Workday narrowly beat Wall Street estimates for the fourth quarter, reporting revenue growth of 21.6%.
The company, which makes cloud ERP and financials software, reported fourth quarter revenue of $1.38 billion. Subscription revenue was $1.23 billion, up 22.2% from a year ago. Workday reported earnings of 78 cents a share.
Wall Street was expecting Workday to report fourth quarter revenue of $1.36 billion with non-GAAP earnings of 71 cents a share.
For the full fiscal year, Workday reported revenue of $5.14 billion, an increase of 19% compared to 2021. Subscription revenues grew 20% to $4.55 billion. Non-GAAP basic and diluted net income per share was $4.20 and $3.99 for the fiscal year.
"We closed out the year with another strong quarter that saw continued acceleration of our business, including a growing global workforce and a relentless focus on employees, customers, and innovation," said Aneel Bhusri, co-CEO of Workday.
"We continue to see increasing demand for our broad suite of finance and HR solutions, as we help some of the world's largest organizations – and more than 60 million users – navigate the changing world of work. This momentum, along with our employees' continued commitment, gives me great confidence in the opportunity ahead."
Workday announced in November that it is planning to acquire VNDLY, a cloud contractor and vendor management provider, for $510 million in cash.
With the move, Workday is aiming to meld optimization tools for both internal and external salaried, hourly, contingent and outsourced workers. Workday said it was aiming to support talent management, costs, planning and compliance in a holistic approach.
Barbara Larson, chief financial officer at Workday, said the company was raising its guidance for fiscal 2023 subscription revenue to be in a range of $5.53 billion to $5.55 billion, representing year-over-year growth of 22%.
"We are also raising our fiscal 2023 non-GAAP operating margin guidance to 18.5%. Our market position has never been stronger, and investing to support long-term growth remains our priority," Larson said.