Workday 10-Q 2022-04-30

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended April 30, 2022

OR

☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For transition period from to

Commission File Number: 001-35680

WORKDAY, INC.

(Exact name of registrant as specified in its charter)

Delaware						20-2480422
(State or other jurisdiction of incorporation or organization)						(I.R.S Employer Identification No.)

6110 Stoneridge Mall Road

Pleasanton, California 94588

(Address of principal executive offices, including zip code)

(925) 951-9000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Class A Common Stock, par value $0.001			WDAY			The Nasdaq Stock Market LLC
			(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
						Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 24, 2022, there were approximately 199 million shares of the registrant’s Class A common stock, net of treasury stock, and 55 million shares of the registrant’s Class B common stock outstanding.

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Workday, Inc.

						Page No.
PART I. FINANCIAL INFORMATION
Item 1.			Financial Statements (unaudited):
			Condensed Consolidated Balance Sheets as of April 30, 2022, and January 31, 2022			3
			Condensed Consolidated Statements of Operations for the Three Months Ended April 30, 2022, and 2021			4
			Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended April 30, 2022, and 2021			5
			Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended April 30, 2022, and 2021			6
			Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 30, 2022, and 2021			7
			Notes to Condensed Consolidated Financial Statements			9
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			25
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			35
Item 4.			Controls and Procedures			35
PART II. OTHER INFORMATION
Item 1.			Legal Proceedings			37
Item 1A.			Risk Factors			38
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			64
Item 3.			Defaults Upon Senior Securities			64
Item 4.			Mine Safety Disclosures			64
Item 5.			Other Information			64
Item 6.			Exhibits			65
			Signatures			67

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PART I. FINANCIAL INFORMATION

Workday, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

			April 30, 2022						January 31, 2022
Assets
Current assets:
Cash and cash equivalents			$	2,776,336					$	1,534,273
Marketable securities			3,479,019						2,109,888
Trade and other receivables, net			778,076						1,242,545
Deferred costs			156,806						152,957
Prepaid expenses and other current assets			252,989						174,402
Total current assets			7,443,226						5,214,065
Property and equipment, net			1,186,004						1,123,075
Operating lease right-of-use assets			252,236						247,808
Deferred costs, noncurrent			339,712						341,259
Acquisition-related intangible assets, net			369,387						391,002
Goodwill			2,840,044						2,840,044
Other assets			368,497						341,252
Total assets			$	12,799,106					$	10,498,505
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable			$	123,361					$	55,487
Accrued expenses and other current liabilities			246,939						195,590
Accrued compensation			362,269						402,885
Unearned revenue			2,820,119						3,110,947
Operating lease liabilities			80,573						80,503
Debt, current			1,148,126						1,222,443
Total current liabilities			4,781,387						5,067,855
Debt, noncurrent			2,973,068						617,354
Unearned revenue, noncurrent			59,308						71,533
Operating lease liabilities, noncurrent			182,237						182,456
Other liabilities			22,299						24,225
Total liabilities			8,018,299						5,963,423
Stockholders’ equity:
Common stock			253						251
Additional paid-in capital			7,596,787						7,284,174
Treasury stock			(12,584)						(12,467)
Accumulated other comprehensive income (loss)			43,109						7,709
Accumulated deficit			(2,846,758)						(2,744,585)
Total stockholders’ equity			4,780,807						4,535,082
Total liabilities and stockholders’ equity			$	12,799,106					$	10,498,505

See Notes to Condensed Consolidated Financial Statements

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Workday, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

			Three Months Ended April 30,
			2022						2021
Revenues:
Subscription services			$	1,272,076					$	1,032,169
Professional services			162,581						142,864
Total revenues			1,434,657						1,175,033
Costs and expenses (1)****:
Costs of subscription services			232,922						182,208
Costs of professional services			169,899						150,845
Product development			541,509						441,616
Sales and marketing			429,301						326,494
General and administrative			133,869						112,183
Total costs and expenses			1,507,500						1,213,346
Operating income (loss)			(72,843)						(38,313)
Other income (expense), net			(20,163)						(9,051)
Income (loss) before provision for (benefit from) income taxes			(93,006)						(47,364)
Provision for (benefit from) income taxes			9,167						(842)
Net income (loss)			$	(102,173)					$	(46,522)
Net income (loss) per share, basic and diluted			$	(0.41)					$	(0.19)
Weighted-average shares used to compute net income (loss) per share, basic and diluted			251,743						243,739

(1) Costs and expenses include share-based compensation expenses as follows:
			Three Months Ended April 30,
			2022						2021
Costs of subscription services			$	26,230					$	20,717
Costs of professional services			27,584						27,692
Product development			153,304						129,862
Sales and marketing			59,169						50,308
General and administrative			45,219						36,056
Total share-based compensation expenses			$	311,506					$	264,635

See Notes to Condensed Consolidated Financial Statements

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Workday, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)

			Three Months Ended April 30,
			2022						2021

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You should read the following discussion of our financial condition and results of operations in conjunction with the condensed consolidated financial statements and notes thereto included in Part I, Item 1 of this report.

Overview

Workday delivers applications for financial management, spend management, human capital management, planning, and analytics. With Workday, our customers have a unified system that can help them plan, execute, analyze, and extend to other applications and environments, thereby helping them continuously adapt how they manage their business and operations. Our diverse customer base includes medium-sized and large, global organizations within numerous industry categories, including professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality.

We have achieved significant growth since our inception in 2005, with a substantial amount of our growth coming from new customers. Our current financial focus is on growing our revenues and expanding both our customer base and our footprint within our existing customers. While we have a history of GAAP operating losses, we strive to invest in a disciplined manner across all of our functional areas to sustain continued near-term revenue growth and support our long-term initiatives. We expect our product development, sales and marketing, and general and administrative expenses as a percentage of total revenues will decrease over the longer term as we grow our revenues, and we anticipate that we will gain economies of scale by increasing our customer base without direct incremental development costs.

We plan to reinvest a significant portion of our incremental revenues in future periods to grow our business. We have invested and expect to continue to invest heavily in our product development efforts to deliver additional compelling applications, enhance existing applications, and to address customers’ evolving needs. In addition, we plan to continue to expand our ability to sell our applications globally, particularly in Europe and Asia-Pacific, by investing in product development and customer support to address the business needs of local markets, increasing our sales and marketing organizations, acquiring and leasing additional office space, and expanding our ecosystem of service partners to support local deployments. We expect to make further significant investments in our data center capacity and equipment and third-party hosted infrastructure platforms as we plan for future growth. We are also investing in personnel to support our growing customer base.

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We regularly evaluate acquisition and investment opportunities in complementary businesses, employee teams, services, technologies, and intellectual property rights in an effort to expand our product and service offerings. For example, in fiscal 2022, we acquired Peakon ApS, a continuous listening platform that captures real-time employee sentiment, Zimit, a configure, price, quote solution built for services industries, and VNDLY, a cloud-based external workforce and vendor management technology. We expect to continue making such acquisitions and investments in the future. While we remain focused on improving operating margin, these acquisitions and investments will increase our costs on an absolute basis in the near term. Many of these investments will occur in advance of experiencing any direct benefit from them and could make it difficult to determine if we are allocating our resources efficiently.

Since inception, we have also invested heavily in our professional services organization to help ensure that customers successfully deploy and adopt our applications. Additionally, we continue to expand our professional services partner ecosystem to further support our customers. We believe our investment in professional services, as well as partners building consulting practices around Workday, will drive additional customer subscriptions and continued growth in revenues. Due to our ability to leverage the expanding partner ecosystem, we expect the rate of professional services revenue growth to decline over time and continue to be lower than subscription revenue growth.

Impact of the COVID-19 Pandemic and Current Economic Conditions

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, and created significant volatility and disruption of financial markets. In addition, the Russian invasion of Ukraine in early fiscal 2023 has led to further economic disruption. While we do not operate in Russia and while our extended workforce in Ukraine is not a material part of our workforce, the conflict has increased inflationary cost pressures and supply chain constraints which have negatively impacted the global economy. In response to the concerns over inflation risk, the U.S. Federal Reserve began to raise interest rates in March 2022 for the first time in over three years, and signaled they expect additional rate increases throughout the year.

Despite the continuing uncertainty associated with the COVID-19 pandemic, Russia-Ukraine conflict, and other macroeconomic events, we are confident in the long-term overall health of our business, the strength of our product offerings, and our ability to continue to execute on our strategy and help our customers continue to embark on their human resources and finance digital transformation journeys. Demand for our products remains strong, and we continue to achieve solid new subscription bookings.

At the beginning of the COVID-19 pandemic, we temporarily closed the majority of our offices; required most of our employees to work remotely; implemented travel restrictions; and postponed certain of our customer, industry, implementation partner, analyst, investor, and employee events and converted others to virtual-only experiences. As of April 30, 2022, most of our offices have reopened and we have begun permitting travel and in-person events in accordance with applicable regional guidance. We continue to prioritize employee and community health and safety.

Our near-term revenues are relatively predictable as a result of our subscription-based business model. However, if the economic uncertainty increases, we may experience a negative impact on new business, customer renewals, sales and marketing efforts, revenue growth rates, customer deployments, customer collections, product development, or other financial metrics, similar to what we experienced at the onset of the pandemic. Any of these factors could harm our business, financial condition, and operating results. For further discussion of the potential impacts of the COVID-19 pandemic, Russia-Ukraine conflict, and other macroeconomic events on our business, financial condition, and operating results, see “Risk Factors” included in Part II, Item 1A of this report.

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Financial Results Overview

The following table provides an overview of our key metrics (in thousands, except percentages and headcount data):

			Three Months Ended April 30,
			2022						2021						$ Change						% Change
Total revenues			$	1,434,657					$	1,175,033					$	259,624					22		%
Subscription services revenues			$	1,272,076					$	1,032,169					$	239,907					23		%
GAAP operating income (loss)			$	(72,843)					$	(38,313)					$	(34,530)					90		%
Non-GAAP operating income (1)			$	288,558					$	288,513					$	45					0		%
GAAP operating margin			(5.1)		%				(3.3)		%										(2)		%
Non-GAAP operating margin (1)			20.1		%				24.6		%										(5)		%
Operating cash flows			$	439,717					$	452,428					$	(12,711)					(3)		%
			As of April 30,
			2022						2021						$ Change						% Change
Total subscription revenue backlog			$	12,653,639					$	10,081,579					$	2,572,060					26		%
24-month subscription revenue backlog			$	7,968,631					$	6,592,715					$	1,375,916					21		%
Cash, cash equivalents, and marketable securities			$	6,255,355					$	2,994,529					$	3,260,826					109		%
Headcount			15,932						13,119						2,813						21		%

(1) See “Non-GAAP Financial Measures” below for further information.

Components of Results of Operations

Revenues

We derive our revenues from subscription services and professional services. Subscription services revenues primarily consist of fees that give our customers access to our cloud applications, which include related customer support. Professional services revenues include fees for deployment services, optimization services, and training.

Subscription services revenues accounted for 89% of our total revenues for the three months ended April 30, 2022, and represented 96% of our total unearned revenue as of April 30, 2022. Subscription services revenues are driven primarily by the number of customers, the number of workers at each customer, the specific applications subscribed to by each customer, and the price of our applications.

The mix of applications to which a customer subscribes can affect our financial performance due to price differentials in our applications. Pricing for our applications varies based on many factors, including the complexity and maturity of the application and its acceptance in the marketplace. New products or services offerings by competitors in the future could also impact the mix and pricing of our offerings.

Subscription services revenues are recognized over time as services are delivered and consumed concurrently over the contractual term, beginning on the date our service is made available to the customer. Our subscription contracts typically have a term of three years or longer and are generally noncancelable. We generally invoice our customers annually in advance. Amounts that have been invoiced are initially recorded as unearned revenue.

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Our consulting engagements are billed on a time and materials basis or a fixed price basis. For contracts billed on a time and materials basis, revenues are recognized over time as the professional services are performed. For contracts billed on a fixed price basis, revenues are recognized over time based on the proportion of the professional services performed. In some cases, we supplement our consulting teams by subcontracting resources from our service partners and deploying them on customer engagements. As the Workday-related consulting practices of our partner firms continues to develop, we expect these partners to increasingly contract directly with our subscription customers. As a result of this trend, and the increase of our subscription services revenues, we expect our professional services revenues as a percentage of total revenues to continue to decline over time.

Subscription Revenue Backlog

Our subscription revenue backlog, which is also referred to as remaining performance obligations for subscription contracts, represents contracted subscription services revenues that have not yet been recognized and includes billed and unbilled amounts. Subscription revenue backlog may fluctuate from period to period due to a number of factors, including the timing of renewals and overall renewal rates, new business growth, average contract duration, and seasonality.

Costs and Expenses

Costs of subscription services revenues. Costs of subscription services revenues consist primarily of employee-related expenses associated with hosting our applications and providing customer support, expenses related to data centers and computing infrastructure operated by third parties, and depreciation of computer equipment and software.

Costs of professional services revenues. Costs of professional services revenues consist primarily of employee-related expenses associated with these services, subcontractor expenses, and travel expenses.

Product development. Product development expenses consist primarily of employee-related expenses. We continue to focus our product development efforts on adding new features and applications, increasing functionality, and enhancing the ease of use of our cloud applications.

Sales and marketing. Sales and marketing expenses consist primarily of employee-related expenses, sales commissions, marketing programs, and travel expenses. Marketing programs consist of advertising, events, corporate communications, brand awareness, brand ambassador campaigns, and product marketing activities. Sales commissions are considered incremental costs of obtaining a contract with a customer. Sales commissions for new revenue contracts are capitalized and amortized on a straight-line basis over a period of benefit that we have determined to be five years.

General and administrative. General and administrative expenses consist of employee-related expenses for finance and accounting, legal, human resources, information systems personnel, professional fees, and other corporate expenses.

Results of Operations

Revenues

Our total revenues for the three months ended April 30, 2022, and 2021, were as follows (in thousands, except percentages):

			Three Months Ended April 30,
			2022						2021						% Change
Subscription services			$	1,272,076					$	1,032,169					23		%
Professional services			162,581						142,864						14		%
Total revenues			$	1,434,657					$	1,175,033					22		%

Total revenues were $1.4 billion for the three months ended April 30, 2022, compared to $1.2 billion for the prior year period, an increase of $260 million, or 22%. Subscription services revenues were $1.3 billion for the three months ended April 30, 2022, compared to $1.0 billion for the prior year period, an increase of $240 million, or 23%. The increase in subscription services revenues was primarily due to an increased number of customer contracts and strong customer renewals, with gross retention over 95%. Professional services revenues were $163 million for the three months ended April 30, 2022, compared to $143 million for the prior year period, an increase of $20 million, or 14%. The increase in professional services revenues was primarily due to Workday performing deployment and integration services for a greater number of customers.

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Subscription Revenue Backlog

Our total subscription revenue backlog for the three months ended April 30, 2022, was $12.7 billion, with $8.0 billion expected to be recognized in revenues over the next 24 months. For the three months ended April 30, 2021, our total subscription revenue backlog was $10.1 billion, with $6.6 billion expected to be recognized in revenues over the next 24 months. The increase in subscription revenue backlog was primarily driven by the addition of new customers, expansion of our product offerings with existing customers, and the timing of renewals.

Operating Expenses

GAAP operating expenses were $1.5 billion for the three months ended April 30, 2022, compared to $1.2 billion for the prior year period, an increase of $294 million, or 24%. The increase in GAAP operating expenses included $208 million in employee-related expenses due to higher headcount, additional share-based compensation, and a new performance-based cash bonus program for all employees not covered under an existing incentive plan of $32 million. Additionally, there were increases of $22 million in facilities and IT-related expenses, $16 million in third-party expenses for hardware maintenance and data center capacity, $15 million in travel expenses, and $14 million related to marketing programs.

We use the non-GAAP financial measure of non-GAAP operating expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate our financial performance. We believe that non-GAAP operating expenses reflect our ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. We also believe that non-GAAP operating expenses provide useful information to investors and others in understanding and evaluating our operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

Non-GAAP operating expenses were calculated by excluding share-based compensation expenses and certain other expenses, which consist of employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets. See “Non-GAAP Financial Measures” below for further information.

Non-GAAP operating expenses were $1.1 billion for the three months ended April 30, 2022, compared to $887 million for the prior year period, an increase of $260 million, or 29%. The increase in non-GAAP operating expenses included $177 million in employee-related expenses due to higher headcount and a new performance-based cash bonus program for all employees not covered under an existing incentive plan of $32 million. Additionally, there were increases of $22 million in facilities and IT-related expenses, $16 million in third-party expenses for hardware maintenance and data center capacity, $15 million in travel expenses, and $14 million related to marketing programs.

Reconciliations of our GAAP to non-GAAP operating expenses were as follows (in thousands):

			Three Months Ended April 30, 2022
			GAAP Operating Expenses						Share-Based Compensation Expenses						Other Operating Expenses (1)						Non-GAAP Operating Expenses (2)
Costs of subscription services			$	232,922					$	(26,230)					$	(16,326)					$	190,366
Costs of professional services			169,899						(27,584)						(3,899)						138,416
Product development			541,509						(153,304)						(13,011)						375,194
Sales and marketing			429,301						(59,169)						(14,046)						356,086
General and administrative			133,869						(45,219)						(2,613)						86,037
Total costs and expenses			$	1,507,500					$	(311,506)					$	(49,895)					$	1,146,099

			Three Months Ended April 30, 2021
			GAAP Operating Expenses						Share-Based Compensation Expenses						Other Operating Expenses (1)						Non-GAAP Operating Expenses (2)
Costs of subscription services			$	182,208					$	(20,717)					$	(14,204)					$	147,287
Costs of professional services			150,845						(27,692)						(6,953)						116,200
Product development			441,616						(129,862)						(19,542)						292,212
Sales and marketing			326,494						(50,308)						(17,106)						259,080
General and administrative			112,183						(36,056)						(4,386)						71,741
Total costs and expenses			$	1,213,346					$	(264,635)					$	(62,191)					$	886,520

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(1)Other operating expenses include employer payroll tax-related items on employee stock transactions of $28 million and $44 million for the three months ended April 30, 2022, and 2021, respectively. In addition, other operating expenses include amortization of acquisition-related intangible assets of $22 million and $18 million for the three months ended April 30, 2022, and 2021, respectively.

(2)See “Non-GAAP Financial Measures” below for further information.

Costs of Subscription Services

GAAP operating expenses in costs of subscription services were $233 million for the three months ended April 30, 2022, compared to $182 million for the prior year period, an increase of $51 million, or 28%. The increase in costs of subscription services included increases of $26 million in employee-related expenses, including share-based compensation, due to higher headcount, $12 million in third-party expenses for hardware maintenance and data center capacity, and $4 million in depreciation expense related to equipment in our data centers.

Non-GAAP operating expenses in costs of subscription services were $190 million for the three months ended April 30, 2022, compared to $147 million for the prior year period, an increase of $43 million, or 29%. The increase in costs of subscription services included increases of $21 million in employee-related expenses due to higher headcount, $12 million in third-party expenses for hardware maintenance and data center capacity, and $4 million in depreciation expense related to equipment in our data centers.

We expect GAAP and non-GAAP operating expenses in costs of subscription services will continue to increase in absolute dollars as we improve and expand our technical operations infrastructure, including our data centers and computing infrastructure operated by third parties.

Costs of Professional Services

GAAP operating expenses in costs of professional services were $170 million for the three months ended April 30, 2022, compared to $151 million for the prior year period, an increase of $19 million, or 13%. The increase in costs of professional services included increases of $12 million in employee-related expenses, including share-based compensation, due to higher headcount and $4 million in professional services and subcontractor expenses.

Non-GAAP operating expenses in costs of professional services were $138 million for the three months ended April 30, 2022, compared to $116 million for the prior year period, an increase of $22 million, or 19%. The increase in costs of professional services included increases of $15 million in employee-related expenses due to higher headcount and $4 million in professional services and subcontractor expenses.

We expect GAAP and non-GAAP costs of professional services as a percentage of total revenues to continue to decline as we continue to rely on our service partners to deploy our applications and as the number of our customers continues to grow.

Product Development

GAAP operating expenses in product development were $542 million for the three months ended April 30, 2022, compared to $442 million for the prior year period, an increase of $100 million, or 23%. The increase in product development expenses was primarily due to an increase of $86 million in employee-related expenses, including share-based compensation, due to higher headcount.

Non-GAAP operating expenses in product development were $375 million for the three months ended April 30, 2022, compared to $292 million for the prior year period, an increase of $83 million, or 28%. The increase in product development expenses was primarily due to an increase of $69 million in employee-related expenses due to higher headcount.

We expect GAAP and non-GAAP product development expenses will continue to increase in absolute dollars as we improve and extend our applications and develop new technologies.

Sales and Marketing

GAAP operating expenses in sales and marketing were $429 million for the three months ended April 30, 2022, compared to $326 million for the prior year period, an increase of $103 million, or 31%. The increase in sales and marketing expenses included increases of $69 million in employee-related expenses, including share-based compensation, due to higher headcount, $14 million related to marketing programs, and $10 million in travel expenses.

Non-GAAP operating expenses in sales and marketing were $356 million for the three months ended April 30, 2022, compared to $259 million for the prior year period, an increase of $97 million, or 37%. The increase in sales and marketing expenses included increases of $64 million in employee-related expenses due to higher headcount, $14 million related to marketing programs, and $10 million in travel expenses.

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We expect GAAP and non-GAAP sales and marketing expenses to increase in absolute dollars as we continue to invest in our domestic and international selling and marketing activities to expand brand awareness and attract new customers.

General and Administrative

GAAP operating expenses in general and administrative were $134 million for the three months ended April 30, 2022, compared to $112 million for the prior year period, an increase of $22 million, or 19%. The increase in general and administrative expenses included increases of $15 million in employee-related expenses, including share-based compensation, due to higher headcount and $2 million in travel expenses.

Non-GAAP operating expenses in general and administrative were $86 million for the three months ended April 30, 2022, compared to $72 million for the prior year period, an increase of $14 million, or 20%. The increase in general and administrative expenses included increases of $8 million in employee-related expenses due to higher headcount and $2 million in travel expenses.

We expect GAAP and non-GAAP general and administrative expenses will continue to increase in absolute dollars as we further invest in our infrastructure and support our global expansion.

Operating Margin

GAAP operating margin declined from (3.3)% for the three months ended April 30, 2021, to (5.1)% for the three months ended April 30, 2022, primarily due to increases in higher headcount, the rollout of a performance-based cash bonus program to all employees not covered under an existing incentive plan, a return to travel and in-person events, and other growth investments made across the business, offset by higher revenues.

We use the non-GAAP financial measure of non-GAAP operating margin to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate our financial performance. We believe that non-GAAP operating margin reflects our ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. We also believe that non-GAAP operating margin provides useful information to investors and others in understanding and evaluating our operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

Non-GAAP operating margin was calculated using GAAP revenues and non-GAAP operating expenses. See “Non-GAAP Financial Measures” below for further information.

Non-GAAP operating margin declined from 24.6% for the three months ended April 30, 2021, to 20.1% for the three months ended April 30, 2022, primarily due to increases in higher headcount, the rollout of a performance-based cash bonus program to all employees not covered under an existing incentive plan, a return to travel and in-person events, and other growth investments made across the business, offset by higher revenues.

Reconciliations of our GAAP to non-GAAP operating income (loss) and operating margin were as follows (in thousands, except percentages):

			Three Months Ended April 30, 2022
			GAAP						Share-Based Compensation Expenses						Other Operating Expenses						Non-GAAP (1)
Operating income (loss)			$	(72,843)					$	311,506					$	49,895					$	288,558
Operating margin			(5.1)		%				21.7		%				3.5		%				20.1		%

			Three Months Ended April 30, 2021
			GAAP						Share-Based Compensation Expenses						Other Operating Expenses						Non-GAAP (1)
Operating income (loss)			$	(38,313)					$	264,635					$	62,191					$	288,513
Operating margin			(3.3)		%				22.5		%				5.4		%				24.6		%

(1)See “Non-GAAP Financial Measures” below for further information.

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Other Income (Expense), Net

We had other expense, net of $20 million for the three months ended April 30, 2022, as compared to other expense, net of $9 million for the three months ended April 30, 2021. The increase in other expense, net was primarily related to additional contractual interest expense of $9 million for our Senior Notes issued in the current quarter.

Non-GAAP Financial Measures

Regulation S-K Item 10(e), “Use of non-GAAP financial measures in Commission filings,” defines and prescribes the conditions for use of non-GAAP financial information. Our measures of non-GAAP operating expenses, non-GAAP operating income (loss), and non-GAAP operating margin meet the definition of non-GAAP financial measures.

Non-GAAP Operating Expenses, Non-GAAP Operating Income (Loss), and Non-GAAP Operating Margin

Our non-GAAP operating expenses, non-GAAP operating income (loss), and non-GAAP operating margin exclude the components listed below. For the reasons set forth below, management believes that excluding these components provides useful information to investors and others in understanding and evaluating our operating results and prospects in the same manner as management, in comparing financial results across accounting periods and to those of peer companies, and to better understand the long-term performance of our core business.

• Share-Based Compensation Expenses. Although share-based compensation is an important aspect of the compensation of our employees and executives, management believes it is useful to exclude share-based compensation expenses to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies. Share-based compensation expenses are determined using a number of factors, including our stock price, volatility, and forfeiture rates that are beyond our control and generally unrelated to operational decisions and performance in any particular period. Further, share-based compensation expenses are not reflective of the value ultimately received by the grant recipients.

• Other Operating Expenses. Other operating expenses includes employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe it is reflective of ongoing operations. Although we exclude the amortization of acquisition-related intangible assets from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Limitations on the Use of Non-GAAP Financial Measures

A limitation of our non-GAAP financial measures of non-GAAP operating expenses, non-GAAP operating income (loss), and non-GAAP operating margin is that they do not have uniform definitions. Our definitions will likely differ from the definitions used by other companies, including peer companies, and therefore comparability may be limited. Further, the non-GAAP financial measure of non-GAAP operating expenses has certain limitations because it does not reflect all items of expense that affect our operations and are reflected in the GAAP financial measure of total operating expenses. In the case of share-based compensation, if we did not pay out a portion of compensation in the form of share-based compensation and related employer payroll tax-related items, the cash salary expense included in operating expenses would be higher, which would affect our cash position.

We compensate for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-GAAP financial measures in conjunction with the most comparable GAAP financial measures.

See “Results of Operations—Operating Expenses” and “Results of Operations—Operating Margin” for reconciliations from the most directly comparable GAAP financial measures, GAAP operating expenses, GAAP operating income (loss), and GAAP operating margin, to the non-GAAP financial measures, non-GAAP operating expenses, non-GAAP operating income (loss), and non-GAAP operating margin, for the three months ended April 30, 2022, and 2021.

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Liquidity and Capital Resources

As of April 30, 2022, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $6.3 billion, which were primarily held for working capital purposes. Our cash equivalents and marketable securities are composed primarily of, in order from largest to smallest, U.S. treasury securities, commercial paper, U.S. agency obligations, money market funds, corporate bonds, and marketable equity investments. We have financed our operations primarily through customer payments, issuance of debt, and sales of our common stock.

We believe our existing cash, cash equivalents, marketable securities, cash provided by operating activities, unbilled amounts related to the remaining term of contracted noncancelable subscription agreements, which are not reflected on the Condensed Consolidated Balance Sheets, and, if necessary, our borrowing capacity under our 2022 Credit Agreement that provides for $1.0 billion of unsecured financing, are sufficient to meet our working capital, capital expenditure, and debt repayment needs over the next 12 months. As part of our strategy, we may enter into arrangements to acquire or invest in complementary businesses, services, technologies, or intellectual property rights in the future. We may also choose to seek additional debt or equity financing.

Our long-term future capital requirements depend on many factors, including the effects of macroeconomic trends, customer growth rates, subscription renewal activity, headcount growth, timing and extent of development efforts, expansion of sales and marketing activities, introduction of new and enhanced services offerings, timing of construction or acquisition of additional facilities, investments, and acquisition activities.

Our cash flows for the three months ended April 30, 2022, and 2021, were as follows (in thousands):

			Three Months Ended April 30,
			2022						2021
Net cash provided by (used in):
Operating activities			$	439,717					$	452,428
Investing activities			(1,470,741)						(861,716)
Financing activities			2,277,702						(11,008)
Effect of exchange rate changes			(685)						186
Net increase (decrease) in cash, cash equivalents, and restricted cash			$	1,245,993					$	(420,110)

Operating Activities

Cash provided by operating activities was $440 million and $452 million for the three months ended April 30, 2022, and 2021, respectively. The decline in cash provided by operating activities resulted from increased payments made to support the return to office and in-person events, the new employee performance-based cash bonus program for all employees not covered under an existing incentive plan, and other growth investments across the business, offset by increases in sales and related cash collections.

We expect our business to continue to generate sufficient operating cash flows; however, if the economic uncertainty caused by the COVID-19 pandemic and Russia-Ukraine conflict worsens or is prolonged, our customers may request payment timing concessions, which could materially impact the timing and predictability of our operating cash flows in any given period.

Investing Activities

Cash used in investing activities for the three months ended April 30, 2022, was $1.5 billion, which was primarily related to purchases of marketable securities of $2.0 billion using the proceeds from the Senior Notes offering, capital expenditures for data center and office space projects of $59 million, and purchases of non-marketable equity and other investments of $15 million. These payments were partially offset by proceeds of $607 million from sales and maturities of marketable securities and proceeds of $7 million from sales and maturities of non-marketable securities.

Cash used in investing activities for the three months ended April 30, 2021, was $862 million, which was primarily related to cash consideration for the acquisition of Peakon, net of cash acquired, of $679 million, the purchase of leased office space within our corporate headquarters from an affiliate of our Co-Founder and CEO Emeritus, David Duffield, of $171 million, capital expenditures primarily for data center projects of $70 million, purchases of non-marketable equity and other investments of $46 million, and the timing of purchases and maturities of marketable securities. These payments were partially offset by proceeds of $12 million from sales of marketable securities.

We expect capital expenditures will be approximately $475 million in fiscal 2023. This includes investments in our office facilities, corporate IT infrastructure, and customer data centers to support our continued growth.

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Financing Activities

Cash provided by financing activities was $2.3 billion for the three months ended April 30, 2022, which was primarily due to proceeds of $3.0 billion from borrowings on the Senior Notes, net of debt discount of $22 million, offset by the repayment of the term loan under the 2020 Credit Agreement of $694 million and payments for debt issuance costs of $7 million.

Cash used in financing activities was $11 million for the three months ended April 30, 2021, which was primarily due to a payment on the term loan under the 2020 Credit Agreement of $9 million.

Our 2022 Notes are convertible at the option of the holders during the second quarter of fiscal 2023 since the trigger for early conversion was met. Through the date of this filing, the amount of the principal balance of the 2022 Notes that has been converted or for which conversion has been requested was not material. We may receive additional conversion requests that require settlement in the second quarter of fiscal 2023. Additionally, the 2022 Notes will become due in the third quarter of fiscal 2023, which will result in a cash outflow of approximately $1.15 billion. For further information, see Note 10, Debt, of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.

Contractual Obligations

Except for the debt transactions discussed in Note 10, Debt, of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report, which include the issuance of $3.0 billion of Senior Notes, the modification to our revolving credit facility, and the extinguishment of the term loan under the 2020 Credit Agreement, there were no material changes outside the ordinary course of business to our contractual obligations disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2022.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates, judgements, and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, we evaluate our estimates, judgements, and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.

We believe that the following critical accounting policies involve a high degree of judgement and complexity, and are the most critical to aid in fully understanding and evaluating our financial condition and operating results:

• Revenue recognition

• Deferred commissions

• Business combinations, goodwill, and acquisition-related intangible assets

• Non-marketable equity investments

For a further discussion of our critical accounting policies, refer to our Annual Report on Form 10-K for the fiscal year ended January 31, 2022. There were no significant changes to our critical accounting policies and estimates during the three months ended April 30, 2022.

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The COVID-19 pandemic and Russia-Ukraine conflict have resulted in negative impacts on global economies and financial markets, which may increase our foreign currency exchange risk and interest rate risk. For further discussion of the potential impacts of these events on our business, financial condition, and operating results, see “Risk Factors” included in Part II, Item 1A of this report.

Foreign Currency Exchange Risk

We transact business globally in multiple currencies. As a result, our operating results and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. As of April 30, 2022, our most significant currency exposures were the euro, British pound, Canadian dollar, and Australian dollar.

Due to our exposure to market risks that may result from changes in foreign currency exchange rates, we enter into foreign currency derivative hedging transactions to mitigate these risks. For further information, see Note 9, Derivative Instruments, of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.

Interest Rate Risk on our Investments

We had cash, cash equivalents, and marketable securities totaling $6.3 billion and $3.6 billion as of April 30, 2022, and January 31, 2022, respectively. Cash equivalents and marketable securities were invested primarily in U.S. treasury securities, U.S. agency obligations, corporate bonds, commercial paper, money market funds, and marketable equity investments. The cash, cash equivalents, and marketable securities are held primarily for working capital purposes. Our investment portfolios are managed to preserve capital and meet liquidity needs. We do not enter into investments for trading or speculative purposes.

Our cash equivalents and our portfolio of debt securities are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. Due in part to these factors, our future investment income may fluctuate due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates. Our debt securities are classified as “available-for-sale.” When the fair value of the security declines below its amortized cost basis, any portion of that decline attributable to credit losses, to the extent expected to be nonrecoverable before the sale of the impaired security, is recognized on the Condensed Consolidated Statements of Operations.

An immediate increase of 100 basis points in interest rates would have resulted in a $17 million and $11 million market value reduction in our investment portfolio as of April 30, 2022, and January 31, 2022, respectively. This estimate is based on a sensitivity model that measures market value changes when changes in interest rates occur.

Interest Rate Risk on our Debt

The Senior Notes and 2022 Notes have fixed annual interest rates, and therefore we do not have economic interest rate exposure on these debt obligations. However, the fair values of the Senior Notes and 2022 Notes are exposed to interest rate risk. Generally, the fair values of the Senior Notes and 2022 Notes will increase as interest rates fall and decrease as interest rates rise. In addition, the fair value of the 2022 Notes is affected by our stock price since it is a convertible debt instrument.

Borrowings under our 2022 Credit Agreement bear interest, at our option, at a base rate plus a margin of 0.000% to 0.500% or a SOFR rate plus 10 basis points, plus a margin of 0.750% to 1.500%, in each case with such margin being determined based on our consolidated leverage ratio or credit rating. Because the interest rates applicable to borrowings under the 2022 Credit Agreement are variable, we are exposed to market risk from changes in the underlying index rates, which affect our cost of borrowing.

For further information, see Note 10, Debt, of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.

(a) Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officers and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this report.

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In designing and evaluating our disclosure controls and procedures, management recognizes that any disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgement in evaluating the benefits of possible controls and procedures relative to their costs.

Based on management’s evaluation, our principal executive officers and principal financial officer concluded that our disclosure controls and procedures are designed to, and are effective to, provide assurance at a reasonable level that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officers and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures.

(b) Changes in Internal Control Over Financial Reporting

Under the supervision and with the participation of our management, including our principal executive officers and principal financial officer, we conducted an evaluation of any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our most recently completed fiscal quarter. Based on that evaluation, our principal executive officers and principal financial officer concluded that there has not been any material change in our internal control over financial reporting during the quarter covered by this report that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are regularly involved with claims, suits, purported class or representative actions, and may be involved in regulatory and government investigations and other proceedings, involving competition, intellectual property, data security and privacy, bankruptcy, tax and related compliance, labor and employment, commercial disputes, and other matters. Such claims, suits, actions, regulatory and government investigations, and other proceedings can impose a significant burden on management and employees, could prevent us from offering one or more of our applications, services, or features to others, could require us to change our technology or business practices, or could result in monetary damages, fines, civil or criminal penalties, reputational harm, or other adverse consequences.

These claims, suits, actions, regulatory and government investigations, and other proceedings may include speculative, substantial, or indeterminate monetary amounts. We record a liability when we believe that it is probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgement is required to determine both the likelihood of there being a liability and the estimated amount of a liability related to such matters. With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible liability will not, either individually or in aggregate, have a material adverse effect on our business, financial condition, operating results, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties.

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Investing in our securities involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this report, including the condensed consolidated financial statements and the related notes included elsewhere in this report, before making an investment decision. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that materially and adversely affect our business. If any of the following risks actually occurs, our business operations, financial condition, operating results, and prospects could be materially and adversely affected. The market price of our securities could decline due to the materialization of these or any other risks, and you could lose part or all of your investment.

Summary of Risk Factors

The below summary risks provide an overview of the material risks we are exposed to in the normal course of our business activities. The below summary risks do not contain all of the information that may be important to you, and you should read these together with the more detailed discussion of risks set forth following this section, as well as elsewhere in this report under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Additional risks beyond those summarized below, or discussed elsewhere in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” may apply to our activities or operations as currently conducted or as we may conduct them in the future, or to the markets in which we currently operate or may in the future operate. Consistent with the foregoing, we are exposed to a variety of risks, including those associated with the following:

• the ongoing COVID-19 pandemic, the continuing global economic and geopolitical volatility, and measures taken in response to such events may materially and adversely affect our business, financial condition, operating results, and earnings guidance that we may issue from time to time;

• if our information technology systems or the security measures of our service partners are compromised or unauthorized access to customer or user data is otherwise obtained, our applications may be perceived as not being secure, our operations may be disrupted, our applications may become unavailable, customers and end users may reduce the use of or stop using our applications, and we may incur significant liabilities;

• if we fail to properly manage our technical operations infrastructure, including our data centers and computing infrastructure operated by third parties, experience service outages or delays in the deployment of our applications, or our applications fail to perform properly, we may be subject to liabilities and our reputation and operating results may be adversely affected;

• privacy concerns and evolving domestic or foreign laws and regulations may reduce the adoption of our applications, result in significant costs and compliance challenges, and adversely affect our business and operating results;

• we may lose key employees or be unable to attract, train, and retain highly skilled employees, which may adversely affect our business and future growth prospects;

• the markets in which we participate are intensely competitive, and if we do not compete effectively, our operating results could be adversely affected;

• our quarterly results may fluctuate significantly as a result of a variety of factors, many of which are outside of our control, and such fluctuations and related impacts to any earnings guidance we may issue from time to time, or any modification or withdrawal thereof, may negatively impact the value of our securities;

• our brand promotion activities may not generate the customer awareness or increased revenues we anticipate, and even if they do, any increase in revenues may not offset the significant expenses we incur in building our brand;

• if we are not able to realize a return on our current development efforts or offer new features, enhancements, and modifications to our products and services, our business and operating results could be adversely affected; additionally, if we are not able to realize a return on the investments we have made toward entering new markets and new lines of business, including as a result of unfavorable laws, regulations, interpretive positions, or standards governing new and evolving technologies we incorporate into our products and services, our business and operating results could be adversely affected;

• if we are unable to establish or maintain our strategic relationships with third parties, or fail to successfully integrate our applications with a variety of third-party technologies, our ability to compete or grow our revenues may be impaired and our operating results may suffer;

• we have acquired, and may in the future acquire, other companies, employee teams, or technologies, which could divert our management’s attention, result in additional dilution to our stockholders, and otherwise disrupt our operations and adversely affect our operating results;

• if we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service and operational controls, or adequately address competitive challenges;

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• if we cannot maintain our corporate culture, we may lose the innovation, teamwork, and passion that we believe contribute to our success, and our business may be harmed;

• because we encounter long sales cycles when selling to large customers and we recognize subscription services revenues over the term of the contract, downturns or upturns in new sales will not be immediately reflected in our operating results and it may be difficult to predict a negative impact on our operating and financial results; additionally, our ability to predict the rate of customer subscription renewals or adoptions is limited;

• our business could be adversely affected if our users are not satisfied with the deployment, training, and support services provided by us and our partners, and such dissatisfaction could damage our ability to expand the applications subscribed to by our current customers and negatively impact our ability to compete for new business;

• sales to customers outside the United States or with international operations expose us to risks inherent in global operations;

• we have a history of cumulative losses and we may not achieve or sustain profitability on a GAAP basis in the future;

• any failure to protect our intellectual property rights domestically and internationally could impair our ability to protect our proprietary technology and our brand; additionally, we may be sued by third parties for alleged infringement of their proprietary rights or in connection with our use of open source software;

• risks related to government contracts and related procurement regulations, including risks of fines and termination of such contracts by the government at any time, may adversely impact our business and operating results;

• adverse litigation results could have a material adverse impact on our business;

• the dual class structure of our common stock has the effect of concentrating voting control with our Co-Founders, as well as with other executive officers, directors, and affiliates, which gives our Co-Founders and other members of management control over key decisions and limits or precludes the ability of non-affiliates to influence corporate matters;

• our substantial indebtedness may adversely affect our financial condition and operating results;

• our convertible note hedge and warrant transactions may adversely affect the value of o

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Not applicable.

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The Exhibits listed below are filed as part of this Form 10-Q.

												Incorporated by Reference																								Filed Herewith
Exhibit No.						Exhibit						Form						File No.						Filing Date						Exhibit No.
4.1						Indenture, dated as of April 1, 2022, between Workday and U.S. Bank Trust Company National Association, as trustee						8-K						001-35680						April 1, 2022						4.1
4.2						Form of 3.500% Note due 2027						8-K						001-35680						April 1, 2022						4.3
4.3						Form of 3.700% Note due 2029						8-K						001-35680						April 1, 2022						4.4
4.4						Form of 3.800% Note due 2032						8-K						001-35680						April 1, 2022						4.5
10.1						Credit Agreement, dated as of April 6, 2022, among Workday, certain subsidiaries of Workday, Bank of America, N.A., Wells Fargo Bank, National Association, and the other L/C Issuers and Lenders party thereto						8-K						001-35680						April 7, 2022						10.1
31.1						Certification of Periodic Report by Principal Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002																														X
31.2						Certification of Periodic Report by Principal Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002																														X
31.3						Certification of Periodic Report by Principal Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002																														X
32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002																														X
32.2						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002																														X
32.3						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002																														X
101.INS						Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)																														X
101.SCH						Inline XBRL Taxonomy Schema Linkbase Document																														X
101.CAL						Inline XBRL Taxonomy Calculation Linkbase Document																														X
101.DEF						Inline XBRL Taxonomy Definition Linkbase Document																														X
101.LAB						Inline XBRL Taxonomy Labels Linkbase Document																														X

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101.PRE						Inline XBRL Taxonomy Presentation Linkbase Document																														X
104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)																														X

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 26, 2022

			Workday, Inc.
			/s/ Barbara Larson
			Barbara Larson Chief Financial Officer (Principal Financial and Accounting Officer)