Second
Quarter Total Revenues of $887.8 Million, Up 32.2% Year Over Year
Subscription
Revenue of $757.2 Million, Up 33.9% Year Over Year
Subscription
Revenue Backlog of $7.03 Billion, Up 27.2% Year Over Year
SINGAPORE - Media OutReach - 5 September 2019 - Workday, Inc. (NASDAQ: WDAY), a leader in enterprise cloud
applications for finance and human resources, today announced results for the fiscal 2020
second quarter ended July 31, 2019.
Fiscal 2020 Second
Quarter Results
- Total revenues were $887.8 million, an
increase of 32.2% from the second quarter of fiscal 2019. Subscription
revenue was $757.2 million, an increase of 33.9% from the same period last
year.
- Operating loss was $122.5 million, or negative
13.8% of revenues, compared to an operating loss of $89.0 million, or
negative 13.2% of revenues, in the same period last year. Non-GAAP
operating income for the second quarter was $117.5 million, or 13.2% of
revenues, compared to a non-GAAP operating income of $68.1 million, or
10.1% of revenues, in the same period last year.1
- Net loss per basic and diluted share was
$0.53, compared to a net loss per basic and diluted share of $0.40 in the
second quarter of fiscal 2019. Non-GAAP net income per diluted share was
$0.44 compared to a non-GAAP net income per diluted share of $0.31 in the
same period last year.2
- Operating cash flows were $100.3 million
compared to $57.6 million in the same period last year.
- Cash, cash equivalents, and marketable
securities were $1.93 billion as of July 31, 2019. Unearned revenues were
$1.89 billion, a 27.1% increase from the same period last year.
Comments on the
News
"It was a strong quarter, with continued global customer momentum across
the Fortune 500 and Global 2,000, as more organizations look to Workday for the
ability to plan, execute, and analyze in one system powered by machine
learning. In addition, we celebrated one year with Adaptive Insights and
continue to make great progress on our integration vision," said Aneel Bhusri, co-founder and CEO, Workday.
"As we move into the second half of the year, we are continuing to invest in
areas that leverage our strengths and open new opportunities."
"We delivered strong Q2 results with subscription revenue up 34%, along
with solid operating margins and cash flow," said Robynne Sisco, co-president and chief financial officer, Workday.
"Based on our second quarter results, we are raising our fiscal 2020
subscription revenue outlook and now expect subscription revenue of $3.06 to
$3.07 billion. We expect our third quarter subscription revenue to be
between $783 and $785 million. We continue to prioritize investing in long-term
growth initiatives, while delivering solid operating margins and cash flow over
time."
Recent Highlights
- Workday opened its new headquarters in Pleasanton,
Calif. The new 410,000-square-foot, six-story building was designed to
encourage collaboration and will accommodate 2,200 employees as well as
Workday's new customer center.
- Workday celebrated the one-year anniversary of its
acquisition of Adaptive Insights. In the last year, the two organizations
have seen continued business planning momentum, including the addition of
more than 800 new Adaptive Insights customers, machine learning
advancements, the completion of the first phase of the Adaptive Insights
integration with Workday as part of the Power of One, and record
attendance at Adaptive Live, the company's annual customer
conference.
- Workday published its commitments to ethical artificial
intelligence (AI), which includes six principles that guide how it
develops machine learning -- a subset of AI -- for the enterprise
responsibly.
- Fast Company recognized Workday on its inaugural list
of the 50 Best Workplaces For
Innovators, which
honors organizations that demonstrate a deep commitment to encouraging
innovation at all levels.
- Workday
became the first organization to adhere to the EU Cloud
Code of Conduct (CoC) by SCOPE Europe, underscoring the company's
continued commitment to global data protection.
- Workday
appointed Carolyn Horne as president of the EMEA region and David Webster
as president of the APJ region. In addition, Workday promoted Josh
DeFigueiredo to chief security officer.
- Workday
released its 2019 Global Impact Report, which provides an inside look into the
company's efforts to make a positive impact on the world -- from
implementing sustainable practices, to creating a better place to work,
and empowering positive social impact.
Additional
Information
Workday, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
|
July 31, 2019
|
|
January 31, 2019
|
Assets
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$
|
619,514
|
|
|
$
|
638,554
|
|
Marketable securities
|
1,307,006
|
|
|
1,139,864
|
|
Trade and other receivables, net
|
613,425
|
|
|
704,680
|
|
Deferred costs
|
85,557
|
|
|
80,809
|
|
|
Prepaid expenses and other current assets
|
163,530
|
|
|
136,689
|
|
|
Total current assets
|
2,789,032
|
|
|
2,700,596
|
|
|
Property and equipment, net
|
919,523
|
|
|
796,907
|
|
|
Operating lease right-of-use
assets
|
294,824
|
|
|
--
|
|
|
Deferred costs, noncurrent
|
182,580
|
|
|
183,518
|
|
|
Acquisition-related intangible
assets, net
|
277,953
|
|
|
313,240
|
|
|
Goodwill
|
1,389,349
|
|
|
1,379,125
|
|
|
Other assets
|
138,895
|
|
|
147,360
|
|
|
Total assets
|
$
|
5,992,156
|
|
|
$
|
5,520,746
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
|
32,540
|
|
|
$
|
29,093
|
|
|
Accrued expenses and other current
liabilities
|
114,494
|
|
|
123,542
|
|
|
Accrued compensation
|
192,064
|
|
|
207,924
|
|
|
Unearned revenue
|
1,796,423
|
|
|
1,837,618
|
|
|
Operating lease liabilities
|
65,554
|
|
|
--
|
|
|
Current portion of convertible senior
notes, net
|
1,233,189
|
|
|
232,514
|
|
|
Total current liabilities
|
3,434,264
|
|
|
2,430,691
|
|
|
Convertible senior notes, net
|
--
|
|
|
972,264
|
|
|
Unearned revenue, noncurrent
|
89,219
|
|
|
111,652
|
|
|
Operating lease liabilities,
noncurrent
|
243,863
|
|
|
--
|
|
|
Other liabilities
|
14,525
|
|
|
47,697
|
|
|
Total liabilities
|
3,781,871
|
|
|
3,562,304
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
227
|
|
|
221
|
|
|
Additional paid-in capital
|
4,561,272
|
|
|
4,105,334
|
|
|
Accumulated other comprehensive income
(loss)
|
32,458
|
|
|
(809
|
)
|
|
Accumulated deficit
|
(2,383,672
|
)
|
|
(2,146,304
|
)
|
|
Total stockholders' equity
|
2,210,285
|
|
|
1,958,442
|
|
|
Total liabilities and stockholders'
equity
|
$
|
5,992,156
|
|
|
$
|
5,520,746
|
|
|
|
|
|
|
|
|
|
|
|
|
Workday, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Subscription services
|
$
|
757,155
|
|
|
$
|
565,659
|
|
|
$
|
1,458,179
|
|
|
$
|
1,087,808
|
|
Professional services
|
130,597
|
|
|
106,061
|
|
|
254,628
|
|
|
202,555
|
|
Total revenues
|
887,752
|
|
|
671,720
|
|
|
1,712,807
|
|
|
1,290,363
|
|
Costs and expenses (1):
|
|
|
|
|
|
|
|
Costs of subscription services
|
121,161
|
|
|
87,523
|
|
|
233,630
|
|
|
167,768
|
|
Costs of professional services
|
145,173
|
|
|
112,707
|
|
|
275,923
|
|
|
210,433
|
|
Product development
|
378,122
|
|
|
292,840
|
|
|
725,953
|
|
|
556,424
|
|
Sales and marketing
|
280,200
|
|
|
202,464
|
|
|
553,136
|
|
|
395,235
|
|
General and administrative
|
85,593
|
|
|
65,168
|
|
|
170,048
|
|
|
120,749
|
|
Total costs and expenses
|
1,010,249
|
|
|
760,702
|
|
|
1,958,690
|
|
|
1,450,609
|
|
Operating loss
|
(122,497
|
)
|
|
(88,982
|
)
|
|
(245,883
|
)
|
|
(160,246
|
)
|
Other income (expense), net
|
(106
|
)
|
|
1,613
|
|
|
7,035
|
|
|
(2,235
|
)
|
Loss before provision for
(benefit from) income taxes
|
(122,603
|
)
|
|
(87,369
|
)
|
|
(238,848
|
)
|
|
(162,481
|
)
|
Provision for (benefit from)
income taxes
|
(1,891
|
)
|
|
(1,213
|
)
|
|
(1,861
|
)
|
|
(1,915
|
)
|
Net loss
|
$
|
(120,712
|
)
|
|
$
|
(86,156
|
)
|
|
$
|
(236,987
|
)
|
|
$
|
(160,566
|
)
|
Net loss per share, basic and
diluted
|
$
|
(0.53
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(1.05
|
)
|
|
$
|
(0.75
|
)
|
Weighted-average shares used to
compute net loss per share, basic and diluted
|
226,392
|
|
|
215,932
|
|
|
224,857
|
|
|
214,517
|
|
(1)
|
|
Costs and expenses include
share-based compensation expenses as follows:
|
|
|
|
|
|
|
Costs of subscription services
|
$
|
12,001
|
|
|
$
|
8,521
|
|
|
$
|
22,416
|
|
|
$
|
16,398
|
|
|
Costs of professional services
|
18,991
|
|
|
12,518
|
|
|
35,141
|
|
|
23,310
|
|
|
Product development
|
105,758
|
|
|
75,354
|
|
|
196,995
|
|
|
143,865
|
|
|
Sales and marketing
|
42,690
|
|
|
29,367
|
|
|
81,544
|
|
|
54,979
|
|
|
General and administrative
|
29,781
|
|
|
21,303
|
|
|
58,360
|
|
|
41,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workday, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net loss
|
$
|
(120,712
|
)
|
|
$
|
(86,156
|
)
|
|
$
|
(236,987
|
)
|
|
$
|
(160,566
|
)
|
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
67,754
|
|
|
42,226
|
|
|
128,919
|
|
|
80,890
|
|
Share-based compensation expenses
|
208,912
|
|
|
147,063
|
|
|
394,147
|
|
|
279,722
|
|
Amortization of deferred costs
|
22,002
|
|
|
17,061
|
|
|
42,882
|
|
|
33,421
|
|
Amortization of debt discount and issuance costs
|
14,301
|
|
|
17,490
|
|
|
25,888
|
|
|
35,629
|
|
Other
|
11,401
|
|
|
(4,894
|
)
|
|
20,377
|
|
|
(14,183
|
)
|
Changes in operating assets and liabilities, net
of business combinations:
|
|
|
|
|
|
|
|
Trade and other receivables, net
|
(73,437
|
)
|
|
(104,758
|
)
|
|
83,942
|
|
|
63,944
|
|
Deferred costs
|
(28,207
|
)
|
|
(23,943
|
)
|
|
(46,692
|
)
|
|
(36,549
|
)
|
Prepaid expenses and other assets
|
(1,679
|
)
|
|
(5,446
|
)
|
|
(6,786
|
)
|
|
3,042
|
|
Accounts payable
|
1,047
|
|
|
5,987
|
|
|
2,550
|
|
|
13,941
|
|
Accrued expenses and other liabilities
|
(56,524
|
)
|
|
(15,182
|
)
|
|
(35,121
|
)
|
|
(3,555
|
)
|
Unearned revenue
|
55,461
|
|
|
68,168
|
|
|
(63,637
|
)
|
|
(53,887
|
)
|
Net cash provided by (used in) operating
activities
|
100,319
|
|
|
57,616
|
|
|
309,482
|
|
|
241,849
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchases of marketable securities
|
(582,848
|
)
|
|
(526,216
|
)
|
|
(1,053,902
|
)
|
|
(1,434,342
|
)
|
Maturities of marketable securities
|
385,710
|
|
|
655,205
|
|
|
845,807
|
|
|
1,341,881
|
|
Sales of marketable securities
|
4,551
|
|
|
914,938
|
|
|
55,499
|
|
|
942,297
|
|
Owned real estate projects
|
(34,149
|
)
|
|
(49,537
|
)
|
|
(73,783
|
)
|
|
(88,770
|
)
|
Capital expenditures, excluding owned real estate
projects
|
(75,576
|
)
|
|
(53,346
|
)
|
|
(141,111
|
)
|
|
(102,208
|
)
|
Business combinations, net of cash acquired
|
(12,885
|
)
|
|
(26,737
|
)
|
|
(12,885
|
)
|
|
(26,737
|
)
|
Purchase of other intangible assets
|
--
|
|
|
(1,000
|
)
|
|
--
|
|
|
(1,000
|
)
|
Purchases of non-marketable equity and other
investments
|
(5,516
|
)
|
|
(1,000
|
)
|
|
(7,716
|
)
|
|
(3,400
|
)
|
Other
|
(32
|
)
|
|
--
|
|
|
(9
|
)
|
|
--
|
|
Net cash provided by (used in) investing
activities
|
(320,745
|
)
|
|
912,307
|
|
|
(388,100
|
)
|
|
627,721
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Payments on convertible senior notes
|
(27
|
)
|
|
(350,005
|
)
|
|
(27
|
)
|
|
(350,005
|
)
|
Proceeds from issuance of common stock from employee
equity plans
|
58,085
|
|
|
38,686
|
|
|
61,540
|
|
|
41,297
|
|
Other
|
(107
|
)
|
|
(59
|
)
|
|
(200
|
)
|
|
(116
|
)
|
Net cash provided by (used in) financing
activities
|
57,951
|
|
|
(311,378
|
)
|
|
61,313
|
|
|
(308,824
|
)
|
Effect of exchange rate changes
|
75
|
|
|
(162
|
)
|
|
(252
|
)
|
|
(582
|
)
|
Net increase (decrease) in cash, cash
equivalents, and restricted cash
|
(162,400
|
)
|
|
658,383
|
|
|
(17,557
|
)
|
|
560,164
|
|
Cash, cash equivalents, and restricted cash at
the beginning of period
|
787,046
|
|
|
1,037,435
|
|
|
642,203
|
|
|
1,135,654
|
|
Cash, cash equivalents, and restricted cash at
the end of period
|
$
|
624,646
|
|
|
$
|
1,695,818
|
|
|
$
|
624,646
|
|
|
$
|
1,695,818
|
|
Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Three Months Ended July 31, 2019
(in thousands, except percentages and per share data)
(unaudited)
|
GAAP
|
|
Share-Based
Compensation
Expenses
|
|
Other
Operating
Expenses (2)
|
|
Amortization
of Debt
Discount and
Issuance
Costs
|
|
Income Tax
Effects (3)
|
|
Non-GAAP
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of subscription services
|
$
|
121,161
|
|
|
$
|
(12,001
|
)
|
|
$
|
(11,739
|
)
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
97,421
|
|
Costs of professional services
|
145,173
|
|
|
(18,991
|
)
|
|
(1,233
|
)
|
|
--
|
|
|
--
|
|
|
124,949
|
|
Product development
|
378,122
|
|
|
(105,758
|
)
|
|
(5,380
|
)
|
|
--
|
|
|
--
|
|
|
266,984
|
|
Sales and marketing
|
280,200
|
|
|
(42,690
|
)
|
|
(10,449
|
)
|
|
--
|
|
|
--
|
|
|
227,061
|
|
General and administrative
|
85,593
|
|
|
(29,781
|
)
|
|
(2,021
|
)
|
|
--
|
|
|
--
|
|
|
53,791
|
|
Operating income (loss)
|
(122,497
|
)
|
|
209,221
|
|
|
30,822
|
|
|
--
|
|
|
--
|
|
|
117,546
|
|
Operating margin
|
(13.8
|
)%
|
|
23.6
|
%
|
|
3.4
|
%
|
|
--
|
%
|
|
--
|
%
|
|
13.2
|
%
|
Other income (expense), net
|
(106
|
)
|
|
--
|
|
|
--
|
|
|
14,301
|
|
|
--
|
|
|
14,195
|
|
Income (loss) before provision
for (benefit from) income taxes
|
(122,603
|
)
|
|
209,221
|
|
|
30,822
|
|
|
14,301
|
|
|
--
|
|
|
131,741
|
|
Provision for (benefit from)
income taxes
|
(1,891
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
24,287
|
|
|
22,396
|
|
Net income (loss)
|
$
|
(120,712
|
)
|
|
$
|
209,221
|
|
|
$
|
30,822
|
|
|
$
|
14,301
|
|
|
$
|
(24,287
|
)
|
|
$
|
109,345
|
|
Net income (loss) per share (1)
|
$
|
(0.53
|
)
|
|
$
|
0.92
|
|
|
$
|
0.14
|
|
|
$
|
0.06
|
|
|
$
|
(0.15
|
)
|
|
$
|
0.44
|
|
(1)
|
|
GAAP net loss per share is
calculated based upon 226,392 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share is calculated based upon 247,748
diluted weighted-average shares of common stock.
|
(2)
|
|
Other operating expenses
include amortization of acquisition-related intangible assets of $19.5
million and total employer payroll tax-related items on employee stock
transactions of $11.3 million.
|
(3)
|
|
We utilize a fixed long-term
projected tax rate in our computation of the non-GAAP income tax provision to
provide better consistency across the interim reporting periods. For fiscal
2020, the projected non-GAAP tax rate is 17%.
|
Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Three Months Ended July 31, 2018
(in thousands, except percentages and per share data)
(unaudited)
|
GAAP
|
|
Share-Based
Compensation
Expenses
|
|
Other
Operating
Expenses (2)
|
|
Amortization
of Debt
Discount and
Issuance
Costs
|
|
Income Tax
Effects (3)
|
|
Non-GAAP
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of subscription services
|
$
|
87,523
|
|
|
$
|
(8,521
|
)
|
|
$
|
(3,787
|
)
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
75,215
|
|
Costs of professional services
|
112,707
|
|
|
(12,518
|
)
|
|
(519
|
)
|
|
--
|
|
|
--
|
|
|
99,670
|
|
|
Product development
|
292,840
|
|
|
(75,354
|
)
|
|
(3,960
|
)
|
|
--
|
|
|
--
|
|
|
213,526
|
|
|
Sales and marketing
|
202,464
|
|
|
(29,367
|
)
|
|
(1,039
|
)
|
|
--
|
|
|
--
|
|
|
172,058
|
|
|
General and administrative
|
65,168
|
|
|
(21,303
|
)
|
|
(731
|
)
|
|
--
|
|
|
--
|
|
|
43,134
|
|
|
Operating income (loss)
|
(88,982
|
)
|
|
147,063
|
|
|
10,036
|
|
|
--
|
|
|
--
|
|
|
68,117
|
|
|
Operating margin
|
(13.2
|
)%
|
|
21.9
|
%
|
|
1.4
|
%
|
|
--
|
%
|
|
--
|
%
|
|
10.1
|
%
|
|
Other income (expense), net
|
1,613
|
|
|
--
|
|
|
--
|
|
|
17,490
|
|
|
--
|
|
|
19,103
|
|
|
Income (loss) before provision
for (benefit from) income taxes
|
(87,369
|
)
|
|
147,063
|
|
|
10,036
|
|
|
17,490
|
|
|
--
|
|
|
87,220
|
|
|
Provision for (benefit from)
income taxes
|
(1,213
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
16,004
|
|
|
14,791
|
|
|
Net income (loss)
|
$
|
(86,156
|
)
|
|
$
|
147,063
|
|
|
$
|
10,036
|
|
|
$
|
17,490
|
|
|
$
|
(16,004
|
)
|
|
$
|
72,429
|
|
Net income (loss) per
share (1)
|
$
|
(0.40
|
)
|
|
$
|
0.68
|
|
|
$
|
0.05
|
|
|
$
|
0.08
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
GAAP net loss per share is
calculated based upon 215,932 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share is calculated based upon 237,404
diluted weighted-average shares of common stock.
|
(2)
|
|
Other operating expenses
include amortization of acquisition-related intangible assets of $5.3 million
and total employer payroll tax-related items on employee stock transactions
of $4.7 million.
|
(3)
|
|
We utilize a fixed long-term
projected tax rate in our computation of the non-GAAP income tax provision to
provide better consistency across the interim reporting periods. For fiscal
2019, the projected non-GAAP tax rate was 17%.
|
Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Six Months Ended July 31, 2019
(in thousands, except percentages and per share data)
(unaudited)
|
GAAP
|
|
Share-Based
Compensation
Expenses
|
|
Other
Operating
Expenses (2)
|
|
Amortization
of Debt
Discount and
Issuance
Costs
|
|
Income Tax
Effects (3)
|
|
Non-GAAP
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of subscription services
|
$
|
233,630
|
|
|
$
|
(22,416
|
)
|
|
$
|
(24,399
|
)
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
186,815
|
|
Costs of professional services
|
275,923
|
|
|
(35,141
|
)
|
|
(4,692
|
)
|
|
--
|
|
|
--
|
|
|
236,090
|
|
Product development
|
725,953
|
|
|
(196,995
|
)
|
|
(19,011
|
)
|
|
--
|
|
|
--
|
|
|
509,947
|
|
Sales and marketing
|
553,136
|
|
|
(81,544
|
)
|
|
(23,283
|
)
|
|
--
|
|
|
--
|
|
|
448,309
|
|
General and administrative
|
170,048
|
|
|
(58,360
|
)
|
|
(5,319
|
)
|
|
--
|
|
|
--
|
|
|
106,369
|
|
Operating income (loss)
|
(245,883
|
)
|
|
394,456
|
|
|
76,704
|
|
|
--
|
|
|
--
|
|
|
225,277
|
|
Operating margin
|
(14.4
|
)%
|
|
23.0
|
%
|
|
4.6
|
%
|
|
--
|
%
|
|
--
|
%
|
|
13.2
|
%
|
Other income (expense), net
|
7,035
|
|
|
--
|
|
|
--
|
|
|
25,888
|
|
|
--
|
|
|
32,923
|
|
Income (loss) before provision
for (benefit from) income taxes
|
(238,848
|
)
|
|
394,456
|
|
|
76,704
|
|
|
25,888
|
|
|
--
|
|
|
258,200
|
|
Provision for (benefit from)
income taxes
|
(1,861
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
45,755
|
|
|
43,894
|
|
Net income (loss)
|
$
|
(236,987
|
)
|
|
$
|
394,456
|
|
|
$
|
76,704
|
|
|
$
|
25,888
|
|
|
$
|
(45,755
|
)
|
|
$
|
214,306
|
|
Net income (loss) per
share (1)
|
$
|
(1.05
|
)
|
|
$
|
1.75
|
|
|
$
|
0.34
|
|
|
$
|
0.12
|
|
|
$
|
(0.29
|
)
|
|
$
|
0.87
|
|
(1)
|
|
GAAP net loss per share is
calculated based upon 224,857 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share is calculated based upon 246,610
diluted weighted-average shares of common stock.
|
(2)
|
|
Other operating expenses
include amortization of acquisition-related intangible assets of $38.9
million and total employer payroll tax-related items on employee stock
transactions of $37.8 million.
|
(3)
|
|
We utilize a fixed long-term
projected tax rate in our computation of the non-GAAP income tax provision to
provide better consistency across the interim reporting periods. For fiscal
2020, the projected non-GAAP tax rate is 17%.
|
Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Six Months Ended July 31, 2018
(in thousands, except percentages and per share data)
(unaudited)
|
GAAP
|
|
Share-Based
Compensation
Expenses
|
|
Other
Operating
Expenses (2)
|
|
Amortization
of Debt
Discount and
Issuance
Costs
|
|
Income Tax
Effects (3)
|
|
Non-GAAP
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of subscription services
|
$
|
167,768
|
|
|
$
|
(16,398
|
)
|
|
$
|
(8,239
|
)
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
143,131
|
|
Costs of professional services
|
210,433
|
|
|
(23,310
|
)
|
|
(2,220
|
)
|
|
--
|
|
|
--
|
|
|
184,903
|
|
Product development
|
556,424
|
|
|
(143,865
|
)
|
|
(12,757
|
)
|
|
--
|
|
|
--
|
|
|
399,802
|
|
Sales and marketing
|
395,235
|
|
|
(54,979
|
)
|
|
(3,619
|
)
|
|
--
|
|
|
--
|
|
|
336,637
|
|
General and administrative
|
120,749
|
|
|
(41,170
|
)
|
|
(2,598
|
)
|
|
--
|
|
|
--
|
|
|
76,981
|
|
Operating income (loss)
|
(160,246
|
)
|
|
279,722
|
|
|
29,433
|
|
|
--
|
|
|
--
|
|
|
148,909
|
|
Operating margin
|
(12.4
|
)%
|
|
21.7
|
%
|
|
2.2
|
%
|
|
--
|
%
|
|
--
|
%
|
|
11.5
|
%
|
Other income (expense), net
|
(2,235
|
)
|
|
--
|
|
|
--
|
|
|
35,629
|
|
|
--
|
|
|
33,394
|
|
Income (loss) before provision
for (benefit from) income taxes
|
(162,481
|
)
|
|
279,722
|
|
|
29,433
|
|
|
35,629
|
|
|
--
|
|
|
182,303
|
|
Provision for (benefit from)
income taxes
|
(1,915
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
32,870
|
|
|
30,955
|
|
Net income (loss)
|
$
|
(160,566
|
)
|
|
$
|
279,722
|
|
|
$
|
29,433
|
|
|
$
|
35,629
|
|
|
$
|
(32,870
|
)
|
|
$
|
151,348
|
|
Net income (loss) per
share (1)
|
$
|
(0.75
|
)
|
|
$
|
1.30
|
|
|
$
|
0.14
|
|
|
$
|
0.17
|
|
|
$
|
(0.22
|
)
|
|
$
|
0.64
|
|
(1)
|
|
GAAP net loss per share is
calculated based upon 214,517 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share is calculated based upon 236,706
diluted weighted-average shares of common stock.
|
(2)
|
|
Other operating expenses
include total employer payroll tax-related items on employee stock
transactions of $19.0 million and amortization of acquisition-related
intangible assets of $10.4 million.
|
(3)
|
|
We utilize a fixed long-term
projected tax rate in our computation of the non-GAAP income tax provision to
provide better consistency across the interim reporting periods. For fiscal
2019, the projected non-GAAP tax rate was 17%.
|
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