Technology
Workday Announces Fiscal 2024 Fourth Quarter and Full Year Financial Results
Published
7 months agoon
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Fiscal Fourth Quarter Total Revenues of $1.9 Billion, Up 17% Year Over Year
Subscription Revenues of $1.8 Billion, Up 18% Year Over Year
Fiscal Year 2024 Total Revenues of $7.3 Billion, Up 17% Year Over Year
Subscription Revenues of $6.6 Billion, Up 19% Year Over Year
Operating Cash Flows of $2.1 Billion, Up 30% Year Over Year
PLEASANTON, Calif., Feb. 26, 2024 /PRNewswire/ — Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, today announced results for the fiscal 2024 fourth quarter and full year ended January 31, 2024.
Fiscal 2024 Fourth Quarter Results
Total revenues were $1.9 billion, an increase of 17% from the fourth quarter of fiscal 2023. Subscription revenues were $1.8 billion, an increase of 18% from the same period last year.Operating income was $79 million, or 4.1% of revenues, compared to an operating loss of $89 million, or negative 5.4% of revenues, in the same period last year. Non-GAAP operating income for the fourth quarter was $461 million, or 23.9% of revenues, compared to a non-GAAP operating income of $305 million, or 18.5% of revenues, in the same period last year.1,2Basic and diluted net income per share was $4.52 and $4.42, respectively, compared to basic and diluted net loss per share of $0.49 in the fourth quarter of fiscal 2023. Non-GAAP basic and diluted net income per share was $1.60 and $1.57, respectively, compared to non-GAAP basic and diluted net income per share of $1.00 and $0.99, respectively, in the same period last year.2,3 GAAP basic and diluted net income per share benefited from the $1.1 billion release of our valuation allowance related to all U.S. federal and state deferred tax assets, excluding certain state tax credits, in the fourth quarter of fiscal 2024.
Fiscal Year 2024 Results
Total revenues were $7.3 billion, an increase of 17% from fiscal 2023. Subscription revenues were $6.6 billion, an increase of 19% from the prior year.Operating income was $183 million, or 2.5% of revenues, compared to an operating loss of $222 million, or negative 3.6% of revenues, in fiscal 2023. Non-GAAP operating income was $1.7 billion, or 24.0% of revenues, compared to a non-GAAP operating income of $1.2 billion, or 19.5% of revenues, in the prior year.1,2Basic and diluted net income per share was $5.28 and $5.21, respectively, compared to basic and diluted net loss per share of $1.44 in fiscal 2023. Non-GAAP basic and diluted net income per share was $5.93 and $5.84, respectively, compared to non-GAAP basic and diluted net income per share of $3.73 and $3.64, respectively, in the prior year.2,3 As noted above, GAAP basic and diluted net income per share benefited from the $1.1 billion release of our valuation allowance related to all U.S. federal and state deferred tax assets, excluding certain state tax credits, in fiscal 2024.Total subscription revenue backlog was $20.9 billion, up 27% from the same period last year. 12-month subscription revenue backlog was $6.6 billion, and 24-month subscription revenue backlog was $11.7 billion, both increasing 20% year over year.Operating cash flows were $2.1 billion compared to $1.7 billion in the prior year. Free cash flows were $1.9 billion compared to $1.3 billion in the prior year.4Workday repurchased approximately 1.8 million shares of Class A common stock for $423 million as part of its share repurchase program.Cash, cash equivalents, and marketable securities were $7.8 billion as of January 31, 2024.
Comments on the News
“Workday’s results this quarter are a testament to the strength of our value proposition and the durability of our business,” said Carl Eschenbach, CEO, Workday. “We’re seeing continued momentum with full platform customer wins and expansions within our base, strengthening international performance, growth of our partner ecosystem, and the seamless execution of nearly 19,000 Workmates across the globe – all setting us up for an incredible fiscal year 2025.”
“Our relentless focus on innovation continues to fuel Workday’s success while helping to enable our customers to transform how they manage their two most important assets – their people and money,” said Aneel Bhusri, co-founder and executive chair, Workday. “As I step into my new role as executive chair, I look forward to working closely with Carl, the rest of our leadership team, and our product and technology organization to push the Workday platform to even greater heights and capitalize on the growth opportunity in front of us.”
“Our fourth quarter and full-year fiscal 2024 results reflect the momentum building across our key investment initiatives,” said Zane Rowe, CFO, Workday. “We are reiterating our fiscal year 2025 subscription revenue guidance of $7.725 billion to $7.775 billion, representing growth of 17% to 18%. We expect fiscal year 2025 non-GAAP operating margin of approximately 24.5%. Our outlook contemplates incremental investments to support enduring growth, while at the same time calls for continued margin expansion as we scale and optimize the business.”
Recent Highlights
Workday officially named Carl Eschenbach CEO effective February 1, 2024. Aneel Bhusri remains integral to the organization as co-founder and executive chair.Workday announced it has entered into a definitive agreement to acquire HiredScore, a leading provider of AI-powered talent orchestration solutions.Workday announced that its Board of Directors approved a new share repurchase program, with a term of 18 months, to repurchase up to an additional $500 million of shares of its Class A common stock.Workday announced new full platform customers for Workday Financial Management and Workday Human Capital Management (HCM), including HHS, Randstad, UHS of Delaware, and VXI Global Solutions.Workday and Insperity announced an exclusive strategic partnership and plans to jointly develop, brand, market, and sell a preeminent full-service HR solution for small and midsize businesses.Workday continued to build its global leadership bench, naming David Somers Chief Product Officer, Chikara Furuichi President of Japan, and Lynn Martin head of the Workday Federal business.Workday was named a Leader in the 2023 Gartner® Magic Quadrant™ for Financial Planning Software5 for the second time since the category’s inception last year.KLAS Research named Workday as Best in KLAS 2024 in enterprise resource planning (ERP) for the seventh consecutive year.
Earnings Call Details
Workday plans to host a conference call today to review its fiscal 2024 fourth quarter and full year financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.
Workday uses the Workday Blog as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
1 Non-GAAP operating income and non-GAAP operating margin exclude share-based compensation expenses, employer payroll tax-related items on employee stock transactions, and amortization expense for acquisition-related intangible assets. See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.
2 Operating margin and net income (loss) per share are calculated based upon the respective underlying, non-rounded data.
3 Non-GAAP net income per share excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, and income tax effects. See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.
4 Free cash flows are defined as net cash provided by (used in) operating activities minus total capital expenditures. See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.
5 Gartner Magic Quadrant for Financial Planning Software, Regina Crowder, Matthew Mowrey, Vaughan D Archer, 5 December 2023.
Gartner Disclaimer
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
GARTNER is a registered trademark and service mark, and MAGIC QUADRANT is a registered trademark of Gartner, Inc., and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.
About Workday
Workday is a leading enterprise platform that helps organizations manage their most important assets – their people and money. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 10,000 organizations around the world and across industries – from medium-sized businesses to more than 50% of the Fortune 500. For more information about Workday, visit workday.com.
© 2024 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to Workday’s financial results as determined in accordance with U.S. generally accepted accounting principles are included at the end of this press release following the accompanying financial tables. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled “About Non-GAAP Financial Measures.” The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from our non-GAAP operating margin, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable.
Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Workday’s planned acquisition of HiredScore, Workday’s partnership with Insperity and expected offerings, our intended share repurchases, Workday’s full-year fiscal 2025 subscription revenues and non-GAAP operating margin, growth and expansion, momentum, demand, strategy, and investments. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures or those of our third-party providers, unauthorized access to our customers’ or other users’ personal data, or disruptions in our data center or computing infrastructure operations; (ii) service outages, delays in the deployment of our applications, and the failure of our applications to perform properly; (iii) privacy concerns and evolving domestic or foreign laws and regulations; (iv) the impact of continuing global economic and geopolitical volatility on our business, as well as on our customers, prospects, partners, and service providers; (v) any loss of key employees or the inability to attract, train, and retain highly skilled employees; (vi) competitive factors, including pricing pressures, industry consolidation, entry of new competitors and new applications, advancements in technology, and marketing initiatives by our competitors; (vii) our reliance on our network of partners to drive additional growth of our revenues; (viii) the regulatory, economic, and political risks associated with our domestic and international operations; (ix) adoption of our applications and services by customers and individuals, including any new features, enhancements, and modifications, as well as our customers’ and users’ satisfaction with the deployment, training, and support services they receive; (x) the regulatory risks related to new and evolving technologies such as AI and our ability to realize a return on our development efforts; (xi) our ability to realize the expected business or financial benefits of any acquisitions of or investments in companies, including HiredScore; (xii) the risk that the HiredScore transaction may not be completed in a timely manner or at all; (xiii) negative effects of the announcement or consummation of the HiredScore transaction on Workday’s business operations, operating results, or share price; (xiv) delays or reductions in information technology spending; and (xv) changes in sales, which may not be immediately reflected in our results due to our subscription model. Further information on these and additional risks that could affect Workday’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.
Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.
Workday, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
As of January 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$ 2,012
$ 1,886
Marketable securities
5,801
4,235
Trade and other receivables, net
1,639
1,570
Deferred costs
232
191
Prepaid expenses and other current assets
255
226
Total current assets
9,939
8,108
Property and equipment, net
1,234
1,201
Operating lease right-of-use assets
289
249
Deferred costs, noncurrent
509
421
Acquisition-related intangible assets, net
233
306
Deferred tax assets
1,065
13
Goodwill
2,846
2,840
Other assets
337
348
Total assets
$ 16,452
$ 13,486
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$ 78
$ 154
Accrued expenses and other current liabilities
287
260
Accrued compensation
544
564
Unearned revenue
4,057
3,559
Operating lease liabilities
89
91
Total current liabilities
5,055
4,628
Debt, noncurrent
2,980
2,976
Unearned revenue, noncurrent
70
75
Operating lease liabilities, noncurrent
227
182
Other liabilities
38
40
Total liabilities
8,370
7,901
Stockholders’ equity:
Additional paid-in capital
10,400
8,829
Treasury stock
(608)
(185)
Accumulated other comprehensive income (loss)
21
53
Accumulated deficit
(1,731)
(3,112)
Total stockholders’ equity
8,082
5,585
Total liabilities and stockholders’ equity
$ 16,452
$ 13,486
Workday, Inc.
Condensed Consolidated Statements of Operations
(in millions, except number of shares which are reflected in thousands and per share data)
(unaudited)
Three Months Ended January 31,
Year Ended January 31,
2024
2023
2024
2023
Revenues:
Subscription services
$ 1,760
$ 1,496
$ 6,603
$ 5,567
Professional services
162
150
656
649
Total revenues
1,922
1,646
7,259
6,216
Costs and expenses (1):
Costs of subscription services
272
274
1,031
1,011
Costs of professional services
189
180
740
704
Product development
635
615
2,464
2,271
Sales and marketing
558
490
2,139
1,848
General and administrative
189
176
702
604
Total costs and expenses
1,843
1,735
7,076
6,438
Operating income (loss)
79
(89)
183
(222)
Other income (expense), net
59
11
173
(38)
Income (loss) before provision for (benefit from) income taxes
138
(78)
356
(260)
Provision for (benefit from) income taxes
(1,050)
48
(1,025)
107
Net income (loss)
$ 1,188
$ (126)
$ 1,381
$ (367)
Net income (loss) per share, basic
$ 4.52
$ (0.49)
$ 5.28
$ (1.44)
Net income (loss) per share, diluted
$ 4.42
$ (0.49)
$ 5.21
$ (1.44)
Weighted-average shares used to compute net income (loss) per share, basic
263,102
257,322
261,344
254,819
Weighted-average shares used to compute net income (loss) per share, diluted
268,843
257,322
265,285
254,819
(1) Costs and expenses include share-based compensation expenses as follows:
Three Months Ended January 31,
Year Ended January 31,
2024
2023
2024
2023
Costs of subscription services
$ 31
$ 29
$ 120
$ 106
Costs of professional services
28
30
116
111
Product development
159
169
653
619
Sales and marketing
70
69
282
249
General and administrative
58
64
245
210
Total share-based compensation expenses
$ 346
$ 361
$ 1,416
$ 1,295
Workday, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended January 31,
Year Ended January 31,
2024
2023
2024
2023
Cash flows from operating activities:
Net income (loss)
$ 1,188
$ (126)
$ 1,381
$ (367)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization
72
89
282
364
Share-based compensation expenses
346
361
1,416
1,295
Amortization of deferred costs
57
48
213
175
Non-cash lease expense
24
24
96
92
(Gains) losses on investments
3
11
19
31
Accretion of discounts on marketable debt securities, net
(38)
(26)
(149)
(42)
Deferred income taxes
(1,063)
—
(1,058)
4
Other
7
29
(17)
57
Changes in operating assets and liabilities, net of business
combinations:
Trade and other receivables, net
(415)
(519)
(87)
(319)
Deferred costs
(159)
(129)
(342)
(293)
Prepaid expenses and other assets
(9)
17
69
(14)
Accounts payable
(9)
65
(72)
86
Accrued expenses and other liabilities
124
95
(95)
136
Unearned revenue
868
755
493
452
Net cash provided by (used in) operating activities
996
694
2,149
1,657
Cash flows from investing activities:
Purchases of marketable securities
(1,404)
(1,532)
(6,150)
(7,183)
Maturities of marketable securities
923
1,181
4,519
4,949
Sales of marketable securities
51
51
144
104
Owned real estate projects
(2)
(4)
(4)
(4)
Capital expenditures, excluding owned real estate projects
(46)
(73)
(228)
(360)
Business combinations, net of cash acquired
—
—
(8)
—
Purchase of other intangible assets
—
—
(10)
(1)
Purchases of non-marketable equity and other investments
(5)
(3)
(16)
(23)
Sales and maturities of non-marketable equity and other investments
2
—
2
12
Net cash provided by (used in) investing activities
(481)
(380)
(1,751)
(2,506)
Cash flows from financing activities:
Proceeds from issuance of debt, net of debt discount
—
—
—
2,978
Repayments and extinguishment of debt
—
—
—
(1,844)
Payments for debt issuance costs
—
—
—
(7)
Repurchases of common stock
(139)
(75)
(423)
(75)
Proceeds from issuance of common stock from employee
equity plans, net of taxes paid for shares withheld
72
67
155
152
Net cash provided by (used in) financing activities
(67)
(8)
(268)
1,204
Effect of exchange rate changes
—
1
(1)
(1)
Net increase (decrease) in cash, cash equivalents, and
restricted cash
448
307
129
354
Cash, cash equivalents, and restricted cash at the
beginning of period
1,576
1,588
1,895
1,541
Cash, cash equivalents, and restricted cash at the end
of period
$ 2,024
$ 1,895
$ 2,024
$ 1,895
Workday, Inc.
Reconciliations of GAAP to Non-GAAP Data
Reconciliations of our GAAP to non-GAAP operating results are included in the following tables (in millions, except percentages and per share data; operating margin and net income (loss) per share are calculated based upon the respective underlying, non-rounded data). See the section titled “About Non-GAAP Financial Measures” below for further details.
Three Months Ended January 31, 2024
GAAP
Share-Based
Compensation
Expenses
Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions
Amortization
of
Acquisition-
Related
Intangible
Assets
Income Tax
Effects (2)
Non-GAAP
Operating income (loss)
$ 79
$ 346
$ 20
$ 16
$ —
$ 461
Operating margin
4.1 %
18.0 %
1.0 %
0.8 %
— %
23.9 %
Net income (loss)
$ 1,188
$ 346
$ 20
$ 16
$ (1,149)
$ 421
Net income (loss) per share, basic (1)
$ 4.52
$ 1.31
$ 0.07
$ 0.06
$ (4.36)
$ 1.60
Net income (loss) per share, diluted (1)
$ 4.42
$ 1.29
$ 0.07
$ 0.06
$ (4.27)
$ 1.57
Three Months Ended January 31, 2023
GAAP
Share-Based
Compensation
Expenses
Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions
Amortization
of
Acquisition-
Related
Intangible
Assets
Income Tax
Effects (2)
Non-GAAP
Operating income (loss)
$ (89)
$ 361
$ 12
$ 21
$ —
$ 305
Operating margin
(5.4) %
21.9 %
0.7 %
1.3 %
— %
18.5 %
Net income (loss)
$ (126)
$ 361
$ 12
$ 21
$ (12)
$ 256
Net income (loss) per share, basic (1)
$ (0.49)
$ 1.40
$ 0.05
$ 0.08
$ (0.04)
$ 1.00
Net income (loss) per share, diluted (1)
$ (0.49)
$ 1.40
$ 0.05
$ 0.08
$ (0.05)
$ 0.99
Year Ended January 31, 2024
GAAP
Share-Based
Compensation
Expenses
Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions
Amortization
of
Acquisition-
Related
Intangible
Assets
Income Tax
Effects (2)
Non-GAAP
Operating income (loss)
$ 183
$ 1,416
$ 66
$ 75
$ —
$ 1,740
Operating margin
2.5 %
19.5 %
0.9 %
1.1 %
— %
24.0 %
Net income (loss)
$ 1,381
$ 1,416
$ 66
$ 75
$ (1,389)
$ 1,549
Net income (loss) per share, basic (1)
$ 5.28
$ 5.42
$ 0.25
$ 0.28
$ (5.30)
$ 5.93
Net income (loss) per share, diluted (1)
$ 5.21
$ 5.34
$ 0.25
$ 0.28
$ (5.24)
$ 5.84
Year Ended January 31, 2023
GAAP
Share-Based
Compensation
Expenses
Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions
Amortization
of
Acquisition-
Related
Intangible
Assets
Income Tax
and Dilution
Effects (2)
Non-GAAP
Operating income (loss)
$ (222)
$ 1,295
$ 52
$ 85
$ —
$ 1,210
Operating margin
(3.6) %
20.8 %
0.9 %
1.4 %
— %
19.5 %
Net income (loss)
$ (367)
$ 1,295
$ 52
$ 85
$ (116)
$ 949
Net income (loss) per share, basic (1)
$ (1.44)
$ 5.08
$ 0.21
$ 0.33
$ (0.45)
$ 3.73
Net income (loss) per share, diluted (1)
$ (1.44)
$ 5.08
$ 0.21
$ 0.33
$ (0.54)
$ 3.64
(1)
For the three months ended January 31, 2024, GAAP and non-GAAP net income per share were both calculated
based upon 263,102 basic and 268,843 diluted weighted-average shares of common stock.
For the three months ended January 31, 2023, GAAP net loss per share was calculated based upon 257,322
basic and diluted weighted-average shares of common stock. Non-GAAP net income per share was calculated
based upon 257,322 basic and 258,367 diluted weighted-average shares of common stock.
For the fiscal year ended January 31, 2024, GAAP and non-GAAP net income per share were both calculated
based upon 261,344 basic and 265,285 diluted weighted-average shares of common stock.
For the fiscal year ended January 31, 2023, GAAP net loss per share was calculated based upon 254,819 basic
and diluted weighted-average shares of common stock. Non-GAAP net income per share was calculated based
upon 254,819 basic and 261,641 diluted weighted-average shares of common stock. The numerator used to
compute non-GAAP diluted net income per share was increased by $3 million for after-tax interest expense on
our convertible senior notes in accordance with the if-converted method.
(2)
We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide
better consistency across the reporting periods. For fiscal 2024 and 2023, the non-GAAP tax rate was 19%. For
the year ended January 31, 2023, included in the per share amount was a dilution impact of $0.09 from the
conversion of GAAP diluted net loss per share to non-GAAP diluted net income per share.
Reconciliation of our GAAP cash flows from operating activities to non-GAAP free cash flow is as follows (in millions). See the section titled “About Non-GAAP Financial Measures” below for further details.
Three Months Ended January 31,
Year Ended January 31,
2024
2023
2024
2023
Net cash provided by (used in) operating activities
$ 996
$ 694
$ 2,149
$ 1,657
Less: Total capital expenditures (1)
(48)
(77)
(232)
(364)
Free cash flows
$ 948
$ 617
$ 1,917
$ 1,293
(1)
For the three months ended January 31, 2024, and 2023, total capital expenditures consisted of Capital expenditures,
excluding owned real estate projects of $46 million and $73 million, respectively, and Owned real estate projects of
$2 million and $4 million, respectively.
For the fiscal year ended January 31, 2024, and 2023, total capital expenditures consisted of Capital expenditures,
excluding owned real estate projects of $228 million and $360 million, respectively, and Owned real estate projects of
$4 million and $4 million, respectively.
About Non-GAAP Financial Measures
To provide investors and others with additional information regarding Workday’s results, we have disclosed the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) per share, and free cash flows. Workday has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Non-GAAP operating income (loss) and non-GAAP operating margin differ from GAAP in that they exclude share-based compensation expenses, employer payroll tax-related items on employee stock transactions, and amortization expense for acquisition-related intangible assets. Non-GAAP net income (loss) per share differs from GAAP in that it excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, and income tax effects. Free cash flows differ from GAAP cash flows from operating activities in that it treats total capital expenditures as a reduction to cash flows.
Workday’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Workday’s financial performance. Management believes these non-GAAP financial measures reflect Workday’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in Workday’s business. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Workday’s operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.
Management believes excluding the following items from the GAAP Condensed Consolidated Statements of Operations is useful to investors and others in assessing Workday’s operating performance due to the following factors:
Share-based compensation expenses. Although share-based compensation is an important aspect of the compensation of our employees and executives, management believes it is useful to exclude share-based compensation expenses to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies. Share-based compensation expenses are determined using a number of factors, including our stock price, volatility, and forfeiture rates, that are beyond our control and generally unrelated to operational decisions and performance in any particular period. Further, share-based compensation expenses are not reflective of the value ultimately received by the grant recipients.Employer payroll tax-related items on employee stock transactions. We exclude the employer payroll tax-related items on employee stock transactions in order to show the full effect that excluding share-based compensation expenses has on our operating results. Similar to share-based compensation expenses, this tax expense is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business.Amortization of acquisition-related intangible assets. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of the related amortization can vary significantly and are unique to each acquisition and thus we do not believe it is reflective of ongoing operations. Although we exclude the amortization of acquisition-related intangible assets from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.Income tax effects. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a three-year financial projection that excludes the direct impact of share-based compensation and related employer payroll taxes, and amortization of acquisition-related intangible assets. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For fiscal 2025 and 2024, we determined the projected non-GAAP tax rate to be 19%, which reflects currently available information, as well as other factors and assumptions. We will periodically re-evaluate this tax rate, as necessary, for significant events, relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions.
Additionally, with regards to free cash flows, Workday’s management believes that reducing cash provided by (used in) operating activities by capital expenditures is meaningful to investors and others because it provides an enhanced view of cash flow generation from the ongoing operations of our business, and it balances operating results, cash management, and capital efficiency.
The use of the non-GAAP measures of non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) per share, and free cash flows have certain limitations as they do not reflect all items of expense or cash that affect Workday’s operations. Workday compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review Workday’s financial information in its entirety and not rely on a single financial measure.
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SOURCE Workday Inc.
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Technology
3B Scientific Acquires Veterinary Simulator Industries
Published
52 mins agoon
September 23, 2024By
HAMBURG, Germany, Sept. 23, 2024 /PRNewswire/ — 3B Scientific, a global leader in the manufacturing and marketing of medical and scientific educational products, announced today that it has acquired Veterinary Simulator Industries (VSI), a leading developer of veterinary simulation models.
Founded with a commitment to advancing veterinary education, VSI has developed a range of highly realistic and effective veterinary simulators that are redefining how veterinary training is delivered. With a focus on quality and innovation, VSI’s products provide a practical, hands-on approach to veterinary education, meeting the diverse needs of educators and students around the world. “Veterinary Simulator Industries is widely recognized for its outstanding veterinary training solutions, which perfectly complement our extensive range of educational tools. We are thrilled to welcome VSI into the 3B Scientific family. By combining our strengths in product development, manufacturing, and global distribution, we aim to set new standards in veterinary education, offering unparalleled resources to training institutions and professionals worldwide” commented Todd Murray, CEO of 3B Scientific.
David Jackson, Managing Director of Veterinary Simulator Industries, added: “Joining forces with 3B Scientific is an exciting step forward for VSI. The global reach of the 3B Scientific Group and commitment to innovation will enable us to further develop our product line and deliver even greater value to the veterinary education community. Together, we look forward to creating more advanced, realistic simulators and expanding access to high-quality training tools.”
About the 3B Scientific Group
3B Scientific, established in 1948 in Hamburg, Germany, is a global provider of state-of-the-art medical simulators and educational products for healthcare and veterinary training. With a presence in over 120 countries, the 3B Scientific Group continues to drive its mission of advancing the delivery of medical and veterinary education worldwide.
For more information about 3B Scientific, visit www.3bscientific.com.
About Veterinary Simulator Industries
Veterinary Simulator Industries (VSI) is a leading developer of high-quality veterinary simulators, designed to offer realistic, hands-on training experiences that enhance veterinary education and training. VSI’s products are trusted by educators and professionals globally for their realism and educational effectiveness.
To learn more about VSI, visit www.vetsimulators.com.
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View original content:https://www.prnewswire.co.uk/news-releases/3b-scientific-acquires-veterinary-simulator-industries-302253266.html
Technology
Reticulate Micro Demonstrates First-ever Live Video Streaming over MUOS Network for a U.S. Army Special Operations Organization
Published
52 mins agoon
September 23, 2024By
Demo Showcased VAST™Video Throughput, Augmenting MUOS SATCOM for Mobile Forces
PALM BAY, Fla., Sept. 23, 2024 /PRNewswire/ — Reticulate Micro, Inc. announced it successfully demonstrated what the Company believes to be the first-ever real-time video streaming over the Mobile User Objective System (MUOS) tactical satellite network for a U.S. Special Operations organization.
The joint U.S. Army live training exercise included Reticulate and its partners, NanTenna, LLC, a leader in antenna technology innovation, and Curtiss-Wright, a trusted, proven leader in communications and processing systems for the tactical edge as well as other highly engineered products and services for the aerospace/defense industry.
The teams integrated Reticulate Micro’s VAST video encoder and Curtiss-Wright Defense Solutions’ PacStar® Modular Radio Center to deliver live video for the first time over unbonded but Type 1 encrypted MUOS narrowband channels. Despite the constrained bandwidth, the combined solution delivered minimal delay and clear picture quality, demonstrating the potential of live video over MUOS SATCOM systems.
“We demonstrated a complete point-to-point, real-time full-motion video session over MUOS in both static and on-the-move scenarios,” noted Brian Hawkins, principal architect, Reticulate Micro, who conducted the video at a U.S. Army site. “Overall reactions from the customer were extremely positive, with invites back for follow-on exercises.”
“We are proud of our team that executed this powerful demonstration,” said Joshua Cryer, president and CEO, Reticulate Micro. “Along with our partners, NanTenna and Curtiss-Wright, we continue to make history together with low-latency and high-quality voice and video.”
Thomas Larkin, president of NanTenna, considers the MUOS demonstration a huge leap forward in narrowband SATCOM capabilities. “As more and more users are allocated MUOS connectivity, it is imperative that we, as an industry, offer end-to-end solutions to maximize its utility value to the warfighter. This demonstrates that our existing technologies can provide high-quality, low-latency video, even in the most challenging environments,” he said.
“Curtiss-Wright is dedicated to developing small form factor rugged tactical communications solutions for the US DOD and our allies,” said Brian Perry, senior vice president and general manager, Curtiss-Wright Defense Solutions Division. “By pairing our PacStar® Modular Radio Center and Modular Data Center with components from defense industry-leading partners like Reticulate Micro and NanTenna, we are able to extend C2 networks with simultaneous voice, video, and mission data anywhere within the worldwide coverage area of MUOS.”
The latest demonstration follows a U.S. Army demonstration of VAST over UHF TACSAT in February, conducted in partnership with NanTenna. Input from this and other demos is guiding Reticulate’s product roadmap, as it looks to add new features and functionality to meet the U.S. military’s mobile comms requirements.
About Reticulate Micro, Inc.
Reticulate Micro Inc. (“Reticulate Micro,” “Reticulate” or the “Company”) is a commercial and defense software technology company dedicated to delivering trusted and resilient communications at the network edge. Reticulate specializes in software-defined video compression and streaming solutions and agile, simplified device monitoring and management. Led by tactical communications veterans and satellite and software visionaries, Reticulate delivers resiliency and intelligence on the ground for the military, first responders, critical infrastructure, and enterprise users. We work with an ecosystem of channel and technology partners to bring the most powerful solutions to market across electronic warfare, tactical communications and streaming media technology.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements that are subject to various risks and uncertainties. In addition, our representatives or we may make forward-looking statements orally or in writing from time to time. We base these forward-looking statements on our expectations and projections about future events, which we derive from the available information. Such forward-looking statements relate to future events or our future performance, including our financial performance and projections, revenue and earnings growth, and business prospects and opportunities. You can identify forward-looking statements by those that are not historical facts, particularly those that use terminology such as “intends,” “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms.
Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” and elsewhere in the offering statement filed with the U.S. Securities and Exchange Commission on July 31, 2024. Forward-looking statements speak only as of the date of the document in which they are contained, and the Company does not undertake any duty to update any forward-looking statements except as may be required by law.
All trademarks, trade names, product names, or logos mentioned or used are the property of their respective owners.
Contact:
Media:
Reticulate Micro Media Relations
media@reticulate.io
Investor Relations:
Reticulate Micro Investor Relations
ir@reticulate.io
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SOURCE Reticulate Micro, Inc.
Technology
SeatBoost Secures Investment from International Airlines Group
Published
52 mins agoon
September 23, 2024By
LOS ANGELES, Sept. 23, 2024 /PRNewswire/ — SeatBoost, a startup that is transforming the air travel experience through dynamic seat upgrade solutions, is pleased to announce an investment from International Airlines Group (IAG). This funding marks an important milestone in SeatBoost’s mission to bring joy to travelers’ experiences while generating incremental non-dilutive revenue for partner airlines.
SeatBoost’s platform facilitates live auctions on mobile in the airport environment, offering passengers the chance to bid for premium seat inventory made available by the airlines. The platform not only provides passengers with a unique engaging experience, but it also generates incremental non-dilutive revenue on seat inventory that would otherwise spoil. Current partners include IAG portfolio brand Iberia, TAP Air Portugal, Condor, Avianca and LATAM. With support from IAG through its corporate venture capital arm, SeatBoost plans to expand its capabilities and further improve the travel experience for passengers around the world.
Kevin Stamler, CEO of SeatBoost, shared his thoughts on the investment: “We’re excited to partner with IAG at this important stage in our journey. This collaboration not only supports our vision but also helps us accelerate our growth and innovation. Our aim is to enhance data-driven insights to create personalized experiences for travelers while maximizing revenue for airlines. The investment from IAG validates our business model and underscores the potential of SeatBoost and the positive impact we can achieve together in the travel industry.”
Raza Ali, IAG’s Vice President – Innovation, commented, “Innovation is a core function at IAG, and through innovation we can deliver better customer experiences, more efficient operations, more sustainable aviation and a better-performing business overall. That’s why we think the creative approach of SeatBoost to unlock meaningful revenue from new sources of demand is aligned with our view.”
The partnership with IAG will enable SeatBoost to leverage technology and innovation, improving its current offerings and paving the way for additional solutions that prioritize customer needs and operational efficiency. As SeatBoost expands, it remains committed to setting high standards in the travel sector, ensuring passengers enjoy a seamless, personalized airport and flying experience.
About SeatBoost
SeatBoost is a travel technology startup dedicated to enhancing simultaneously the air travel experience and airline profitability through innovation. Our highly scalable and highly configurable platform is built to leverage the outcome-efficient revenue generating capability of auctions through interactive user engagement.
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About International Airlines Group (IAG)
International Airlines Group (IAG) is one of the world’s largest airline groups with 585 aircrafts flying to over 250 destinations and carrying more than 115 million passengers in 2023. The Group was created in 2011 and includes the airlines British Airways, Iberia, Aer Lingus, Vueling and LEVEL, and IAG Loyalty and IAG Cargo. It is a Spanish-registered company with its corporate office in London, United Kingdom. Its shares are listed on the London Stock Exchange and on the Spanish stock markets.
IAG’s vision is to be the leading airline group in sustainability. The group is proud to have been listed on the Carbon Disclosure Project’s A List for its commitment to sustainability and action on climate change.
Media contact
Marianna D’Amore
media@seatboost.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/seatboost-secures-investment-from-international-airlines-group-302255040.html
SOURCE SeatBoost, Inc.
3B Scientific Acquires Veterinary Simulator Industries
Reticulate Micro Demonstrates First-ever Live Video Streaming over MUOS Network for a U.S. Army Special Operations Organization
SeatBoost Secures Investment from International Airlines Group
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