Workday, Inc. (NASDAQ:WDAY), a leader in enterprise cloud applications for finance and human resources, today announced results for the fiscal 2019 first quarter ended April 30, 2018.

Fiscal First Quarter Results

• Total revenues were $618.6 million, an increase of 28.9% from the first quarter of fiscal 2018. Subscription revenues were $522.1 million, an increase of 30.6% from the same period last year.
   
• Operating loss was $71.3 million, or negative 11.5% of revenues, compared to an operating loss of $60.2 million, or negative 12.5% of revenues, in the same period last year. Non-GAAP operating income for the first quarter was $80.8 million, or 13.1% of revenues, compared to a non-GAAP operating income of $61.0 million, or 12.7% of revenues, in the same period last year.1
   
• Net loss per basic and diluted share was $0.35, compared to a net loss per basic and diluted share of $0.31 in the first quarter of fiscal 2018. Non-GAAP net income per diluted share was $0.33, compared to a non-GAAP net income per diluted share of $0.29 in the same period last year.2
   
• Operating cash flows were $184.2 million and free cash flows were $135.4 million.3
   
• Cash, cash equivalents, and marketable securities were $3.4 billion as of April 30, 2018. Unearned revenues were over $1.4 billion, a 17.9% increase from the same period last year.

Comments on the News

“We had a great first quarter driven by strong adoption and notable deployments of our finance and HR applications across customer sizes, geographies, and industries,” said Aneel Bhusri, co-founder and CEO, Workday. “As we look toward the rest of FY19 and beyond, we expect continued momentum for our growing suite of products, as we stay relentlessly focused on innovation, customer satisfaction, and our commitment to culture as we further our position as a great place to work globally.”

“We are very pleased with our first quarter results, delivering strong growth and record non-GAAP operating income and operating cash flow,” said Robynne Sisco, co-president and chief financial officer, Workday. “Based on our strong first quarter results, we are raising our fiscal 2019 outlook and are now expecting subscription revenue of $2.275 to $2.290 billion, growth of 27% to 28%. We expect our second quarter subscription revenue to be between $557 and $559 million, growth of 28% to 29%. Our focus remains centered on investing in product innovation to drive strong, sustainable growth.”

Recent Highlights

• Workday announced that it has promoted Robynne Sisco and Chano Fernandez to co-presidents, expanding their current responsibilities as chief financial officer and global head of field operations, respectively. In addition, Workday appointed Phil Wilmington to vice chairman and Mark Peek to managing director and co-head of Workday Ventures.

• Workday announced a $250 million Workday Ventures fund, which will be used to invest in emerging enterprise technology. In addition to Mark Peek, Workday executive Leighanne Levensaler was also named managing director and co-head of Workday Ventures.

• Workday was ranked #2 on the list of the World’s Most Innovative Companies by Forbes. 

• Workday announced that it expanded its global operations, with new offices in Italy, South Africa, and Thailand.

• Workday was positioned by Gartner, Inc. in the Leaders quadrant of the Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises. Workday was acknowledged as a Leader for the second year in a row and achieved the furthest overall position for completeness of vision this year.4  

• As part of its latest feature release, Workday 30, Workday announced new data discovery capabilities within Workday Prism Analytics that enable customers to more quickly visualize data to understand their financials and people.

• Workday announced a strategic partnership with Slack, which will allow customers to complete tasks more efficiently by engaging with Workday from within the Slack interface.

• Demonstrating continued commitment to enhancing its compliance programs, Workday receivedapproval from EU data protection authorities for global Binding Corporate Rules for Processors (BCRs) that focus on safeguarding customer data.

• In the U.S., Workday was ranked #7 on the list of 100 Best Companies to Work For by Fortune and Great Place to Work Institute. Globally, Workday was named one of the best workplaces by Great Place to Work Institute, ranking #1 in the UK, #2 in Ireland, and #3 in Germany.

Earnings Call Details

Workday plans to host a conference call today to review its fiscal 2019 first quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed via webcast.

The webcast will be available live and a replay will be available following completion of the live broadcast for approximately 90 days.

Workday uses the Workday Blog as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

1 Non-GAAP operating income excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, and amortization expense for acquisition-related intangible assets. See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

2 Non-GAAP net income per share excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, non-cash interest expense related to our convertible senior notes, and income tax effects. See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

3 Free cash flows are defined as operating cash flows minus capital expenditures (excluding owned real estate projects). See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

4 Gartner, Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises, 29 May 2018
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