Q1 2025 Workday Inc Earnings Call Transcript
Key Points
- Workday Inc (WDAY) reported 19% subscription revenue growth and 18% 12-month backlog growth.
- The company achieved a non-GAAP operating margin of 26%, reflecting strong financial performance.
- Workday Inc (WDAY) closed several strategic deals, including a significant win with the Defense Intelligence Agency.
- The company continues to see strong performance in key verticals such as healthcare and public sector, with healthcare ACV growth exceeding 50% in Q1.
- Workday Inc (WDAY) is making significant investments in AI, with over 50 AI use cases live in production and 25 generative AI use cases on the roadmap.
- Workday Inc (WDAY) experienced increased deal scrutiny and slower headcount growth, particularly impacting large deals and renewals.
- The company saw fewer large deals closed in EMEA compared to the previous year, indicating regional challenges.
- Subscription revenue guidance for FY '25 was revised down to 17%, reflecting the impact of macroeconomic factors and deal scrutiny.
- Headcount growth at the time of renewals was lower than expected, which is anticipated to persist throughout the year.
- International markets, particularly EMEA, showed pockets of softness, affecting overall performance.
Welcome to Workday's Fiscal 2025 First Quarter Earnings Call. (Operator Instructions) I will now hand it over to Justin Furby, Vice President of Investor Relations. Thank you. You may begin.
Welcome to Workday's First Quarter Fiscal 2025 Earnings Conference Call. On the call, we have Carl Eschenbach, our CEO; Zane Rowe, our CFO; Doug Robinson, our Co-President; and David Somers, our Chief Product Officer. Following prepared remarks, we will take questions. Our press release was issued after close of market and is posted on our website, where this call is being simultaneously webcast.
Before we get started, we want to emphasize that some of our statements on this call, particularly our guidance, are based on the information we have as of today and include forward-looking statements regarding our financial results, applications, customer demand, operations and other matters. These statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially. Please refer
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