WDAY - Earnings call transcript Q4 2022

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Operator

Welcome to Workday's Fourth 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 Justin Furby, Vice President of Investor Relations.

Justin Furby

operator. you, Thank fourth Workday's XXXX conference earnings Welcome quarter call. to fiscal

Chief we On CFO; and our have Chano call, and Officer. Fernandez, Schlampp, our Bhusri Larson, Aneel the Barbara our Pete Strategy Co-CEOs;

we will Following prepared take remarks, questions.

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

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

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

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

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

Aneel Bhusri

Justin, you, quarter XXXX earnings for year us everyone. today and Thank Thank good fourth you fiscal joining call. our for afternoon,

a begin, I Ukraine. current acknowledging want the we Before to spend in moment the situation

Our are with Workday thoughts including impacted been Workmates region. the contractors across military situation, have who are the those the of in Ukraine, all in region of who deployed personally western and in devastating families personnel Europe by

to the exceptional path that Turning relentless our helped fourth five serving now in in in us with over an This new full which ACV pleased report is beyond. to Workday $XX revenues I'm our employees, bookings driving on delivered our and a years. durable acceleration quarter, to results. for achieve business fastest growth growth innovation, business, on foundation customers in as billion strong focus along our and year

aimed at attract support Our to and finance more at before suite across now across including than users serve of XX allowing new we more the business seen us total Indeed, never customers. continue HCM organizations, CHRO pace X,XXX customers core our have solutions we is to us enabling success is and expand a to million and X,XXX broad and CFO. than talent

more customer expand, ways. strategic them opportunity our our As serve does in community continues to to so

QX. transactions As our within team Chano base we will share, significant in customer soon sales closed several

is industry-leading reflected rate Our customer also in gross to over success XX%. commitment our retention of continued our

of Altogether, increase applications by previous billion the XX% and our we over the engagement with and XXX usage of which seeing work customers year. XXX the Workday in evidenced over of XX% over year Fortune as transactions Additionally, XXXX, the Global within their now an XXXX. over are processed of fiscal increase we XX% is

Chano, to rate provide year will over Barbara specifics outlook I'd who growth our on our XXXX, Larson, who for Before CFO, more highlights. to I will success; like on share our it and quarter some fourth fiscal new go-to-market turn share

suite their In strong QX, organizations capital and HCM HR to remains continue as the First, while a across to customers cloud. product relationships with transition driven to momentum by for operations we demand our new human healthy ones. areas attract deepening our our ability management all saw strengthening existing

in Allied a RiteAid New Bank Foods Corporation, included and Goods, customers QX DICK'S with InBev Switching several Australia over of management another HCM name HCM of including Limited, Melbourne General and in Industries, Bank. marquee University Brigham, X-Eleven, financial Anheuser-Busch QX our applications, XX% go-lives to our Wells QX Smith Bank Mass as production. included was and Genpact wins, few, we have Sporting in over continue Hill quarter National notable U.S. customers to Financial, Evonik to solid Fargo Limited,

customers we number when and During a Sharp go Children Centers, Bright wins including management the financial SS&C compared period the Technologies. add-on core Healthcare quarter, several year ago doubled the live, and of same Horizons had to

addition products the spend suite we grew planning, support In our analytics even solution management, our experienced where office the strategic from roughly our and growth our procure-to-pay of that momentum expanding strong the ACV core of to application, from and faster. XX% continued new finance sourcing growth including solution saw CFO,

and with for financial increasingly drive solution. partnering single attach see customers, rates management solutions impact peers, line to our very procurement continue illustrating within for their health bottom visibility We the finances spend healthy

revenues. confident As to front ability we the of we to we and growth are path us into XXXX, have initiatives head our billion on opportunity our on in our execute year in fiscal in $XX

strong XXXX to As such, year for we year be us. another expect fiscal

Directors. share couple Workday's of like of I'd related updates Board a to Lastly, to

company XXst. retirement, years. Corporate while a acquisition, served announce to Workday led who Adaptive Bogan, and joined he Tom part And Board. from Vice CEO Tom he most his came for XXXX Development, Chairman as retired as Workday four First, January on that Tom the as we of to excited thrilled we're for recently are our in has Insights of well-deserved nearly

trusted at Workday, a values. culture been time adviser, who and Workday's During champion a true has Tom leader passionate embodies his

business capitalize to new opportunities fortunate on lend for his that to are us and We future will the and he accelerate expertise work growth. now help guidance

share The I stepped and want and down title second to Directors. our Dave Chairman, best is Board honorary carry Emeritus. mentor, friend that CEO from former CEO of has Co-Founder I Workday's Duffield, update the my of now and will

face delivering and you, that the our and to While customer board, and When of years no group his it about a wanted shareholder along saying I'm the I'll are over end growth optimistic environment future. the XX to adviser leaders the of in and the Chano. industry's I and at counsel embraces best company that, our of this be Fernandez. to Dave Dave started an we've has challenging will largest goal Workday committed solidified will have past a on way. remains Workday. products have longer With provide belief employees he as only turn will our invaluable who our in amazing my with foundation quite that experience. the employees the year values on innovation. relentless and to nearly ago, experienced our macro was Over fun The thanks We to to built, we to I multigenerational focus and lasting Chano center by customer build co-CEO, service continue

Chano Fernandez

kickoff want than and you, see you acknowledging joining today. forward CDC to here the looking where drive more we by safely this Workmates I'm also accomplish to great can't authority helped off many the measures to XXXX. to who strong together are follow Las across in the what I in to the safety guidelines. everyone FY local for Vegas, XX,XXX Amazing you of time job. the our our finish start with thank I with and at we accordance Aneel, sales incredibly taking to Thank spending globe, in care year. wait week

strong QX exceptional demand we and and healthy mentioned, Aneel regions. and execution a As delivered driven by reacceleration solutions across growth an

quarter Our to was activity Australia were landing Asia XXXX markets another the enterprise. a had We standout, had FINS net Germany. New and core such healthy addition as XXX in along Fortune Pacific highlight, several we North and in new quarter in such Global market performance medium including healthy and HCM as solid EMEA where companies, with growth America customers, a of a Zealand in key internationally, solid and

Our also expanding though QX wins momentum, add to early, Plastic excited Leonardo VNDLY including customers Tony's included already UK RSM, and of the Workday new others. where experienced Mortgage, solution. Planning and solutions significant including Home more landing Healthcare, among and our portfolio with to Guild Stores. Peakon, At we're couldn't results of strategic landing seeing Strategic portfolio Omnium be Sourcing we And Even it's

Extend on Planning, to Canadian QX, deploying the Peakon demonstrating employee Workforce Merck, all Aurora Extend; outstanding gain base International FIS BP, QX and drove we our addition strategic base payroll; both expanded and platform. purchased and strength Bank Health, who its our talent add-on and core is our real-time also In with and Extend. our help new of Accounting U.S. teams to who strategy. FINS, once to In expansions added teams, who Advocate renewals, Prism Accenture, global again relationship Center, customer from performance across purchased nature a UK post in included power who Customer net base its sales

wins lens, example, the Autoplot our value of its we and core for area Life insights In [ph] HCM engagement an to Bank, proposition Allied FINS services, winning in in at market. is Financial From several QX, and Insurance; Junior this deals including we and our partners deep differentiated aforementioned mutual Pam applying financial Australia Mutual core strategic U.S. to drive win for closed As innovation Bank, Mutual and in ours, National industry at see employee-related strategic Group. continue Accenture customers. the

the enabling part the Financials, Fortune our quarter, created Accounting our several success, than planning a deep expanding Union. which but of of Adaptive as companies are customers, XXX, Extend, who the services more expanded such Accounting all industry our Industry-specific Workday partners, leveraging knowledge and profitability to along by that now Planning. Bank financial includes Prism are is we customers investments And rapidly that and success. for not reference financial Center, just base Western In and including XX% our and services footprint PwC, such addition, of our it's as driving of this multidimensional we solution Commonwealth Australia, with in Kemper also with innovation Center, our key

and more to have over I appointed we in In across continue team leadership and lead leader, key Larson. happy now it with person scale, excited the market. business. happening go-to-market our a of that continue approach, that into largest making vectors XXXX Barbara, and industry plus welcome momentum, to our couldn't within subscription XX% as a and order software newly in to clear our we pleased into well team Americas. strengthening than to which more to ecosystem. the this we're sales with to Blair of key Barbara brings by a healthy fit join emerging within and are investments to achieving focus and you. organization, I'm on great to our minted as team President future. FY pipelines to Patrick a our organization. innovation I'm capitalize the the of sustaining cool XX We plan over growth partners to but land Patrick the be enter areas, our experience Our CFO base, him years and important goal start to that, pleased momentum is including tremendous all of enterprise newly are motion, investment of Part involves he's support customer hand and our only not Workday and proven our which With international service growth industry our the significant

Barbara Larson

the we to market great Aneel, all joining of and I saw everyone, look to witnessed I you appreciate I'm afternoon, make stronger, Workday Chano ago a Pete Chano. broad-based never thrilled working seven and validation Good of and years in for you that the us. to years, the coming today on and words. Thanks, with position time. update joining I'd been you that. that is have joined across observation our over kind progress. I thank forward serves our quarters as momentum the growth in QX over business unbelievable and has and One that the company be

to of turn Subscription results. was growth $X.XX let's in QX, year-over-year revenue Now our XX%. representing billion

renewals outside $X.XX for of new XX%. The of the Fourth $XXX subscription XX% of million was backlog $XXX year, strength full respectively. driven revenue XX%. revenue services billion, end XX% was growth $XXX with rate result and total over at billion, and billion, full was representing $XX.XX revenue million in subscription Professional by revenue U.S. continued was quarter growth growth Total of the of of was was QX and XXX%, growth fourth bookings million, for year. and the retention $X.XX revenue. XX%. backlog XX-month outperformance the strong quarter the For net

for Our of non-GAAP resulting non-GAAP was XX.X%. $XXX operating the in quarter million, a operating income fourth margin

As non-GAAP across accelerated of mentioned rollout VNDLY an growth margin by bonus quarter recent driven hiring, made investments the and our acquisition. last business, cash-based expected, the operating declined pace from other the performance our including of previously

year, operating the non-GAAP was total million, by the cash as year full flow to cash strong were billion, growth $X.XX $XXX cash performance collections the results XX.X% For billion operating operating as record of income strength cash was model. throughout flow of $X.XX Record flow year. showcasing well driven our XX%. solid income bringing a of business revenue, for our or QX Operating

top we be have the ahead. from important integrated ending our our our culture, our net global The the growth added more hiring most in employees, brand QX, including to we opportunity X,XXX execution are with new in largest record aspirations investments to employees continue we entered and our with We Workday. XXX XXXX. significant hiring in than the Overall, over people roughly of testament FY growth very year line successfully Our a that seasonally XX,XXX is attracting talent quarter. and to in and pleased XX% strong and with company-wide when VNDLY,

throughout and FY in guidance, billion, With continue their the organizations we're are initiatives. the invest strategic revenue Turning robust prioritize context, will to by our environment and XX% year-over-year as growth. subscription now remain we we $X.XX that in significant to representing the FY XXXX XXXX that be optimistic encouraged in and HR business, now of range transformation finance billion expect to $X.XX to momentum

we billion, at be expect of XXXX, $X.XXX $X.XXX revenue billion high representing to between year-over-year the XX% For first end. FY quarter and growth the subscription

X.X% We X% in QX QX. in approximately expect approximately and subscription and revenue by to increase sequentially QX

We approximately expect to grow XX% XXXX. in XX-month of the backlog FY QX

million $XXX services expecting year. in $XXX QX million professional are We revenue approximately full be to for the and

We partner tight From in support scalability implementations our customers successful growing value. customer we alignment the model. our the ecosystem and since of highest help will margin our ensure onset a that levels have continue inherent to have satisfaction of with COVID, standpoint, the business demonstrated

we investing XXXX, priority. pace hiring however, for rapid our company a As on remains at number continue the products. we've discussed, sales one focus with a FY growth across In plan to and

events. out bonus We a rolled are as also expecting return we've to travel discussed, company. we performance-based cash program the in-person And a and across have

to in Given XX non-GAAP invest our this Investing QX The our for remains billion a through and in non-GAAP expansion seasonal we first process. XX revenue currently full we our expecting our in $XX normal in QX be as and revenue. in taking margins margin operating raising and are will guidance margin lower, remains quarter annual But margin. at margins continuously expect compensation tax estimate we XXXX gross ramped we're of than margin points XXXX account evaluate at year sequential to the approximately decline resume FY continued We to in have confidence trade-off. level FY XX% FY the margin outlook, people GAAP of XXXX and increased approximately investment XX%. XX% into XX.X%. percentage the growth expected focus, operating our for are and reaching non-GAAP non-GAAP respectively, The and rate

to expected flow an ramp in property. corresponding driven the the payment million estimated record XXXX tax be $X.XX acquired decrease of growth $XX levels in in FY margins flat FY XXXX, approximately intellectual cash operating transfer onetime related and by expect We to the billion, in from investments,

FY and $XXX to and during IT customer expansion phased the expenditures that results unprecedented capital employees, center corporate exceptional of opportunistic across in our plan with manage to close support for we expect finally, includes support We us office our allowed amazing another investments to continued which future roughly business as hard planned partners for million XXXX infrastructure yet And previously work, facilities, centers. chain their customers investment This data and thanking and deliver year. return growth. data by was XXXX FY supply and existing I'll for continued

more it Q&A. to in than ahead. long-term are With I'll to the We confident ever that, opportunity turn our operator begin over

Operator

comes first Thank Instructions] the question Rangan Goldman Our you. your of with with from proceed questions. Please [Operator line Kash Sachs.

Kash Rangan

your but Hi, thank the the to just metrics very that, get to year. curious fiscal Aneel, Several XXXX, to up much. you XX%. What a of finish number transactions in fiscal take, I'm

was number if XX% and not results right, your backlog, And reported you to long the an I subscription clearly in of you're heard XXX. about too close XXXX. total Fortune fiscal Your now acceleration for up XX% it's acceleration And ago, XX%. I you're was calling in think

look at this, even Are best high target, quicker targets? much. way Thank look at you As towards the what you at very is to your just longer-term so the a level? we longer-term tracking

Aneel Bhusri

you that the thank year, several for first growing Thank also great bookings back Chano, driving the think building This was I we've for a growth. at and I line. really think of I or phenomenal combination the think, as with continues perspective. anybody Kash. driving want hybrid team, that for years growth your remotely move still the ACV satisfaction the is that. to was And into really And in it existing I business landscape fastest run manner, had going run the question, ability these positive a function customer and a be in and competitive benefited innovation the for new Also, we're products, from Robinson a Doug was, to Workday. to comes from was I those the as results. also think to to that product that tough with it’s we forcing pandemic was to least kind think so applications cloud your on-premise, do difficult through I business the for to pandemic a and and

very very Chano, So it we're going optimistic forward. we'll optimistic forward going see but add? goes, where anything to and

Chano Fernandez

market only XXX. Maybe a clarification, the we the Aneel. course, of the add, XX% Kash, growth to is services still, Nothing the north But financial XX% Fortune the great within of have vertical. of XXX on Fortune share

Aneel Bhusri

value our And really Kash, me, XX%, to the when customers just and product say getting were transactions awesome. using That our up we means products. the that's are from

So say – our numbers not system XX%, getting while we the are are customers revenue-wise from a just that is are. growing our the faster people and rate transaction than growth value using lot

Kash Rangan

Wonderful. Congratulations. Thank you.

Operator

Our comes proceed the line from your with next Kirk Please Evercore with question of Materne questions. ISI.

Kirk Materne

echo could congrats Yeah, I'll a the to international just opportunity about Chano, bit you of look was XXXX, a XXXX. little the thanks end fiscal as you wondering nice much. on more if fiscal year. very the I calendar talk out

say, getting FINS in, and terms bit a core do where outside EMEA you for HCM? into of in deals APAC open think are sort all those the you wide little Just or bigger you obviously U.S. of more It's

us are plans of kind just for the and year? what you your can Thanks. that So an international this update on give go-to-market area in

Chano Fernandez

Thank you, a in the see markets XXXX. which pipeline momentum, continued international reflecting year, and our is on improvement Kirk. noticeable We FY last we fiscal saw great this on

adding new growth Power Peakon and foundation of just of strong new I sales in customer well. still the with innings Financials Leisure, one and Kirk, a for Melbourne, and significant customers. really a healthy say open with had proof But of helped we this in many teams capacity base early internationally EMEA new customers they and having across HCM the the landing quarter Australia largest a great University and would regions us, really but we're point customer-based a among reminder, and GenPact the opportunity referenceable companies journey at in others. finally, has across our wins grows are us, at such as customers remains internationally, as also opportunities international point. as And have as National Bank, We for

Operator

you. Thank

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

Mark Murphy

think wanted congrats procure-to-pay. on mentioned because, believe to and And thank opportunity add was ACV Sourcing. the finish ask about Yeah, you a faster much said procurement very to growth Strategic new I'll you the it in I my great year. XX% you I Aneel, you growth I in

and type into I'm due of anything to invest results to conviction just if So procurement your extra to those side try there whether tailwind reopening aggressively major is focus more increase on procurement curious any area. the as or a else

Aneel Bhusri

to so on continue It's Well Mark, aggressively big opportunity. the to procurement – I'd first a we're side. market going invest say,

gaps products need we fill. strong, to Our still that are are there but

both also procurement want but was I the lot to there's in finance of in a attach think the unified rate way. that from the that buy one and interest companies growth to attributable to financials, space, just vendor a together

I want best-of-breed to unified or becoming a people the in the buy a we solution. more more to that that's want case. way are cloud, great if and think So buy them And they and

anyways. So would of unified together worked to that success which lot procurement attribute I and close finance, think view that I between historically a

Mark Murphy

you. Thank

Aneel Bhusri

or add Chano want do anything? Doug, you to

Chano Fernandez

Well said, Aneel.

Operator

you. Thank

of next line Weiss Stanley. comes Morgan the from with Our question Keith

Keith Weiss

talk that Excellent, big that last what you you of necessary of make talking feat Can about expiry backlog up points talk taking how guys we changes Up guys for the in is talk subscription those points. the on the now the year do how into to And percentage would gave of the if increase revenue headwind couple exist, small a can revenue FY you X a the about a tailwind to base about you in you. and to become to And that when you revenue us the question big as on have the end that wanted base. as about we a subscription were to happened XX-month what as that by see a and it was that growth tailwind XXXX. that you're where in that? of on a – guide. And great persist? and about momentum guys long fashion? does subscription Does guide equation, we Thank guide you QX I the backlog talked does in as no revenue start at us side congratulations thank confidence to such year, percentage base beginning about the that? the guys then where to anniversary talking to

Aneel Bhusri

going very to did a that better make super it based and just one the we plans. than say I QX. It just guidance comment wouldn't QX. to Every quick I'm hand Chano. QX it was over to was up if was our on the we would way strong year throughout, quarter

And to I'm so it one quarter. we we as the never to just over think on guidance future, about going but turn up would Chano,

Keith Weiss

Got it.

Chano Fernandez

Aneel. thank and sorry, you Aneel, – your you, for Thank question

Aneel Bhusri

ahead, Go Chano.

Chano Fernandez

your Thank make it you over then Barbara. comment hand and for Keith. a I'll to question,

the – all, doing product creating pipeline The solutions go-to-market and relevance QX. we with in back bring COVID the we undeniable, several Keith, and investments continued perspective. it's let's now, from quarters market. momentum we've it's paying first seeing office to of is They're the the been been of positive that think off within for trend I a the say, that have

So I customer base healthy FY net and across new say enter also HCM in Financials. with and XXXX we pipeline. and would both growth this

we're So we've market. the rates But add? confidence seeing to anything healthy the pipelines favorable in been is that momentum with is giving combined the and growth us that Barbara seeing what

Barbara Larson

backlog. Yes. I'll just your with an round on it question to out answer

as more Chano backlog With to reflected in entering see XXXX. renewal QX. our got we momentum we've and and mentioned, normalized base to FY FY for guide Aneel in said, both rate that respect XXXX, to a growth return significant expecting are of our you for we've renewals, as So specifically,

months this year. faced headwind go away the that XX last to over therefore, we does So year that backlog

Keith Weiss

Would environment? it now? Or neutral normalized a tailwind it. just to be a correct it and think it's just of kind as operating it Got of is

Barbara Larson

It's it's this of and year. it's of more kind growth a to think rate best neutral, normalized

Keith Weiss

guys. Excellent. so Great quarter Thanks much.

Barbara Larson

you. Thank

Operator

Our of from question. Please Michael next line your Wells proceed question comes Turrin with the Fargo. with

Michael Turrin

as one and well. Maybe congrats Thank me on Hey, you there. margin. from

You for the set stage few impacts there the some back. months a of

for already there You're fiscal well up bringing targets as XXXX.

some market. pieces still to a travel. know labor tight We moving it's mentioned return You with

bring hiring add also some the the pace you appreciated. targets maybe Thank or to up additional any is color if So confidence around you. just those what gives here? commentary of around And more

Barbara Larson

Yes. Absolutely. I'll the give on margins. you some specifics

on we headcount we planning than year, add and last product. focus with did to sales are So again, a more year this

it If year. think of was relatively more we evenly and We've towards add year. engine the the rest to back about of last this that the hiring you the weighted headcount year, got expect now, year half throughout hiring ramped

We also the into costs back layer are the back some of to planning business.

travel, FY did out So we're our at the that return approximately events, finally, reminder to in together office, a has in-person this XXXX. here a and all in company-wide just full program points And year today then sitting SKO. QX, bonus roll of impact basis XXX

Aneel Bhusri

is growth everything just Barbara start start some drive our said. a more rate And cover to gives in were to rate I the that offset with higher that the that, higher headline margin does with us the higher of headline, if it. let's ability to But growth addition

Michael Turrin

Helpful. Thank you.

Operator

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

Brad Sills

I'll congratulations quarter, really taking the great. nice And guys. on echo Oh, the a thanks question. for

certainly I this key ones verticals. size all. a here? know a on along there to focus. has and are expect any here should not one one further we a one. been Just is from for financials, become contributors you're ERP financials big where incremental industries Obviously, fits And for Are it's more FINS that

so others Are penetration there. Thank of lot to got of the like term? kind near get much. can you a you've success where that You've the there you seen in

Aneel Bhusri

that? want take you to Chano, do

Chano Fernandez

and important we accounting as I I [indiscernible] live whole. with as vertical least, companies are and portfolio. going in being at and strategic like on within more have customers financial Clearly, including Aurora as expanding the QX, others solution of I'm in including services, remark the Advocate solution outperforming and well. federal and from in well and happy start mentioned several win I others. all our Extend some customers and our take WellStar as great market, rest well momentum, Hi you to student FINS our financial and the bank and we've go-lives Fortune that one. a what our notes Health core U.S. within aware, it. operate XXX think solutions of long a well, companies will and my a the authority XX%-plus not center wins relevant some Healthcare this the customers. spring more Last financials been education Brad, Brad, services some is some hope as we that of very well we mentioning, think with but year, Higher that the some to is like term commented customers and significant already joining

should forward. So you that impact significant will a vector it expect expect clearly, for year. be growth us should going this not you But

Brad Sills

Thanks, Great to hear. Chano.

Chano Fernandez

Thank you.

Operator

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

Strecker Backe

Alex. This for is taking our Backe Hi. for on Thanks Strecker questions.

So to the FINS talk on business. when seems the of ever-increasing we partners, be focus to an just side there

coming labor just tougher one, second situation SIs? that or your FINS and talk more to see the Ukraine? conservatism expect Thank assume Europe to environment Russia you. pipeline increased any seen out guidance related and you some environment then And any or of then So if hiring a the quick tighter you can does for a about between have given bottlenecks

Aneel Bhusri

turn and side I'll Chano. to over On the then finance

good we where side, finance we product-wise. the On are feel very

Finance, two-horse ready. pre-COVID projects, very is well. because were data to both are back, longer-term the coming quickly. as there's finance, are coming those days, us viewed just SIs hit it's Oracle it online race but took during the for definitely, think of back projects to us. It's not a we Oracle, positive but doing point back between function really I that's is and a us. well. it and for And room candidly, of as and plenty a very relates We're doing COVID

As And Europe? opportunity both want the talk market there's a to you back, Chano, comes do of growth us. for about huge

Chano Fernandez

on good I the bottlenecks and we on comment we partners ensuring partners we and mean focused we are. ecosystem, would I Yes. any on have don't that feel where about are the in our Europe. talk

having that and finance I'm kind is discussions their the they're planning this programs. with some fact, of a As it partners quite matter exciting within investments of week,

I Not great think, macro Europe correctly. was, more was that's sure regarding So what the was if question see. a to one, understood I

Barbara Larson

was that. and It can related ahead to Yes. I go answer the guidance.

any as the in a conservatism right geopolitical built of environment haven't now. We result increased

Strecker Backe

Thank very much. you

Barbara Larson

Thank you.

Operator

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

Brent Bracelin

color opportunity Thanks in sell walk for me had at drill to the and And why down you this also it the that bookings? afternoon. Any big Is that's driving are here installed and/or Wanted into industry ACV ACV through labor taking new office the invest growth question to Or a Appreciate five the here. return into in in resonating? now. just commentary fastest to Doug's there other be contributing shortages, HCM new base. helpful. be to there years. to need the really would bookings in factors, a Aneel, more acceleration around good Thanks.

Aneel Bhusri

wanted acquisition many everything so I And struggling. the were above. about great the you CEOs they that retention, just were It's engagement, had system, comp, a of their has everything a levels. and question. employees legacy kind to Peakon talked all how way, Honestly, know to their everything. they doing engagement of COVID been during if who answered about

over that things so the it returning answer mentioned that – to it, the the to HR to a like the at years. I'd Chano and work, on all success I'm And going drove side. And of was Doug we're really this driver back day, you but three was end the great matter.

turn to it you to over give Chano perspective. want I his So to

Chano Fernandez

Perfect.

transformations great the and are in doing for I amount happening and of of significant really undeniable across businesses, business understanding. agility. skills digital need our changing industries. many I And there in a the HCM/finance, with favor, market all models you cloud-first we're think better business doing you add, always support only mentioned those workforce are Aneel. ones built and If can trends the legacy systems current believe transformation I so enable and solution Aneel backbone employees. that business they provided may engage to context, truly They're mentioned: the a across to

name and and to and to these partner that really are we to positioned and solutions customers are transform. help C discussions those CEO just our having, few, challenges So all provide well to a frankly, we're levels

Brent Bracelin

color. you. Thank Helpful

Operator

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

Brad Zelnick

the And things the press featured financial and picked your a new result geos, I and are And happening things and really more We've release. verticals of up about now on and Thank ACV, other strong might from but like on and out across in mean, you congrats, only industries: a in touched installed be sounds service-based in you've the that a some brewing if various Great. know strong the hospitality, on and just of opportunities it maybe called some not retail they as travel, around you extent SLED that bouncing be breadth Thanks the products, we've strong base education be to and so segments, much, leisure, we few times finish. in comment services, I talking strong you. particularly can might verticals concerns even which the curious maybe I'd verticals. call, year broadly back.

Aneel Bhusri

on let big it the too government, state comment afterwards. future. That a then focus about with state higher started ed and government, of a was Dave's to but and a and not lot ed company, higher we've relates we are as stuff local and of I'll far ed. local ed, intertwined higher the since not the commitment had talk I'll Chano to higher But and

It's that university. for and after. solution great gains larger system there. universities. to accessible functionality, went industry/vertical a was building we're continue it's the And first So a strong to we be our very as becoming That we student larger more more

with higher the and the along have local you finance products. buy public And that. student get You build buy HR to system all government, worked you of sector, the case – unique the in we state into and rules their

cities, So see quickly it adopting you states it Workday. in you see in

probably then what talk comes is And financial that – about market So before that's first Chano can our next. vertical a services.

Chano Fernandez

Yes.

great before the we of operate I comes and to market. – a there coming remains spring a application, federal game. provide It an portion opportunity cloud next is, the see only what before I mentioned government. think HR I really as to for solutions mentioned and the opportunity authority significant financials for for on-premise large

gaining on we financials you us bank think I better. we have applying overall, financial And task will that core should core you least, Serota, and like our and core momentum keep not are financials the but services progressing, traction also and now that see the say, because core and hopefully, category see let's in about wins in U.S. think and verticals services verticals there. the the pipeline, last

ready our even – I VNDLY to with allow think motions further say, they will advantage of are HCM let's of transform to we'll on ready those financials, Planning, our verticals, but of not land – core there. us be the we where be more and core Sourcing, definitely, to and nobody Peakon we maybe natural, outside yet provide some even solutions or land take ones penetrate

Brad Zelnick

very the for much Thanks color.

Operator

Thank you.

two questions. We will now take more

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

Brent Thill

you're could if enterprise. medium what curious elaborate Chano, in I'm you seeing you healthy on mentioned activity there.

Chano Fernandez

continues been within well The has a segment, now. and one. opportunity highlighting investment for focus to been time medium for quite long-term we And really be this see significant We've that significant us. this enterprise executing some

a job a really out into to the and launch of done with well way think figuring positioned broader rightsize with nice platform deployment investments, we've our tapping market costs I solution. the that are and we

been that and we're the has fast, doing by pipeline doing extremely the team the investments market. significantly momentum to honestly, that we're and excited and well, So growing the

Brent Thill

– there been Thanks. seeing helpful. growth was uptake? was of planning color follow-up, Any any a follow-up as would you're there your with stronger quick on that's one areas. I know And what there be

Chano Fernandez

and overall of as we been land happy us out benefited those from That that sales has solution know, we're do approach. the that of investments are do have to FINS+ go-to-market efforts, the customers a and as we trends is supporting more specialists this Yes. how referenceable you has COVID, a coming we part and year motion solution regarding just Planning, our have. going again as doing and core particularly focus part more our pretty of planning for forward. And on some

Brent Thill

you. Thank

Operator

Lenschow the from comes question. question Please final of Raimo with line with Our proceed Barclays. your

Raimo Lenschow

And But built year. all forward if we showed That the into have squeezing the as guidance a for next a where the I the talk Because this how me on of in me plays you well. do more Chano, you. 'XX I and increase to of post-pandemic quarter me. a But in about think the all maybe there. you. build-out suggest little then already Can pull what about last the out actually – I guess, well. the it's bit Thank congrats pipeline go from as CapEx, you're also it well, confidence congrats that pipeline and words of year? and to to Thank changes the have from Thanks question And there couple there? next spending continues in should you that pipeline. And quarter, seeing the seems asked one. well. evolution then increase back of for to as wanted partner

Chano Fernandez

Raimo. you, Thank

saw It's think also about is net we pipeline new. there broad-based. across the I And last building as is during good it's few said, quarters, momentum, way the in to that It's that the QX. think I as of see and I in mentioned the that And been team. but has of we think Aneel regions world. the customer the America, that some it the base. QX around From rest in HCM, balance of around a results with It's performance North extraordinary financials. well also perspective,

forward. the the going that's and it to it think about think I So way look right way at we

the conversion the are investments last really we've last as – a sales them So within to turning properly keep folks value it's performing position doing the question the and joining, and ratios execution we this properly more on our that XXXX. are that new enabling FY within now proposition go-to-market to and the been

Raimo Lenschow

Thank you.

Operator

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

Workday (WDAY) 1 Mar 222022 Q4 Earnings call transcript