Workday Enterprise Management Cloud Overview
Reconciliation of GAAP to Non-GAAP Data
Nine Months Ended October 31, 2022
(in thousands, except percentages and per
share data)
GAAP
Costs and expenses:
Share-Based
Compensation
Expenses
Other Operating
Expenses²
Income Tax and
Dilution Effects³
Non-GAAP
Costs of subscription services
$
Costs of professional services
737,301 $
524,398
(76,918) $
(45,022) $
615,361
(79,999)
(5,297)
Product development
1,655,071
(449,764)
(17,146)
439,102
1,188,161
General and administrative
Sales and marketing
Operating income (loss)
Operating margin
Other income (expense), net
Income (loss) before provision for (benefit from)
income taxes
Provision for (benefit from) income taxes
1,358,198
(180,233)
(32,640)
1,145,325
427,832
(146,795)
(3,772)
277,265
(133,242)
933,709
103,877
904,344
(2.9) %
20.4 %
2.3 %
%
19.8 %
(48,789)
(48,789)
(182,031)
933,709
103,877
855,555
59,021
103,534
162,555
Net income (loss)
Net income (loss) per share, basic¹
Net income (loss) per share, diluted¹
$
(241,052) $
$
$
(0.95) $
(0.95) $
3.68
933,709 $
3.68 $
$
103,877 $
0.41 $
0.41 $
(103,534) $
693,000
(0.41) $
2.73
(0.49) $
2.65
1.
2.
3.
GAAP net loss per share is calculated based upon 253,975 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated
based upon 253,975 basic and 262,742 diluted weighted-average shares of common stock. The numerator used to compute non-GAAP diluted net income per share was
increased by $3.5 million for after-tax interest expense on our convertible senior notes in accordance with the if-converted method.
Other operating expenses include amortization of acquisition-related intangible assets of $64.3 million and employer payroll tax-related items on employee stock
transactions of $39.5 million.
We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For
fiscal 2023, the non-GAAP tax rate is 19%. Included in the per share amount is a dilution impact of $0.08 from the conversion of GAAP diluted net loss per share to non-
GAAP diluted net income per share.View entire presentation