WDAY - Earnings call transcript Q3 2022

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Operator

Welcome to Workday's Third 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.

During the Q&A, please limit your questions to one. With that, I will now hand it over to Mr.

of President Vice Furby, Investor Relations. Justin sir. you, Thank

You may begin.

Justin Furby

Third you, Earnings XXXX Welcome Workday's Operator. to Quarter Conference Fiscal Thank Call.

our and On the Officer. co Sisco, our and Chano and call, we have - Aneel CEOs, Chief Schlampp, our Pete Bhusri Fernandez, co-President Strategy CFO, Robynne

prepared questions. will take we remarks, Following

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

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

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

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

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

Aneel Bhusri

And third everyone. today quarter. fiscal earnings us call. year Justin. for strong pleased you, that another Thank you good for Thank Workday afternoon, quarter joining I'm to report our had 'XX

portfolio sustainable billion to at Day levers we September, highlighted market continue we addressable As our our in product to and our growth beyond. and $XX to go-to-market drive Analyst with a path expand on multiple broadening

this been our throughout we've accelerating has discussed expectation for growth. year, As

expectation every as not momentum While to comes great in details provide one all-important faster. a we year. QX to with of shortly, 'XX, we'd head optimistic the more preliminary are into see than Robynne certainly even fiscal we grow has continued for are for will next expected. And faster subscription XX% we year view our year like provide And on this and pleased prepare see but fruition, opportunity even to revenue a we we execution, growth

touch In provide State as included many Iowa to HCM Workday industry and highlights QX, lives The among Electronic, the Brothers, ConocoPhillips, and to Stores, growing in success we our Chano we attract success Northern Toll added with new HCM details AS want Trust, few. Ltd., Before strong our in another Five having Below of our name QX and products, to I hand on strong had also QX, customers relationship to customers. existing a other our [Indiscernible] customers continue leading on quarter. it the I quickly with out off quarter new to go-to-market Starting from the we Vishay

seeing own potential the their employees. Voice the excited we help In acquired couldn't our Pecan long-term across Workday Employee quarter. recently newly more Pecan and to Solutions, having Pecan delivered recently HCM, core engage about benefits named We're from be to rolled-out organization the with addition customers to our our another strong globally growth and listen own record better

continue traction of also financial to across our suite management see We strong applications.

product office with combined digital Health Our that Memorial the acceleration the Health management portfolio, Diversified financial financial of Group. broader of growing adoption of and driving CFO World in applications. QX the the Care, Trust, includes Wind Organization, in City To new Restaurant workday end, our Philadelphia, customers is management

strong One growth. the big accelerated which different at future adoption requires thinking by pandemic the innovation demands manage our continued and circular staying is drivers about that to Of types how focus of behind are new drivers course, on of ways forefront work, large relentless trends customer by trend composition one of the of the has of our is the workers. that been future of workforce of

look deliver delivers closes, between workforce efforts We and brings occur this deal a that expect solution a in while expect and VNDLY, approach area, enabling comprehensive next-generation to to visibility for management the and more optimization solution of to workforce a in gap into holistic managing managing help which planning area entire expanding share internal of the also this while will leading together total bridge to workforce security accelerate workers. our and after external an risks. platform. full to workforce customers VNDLY our fourth all vendor our with acquisition we proposed strategy Workday and information and efforts labor the compliance forward that types quarter. integrated control in We cloud-based we'll management We'll helping needs,

further and vision, and lockstep with front amazing growth our Looking our ahead of organizational in fiscal path of forward updates. in 'XX strategy. purpose, do strategic that, help go-to-market announced year to ensuring a important pride roadmap to To have and unique we that by accelerate are beyond, us, we've our series us opportunity we see an opportunity

strategic vision, late has Pete as ever our share successfully Pete Workday's Strategy more articulate past that with organization Schlampp today appointed for years. X X first X Chief industry-leading you. excited has and first in led chart been The help Officer. October further product I'm the To and our to

in contributed our to overseeing and execute current and role, vision product a to momentum, During our him His this implemented delivered set strategic ability strategy success. time, portfolio the that both growth terms financial makes evangelizing and he for perfect new going a of that's innovation fit robust strategy forward.

along past alignment Workday customers cloud Technology. we technology platform innovate build forward. and Extend, and creating partnerships, combined the game secure his our reliable, technology organizations of going Workday His Second, product Sayan's Chakraborty, successful helps the amongst industry. ensure product the Workdays delivering makes partners X infused scalable, like Sayan that long in and announced and needs, customer changing are and him we understanding strategic learning, a of of industry-leading out to path leadership the with and changes. ideal years, today, and tighter innovations, EVP most across machine more who platforms innovations record technology now with leadership our leader team And the enable Product map is deep with track our has Under of earlier the to in in under couple

Robynne Workday. we of that Doug serve pleased co-president promoted Sisco. to alongside will co-president Sales, as Global Doug EVP share we're to of as Robinson, First,

that leaders of February part an Barbara but across from effective Robynne. 's co-president, finally, also joining star Workday Officer heights. Robynne is being planning, SVP approach helping within. reporting from The on been Financial that succession since year, will the CFO As and Chief Workday has than leadership next we're to lead share tax role also X ago. expanded first that an sales a Workday continue And accounting, Barbara on cross-functional more new Doug role promoted global hope Barbara Company, of developing to organization, years to will happy treasury, to transition focuses take the initiatives of to rising strategic reach to is Larson, our spearhead of

product emphasis During our leadership the the FINS increased and current the to strategic an with Barbara's providing to for make the focus into foundation continuing be with held across will looking the to Robynne in engaging lead right exciting continue to of to finance into we're time she our most Workday's all and office of and Sayan, the Barbara, customers to more her Co-President include an move Workday and impact This as to and within increase Pete, CFO, forward several will to With will her positions brighter responsibilities. strive step to on role It's her organization footprint Workday organizations, addition prospects now CFO organization. Robynne time, some at future. on has all. lead we CFO, our a the Doug, aspire finance

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

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

Chano Fernandez

start you congratulations Thank you to for to everyone Sayan, and by want thank Aneel offering Doug. I us and my to Barbara joining Pete, today.

You're incredibly is forward colleagues leaders well have deserved. worked and these roles tirelessly a to and us all as push who promotions amazing your fantastic to Company,

half a acceleration we experienced mentioned, the The solid our expectations. financials that QX, execution demand Aneel outpace net year QX, once strong As combined new we delivered rates driving first a strong of business healthy for by and in conversion driven solutions. in again continued that the with HCN

new goal targets while markets the Strength our in EMEA incredibly In XX% significant FINS results with sustaining of large highlight growth revenue. setting was the remained landing broad-based the acceleration remained plus to revenue us outperformance. America on in Switzerland. our Performance again pipeline Spain, our was up and customers. generation QX core and incremental growth across addition, UK, achieve medium very our strong in in with and in in outstanding and enterprise, both providing billion healthy, solid drove $XX well enterprise path HR a North international once confidence to subscription full-year

Customer to us Holland does us and ecosystem quarter We customer of our learning extensibility U.S. ways. and our help strength, also from the our to very including solutions and customers, team, team analytics, customer, in our with Foods. [Indiscernible] at sales Barrett engage & of deeper the of saw couple platform wins in of deal. net partnership to management. and land for this within expansions North A once driving had base quarters We their is global the [Indiscernible] partners Santander, largest only now were governments strength adaptive drove of for a SX. Myers coffins, performance people an strength through Health QX, Bristol but one great continued Peakon QX a addition value planning Squibb, and of and example that which with drove it team first base continued [Indiscernible] allows including emissions CHRO Carbonell performance [Indiscernible] another selling cross we retention. by address excited in spend examples applicability In a America, very carbon solution to performance, saw Peakon solid Workday sustainability CFO, our to the partner the stores in customer its who base strong revenue included adding in fantastic record Not several related Peakon, built signing the our which critical a planning aimed Workday with planning reduction with our renewal has of of again is been Asia-Pacific. momentum ever objectives enhance platform. number the ESG This new of IP and has in Workday also model Banco including part go with [Indiscernible]

is was QX. approach the our market highlights winning in many Our and industry of vertical the government one strengthening

we other mentioned, several financial planning the Aneel management Philadelphia solutions. to of City for and were addition by spend [Indiscernible], As selected management, in

the county industry other and also the both of Alabama. industries in platform importance product significant continue as Worcester, approach. We And to from expect had an with Massachusetts investments U.S. across HCM internationally. states, Successes we and the highlight and across key a city, this to local City And taking make the such standpoint. governments, of of go-to-market number signed of wins and we FINS a deals both Mobile,

growth. marketing made we As this across in we've And our also both sales front capacity go-to-market aggressively such XX% and we and thank throughout These this global FYXX, and workmates we're investing which us more the [Indiscernible] have progress global XX,XXX closing, in sustaining QX We're expect will brand our in on than to In subscription base accelerating our year-to-date on continue continued teams. would investments, I adding revenue drive QX QX key enabled to customer who like discussed focus plus year, into effort. investment initiatives. our results. strong across

will on record Robynne quarter. our you, to the I Co-President fourth And strong well FYXX. have our eyes it We to look important generation over and targets, all positioned lay for we we pipeline Robynne. now enter are to And very as set Sisco. Over turn we a foundation as CFO,

Robynne Sisco

Thanks, Chano everyone. and good afternoon,

that could CFO the say of look proud continuing mantel share to like incredibly pass the be with not the I'd I to to with and changes to title First, President partner to to them. forward about more I'm I Barbara. excited Doug both leadership and

reported representing revenue total $XXX $X.XX business revenue at healthy globe as mentioned, XX%. finance the backlog driven XX look gross and growth again, with XX%. again $X.XX in XX% of revenue billion. growth HR once a as $XXX up of was services outside the million, revenue backlog Aneel in new strong $XX.XX strategic Professional and partner billion, resulting renewals across quarter, U.S. accelerating As their customer Chano up end the once was the $X.XX subscription we Revenue in third QX was was strong to subscription year-over-year, over and of Subscription retention, by and XX%. organizations Total Workday was XX% their driving of digital transformations. sales quarter total. third XX% months year-over-year, the revenue up billion, billion million,

non-GAAP margin anticipated. more million, a quarter strong driven QX was than by very significantly income in of was hiring the and variances, cash strength quarter outperformance, loaded in third of collections. a combined $XXX the $XXX flow achievement XX%, in by driven back-end top-line resulting with for expense combination we Margin operating XX%. the growth operating was of margin Our favorable million, some over non-GAAP Operating

in to successfully bringing pace adding attracting top the the XXX employees, continue In and integrating in Our to talent net quarter, of we and investments our largest be ramped people then new Workday. approximately third up XX,XXX hiring, meaningfully final quarter our Overall, and end well employee with of we're of results the QX, extremely our year. we pleased our count QX. execution to at total over positioned the as very we're and enter

raising to guidance. our the QX now QX in as strong seeing Based FY outlook follows. and 'XX our on are momentum we our Turning we're providing continued and guidance business,

XX% range revenue, to in billion, raising subscription be estimate full-year our approximately growth. to $X.XXX $X.XXX we're billion of For the

to of QX For be We QX, levels driving full-year we growth. of billion $X.XXX subscription expect growth expect revenue we to billion, $XXX XX% revenue million XX.X%. services of backlog XX-month still $X.XXX in project on in million expect continue outperformance, And non-GAAP $XXX margins we we to Based QX with FYXX of prioritize operating FYXXXX now highest as our the customer success. XX%. professional

continue for estimate operating be For we in and QX, and non-GAAP margins year. hiring the performance of XX growth QX. operating we begin XX% the operating approximately margin in and non-GAAP expected bonus points lower GAAP program pace The QX of investments is to cash new the percentage margins full as by our than

our and investments to business operating expansion. support growth customer of We other are FYXXXX $XXX XX% for cash growth still continued $X.XX our updating capital FYXX expect of million billion, guidance in to we flow and

important we of and and in billion, expect of provide currently to planning an of early our FYXX. high-level like close, approximately have QX revenue a preliminary view year-over-year. growth are We to XX% we'd While $X.XX cycle FYXX subscription

subscription expect to QX, increase X.X% sequentially revenue in QX FYXX FYXX. We of approximately from

in As revenue. subscription we on billion our growth $XX recent our Day, sustainable XX% revenue of are path in to focused on we shared or higher Analyst driving

continue will to With we'll turn remain reach margins at Investing non-GAAP growth our in amazing and we year, that, margin our for the revenue. XX%. of will begin cost-savings HR customers, hard to the investments. -related their focus these Given But next we gross the expect into of work. I finance support operating our and currently to to position impact our Q&A. COVID and evaluate the by program, on strength putting close trade-offs. market us investments, margin thanking of continuously the transformation, expect I'll operator expect resume new bonus focused saving XX% employees, path full-year see over of top-line and billion pace accelerating we account Taking $XX our and we partners it and across trends our of increase FYXX after expansion for margins to digital to expectation a out, continued

Operator

conducting question-and-answer to question. One moment one this time, [Operator limit questions. poll a we be yourself Instruction] we'll session. At Please for while

Kirk from with Our line first question Evercore of comes Materne the ISI.

You may question. proceed with your

Kirk Materne

'XX, confidence for pipeline for the bit Thanks add the very first be curious congrats to core fiscal and seeing gives the that'd ahead growth? that about Aneel up, if to so and their you in and opportunities but in just you're much of on just on everyone congrats maybe what you Just great. Aneel talk thank of revenue a you size the much. color if the deals, look it's little could quarter you're pick all promotions. the seeing deals plus Chano, Chano, on in today as little could more you volume pipeline a all, outlook of XX% and that and subscription Thanks the financial well, preliminary

Aneel Bhusri

Chano?

Chano Fernandez

Yeah. And Kirk, question. thanks for your

more expanded, only few I the when the expanding. regions landing as well, as new and QX I momentum well. the as pipeline really compared a across and in think have we and business, continued balanced seen portfolio think a would did pipeline but years see And and several strength, it's motions, to I has predictable that as say, our ago, both we healthy last solutions much momentum we across have product with quarters strengthening a not described

growth. view goal the revenue of and our the sustainable pipeline is to sights support lay FYXX The quarter our plus our XX% that the in our subscription QX trends, beyond. sustaining and out we're for solid set pipeline have business we help a So, record seeing support in momentum on foundation another

it quarter. contributor strong terms the really was core to things, In a of

core We on Kirk. whole, have last a fins category both fins as the

Kirk Materne

being great. cohort down if still now? normalizes, lower of a that's can That's Robynne. guess renewal XX-month Robynne, backlog and what the by is right I maybe just remind that still and out just when for number a us follow-up playing quick that weighed is you

Robynne Sisco

Kirk. Yeah,

base So, XX-month flattish recall, as to year, from saw year, you coming year. coming entire discussed point this the stemming we we this headwind renewal backlog the growth into couple into a that

the ahead dynamic return that's For offset really played although to year as part, renewal front. reporting strong give we to the us we s the this rate normalized more that in we've to throughout have to that goes our most been the a thought, somewhat we out of and are on base to-date that When expect expecting renewal headwind FYXX, away. look rate growth that results therefore,

Kirk Materne

Congrats. much. so Thanks Super.

Operator

comes next Our line the from question Goldman of Regan with from the comes Sachs. Kash

You your proceed with question. may

Kash Regan

And much, adding continues that customers, in or momentum talk, more on including a create keep either much. ahead? aspect. Hi. you starting it's again, internal of how It's new product able a you the -- promote continues that talent, to management, very next going the still Thank you you long on portfolio has with and Aneel, of And make great about opportunities slowing years, you very Chano, for Doug, a generation you stopping back were about Robynne, quarter. congrats you little opportunity Can to with two see the to even As expand very it and there's bass vibrant. but question and to been business no the no a and net -- it to down be my Barbara, build strong of Thank Chano bit etc. the base. plan focus how ACV great the it's of list, to you -- more just and to We've any so do Can forward? new

Aneel Bhusri

new touch and just the touch the go-to-market on piece. on can might Chano I products

side, planning's we and of And through broad-based one finance can back recently with do product and changed Zimit, things the we really the I game. across most and has now both are our great we think that thing Scout. lines. internal That with on the have And the to both acquisition, same hope development base. had, been financial do really we Bentley, through to customer that products HR Peakon, sell

really attractive that that and we're about maybe doing how have powerful We customers these best-in-class, are add-on can that. products are to Chano talk

Chano Fernandez

you, Kash, you Aneel. thank and thank Yeah,

well no customer that customers. value across and team of that and say the think our our rates single portfolio in strength one Kash. base Pete the the I is proposition the the which the are It solution solutions. we fantastic, I how the and is innovation building drove and driving think And I I broad of full renewal Sayan as just is are momentum, solutions really financial would strategic believe and to HR speaks for it base, the strengths and it's

the see keep our some momentum this we expecting on we billion planning solutions we with continue, investments in resourcing keep customer Day been to to as course, expanding keep and for going base are of and that clearly you extra we're are forward and that as share we adding customers. and doing more across Pico, that Analyst base go-to-market, Kash, planning year we of So, well. highlighting, we've of as adding the customer credibility, XX planning, the our motions, those land And and to work next opportunity around we to obviously, going strengthen

ahead the customer excited So, by on pretty the base. we are opportunity

Kash Regan

much. you so Thank Bravo.

Operator

the from comes JPMorgan. Murphy of Mark with question next Our line

proceed with You your question. may

Mark Murphy

in Yes. everyone XX Doug, new on than Pete, QX. Barbara, wanted the months congrats is bigger to the we've actually and Much Thank you for looking Robynne, who years. at subscription add very seen the deserved. much. of my sequential a taking Sayan. a ask change to last backlog And I I'm role, It's couple I'll number

to that's X products, it seeing in or Peakon seeing else So, period something you you what months curious is you've strength? faster or if are that we're expected think was I'm I that, or starting something that's the said is as conversion ago converting maybe XX pipeline other that just from of driving maybe build or sequential

Robynne Sisco

remained in strength call few that our a out but business the even rates is I'll out have across different will we really all I things multiple our Mark. are things higher point seeing conversion few just on ways Yeah, the side. of though

And more certainly us so that has convert pipeline. helped

as we our We that an companies motion are sales impact those shorter cycles have on and products has to seen those independently; acquired our really we also, well. strengthen really that growth renewals us so strong can lastly, as then we're so we And helped with sell strong uplift renewals. there tend to have as just had Really and in some of backlog well. renewals seeing sequential

Mark Murphy

so the then Thank three to Okay, different very you, Robynne. And a follow-up. quick stool. just legs

You had announced a major new HCM logos.

I think incumbents Aneel remained commented on see Brothers, that trying Any for comments the ConocoPhillips, their the and the infer pipeline QX? just big among were strong indications Fortune -- trusted we XXX companies. said healthy. Toll to You you on pretty generation who Should

Chano Fernandez

say on Mark. two say within our tend lean To pipeline question great main largest on the good no pipeline, quarter, legacy those expecting first are momentum. into XX% QX, largest from QX. logos our some which I would where to of Usually is that competitors, the in strong just usually would I your of there is [Indiscernible] question coming here, difference and is your

Mark Murphy

Understood. very Thank much. you

Operator

of Zelnick Deutsche Our the next Bank. comes line with question from Brad

with proceed may You your question.

Brad Zelnick

numerically, customers these often when not we that modules growth going the what the and is about much renew in capabilities more and versus typical the Thank performance and and this more the the know you're co-terming renewal Thank to them. part renewal mid-term. -- is I maybe features characterized you're in think see to they're made echo question available, able versus Kirk's QX. more and follow time should meaning of that Like think might expand we which on about often on to up-sell what's see opportunities renewal. know equation how cadence, the year as you normal. add Robynne, expand even the exciting a due how that you. up you'll new should and if just I Great. my how you so cohort them I than as renewal backlog upon new flat on to and onto growth wanted strong you intracycle not I well [Indiscernible] But But itself congratulations being

Robynne Sisco

I as Yeah. you They're little, so over where on having seeing continuous Brad, the shifts with team. that go more really business We're conversations to and of focused years, cycle, those came X most the several And the seen customer-base now X back-to-base during we the dynamic investments the cycle, conversations the go-to-market. outside those we've a that if customers renewal are years the building years, renewal change think back of continual. add-on and with

So, as we're great or add-on shift. need add-ons renewal lot in just available more still to in renewal a is the the just as But less opportunity become customers. seeing engage products customers those a a with cycle and conversation

to So, it's a business. sell, to for to add-on but cycle go-to-market us add that side? don't on opportunity an still renewal from as get know, And would you that I dependent actually less Chano, do have you anything

Chano Fernandez

serving we've dynamics these been the shift we've seeing few been the during last That's and years. exactly

on when on cycles depending less customers it's adding So, renewals are those solutions. new

Brad Zelnick

up customers longer If duration actually backlog, to that the beyond and Thank and and general, partners, I Robynne. growth Seeing just for in of one could sneak you, quick from even looking longer Workday, picked anticipation month in had for XX maybe months exceeding a in you. we follow-up of backlog inflation go price total increases.

curious on to maybe What, deals. I if from duration? know if is commercial anything, do you. have that you're larger tend to Just seeing duration on government you comment Thank any accounts, comments there

Robynne Sisco

industry a are outpaces X seen fairly the do are customers we've do by so have under consistently there Yeah, is over won't of quarters, inking that, because and trend to but to total said any move lengthen the months X our as a with. total length seen I it's we that comfortable customer contract leave we've the We and you're we've that them. happy the XX anything there this the growth do and larger they even before, months, durations and contracts, years to really by tend around above but we years, XX backlog that the absolutely several when exceeds where think last right last several

something So, happy longer to we're it's to, us when that not time. customers commit of for but to certainly want periods we manage

Brad Zelnick

Awesome. Thank you again.

Operator

with comes of question next from the Our Sills Brad America. line Bank of

proceed may your with You question.

Brad Sills

to And a a question of digital nice in you'd an HR. I see the wanted the QX. difficult resignation guys. on the and projects increased I'll seem focus the a that general Thanks, HR. ask would congratulations productivity for Great. office It echo hiring for environment general more with great that on transformation environment about of just

-- not on in learning, tools if pipeline? Is in you. the coming pipeline, recruiting, think might HR Do hearing core something HR? I'm you're what Peakon. that analytics, that but productivity So, of office your just Thank your like for in core curious is be that you manifesting HCM, based that's the reflected

Aneel Bhusri

that Pete, you want one to take up?

Pete Schlampp

Yeah.

think your is are spurred the we the with resignation said, by on. What trends the you great as pandemic. happening spot seeing, question towards, I

that flex are which call I'll talent our acquire allows the the based also customers announced for that optimization companies within and move well, as to learning, Company demands. our All generating things of I'd career those which of hub trends products I like marketplace from seeing out put -- we're learning. talent composed is able would their in talent also demand skew, VNDLY also, before. upon the I also mention these we the said employees allow be to And today to to to as workforce intend our

a this those as And we've great all well So, we're demand quarter had customers. -- from a our great quarter from last products. with quarters seeing that definitely standpoint

Brad Sills

much. so Thanks Yeah.

Operator

comes question with line the Canaccord. DJ from next of Hynes Our

with question. proceed may You your

Dj Hynes

product it you taking off Maybe like question that of comments I to a could build a kind Pete's brought question. crossover be a finance. HR and up the thanks segue so seems ask god VNDLY, to The between there. seems Hey, for

where bit buying the manage is? little would the and center organizations a a VNDLY? typically that they process talk really have resides How what you about can pain there point platform So, if like didn't

Pete Schlampp

start trending I'll with center. but space. -- the recently space been traditionally buying center procurement buying more has in towards the HR is the The has been

providers. management cloud-based better to that solved of between about focus been for user puzzle it a we systems great And for deployed deployed for providers have of service Traditionally, one really, a human this by a will I there channel see service actually, great use but vendor happens also was also been a a both financial that second-generation as as And Great we And it experience management, well. a VNDLY VNDLY us, go really the our continue for Enterprises, forward. to is management managed and of the our XX% managed configurability. nice us us capital system. we the our spend to management have So relationship is those by the of has solutions. because management, around piece fit to thing And time is like that sell looked with on mention as -- buyers. while.

Dj Hynes

Yeah.

you. Robynne, a Makes Okay. And follow-up sense. for then maybe

growth about this had bookings subscription coming to leading next year, year. faster this talked we year think into I those new acceleration

to but assume and view next the view is it we're and ends of up you're XX% at year good fair if see could view preliminary a planning, next embeds and With updated year? XX%, and it's guide still how that conservatism, I we subscription of next acceleration some year, QX realize preliminary any

Robynne Sisco

QX the next for point, shaping see We XX%. from But really subscription be to in upside Yeah. important your going DJ. the is revenue quarter year. a to certainly us

against QX, when on you see the focused look we'll executing new next really we've QX. earnings we're close for a have of all on we and call So, how

Dj Hynes

Yes.

course. Thank guys. perfect Makes you, sense. Of

Operator

the question from Our with Michael Turits of comes Fargo next Wells Securities. line

question. You your may proceed with

Michael Turits

the Hey, there. Thanks. Good Appreciate afternoon. question. taking you

on can between difference pace to during international there off call any you. target to You XXXX just to QX? Thank U.S. net out? Are add and of you into finding new there Is on you start mentioned And is commentary quarter. the there year? able XXX further stay pace that the the with hires any hiring

Robynne Sisco

that got and to and that so it's make hiring And had market, we've super we executing. certainly It's market we're us a but such the hiring ramping QX, net It really the into recruiting feel in do progress quarter. our pleased a we given honestly the goal on the were that year. so and longer like great with took than engine the actually close really we QX, in for hoped in to really focused whole we're momentum really challenging We've But been to can we and get our have hope XXXX new our little throughout year. similar excited to the process when year. employees came the we our

Michael Turits

Great. Thank you.

Operator

Our Reback the of Brad line question next comes from Stifel. with

your You question. with proceed may

Brad Reback

understanding that think much. year-over-year -end course Great. the has we the year growth as somewhat Robynne, that Thanks very that pool next towards its of seasonality, XQ back more linear normal or is always loaded, about the be just that but returning renewal will growth year, over opportunity. cadence

Robynne Sisco

quarter-to-quarter. add-on things really cycle of we're a moving seeing, more we're to is that's we that renewals as Brad, the outside around dynamic seeing hard have because one predict Yeah, thing one business renewal

highly So, several that it's add all-in. quarters just X to do products, away, on wants going early renewal if likely and somebody an wrap renewal's to it are their

is expect we that's But of call would obviously we unusual us the some overall, growth looking return year. headwind the and faced but and for a this whole to one fairly seeing excited terms quarter that So, don't a to any see in normal and anything we out, dynamic to do at difficult that quarter-to-quarter. rate year, I it predict, we're variation

Brad Reback

much. Thanks great. That's very

Operator

Our next Sandler. question comes of Piper Brent line the Bracelin with from

proceed your with may You question.

Brent Bracelin

to 'XX entered I wanted I you. you clearly Analyst ago, the guide go subscription months you the I guiding and back growth. thank year and nine outlook were think afternoon the here. just XX% rewind at I know Good if up but guys September to optimistic Day, to

of Or And and to here story a next other months. change are forward base? of to understand optimism all raising billion two here next the year you're had subscription quarters pretty You've for are change for of outlook Is next cross-sell accelerating the in about year. now driving optimism there the that It's factors and in growth, the big $XX the X a that here Thanks. year. really know driving seen kind the momentum some optimism love looking pace I months you've that this the in kind business? the but to ago year your of kind of of couple

Aneel Bhusri

pandemic Well, in quite obviously event I a was and bit lifetime sad many in a the ways, said negative. and once a

customers we doing I increasingly Peakon, with perfect world and we're where d way have and And we products in are their their were that do at ready we huge. world? lot being terms On to those are workers doing what doing in and and for they the we it. work, look great side, what a the from or on products people And during of optimize is our platforms labor say, benefiting this Whether you the was of forces also, our change call fit financial solutions the capital are everything. hybrid as the is to put what that it's shift what at base saw the new did you And it built the think cloud contingent own human we projects with for we're pandemic And And headed, with I VNDLY, resignation work back. business look a or and think we're coming to as of it hold, in a cases, now weren't. slowly remote that. broader constrained helping world, we're the big fortunate many

going products So, optimism projects be even that should the back year. financial back are more coming there's next coming be financial -- to of

Brent Bracelin

here, or you're think of a That's the think share had. about gain do that's industry that broader made next all that competition you the next optimism, I of think role do expecting year? As to you recovery this you've you of a moves position Thanks. on more and you're part the is based better year in here

Aneel Bhusri

both. it's of customers the main think our of we the started At X day, and end out thousands customers. competition had I with

do side We're at customer same gotten would consider kind that the at momentum think And transition been the of we've we've don't now of competitors. And still to on market to what XX% made XXX. HCM I of it's a expense quite yet fully think they've getting legacy the I every expense. be So, share financials. coming competitor's the has in passed cloud. the I Fortune

Operator

from comes next with Thill Jefferies. Our question Brent the of line

may You with proceed your question.

Brent Thill

could opportunity out last at And you concerns, wondering just directionally, was a chain around supply I point. growth. Any in the XX% all with I mentioned help this drill little to if greatly planning, like there's tremendous quarter for color there? a Thanks. or the just be seems appreciated. lot think bit you of and business stat would Any update you it any ACV companies that a

Chano Fernandez

quarter. lot acceleration us. and Planning continues for the bigger very of be to a components meaningful A [Indiscernible] this driver growth seeing the we're

this at the we feel strong. very strength do how have out all not And attached seen of opportunity. long-term force in planning. momentum specific about rate despite really XX% only competing couple time, market. growth and the of last we XX% planning, in having work attached good the over shared Day, financial We call winning are remains we planning this significant our and our have We While years, Analyst about we you our customers

lot we a have ahead. of So, opportunity

Brent Thill

Thank you.

Operator

We will questions. take two now more

with line comes Karl question of the Our UBS. next Keirstead from

with proceed your may question. You

Karl Keirstead

strong a your else Thank X-point on compare. XQ. for guide. backlog number, through yet XQ, thought to on guide a it's you maybe as XX-month easier Robynne, for Maybe XQ Anything could inputs you mind rate couple Really you. Robynne. elaborate to similar the but the it's growth a that

Robynne Sisco

headwind revenue preliminary sub we perfect be QX but But we'll reasons, we growth, around; measure just to a the see XX% really do which backlog Yeah. move expect renewal pleased the good guide, hope that growth would feel really the to to achieve overachieve mind need the But in that, it's And goes. is business certainly not to how our I about to we several keep bookings view FYXX. providing Backlog in have in would for in to this and our we of say to fully sustain QX. including going we're year. momentum for outlook. healthy

Karl Keirstead

I of revs as looks close should it, a like mind missed financial deals that margins respect these to Okay, out we follow-up, keep or And Maybe impact any sounds they Robynne, once that what on but immaterial? couple or with a congrats X good. small to acquisitions. either call relatively or backlog in then from

Robynne Sisco

expect markets. do, therefore, companies next those our growth These We are Yeah. really cycles minimal high-growth however, guides to revenue both year. be for and their impact early really on in

therefore And captured margin our well have expense planning VNDLY on all incremental and in support those growth the transaction those FYXX. as as both costs spaces and for existing QX been for for guidance and so, investing opportunity we're both all basis investments, to and

Karl Keirstead

it. the answers, for case. was I Robynne. Got figured Thanks the that

Operator

from next with Wood the question comes of line Co. and Our Cowen Derrick

may with question. your You proceed

Derrick Wood

me in. squeezing for Thanks Great.

Some companies have talked seasonality. about more accentuated summer

give the anecdotes curious an to of such in the color linearity you year? there important of larger And then how track enterprise as and what how QX. you just is into opportunities quarter. linearity you head end any hearing in around Just seeing QX Any terms for keep you're on

Aneel Bhusri

Chano.

Chano Fernandez

any two strong haven't more I first and month last in good, We I was clearly, it is is years year good it mean, solid quarter. particular I and of mean, our but Usually, compare seen linearity. if terms shifts quiet, was to ago. it August.

conversion case, geographies on are solutions, for the medium always same and on think had large portfolio, customer is pipeline clearly very business out solid across ability. pipeline, In in the there. great I get the the for delivering But there but good keeping that I is overall, no call course, say good, very September, are different large us QX volume ratios In a I wouldn't a there and and a across opportunities for mean, and would solid that lined up that both, this of QX. a I base we enterprise HCM the say nothing, on special whole -- with we financials, execution deep quarter on number, deals.

as So, of execute the to they and know do. we we're up excited about have do on them, them basically teams can course that but

Derrick Wood

more squeeze in. could one I If

well for how their reason having if how feeling a to tough you're to to any market. be about your support and your about and staffed about on and ask partners how talked it's them with staffing? I they want are though own You growth, pleased see hiring, constraints own even any you accelerating you're your

Chano Fernandez

be pleased they Yeah, continue QX. during in XXX QX, that the around resources and partners ecosystem ramping how are resources up We're can to to the They new added one. answer progressing.

and region keep our remind ramping around its how So, are on opportunity. we this portfolio. is happy solution with plus one just investing very will of well ESC solution as planning up I for training that the XX% deploying you sector resources can to more the We clearly Asia-Pacific [Indiscernible]. globally. I all they around of much example they that feel mentioned in think are much deployed I of that basically they CV the at doing be public

they doing, So, is they're we're new out with solutions the of and partners keep together. three we're larger they how building our they and investing re-investing the Workday's future relationships is on these size kind of out say within days building pleased of implementation, top [Indiscernible] beyond jointly, strategic for -- where so most the keep practices,

Derrick Wood

Thank you.

Operator

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

this disconnect may at You time. lines your

Workday (WDAY) 19 Nov 212022 Q3 Earnings call transcript