Workday (WDAY) Q3 FY2025 Earnings Breakdown

Key Highlights:

• Revenue: Total revenue reached $2.160 billion, a 15.8% increase year-over-year, fueled by subscription revenue growth of 15.8% to $1.959 billion.
• Operating Income: Operating income significantly improved to $165 million, representing 7.6% of revenues compared to 4.7% in the same period last year. Non-GAAP operating income reached $569 million, or 26.3% of revenues.
• Backlog Growth: 12-month subscription revenue backlog climbed 15.3% to $6.98 billion, while total subscription revenue backlog surged 20.3% to $22.19 billion, indicating continued strong future demand.
• Key Customer Wins: Workday secured several new full-suite customers for its financial management and HCM solutions, highlighting its growing market share in key industries.
• Leadership Expansion: Rob Enslin joined Workday as President and Chief Commercial Officer, bringing valuable industry experience to drive further growth.
• Strategic Acquisitions: The acquisition of Evisort, an AI-driven document intelligence platform, strengthens Workday's AI capabilities and product portfolio.
• Industry Recognition: Workday earned Leader recognition in the Gartner Magic Quadrants™ for Cloud HCM Suites, Cloud ERP for Service-Centric Enterprises, and Financial Planning Software.