Revenue Performance: Q1 2025 revenue reached $1.982 billion, a year-over-year increase of 18%. Subscription revenue, a key growth indicator, was $1.815 billion, reflecting a 19% year-over-year growth, benefiting from strong client retention metrics, with gross retention exceeding 95%.
Profitability: Workday reported a non-GAAP operating income of $515 million, yielding a non-GAAP operating margin of 25.9%. This was achieved through careful expense management amid revenue outperformance. The net income for the quarter was $107 million, translating to an EPS of $0.40.
Cash Flow: Operating cash flow was notably strong at $372 million, representing a 34% increase year-over-year as the company maintained discipline regarding capital expenditures of approximately $81 million.
Balance Sheet Health: Ending the quarter with $7.2 billion in cash and marketable securities positions Workday favorably, providing ample liquidity for strategic investments and acquisitions.