Workday Continues to Drive Efficiency and Growth in Q1 2025
Workday Reports Q1 2025 Earnings Call: Analysis of Financial Results
Workday reported solid financial performance for Q1 2025, with strong subscription revenue growth and key investments across various business units. The company experienced some challenges, including increased scrutiny in large deals and slower headcount growth levels than expected, primarily in regions like EMEA. Despite these dynamics, Workday remains focused on innovation, scaling the go-to-market engine, and delivering customer value to drive long-term growth and margin expansion.
Key Highlights:
- Subscription revenue in Q1 was $1.815 billion, up 19%
- Professional services revenue was $175 million, leading to total revenue of $1.99 billion, growing 18%
- Twelve-month subscription revenue backlog (CRPO) was $6.6 billion at the end of Q1, representing growth of 18%
Challenges Faced:
- Increased scrutiny in large deals and slower headcount growth levels than expected
- Performance challenges in regions like EMEA
Workday remains focused on driving efficiency, innovation, and growth in the face of these challenges, positioning the company for long-term success.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.