Workday Enterprise Management Cloud Overview
Reconciliation of GAAP to Non-GAAP Data
Nine Months Ended October 31, 2021
(in thousands, except percentages and per
share data)
GAAP
Costs and expenses:
Share-Based
Compensation
Expenses
Other Operating
Expenses²
Income Tax and
Non-GAAP
Dilution Effects ³
Costs of subscription services
$
Costs of professional services
575,646 $
462,652
(62,478)
$
(40,195) $
$
472,973
(83,331)
(9,211)
370,110
Product development
1,341,482
(395,345)
(25,573)
920,564
Sales and marketing
1,050,974
(158,121)
(36,512)
856,341
General and administrative
347,391
(111,197)
(6,091)
230,103
Operating income (loss)
(15,488)
810,472
117,582
912,566
Operating margin
(0.4) %
21.5%
3.2 %
%
24.3 %
Other income (expense), net
115,491
115,491
Income (loss) before provision for (benefit from)
income taxes
100,003
810,472
117,582
1,028,057
Provision for (benefit from) income taxes
(2,623)
197,954
195,331
Net income (loss)
$
Net income (loss) per share, basic¹
Net income (loss) per share, diluted¹
$
$
5959
102,626 $
0.42 $
0.40 $
3.19
810,472 $
3.29 $
$
117,582
$
0.48
$
(0.81)
(197,954) $
$
832,726
3.38
0.46
$
(0.85) $
3.20
1.
2.
3.
GAAP net income per share is calculated based upon 246,348 basic and 253,917 diluted weighted-average shares of common stock. Non-GAAP net income per share is
calculated based upon 246,348 basic and 261,734 diluted weighted-average shares of common stock. The numerator used to compute non-GAAP diluted net income per
share was increased by $3.9 million for after-tax interest expense on our convertible senior notes in accordance with the if-converted method.
Other operating expenses include employer payroll tax-related items on employee stock transactions of $60.1 million and amortization of acquisition-related intangible
assets of $57.5 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 2022, the non-GAAP tax rate was 19%. Included in the per share amount is a dilution impact of $0.07 from the conversion of GAAP diluted net income per share to
non-GAAP diluted net income per share.View entire presentation