Q2 2025 Workday Inc Earnings Call Transcript
Key Points
- Workday Inc (WDAY) reported a solid quarter with 17% subscription revenue growth and 16% 12-month backlog growth.
- The company achieved a 25% non-GAAP operating margin, indicating strong operational efficiency.
- Workday Inc (WDAY) expanded its customer base with notable wins including JB Hunt, Nissan, Target, and Trinity Health.
- The company crossed the 2000 customer milestone in Workday Financial Management, showcasing its growing influence in the financial sector.
- Workday Inc (WDAY) continues to innovate with AI, introducing new capabilities in HCM and financial management, which are expected to drive future growth.
- The macroeconomic environment remains challenging, with moderated headcount growth within the customer base.
- Despite strong performance, the company has slightly moderated its pace of subscription revenue growth in its medium-term plans.
- There is ongoing deal scrutiny, particularly in the EMEA and APAC regions, which could impact future growth.
- The company faces competition in the AI space, and while it has a strong data set, it needs to continuously innovate to maintain its edge.
- Workday Inc (WDAY) has adjusted its medium-term outlook, reflecting a balance between growth and margin expansion, which may indicate cautious optimism about future market conditions.
Welcome to Workday's fiscal 2025 second quarter earnings call. (Operator Instruction) . I will now hand it over to Justin Furby. Vice President of Investor Relations.
Thank you, operator. Them to work days second quarter of fiscal 2025 earnings conference call. On the call, we have Carl Eschenbach, RCEO., Zane Rowe, our CFO, Doug Robinson, our Co-President, and David Sommers, 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 to the
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