformation place, all we’re

Operator

and final your Your Berg Scott with from line comes with Needham question proceed Please question. the of Company.

Scott Berg

on for question. taking quarter, thanks Hi, the everyone. my Congrats and

program. about what achieved opportunity expect adopt those segment, first that sales in ramp for you customers most? announced and products just will So the you think How off, the Fed the do company the status ready should we

Chano Fernandez

in customers Fed Well, They’re government. in the Federal using full than Fed it’s more Workday. motion. are agencies quasi already that have We already agencies

we cycles fully schedule As long begin, through go and sales will the middle but those the of the sales next we’re cycle, year. cycle, it’s on

would think sometime wins next year. some -- pipeline Quasi agencies start would to beginning So I hopefully you’ll good agencies I and seeing and build start first, full the then happen.

we’re -- there financials, and HR of a fit. good terms In

but requirements find that fit to good we are, have going general, the going to build We’re in a for Federal government. for we’re both solutions Federal specifically for government,

Scott Berg

one. And more Great. just one Thank you. then quick

should You two Australia expect company us are you and can we mentioned after functionality talking the earlier, and little bit color further markets its how to but give the Germany expansion payroll a of a it those complete? on about there bit little take payroll, with much

Chano Fernandez

great trying have find we or we going We going payroll integration and acquire one unless build continue I’d the by But the What us to add in expect we’re that which doing is XX to haven’t seen over two going not are add country don’t to see years. globe. to a invest integration. payrolls company country across really few where more to yet. tighter you’re might a we payroll we next a

Scott Berg

Great.

Chano Fernandez

is, our of Which payroll customers their what with global most demands anyways. honestly, do

Scott Berg

you. Awesome. Thank

Operator

for joining XXXX participation Thank again Year Second Fiscal us. your you today’s Earnings Ladies and thank for gentlemen, Call. on will Workday’s Quarter conference. This conclude you

Workday (WDAY) 27 Aug 212022 Q2 Earnings call transcript