Workday, Inc. recently released its 10-Q report, providing a detailed look at the company's financial condition and results of operations. Workday, Inc. is a Fortune 500 company that offers enterprise cloud applications for financial management, human capital management, planning, spend management, and analytics. The company serves a diverse customer base across various industries, including professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality.
In the report, Workday highlighted its significant growth since its inception in 2005, with over 11,000 customers worldwide. The company is focused on driving sustainable, long-term subscription revenue growth by adding new customers and expanding relationships with existing customers. Workday aims to achieve this through strategic investments in areas such as developing innovative AI solutions, expanding internationally, growing its partner ecosystem, and exploring strategic acquisitions.
Financially, Workday reported total revenues of $2.3 billion for the three months ended July 31, 2025, representing a 13% increase compared to the prior year period. Subscription services revenues, which accounted for approximately 92% of total revenues, reached $2.2 billion for the same period, reflecting a 14% increase year-over-year. The company's GAAP operating income also saw a significant rise, reaching $248 million, a 123% increase compared to the prior year period.
Workday's total subscription revenue backlog as of July 31, 2025, stood at $25.4 billion, with $7.9 billion expected to be recognized in revenues over the next 12 months. This represents a substantial increase from the previous year, indicating growth within the existing customer base, sales to new customers, and timing of renewals for existing customers.
The company's gross revenue retention rate, a measure of recurring revenue retained from existing customers, was reported to be approximately 97% as of July 31, 2025, reflecting Workday's ability to maintain its existing customer base and drive strong overall customer satisfaction.
The market has reacted to these announcements by moving the company's shares -2.77% to a price of $221.27. For the full picture, make sure to review Workday's 10-Q report.
