Workday revenue jumps 19.6% to $1.06 bn in second quarter

Workday said total revenue jumped 19.6 percent to $1.06 billion for the second quarter ended July 31, 2020.
Workday solutions for HRWorkday’s revenue outside the U.S. was $257 million, representing 24 percent of the total. The Pleasanton, California-based company’s Professional services revenue was $130 million in Q2 2020.

Workday said it expects fiscal 2021 subscription revenue between $3.73 billion and $3.74 billion, up from its previous forecast of $3.67 billion to $3.69 billion.

Workday announced the appointment of Chano Fernandez as co-chief executive officer and raised its annual subscription forecast.

The company, which has become the latest to opt for the co-CEO model after Netflix, has promoted co-president Chano Fernandez to serve alongside CEO and co-founder Aneel Bhusri.

Workday has been positioned — for the fourth year in a row — by Gartner in the Leaders quadrant of the 2020 Gartner Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises.

“We had another strong quarter for Workday HCM, where the migration to the cloud continues with notable customer additions, including Air Liquide, IB, the State of Oklahoma and German manufacturing leader, Thyssenkrupp Group,” Aneel Bhusri said.

Client wins

Workday had several HCM go-lives, including General Motors, The Hartford, Eli Lilly and Bridgestone Americas.

Workday financial management’s latest clients include Comerica Bank. Notable platform wins where companies selected both core financials and HCM together at Sharp Healthcare, The Amenity Collective and American Financial Group.

Prisma Health and Nebraska Medicine went live with Workday financial management solutions.

CNA and Shelter Insurance both went live as early adopters of Workday Accounting Center. Workday Accounting Center is on schedule to be commercially available this fall.

Workday said its Subscription revenue in the second quarter rose 23 percent to $932 million, driven by strong renewals, favorable new business linearity and a onetime benefit of $6 million from the acceleration of revenue on a customer contract.

Subscription revenue backlog was $8.60 billion at the end of the second quarter growth of 22 percent — driven by strong new ACV bookings across both net new and add-on business.

Subscription revenue backlog that will be recognized within the next 24 months was $5.78 billion, growth of 21 percent.

Workday said its workforce at the end of the quarter was approximately 12,300 employees, slightly down from Q1. The hiring in the quarter was focused primarily on a limited number of strategic positions to support key growth initiatives.