Workday, Inc. Files Q2 FY25 10-Q Report

Ticker: WDAY · Form: 10-Q · Filed: 2024-08-28T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

Related Tickers: WDAY

TL;DR

**Workday Q2 FY25 10-Q filed. Financials look solid, stay tuned for deeper dive.**

AI Summary

Workday, Inc. filed its 10-Q for the period ending July 31, 2024. The filing details financial performance for the second quarter and the first half of fiscal year 2025. Key financial metrics and operational updates are provided, reflecting the company's ongoing business activities and strategic positioning in the enterprise software market.

Why It Matters

This report provides investors and analysts with crucial financial data and insights into Workday's performance, impacting investment decisions and market sentiment.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is for the quarter ended July 31, 2024.

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted on August 28, 2024.

What is Workday, Inc.'s fiscal year end?

Workday, Inc.'s fiscal year ends on January 31.

What is the primary business address of Workday, Inc.?

The primary business address of Workday, Inc. is 6110 Stoneridge Mall Road, Pleasanton, CA 94588.

What are the two main segments of Workday's business reported in this filing?

The two main segments reported are Subscription Services and Professional Services.

Filing Stats: 4,982 words · 20 min read · ~17 pages · Grade level 17.3 · Accepted 2024-08-28 16:24:32

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited): Condensed Consolidated Balance Sheets as of July 3 1 , 2024, and January 31, 2024 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 3 1 , 2024, and 2023 4 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended July 3 1 , 2024, and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended July 3 1 , 2024, and 2023 6 Condensed Consolidated Statements of Cash Flows for the Three and Six Months Ended July 3 1 , 2024, and 2023 7 Notes to Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Controls and Procedures

Item 4. Controls and Procedures 38

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 40

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 63

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 63

Other Information

Item 5. Other Information 63

Exhibits

Item 6. Exhibits 64

Signatures

Signatures 65 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Workday, Inc. Condensed Consolidated Balance Sheets (in millions) (unaudited) July 31, 2024 January 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,635 $ 2,012 Marketable securities 5,738 5,801 Trade and other receivables, net 1,292 1,639 Deferred costs 237 232 Prepaid expenses and other current assets 298 255 Total current assets 9,200 9,939 Property and equipment, net 1,259 1,234 Operating lease right-of-use assets 339 289 Deferred costs, noncurrent 487 509 Acquisition-related intangible assets, net 331 233 Deferred tax assets 1,022 1,065 Goodwill 3,257 2,846 Other assets 339 337 Total assets $ 16,234 $ 16,452 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 87 $ 78 Accrued expenses and other current liabilities 292 287 Accrued compensation 487 544 Unearned revenue 3,549 4,057 Operating lease liabilities 98 89 Total current liabilities 4,513 5,055 Debt, noncurrent 2,982 2,980 Unearned revenue, noncurrent 62 70 Operating lease liabilities, noncurrent 284 227 Other liabilities 48 38 Total liabilities 7,889 8,370 Stockholders' equity: Common stock 0 0 Additional paid-in capital 10,869 10,400 Treasury stock ( 1,051 ) ( 608 ) Accumulated other comprehensive income (loss) 19 21 Accumulated deficit ( 1,492 ) ( 1,731 ) Total stockholders' equity 8,345 8,082 Total liabilities and stockholders' equity $ 16,234 $ 16,452 See Notes to Condensed Consolidated Financial Statements 3 Table of Contents Workday, Inc. Condensed Consolidated Statements of Operations (in millions, except number of shares which are reflected in thousands and per share data) (unaudited) Three Months Ended July 31, Six Months Ended July 31, 2024 2023 2024 2023 Revenues: Subscription services $ 1,903 $ 1,624 $ 3,719 $ 3,152 Professional services 182 163 356 319 Total revenues 2,085 1,787 4,075 3,471 Costs and expenses (1) : Costs of subscription services 304 256 594 495 C

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