Workday Enterprise Management Cloud Overview slide image

Workday Enterprise Management Cloud Overview

Reconciliation of GAAP to Non-GAAP Data Three 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 Non-GAAP Dilution Effects³ Costs of subscription services $ 259,397 $ Costs of professional services 176,396 (25,598) $ (26,577) (14,100) $ (623) Product development 565,727 (149,279) (1,899) General and administrative Operating margin Sales and marketing Operating income (loss) Other income (expense), net Income (loss) before provision for (benefit from) income taxes Provision for (benefit from) income taxes 470,196 (61,186) (9,206) 153,708 (51,556) (531) (26,321) 314,196 26,359 (1.6)% 19.6 % 1.7 % 4,163 (22,158) 314,196 26,359 | | | | | │ $ 219,699 149,196 414,549 399,804 101,621 314,234 % 19.7 % 4,163 318,397 52,563 7,933 60,496 Net income (loss) Net income (loss) per share, basic¹ Net income (loss) per share, diluted¹ 1. SSS $ $ $ (74,721) $ (0.29) $ (0.29) $ 314,196 1.23 1.23 $ $ SSS $ 26,359 $ (7,933) $ 257,901 0.10 0.10 EA EA $ (0.03) $ 1.01 $ (0.05) $ 0.99 2. 3. GAAP net loss per share is calculated based upon 255,753 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon 255,753 basic and 261,777 diluted weighted-average shares of common stock. The numerator used to compute non-GAAP diluted net income per share was increased by $0.9 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 $21.2 million and employer payroll tax-related items on employee stock transactions of $5.2 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 $0.02 from the conversion of GAAP diluted net loss per share to non- GAAP diluted net income per share.
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