工作日公司 (WDAY.US) 2026财年第三季度业绩电话会

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会议摘要

The earnings call discussed Workday's strategic focus on AI, successful acquisitions, and global market expansion, highlighting robust sales, customer engagement, and innovative solutions, with a commitment to delivering value and navigating risks through true-ups and minimums, while providing financial guidance and addressing market opportunities.

会议速览

Workday's Q3 FY2026 Earnings Call: Guidance, Forward-Looking Statements, and Non-GAAP Metrics

The call outlines Workday's Q3 FY2026 earnings, emphasizing forward-looking statements, risks, and non-GAAP financial measures. It includes a reminder about the upcoming fourth quarter quiet period, guidance disclosures, and a Q&A session. Participants are directed to the company's website for detailed information and call replay.

Workday's Solid Q1 Results Highlight AI Advantages in Unified HR and Finance Platform

The dialogue emphasizes Workday's Q1 financial achievements, underscoring the benefits of their unified HR and finance platform in delivering business-ready AI, which aids organizations in adapting quickly and making better decisions. Customer feedback indicates a strong appeal for Workday's solution in addressing disconnected systems and poor data quality, positioning the company as a leader in AI integration for business operations.

Workday's Q3 Growth: Expanding AI, HCM, and Financial Solutions Across Industries

Workday reported robust Q3 growth, highlighting AI advancements, HCM and financial suite adoption, and expanding customer base across diverse industries, with strategic acquisitions and global expansion.

Global Expansion and AI Leadership in HR and Finance Solutions

Announced new cloud services in EU, expanded AI capabilities, and secured significant client wins across EMEA, APAC, and Japan, emphasizing strategic partnerships and global market growth.

Q3 Financial Highlights: Subscription Revenue Growth and CRP Increase

The third quarter saw a 15% rise in subscription revenue to $2.244 billion, with total revenue hitting $2.432 billion, up 13%. Notable was a 17.6% increase in CRP to $8.21 billion, excluding the Paradox acquisition, which was above guidance. International revenue also grew by 13% year-over-year, reaching $607 million.

Q3 Financials, Growth Investments, and Q4 Guidance

The company reported Q3 non-GAAP operating income of $692 million, 28.5% margin, with focus on AI talent, new markets, and efficiency. Q3 cash flow was $588 million, up 45%. $803 million shares repurchased, aiming $5 billion by FY end. Q4 subscription revenue guidance at $2.355 billion, 15% growth, including Son acquisition and diaa contract phase one.

Q4 Financial Projections: CRP Growth, Sana Acquisition Impact, and AI Investments

Anticipates 15-16% CRP growth in Q4, partly due to Sana acquisition's $20M boost. Projects professional services revenue of $168M for Q4, $715M for the year, with a non-GAAP operating margin of 28.5% for Q4. Optimistic about AI investments while maintaining efficiency.

FY 26 Financial Outlook: Margin Adjustments, Tax Rate, and Cash Flow Projections

GAAP operating margins are forecasted to be lower than non-GAAP margins. The non-GAAP tax rate for FY 26 is set at 19%. Operating cash flow outlook is raised to $2.90 billion, with capex of $200 million, indicating strong free cash flow growth.

Q4 Financial Projections: Subscription Growth, Margin Expansion, and Acquisitions

The company outlines its financial strategy for FY27 and FY28, aiming for 13% subscription revenue growth, non-GAAP margin expansion, and leveraging acquisitions. With Q3 momentum and Q4 CRP guidance, it anticipates Q1 FY27 subscription growth of 14%. It remains committed to achieving previously shared financial goals, expressing gratitude towards global workmates, customers, and partners, while focusing on sustainable growth and margin expansion.

Guidelines for Participating in a Telephone Q&A Session

Instructions are provided on how to ask questions and manage participation in a telephone-based question and answer session, including using keypad functions and handling speaker equipment.

Startups Face Challenges in Operationalizing Vibe Technology, Leading to Elevated Churn

Feedback indicates that startups are experiencing a slowdown due to difficulties in operationalizing vibe technology, resulting in higher churn rates as companies struggle to integrate it into production use.

Shifts in Third-Party Vibe Coding Products and Accelerated Adoption of Workday Extend

Concerns about novelty wear-off in third-party vibe coding products prompt speculation on the faster adoption of Workday Extend, leveraging existing security and infrastructure.

Strong Q3 Performance Highlights Workday's Momentum and AI Engagement

The Q3 marked significant achievements for Workday, showcasing its robust business, customer ROI, and escalating AI actions, setting a positive trajectory into FY 27.

AI Startups vs. Established SaaS: An Overblown Disruption Narrative

A discussion on the perceived threat of AI startups to established SaaS companies like Workday is deemed overhyped, with evidence supporting the view that the narrative was incorrect, affirming initial skepticism about significant disruption.

Data Quality and Security: Key Factors in AI Enterprise Adoption

Cxos discuss data quality, integrity, and security as critical barriers to AI adoption. Workday's clean, curated datasets and robust security controls position it uniquely to address these concerns, facilitating AI integration for future workforces.

Trusted Enterprise Solutions Drive Customer Loyalty

Customers are increasingly valuing long-standing vendors with deep enterprise penetration, as these trusted partners deliver real business outcomes and data-driven insights, leading to continued investment in platforms like Workday for future growth.

Investor Expresses Gratitude and Congratulates on Strong Q2 Performance

An investor thanks the company for a solid quarter, praising the achievements and congratulating the leadership on their success.

Exploring Business Growth and Customer Scaling Strategies

Discusses mechanisms for customer growth and the impact of layoffs, addressing discounts, cross-selling, and the relationship between headcount and business expansion.

Leveraging New Solutions for Customer Growth Despite Layoffs

Despite customer layoffs, the company is expanding its customer base and increasing revenue per seat by offering new solutions through organic innovation and acquisitions. This strategy, combined with annual true-ups and minimums on headcount, provides protection against potential impacts from headcount reductions, driving growth year over year.

Analyzing Aggregate Growth: A Nuanced Perspective on Net Positive Impact

The discussion highlights the aggregate growth's net positive nature, emphasizing its modest contribution to overall expansion. It underscores the complexity of growth metrics, acknowledging multiple factors influencing the final growth figure.

AI Solutions' Early Success: Modeling Growth and Customer Adoption

A discussion on the impact of AI solutions, highlighting a 1.5% ARR growth attributed to these innovations. The conversation explores uplift in typical deals, customer base adoption rates, and projections for future success, aiming to model the potential expansion of AI solutions within the market.

AI Solutions Drive Significant Growth in Sales and Customer Base Expansion

The dialogue highlights the impact of AI solutions on increasing ARR by 1.5 points, with 75% of new sales incorporating AI. It showcases strong demand from acquired companies and an acceleration in growth for products like Eversource and Stem Pro, which saw a 50% year-over-year increase. The discussion also touches on the significant uplift in sales when selling advanced products such as hired score recruiting agents compared to standard SKUs.

Revenue Model Insight: Recruiting Dollars to Hired Score Conversion

The dialogue reveals a revenue strategy where for every dollar in recruiting services sold, an additional two hours and 50 cents of Hired Score services are included, showcasing a complementary sales approach.

Exploring Paradox, Sana Feedback & Tradeoffs in Growth vs Margin

Zooms in on early customer feedback for Paradox and Sana, assessing impacts on business model evolution towards AI capabilities. Discusses strategic considerations balancing growth and margin amidst product portfolio expansion.

Revolutionizing Workday with AI: A Seamless Integration of Sana and Paradox

The acquisition of Paradox and Sana has led to a significant increase in demand for AI solutions. The integration of Sana's AI learning platform with Workday's 4000 learning customers, the development of a conversational UI experience, and the addition of free connectors for enterprise-wide AI transformation have generated strong customer interest.

Investment in AI and Business Efficiency Highlighted Amidst Early Success

Thrilled with early successes from Paradox and Sana, the company reaffirms its commitment to investing in AI, both organically and inorganically, while driving efficiencies and scale across the business. The financial framework remains unchanged, reflecting confidence in ongoing progress.

Expanding Paradox's Market Reach Beyond Existing Platforms

Discusses Paradox's strategy to market as a standalone product, enhancing sales opportunities by targeting both current customers and competitors' environments, independent of specific backend systems. Highlights confidence in Paradox's contribution to revenue growth.

Optimism on CRP Growth and Subscription Coverage for Q4 and Beyond

Speakers express confidence in upcoming CRP growth, emphasizing strong coverage and subscription growth expectations for Q4 and into Q1, highlighting minimal revenue impact from signings in Q4.

Adjusting for One-Time Events to Normalize RPO Growth in Tenant Contracts

Discussion revolves around normalizing RPO growth by accounting for one-time events, such as tenant contract renewals, Paradox, and Sana impacts, to achieve a more accurate annual growth assessment.

Confidence in Achieving DIA Go-Live Milestones and Understanding Revenue Growth Components

The dialogue focuses on the components contributing to Q4 subscription revenue growth, highlighting organic and inorganic contributions. It also expresses high confidence in reaching DIA go-live milestones, attributing progress to close tracking and embedding these goals in the fourth-quarter forecast, despite challenges posed by a shutdown.

Federal Government's Momentum in DOD Platform Expansion Sparks Excitement and Negotiations

Excitement over a successful initial phase of a Department of Defense project leads to negotiations for platform expansion with enhanced security requirements, opening up broader opportunities across the Department of Defense.

Building AI Foundation: Year of Innovation and Future Growth Projections

The dialogue explores the company's strategic focus on AI, acquisitions, and partnerships, questioning if the current year is foundational for AI growth, potentially leading to significant advancements in fiscal 28.

AI-Driven Enterprise Transformation: Integrating Advanced Technologies for Holistic Solutions

The discussion highlights the integration of AI technologies, including Paradox, Pipe Dream, and Sana, to create an AI-driven enterprise fabric. Emphasizing data, context, and workflow integration, the focus is on delivering comprehensive solutions that meet customer demands for secure, reliable, and trusted AI platforms, moving beyond point solutions to enterprise-wide orchestration.

Workday's Strategy for Mid-Market: AI, Payroll Innovations, and Global Expansion

Workday discusses its tailored approach for mid-market customers, emphasizing AI enhancements, simplified payroll management, and a global partner network to enhance service delivery and market penetration.

Confidence in Workday's AI Growth and Acquisitions Drives Future Revenue Projections

The dialogue highlights increased confidence in Workday's AI solutions and the integration of acquired companies, contributing to next year's revenue growth. The speaker reassures about the synergy from acquisitions and the ongoing pace of M&A activities, emphasizing the importance of technology, culture, and people integration for sustained inorganic growth.

International Growth vs. Domestic: Analyzing Pipeline Build and Quarterly Insights

The dialogue explores the disparity in growth rates between domestic and international markets, delving into the insights from the recent quarter and the impact of pipeline developments on international expansion.

International Markets Drive Strong Q3 Performance for Workday

Workday celebrates robust international growth in Europe, APAC, and Japan, attributing success to product localization, strategic partnerships, and talented leadership. Anticipates continued momentum as customers increasingly adopt Workday for HR and finance solutions.

Building an AI-Driven Business Platform: Essential Components for Success

The dialogue explores the foundational elements required to construct a robust AI system for business applications, emphasizing the necessity of comprehensive data, clear semantics, and defined business processes to achieve meaningful outcomes.

Workday's Vision for Enterprise AI: A Unified, Scalable SaaS Platform Leading AI Innovation

Workday highlights its unique position as a cloud-born SaaS provider with a clean, consolidated data set and core business process archetypes. By integrating AI and reasoning models, Workday aims to automate processes and lead enterprise AI innovation, positioning itself as the future's ideal enterprise stack.

Closing Remarks and Thanksgiving Wishes at Workday's Q&A Session

The session concludes with gratitude to participants, anticipation for future engagement, and warm Thanksgiving greetings. A heartfelt appreciation is extended to team members, customers, and partners for their commitment to Workday. The speaker looks forward to seeing everyone at the next quarter's update.

要点回答

Q：What are the key financial results reported for Workday's third quarter fiscal year 2026?

A：Workday reported solid Q3 results with subscription revenue growth and a non GAAP operating margin.

Q：Which industries have adopted Workday's services and which new customers were added in Q3?

A：Workday's services have been adopted across major industries including technology, media, financial services, healthcare, and education. New customers added in Q3 include Sun Health Sciences Center Fu Electric, Magnum Ice Cream Company, Ardent Health, Kelly Services, and Specialized in HCM, and the City of Concord and Cleveland State University in public sector.

Q：How is Workday's AI strategy being received by customers?

A：Workday's AI strategy is being well-received by customers, with more than two-thirds of core customers using Workday Illuminate AI, driving over 1 billion AI actions on the Workday platform in a year. AI products have added more than 1.5 points of Arr growth in the quarter.

Q：What recognition did Workday receive from Gartner in Q3?

A：Gartner named Workday a leader in Magic Quadrants for Cloud ERP for service-centric enterprises, cloud HCM Suite for employee enterprises, and introduced the first ever MQ for Cloud ERP Finance, with Workday receiving the highest placement for both ability to execute and completeness of vision.

Q：What strategic acquisitions did Workday complete in Q3 and what is their purpose?

A：Workday completed the acquisition of Sana, an AI platform, to reimagine user experience for the age of AI, and announced the intent to acquire Pipe Dream, a low code integration platform. These acquisitions aim to help customers find answers, take action, and learn within Workday, making it easier to integrate with other applications.

Q：How did Workday perform internationally in Q3?

A：Workday performed solidly across EMEA, APAC, and Japan in Q3. They announced the new Workday EU Sovereign Cloud for running AI solutions within the EU, established a new AI center of excellence in Dublin, and announced a new office in Dubai. Notable wins included Bayer, Ingrid, and Tandem Bank in EMEA, Genesis Energy, DBS Bank, and MGM Graham Paradise in APAC, and new and expanded relationships with Pioneer, Hoshino Resorts, and Eyesight in Japan.

Q：What was the total revenue for the third quarter?

A：The total revenue for the third quarter was $2.432 billion.

Q：How much is expected to be repurchased in the remaining part of the fiscal year, and what is the total planned repurchase amount?

A：The company plans to repurchase an additional $1.1 billion through the end of the fiscal year, leading to a total repurchase amount of $5 billion. As of October, there were $4.4 billion remaining under the current authorization.

Q：What is the expected growth in subscription revenue for the full year?

A：The expected growth in subscription revenue for the full year is in the range of 12 to 13 billion, with a forecasted total subscription revenue of $8.8 to $9.0 billion.

Q：What is the expected year-over-year growth in subscription revenue for the first quarter of fiscal year 2027?

A：The expected year-over-year growth in subscription revenue for the first quarter of fiscal year 2027 is approximately 14% and flat sequentially, reflecting typical seasonality from Q3 as well as the expected revenue from the Diaa contract which doesn't extend into Q1.

Q：What is the projected range for the increase in CRP for the fourth quarter?

A：The projected range for the increase in CRP for the fourth quarter is between 15 and 16%.

Q：What is the company's position regarding GAAP and non-GAAP operating margins for the fourth quarter and the full year?

A：The company expects a non-GAAP operating margin of at least 28.5% for the fourth quarter and approximately 27% for the full year. The GAAP operating margin is expected to be approximately 23 to 24 basis points lower than the non-GAAP operating margin for the full year.

Q：What is the forecasted increase in GAAP operating margin for the full year 2026?

A：The forecasted increase in GAAP operating margin for the full year 2026 is approximately 19%.

Q：What is the company's financial outlook for the upcoming year?

A：The company is targeting a subscription revenue compound annual growth rate (CAGR) of 12 to 14% through fiscal year 2028, with continued margin expansion on both a GAAP and non-GAAP basis for fiscal year 2027. Specifically, they expect subscription revenue growth of approximately 13%.

Q：What early success is being seen with the AI solutions?

A：The early success with the AI solutions includes a point and a half of growth in Adjusted Revenue (ARR) already being generated from these solutions.

Q：What impact is the AI solution having on sales and customer base?

A：The AI solution is showing significant traction and has led to good early indications of demand from acquired companies like Sana and Paradox. It is positively impacting both new sales and the company's ability to sell back into its customer base.

Q：How much additional value is the AI solution providing compared to standard products?

A：For every dollar of recruiting sold, the AI solution 'hired score' adds an additional two hours and 50 cents in value.

Q：What feedback is being received on Paradox and Sana from customers after the Rising event?

A：Feedback from customers following the Rising event indicates very strong demand for Paradox and Sana as Workday products. They see these AI solutions as powerful across multiple dimensions, particularly in learning, and there is significant interest in integrating these solutions with existing Workday customers.

Q：How are the AI solutions being integrated with existing Workday products?

A：The AI solutions from recent acquisitions are being integrated into Workday's UI and are available for customers using Workday Learning. Additionally, Sana is providing a conversational experience and knowledge management actions that enhance enterprise-wide AI transformation.

Q：What is the approach to pricing and market strategy for Paradox?

A：Paradox is positioned as a land-only product for the sales force to sell both within Workday and into competitors' environments. This allows customers to purchase Paradox without requiring Workday or finance integration.

Q：Is there any change in the guidance or expectations for the fourth quarter in terms of revenue growth?

A：The company continues to feel good about the customer renewal activity and the expected subscription growth heading into the fourth quarter. There has been no change in guidance or expectations for revenue growth.

Q：What is the expected impact of Paradox and Sana on subscription revenue growth in the fourth quarter?

A：Paradox and Sana are expected to contribute roughly a point each to the Q4 subscription revenue growth.

Q：How confident is the company about achieving the DIU go live milestone in the fourth quarter?

A：The company is highly confident about achieving the DIU go live milestone, which is valued at several dollars in the fourth quarter. This is based on the progress made throughout the year, and the momentum with the federal government, specifically with the Defense Department's DIU project.

Q：What are the recent AI-related developments and acquisitions by the company?

A：The company has made several AI-related developments and acquisitions including the Sana acquisition, the partnership with Microsoft through which they developed 'PipeDream,' and the acquisition of Sana to bring leading knowledge management and agent orchestrator technology into Workday as the AI experience layer. Other notable acquisitions include Eversource and HiredScore.

Q：What is the company's strategy with regards to AI and its implementation across enterprises?

A：The company's strategy is to build AI-driven enterprises by bringing AI automation to the entire hiring journey, with innovations such as 'Paradox' and 'Frontline.' They aim to create an 'Enterprise AI fabric' through PipeDream, with Sana as the experience layer on top of Workday's business process platform. This strategy is underpinned by the company's unique positioning, having data built into business workflows and the demand from customers for AI solutions within a trusted platform.

Q：How is the company uniquely positioned in the market compared to other players?

A：The company is uniquely positioned in the market due to its access to data and the contextual data being built into business workflows. They are considered a more secure, reliable, and trusted platform for AI, as evidenced by their partnerships with Microsoft and the fact that customers and partners see value in their platform for AI integration.

Q：What is the purpose of Workday Go and what new features were announced for it?

A：Workday Go is designed to make it easy for medium-sized companies to access the benefits of AI and is tailored to deliver products from an A to Z perspective for smaller businesses. New features announced for Workday Go include global payroll capability, support for managed global payroll services, and a new deployment agent that significantly reduces deployment time and complexity. The company is also focusing on AI deployment and has partnered with Ver达 to provide managed services like payroll to simplify payroll management.

Q：How does the company expect the acquisitions made recently to contribute to their growth in the coming year?

A：The company expects the acquisitions made to contribute approximately 1 point of growth to next year's revenue. They believe in the broader portfolio impact of these acquisitions and see significant synergy potential beyond the acquired revenue. There is no change in how they incorporate inorganic growth into their strategy, with a focus on integrating technology, culture, and people effectively.

Q：What are the company's thoughts on the global economic performance and their international expansion?

A：The company had a positive international performance across major regions such as Europe, APAC, and Japan, driven by the continued internationalization of their product and leveraging a strong partner network. They also emphasize the importance of attracting talent to lead their operations worldwide. The international market is seen as a key area of focus and the momentum is expected to continue as customers increasingly choose Workday for HR and finance.

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