Q4 2021 Workday Inc Earnings Call

[music].

Welcome to workday fourth quarter and fiscal year 2021 earnings call. At this time all participants are in a listen only mode. We will conduct a question and answer session towards the end of the call and with that I will now hand, it over to Mr. Justin Furby, Vice President of Investor Relations.

Please go ahead.

Welcome to workday as fourth quarter of fiscal 'twenty and 'twenty, One earnings conference call.

On the call we have the Neil Bush free and Sean of Fernandez, Our co Ceos.

And Cisco, our president and CFO and Peach Slant, our executive Vice President of product development.

Following prepared remarks, we will take questions.

Our press release was issued after close of market and is posted on our website, where this call is being simultaneously webcast.

Before we get started we want to emphasize that some of our statements on this call and particularly our guidance are based on the information we have as of today and include forward looking statements regarding our financial results applications customer demand operations and other matters.

These statements are subject to risks uncertainties and assumptions, including those related to the impacts of the ongoing COVID-19 pandemic on our business and global economic condition.

Please refer to the press release and the risk factors and documents, we file with the Securities and Exchange Commission, including our most recent quarterly report on form 10-Q for additional information on risks uncertainties and assumptions that may cause actual results to differ materially from those set forth and such statements.

In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of workdays performance.

These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.

You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results and our earnings press release and on the Investor Relations page of our website.

The webcast replay of this call will be available for the next 90 days on our company website under the Investor Relations link.

And also the customers page of our website includes the list of selected customers and is updated monthly.

Our first quarter quiet period begins on April 16th 'twenty 'twenty, one and.

Unless otherwise stated all financial comparisons in this call will be to our results for the comparable period of our fiscal 2020.

With that I will turn it over to China to share go to market highlights and the quarter.

He will then turn it over to Aneel, who will provide updates on the strategy and innovation fronts, and then Robyn will close with our financials and guidance.

We will then open the lineup for your questions.

Over to you channel.

Thank you Justin I hope all of you joining us today are in good health and that's your families of doing well he has been a challenging few months and they make a day.

There is significant cost sort of the missing.

We had the various strong growth through the year as companies increasingly realize that HR and finance part of the true backbone of their digital transformation.

Basically all the safety and was leading to significant pipeline growth.

And as we enter FY 'twenty, two we are well positioned to drive accelerated bookings.

Bookings growth.

Our solid and we sold was driven by another quarter of strong execution.

Bearish and brakes, we once again drove the strength in North America, and I'm not worried that yeah.

Vertical the standouts in the patient oberman healthcare and the professional services market.

Both the large and medium enterprise teams outperformed driven by continued momentum in all of our installed base airports are split is improving per four months now we're net new business.

The strength in our <unk>.

H T M solutions was a critical contributor to all of our Q4 for four months with notable customer of these tunes in the quarter moving.

And Nike.

And then.

Pumping and some worldwide folks and their prices for the <unk> Corporacion first from Bank Laboratory Corporation of America and become a retainers.

We also saw significant uptake across all of our newer solutions.

Support of the offer.

And she had total including people analytics and <unk>.

Journeys and the pallet market space.

By leveraging these applications for organizations are addressing fundamentally rethinking the important questions like how the wind institution of bias helped reshape the workforce to meet today's demands and how.

The sponsor the engagement risk and the execution blind spots.

The first class solutions also had a strong quarter and continues to represent an increasing percentage of our meal business mix. We have several of these but the corn beans wins in Q4, including a fortune 500, we frankly Tampa.

Which included accounting center.

And you saw the state colleges and universities.

The entry insurance, the University of Maryland on what each bar.

St Jude Children's Research Hospital, Vanderbilt University Medical Center.

We are excited by the accelerating pipeline of themes of opportunities, including emerging use cases, the enterprise financing or other industries like retail and manufacturing where recent witnessing true one of the nations largest pizza chain, the zumiez and his sporting goods retailer with over a thousand stores.

And with once against the solid demand for our suite of products that support the office of the CFO and Chief procurement officer, including Workday planning, but are using analytics, and that's where the workday of strength, each sourcing and our brothers and management solutions.

Our installed base being also had another solid performance with more of them, 40% growth the new ACB bookings.

Q4 against a very difficult comparison.

One of them, 50% growth for full year FY 'twenty one.

These themes execution was really kind of driving growth over the past year, and we remain very optimistic that with an average.

And on the brunt of that portfolio, we can continue to increase customer wallet share in the years ahead.

Our customer success and services organization also executed incredibly well, taking more than 250 for HCM and fins customers night in the quarter.

During the customer success, and that's always been a core body of for us like workday.

And then incredibly proud of how our services team and our partners average funding is.

<unk> has been to take light and virtually all of my heart.

Record number of workers and the workday platform and 2021.

Personally one of the Q4 highlights was around our pipeline and sports.

As we have described over the last two earnings calls our pipeline generation has been improving since the onset of the pandemic.

I am pleased to say the brand continue meaningfully accelerated in Q4 with record five day generation across all three regions.

We still see some pipeline impact from probably the impacted industries of though.

Headwinds appear to be net.

And the pipeline strength, we have seen alone with DSW station and new business demand.

And our expectations that new business growth.

Iterate and FY 'twenty two.

On the personal and outside I wanted to congratulate and make good spring Doc Robinson and his recent promotion to the EVP of robust sales.

That has been incredibly impactful over his 10 years Plaza worthy and most recently serving as head of North America sales with I mean, Brexit regular where he not only played a niche window role and helping us with some of the world's biggest brands.

Also establish high levels of the Corporation I will say.

Excellent and for us.

Our North America region that have been predicting that the work base growth.

He and his new role of dock will lead out of robotic sales force reporting directly to me as being a subsidiary our momentum while continuing to expand our international footprint.

Congratulation stack and I look forward to a work from <unk> partnership.

Finally, before handing it over to Aneel and won't be half of iron.

Workday leadership team I would like to stress things and all of our workmates across the globe.

The response to these challenging and borrowing has been nothing short of amazing and resiliency has state of shop for a strong year.

With that I will turn it over to all work the founder and the seal of named Bush free.

Over to you Aneel.

Thanks, Sean and thanks, everyone for joining today's call.

Last August we showed of the exciting news and tunnels promotion to co CEO and.

And six months and I couldn't be happier with the positive impact of this change and.

China always been at the center of our go to market and customer facing activities, while allowing me more time to focus on our product strategy and innovation.

This increased focus could not have come out of more important time, our innovation cadence has accelerated and we're excited to continue to bring out of market, leading innovation and support our customers.

John will touch upon our successes and expanding our presence within our customer base a big part of the success was driven by the introduction of new products and indeed in the last few years, we have delivered 50% more in terms of monetize the solutions of.