Workday has revealed its customer wins and its focus on artificial intelligence (AI) during the second-quarter of 2024.
Workday’s team includes Carl Eschenbach, CEO, Zane Rowe, CFO, Doug Robinson, Co-President, and David Somers, Chief Product Officer.
CUSTOMER WINS
Workday has renewed tech contracts with its existing customers such as J.B. Hunt, Nissan, Target, and Trinity Health.
Workday has signed new contracts with Lam Research, the City of Cleveland, Colorado State University System, and Johns Hopkins, among many others.
Workday strengthened its leadership in the HCM market, with key wins including GE Vernova, First Bus, Sunrise Senior Living, along with several notable wins in EMEA and APAC.
Workday has crossed the 2,000 customer milestone in Workday Financial Management. Workday was ranked the market share leader for Worldwide SaaS ERP revenue in 2023 by Gartner research.
Workday signed several customers from the higher education segment. Leading institutions including Florida A&M, the University of Mississippi, and Clemson University all selected Workday’s full suite in Q2.
Workday has also signed deals in healthcare segment with full-suite wins at Grady Health System, Reid Health, and Children’s National Medical Center.
Workday also won several deals from the state and local government such as Delaware County, County of San Joaquin, and Santa Cruz County.
Companies such as Cushman & Wakefield, Lowe’s, and Ryder Truck are using VNDLY, a complete workforce management solution.
Meanwhile, AutoNation, Barclays, CDW, Cross Country Mortgage, Forvis Mazars, and Texas Roadhouse deployed on Workday.
AI FOCUS
Workday has more than 70 million users under 5 contract conducting more than 800 billion transactions on the Workday AI platform annually.
Workday says its AI capabilities in HCM product identify emerging skills and simplify job profile management to accelerate skills-based talent strategies. HiredScore AI for Recruiting and HiredScore AI for Talent Mobility are available for purchase under one unified contract.
Workday has launched new APIs in its AI Gateway at its annual developer conference. It also introduced Workday Extend Developer Copilot, leveraging Gen AI to help developers to build custom applications on its platform. New ACV increased more than 75 percent in Q2, driven by Extend Pro, which taps into the power of Workday AI.
Many customers are realizing value from Workday AI. For example, a HiredScore for Talent Mobility customer saw a 40 percent increase in internal application rates. For an entertainment customer, invoice automation is driving a 70 percent+ increase in processing capabilities.
For another customer, Talent Optimization product helped reduce turnover by 39 percent.
Workday will introduce the next generation of AI to illuminate the future of work at Workday Rising.
REVENUE
Workday announced revenues of $2.085 billion (up 16.7 percent) for the fiscal 2025 second quarter ended July 31, 2024.
Subscription revenue was $1.903 billion, up 17 percent. Professional services revenue was $182 million (up 17 percent). U.S. revenue in Q2 totaled $1.56 billion, up 16 percent, and international revenue totaled $524 million, growing 18 percent.
12-month subscription revenue backlog, or cRPO, was $6.80 billion at the end of Q2, representing growth of 16 percent. Total subscription revenue backlog was $21.58 billion, up 21 percent, Workday said.
Baburajan Kizhakedath
