Enterprise cloud applications firm Workday has announced results for the fiscal 2023 third quarter ended October 31, 2022.
Total revenues were $1.6 billion, an increase of 20.5% from the third quarter of fiscal 2022. Subscription revenues were $1.43 billion, an increase of 22.3% from the same period last year.
Operating loss was $26.3 million, or negative 1.6% of revenues, compared to an operating income of $23.9 million, or 1.8% of revenues, in the same period last year. Non-GAAP operating income for the third quarter was $314.2 million, or 19.7% of revenues, compared to a non-GAAP operating income of $332.2 million, or 25.0% of revenues, in the same period last year.
"We delivered another solid quarter, demonstrating how our cloud finance and HR solutions are vital for global organisations navigating today's changing world," says Aneel Bhusri, co-founder, co-CEO, and chairman, Workday.
"There is no question that the current macro environment presents increased uncertainty, but, due to the great work of our employees and our continued innovation, we are confident in the long-term opportunity and our ability to navigate the road ahead," he says.
"Our strong third-quarter results illustrate how global organisations are continuing to choose Workday as the backbone of their digital transformation in the face of constant change," adds Chano Fernandez, co-CEO, Workday.
"As we look ahead, we will continue to focus our efforts on industry investments and driving innovation with our open and connected partner ecosystem, which are critical to our customers' success."
Barbara Larson, chief financial officer, Workday, says, "We delivered solid third-quarter results, a testament to strong execution across the company as well as the strategic and mission-critical nature of our solutions.
"Our updated outlook reflects the ongoing momentum in our business and the power of our business model, while continuing to balance the current environment," she says.
"We are raising the low end of our fiscal 2023 subscription revenue guidance to a range of $5.555 billion to $5.557 billion, or 22% growth. We are also raising our fiscal 2023 non-GAAP operating margin guidance to 19.2%, reflecting our commitment to delivering healthy growth and profitability."
Workday announced that its Board of Directors approved a share repurchase program, with a term of 18 months, to purchase up to $500 million of shares of its Class A common stock.
The company unveiled its vision for a more open and connected partner ecosystem, which includes the launch of Industry Accelerators, a new industry program that accelerates customer enterprise cloud transformations with partners.
Workday announced new technology and user experience innovations aimed at helping customers meet evolving business and employee needs, including low-code/no-code app development functionality in Workday Extend, the company's app building solution that helps developers to more quickly and easily build apps on Workday.
It introduced next-generation skills technology, built on an AI/ML foundation, that allows organisations to easily and securely bring skills data in and out of Workday to deliver more personalized employee experiences.
Workday was named a Leader in the 2022 Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises for the seventh consecutive year and positioned the highest for overall Ability to Execute.