Workday posted fiscal fourth-quarter 2022 earnings and revenue that both increased year-over-year.
For the quarter ended January 31, 2022, the HR managing cloud-based company’s non-GAAP net income rose to 78 cents per share from 73 cents per share in the year-ago quarter, and exceeded the Zacks Consensus Estimate by 7 cents.
Revenues rose to $1,376.1 million from $1,131.7 million in fourth-quarter fiscal 2021, and surpassed the consensus estimate of $1,364 million. Subscription services revenues (89.3% of total revenues) rose +22.2% year over year to $1,229.2 million on the back of an expanding customer base. Subscription revenue backlog in the quarter increased +26.9% from the year-ago quarter to $12.81 billion. Professional services’ revenues (10.7% of total revenues) rose +17.2% to $147 million.
In fiscal 2022, Workday had a net income of 12 cents per share, vs. a net loss of -$1.19 per share in fiscal 2021. Non-GAAP net income in fiscal 2022 came in at $1,038.7 million or $3.99 per share from $724.2 million or $2.93 per share in fiscal 2021.
The company’s revenues rose +19% year over year to $5,138.8 million In fiscal 2022, on the back of growth in subscription revenues (up +20%) of $4,546.3 million –thanks to higher customer contracts and solid customer renewals (with gross retention of more than 95%).
Workday expects its fiscal 2023 subscription services revenues to range between $5,530 million to $5,550 million. It projects non-GAAP operating margin to be 18.5%.