Workday (NASDAQ:WDAY), a finance and HR software company, has reported results in Q1 FY2024 that are in line with analyst expectations. The company’s revenue was up 17.4% YoY to $1.68 billion, and it made a GAAP profit of $136 thousand, a significant improvement compared to the same quarter last year when it made a loss of $102.2 million.
If you’re looking to invest in Workday, you can access a full analysis of the company’s earnings results for free on StockStory.org.
Workday (WDAY) Q1 FY2024 Highlights:
- Revenue: $1.68 billion vs analyst estimates of $1.67 billion (0.98% beat)
- EPS (non-GAAP): $1.31 vs analyst estimates of $1.12 (16.6% beat)
- Free cash flow: $218.5 million, down 64.8% from previous quarter
- Gross Margin (GAAP): 75.2%, up from 71.9% same quarter last year
“Workday had a strong first quarter, underscoring the value proposition of the full Workday platform combined with our unique approach to artificial intelligence and machine learning,” said Aneel Bhusri, co-founder, co-CEO, and chair, Workday.
Workday, founded by Aneel Bushri and Dave Duffield, provides cloud-based software to organizations for managing finance and human resources.
Cloud-based finance and accounting software is becoming increasingly popular, particularly due to the SaaS-ification of businesses who prefer the flexibility of cloud-based subscription software over purchasing on-premise enterprise software.
Workday’s revenue growth has been strong, growing from quarterly revenue of $1.18 billion in Q1 FY2022 to $1.68 billion in the latest quarter. Despite the 17.4% YoY growth, the increase in revenue compared to the previous quarter slowed down slightly. But this is not concerning in the long term.
Workday’s gross profit margin was 75.2% in Q1, which is a good margin that allows for profitability when the company reaches maturity.
Key Takeaways from Workday’s Q1 Results
Workday appears to have the resources necessary to pursue high growth, with a market capitalization of $51.1 billion and more than $6.33 billion in cash. The company’s revenue and adjusted operating income both beat analyst expectations, and it raised the low end of its full-year subscription revenue guidance. Workday’s gross margin also improved significantly. The company’s stock surged by 7.4% on the back of these positive results and currently trades at $211.01 per share.
To determine whether or not Workday is a good investment opportunity, it’s important to consider the company’s valuation and business qualities. You can access a free actionable report on Workday’s investment potential on StockStory.org.
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The author has no position in any of the stocks mentioned.
