Workday Reports 17% Revenue Growth to $4.08 Billion in First Half of 2024

Workday, Inc. reported significant financial growth in its latest 10-Q filing for the six months ended July 31, 2024. Total revenues reached $4,075 million, a 17% increase from $3,471 million in the same period of 2023. Subscription services revenue, which constitutes approximately 91% of total revenues, rose to $3,703 million, up from $3,136 million, reflecting an 18% increase year-over-year.

The company achieved an operating income of $175 million for the first half of 2024, compared to just $16 million in the prior year, marking a substantial improvement in profitability. Net income also saw a significant rise, reaching $239 million, up from $79 million in the previous year. This resulted in a basic net income per share of $0.50, compared to $0.30 for the same period in 2023.

Workday's cash and cash equivalents decreased to $1,635 million as of July 31, 2024, down from $2,012 million at the beginning of the year. However, total current assets remained robust at $9,200 million. The company’s total stockholders’ equity increased to $8,345 million, up from $8,082 million as of January 31, 2024.

Strategically, Workday completed the acquisition of HiredScore, Inc. on March 29, 2024, for $530 million, which is expected to enhance its technology offerings. The acquisition contributed to an increase in goodwill, which rose to $3,257 million from $2,846 million. The company also authorized a new share repurchase program in August 2024, allowing for up to $1.0 billion in repurchases of Class A common stock, following the completion of a previous $500 million program.

Operating expenses increased, with total costs and expenses for the six months ending July 31, 2024, amounting to $3,900 million, up from $3,455 million in the prior year. This increase was driven by higher employee-related expenses and costs associated with professional services and product development.

Workday continues to face challenges, including delays in purchasing decisions from customers due to macroeconomic conditions and increased competition in the enterprise cloud applications market. The company is also focused on integrating AI technologies into its offerings while managing the associated risks and regulatory compliance requirements.

Overall, Workday's financial performance reflects a strong growth trajectory, bolstered by strategic acquisitions and a focus on expanding its subscription services.