Workday net worth has gained considerable attention as the company continues to expand. At $64.46 billion, Workday’s market cap in 2024 highlights its robust growth, particularly in subscription revenue.
This article will delve into Workday’s key revenue streams and financial performance trends, offering an in-depth view of the company’s fiscal health. Welcome to this detailed analysis from Ando Money.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Workday, Inc. |
| Full Name | Workday, Inc. |
| Website | workday.com |
| Industry | Software (ERP, HCM) |
| Traded As | NASDAQ: WDAY |
| ISIN | US98138H1014 |
| Founded | 2005 |
| Founders | Aneel Bhusri, Dave Duffield |
| Country/Territory | United States |
| Headquarters | Pleasanton, California |
| Chief Executive Officer | Carl Eschenbach |
| Number of Employees | 17,900 |
| Market Cap | $64.46 billion |
| Total Assets | $16.234 billion |
| Total Equity | $8.345 billion |
| Revenue | $2.085 billion (Q2 2025) |
| Net Income | $132 million (Q2 2025) |
What is the Net Worth/Market Cap of Workday in 2024?
As of October 2024, Workday’s market capitalization stands at $64.46 billion. This positions Workday as one of the prominent companies within the ERP and HCM software sector.
In comparison, other major tech firms and competitors in this space showcase various levels of financial influence.
Here are some notable companies related to Workday:
You can explore more comparisons with other highly valued companies.
Workday Financial Performance Overview
Key Revenue Streams in Workday’s Business Model
Workday generates a significant portion of its revenue from subscription services, contributing $1.903 billion in Q2 2025, an increase of 17.2% year-over-year.
This growth indicates the increasing reliance on Workday’s cloud-based solutions in enterprise software.
Professional services, which provide consulting and support, added $182 million to the total revenue for the quarter.
Subscription Revenue Growth and Trends
Its subscription revenue is not only growing rapidly but also driving long-term financial stability.
The subscription backlog reached $21.58 billion, showing a 20.9% year-over-year increase.
This backlog ensures predictable future cash flows and reflects strong customer retention and contract renewals.
Operating Income and Margin Performance
In fiscal Q2 2025, Workday reported an operating income of $111 million under GAAP, reflecting improved cost efficiencies.
The non-GAAP operating income was significantly higher at $518 million, demonstrating a 24.9% operating margin, up from 23.6% in the same quarter last year.
This margin increase is largely attributed to effective cost management and higher subscription sales.
Cash Flow and Liquidity Strength
Workday’s free cash flow in Q2 2025 rose to $516 million, up from $360 million in the previous year.
The company’s robust cash flow is supported by efficient cost management and revenue growth, positioning it well for future investments.
Workday also held $7.37 billion in cash and marketable securities by July 31, 2024, ensuring substantial liquidity for upcoming initiatives and potential acquisitions.
Financial Impact of Share Repurchase Programs
Workday’s share repurchase program has been a key element in enhancing shareholder value.
In fiscal Q2 2025, the company repurchased 1.4 million shares for $309 million.
The buyback program, combined with strong free cash flow, has positively influenced equity, which now stands at $8.345 billion.
Role of Partnerships and Ecosystem in Revenue Growth
Workday has solidified its position through strategic alliances with prominent firms like Salesforce, Equifax, and Kainos.
These partnerships not only expand the company’s reach but also enhance its revenue streams by offering complementary services and products, such as AI-powered HR solutions.
Workday’s partner ecosystem is now a vital driver of its financial performance.
Innovations Driving Future Financial Growth
Workday continues to push the boundaries of technology through AI-powered innovations.
The company’s global payroll strategy and its Workday AI Marketplace are expected to be significant revenue drivers in the future.
By integrating AI into its core services, Workday is not just enhancing efficiency but also securing a competitive edge in the ERP and HCM sectors.
Impact of Strategic Investments and Acquisitions
Workday has strategically acquired companies to complement its existing services.
For instance, its acquisition of new talent management solutions has strengthened its offerings in the HR space.
These investments are part of Workday’s broader financial strategy to expand its customer base and drive long-term growth.
Expenses and Cost Management
Workday’s cost structure includes $649 million in product development and $611 million in sales and marketing expenses.
Despite rising expenses, the company has maintained profitability by focusing on cost control, particularly in general and administrative expenses, which amounted to $203 million.
Additionally, share-based compensation, an essential element of tech company expense, was $370 million for Q2 2025.
FAQs About Workday
What are Workday’s primary revenue streams?
Its primary revenue streams include subscription services and professional services. The subscription services contribute the largest share to the total revenue.
How has Workday’s operating margin changed?
Its non-GAAP operating margin increased from 23.6% to 24.9% year-over-year, driven by revenue growth and cost efficiencies.
What is Workday’s strategy for future growth?
Its growth strategy focuses on AI-driven innovations, expanding its partner ecosystem, and enhancing its subscription services, particularly in HR and payroll solutions.
What is the role of partnerships in Workday’s financial success?
Partnerships with companies like Salesforce and Equifax play a critical role in expanding Workday’s reach and enhancing its product offerings, driving revenue growth.
How much cash flow did Workday generate in 2024?
The company generated $516 million in free cash flow during fiscal Q2 2025, reflecting strong operational performance.
Conclusion
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