Workday Enterprise Management Cloud Overview slide image

Workday Enterprise Management Cloud Overview

Reconciliation of GAAP to Non-GAAP Data Three Months Ended October 31, 2021 (in thousands, except percentages and per share data) Costs and expenses: GAAP Share-Based Compensation Expenses Other Operating Expenses² Income Tax and Non-GAAP Dilution Effects³ Costs of subscription services $ 200,700 $ (21,340) $ (12,859) $ Costs of professional services 159,024 (29,105) (1,043) Product development 455,615 (135,591) (2,870) Sales and marketing 366,323 (55,645) (9,642) General and administrative 121,656 (39,437) Operating income (loss) 23,945 281,118 (772) 27,186 | | | | | $ 166,501 128,876 317,154 Operating margin 1.8 % 21.2 % 2.0% ― % Other income (expense), net 21,557 301,036 81,447 332,249 25.0 % 21,557 Income (loss) before provision for (benefit from) income taxes 45,502 281,118 27,186 353,806 Provision for (benefit from) income taxes 2,090 65,133 67,223 Net income (loss) $ Net income (loss) per share, basic¹ $ Net income (loss) per share, diluted¹ $ 555 0.17 43,412 $ 0.17 $ $ 281,118 1. 2. 3. 1.10 GAAP net income per share is calculated based upon 248,468 basic and 254,760 diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon 248,468 basic and 262,577 diluted weighted-average shares of common stock. The numerator used to compute non-GAAP diluted net income per share was increased by $1.3 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 $19.7 million and employer payroll tax-related items on employee stock transactions of $7.5 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 projected tax rate was 19%. Included in the per share amount is a dilution impact of $0.02 from the conversion of GAAP diluted net income per share to non-GAAP diluted net income per share. 1.10 1.13 $ $ SSS $ 27,186 $ 0.11 $ 0.11 $ (65,133) $ (0.26) $ (0.28) SSS 286,583 1.15 $
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