Workday : Fiscal 2025 First Quarter Investor Presentation

Investor Presentation

Q1 FY25

Safe Harbor Statement

This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancements or upgrades to our existing applications or plans for future applications; any projections of revenues, gross margins, earnings, or other financial items; and any statements of expectation or belief. Forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements, and therefore you should not rely on any forward-looking statements that we may make. Further information on risks that could affect Workday's results is included in our filings with the Securities and Exchange Commission which are available on the Workday investor relations webpage: www.workday.com/en-us/company/about-workday/investor-relations/overview.html.

Workday assumes no obligation for, and does not intend to update, any forward-looking statements. Any unreleased services, features, functionality or enhancements referenced in any Workday document, roadmap, blog, our website, press release or public statement that are not currently available are subject to change at Workday's discretion and may not be delivered as planned or at all.

Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.

Use of Non-GAAP Measures

In addition to financial results presented in accordance with US generally accepted accounting principles (GAAP), this presentation includes certain non-GAAP financial measures of performance. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Workday's results of operations or cash flows as determined in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in the Appendix to this presentation.

Effective beginning fiscal 2025, Workday will exclude certain acquisition-related costs, realignment costs, and gains and losses on strategic investments from its non-GAAP results as these items may vary from period to period independent of the operating performance of Workday's business. Prior period amounts have been recast to conform to this presentation.

The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from our non-GAAP operating margin, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable.

Workday at a Glance

Workday

by the Numbers

$142B+

Market Opportunity1

$6.890B 18.3% YoY Growth

Trailing Twelve Month Subscription Revenue2

$1.86B 24.6% Margin

Trailing Twelve Month Non-GAAP Operating Income2,3

$2.24B 29.7% Margin

Trailing Twelve Month Operating Cash Flow2

1. Based on Workday and third-party data as of 9.27.2023
2. For the trailing twelve months ended 4.30.2024
3. Reconciliations of GAAP to Non-GAAP financial data included in the Appendix
4. Represents users under contract as of 4.30.2024
5. Based on a survey conducted by Workday of HCM and FINS Named Support Contacts in 2023

Enterprise Management Cloud

For Finance, HR, Planning, Spend Management and Analytics

10,500+ Global Customers

Operating across 175+ Countries

Serving 60%+ of the Fortune 500

Including 70%+ of the top 50 Fortune 500 companies

65M+ Global Users4

95%+ Customer Satisfaction5

19,400+ Employees Worldwide

Offices in 30+ Countries

Workday Delivers AI Differently

Quality Data

Uniform data model, 65M+ global users1, 800B+ transactions2

Platform Approach

Embedded, not bolted on

Trustworthy

Transparent and human-centric

1. Represents users under contract as of 4.30.2024
2. For the fiscal year ended 1.31.2024

Serving Organizations of all Sizes and Across Industries

$142B+

Addressing One of

the Largest Markets

in Enterprise Software

HCM $58B

Human Capital	Workforce Planning
Management/Workforce	and People Analytics
Management
Talent Management	Employee Experience
Payroll

FINS+ $84B

Financial Management	Financial Planning
Spend Management	Workday Extend
Analytics	Student

TAM estimates based on Workday and third-party data as of 9.27.2023

Driving Profitable Growth at Scale

		$7.713B
		FY25E
		19%
		CAGR	95%+
Annual
Subscription		25.0%	Gross Revenue
Revenue1		FY25E3	Retention4
	$3.788B	470
	FY21
	bps

Non-GAAP

Operating

Margin

20.3%

FY212

1. CAGR calculation is based on FY21 actual subscription revenue and the mid-point of our FY25 subscription revenue guidance as provided on 5.23.2024
2. Reconciliations of GAAP to Non-GAAP financial data included in the Appendix
3. FY25 Non-GAAP operating margin guidance as provided on 5.23.2024
4. Measures the annual recurring revenue of our customers as of 4.30.2023 that we have maintained as of 4.30.2024, without giving credit for additional upsells or price and/or seat related changes. The metric captures only customer and product churn Note: Lines not drawn to scale