Stock Analysis on Net
Stock Analysis on Net

Workday Inc. (NASDAQ:WDAY)

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Common-Size Income Statement

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Workday Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Subscription services
Professional services
Revenues
Costs of subscription services
Costs of professional services
Costs of revenues
Gross profit
Product development
Sales and marketing
General and administrative
Restructuring
Operating income (loss)
Interest income
Interest expense
Other
Other income (expense), net
Income (loss) before (provision for) benefit from income taxes
(Provision for) benefit from income taxes
Net income (loss)

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

Revenue Composition
Subscription services have steadily increased as a percentage of revenues, rising from 85.37% in 2020 to 91.38% in 2025. Conversely, professional services have declined in relative contribution to total revenues, decreasing from 14.63% to 8.62% over the same period. Overall revenues remained constant at 100% for all years, serving as the baseline for the analysis.
Cost Structure
The costs associated with subscription services showed a generally increasing trend from 13.47% of revenues in 2020 to a peak of 16.27% in 2023, before declining slightly to 14.99% by 2025. Costs of professional services consistently decreased from 15.90% in 2020 to 9.51% in 2025, paralleling the decline in professional services revenue share. Total costs of revenues decreased from 29.37% in 2020 to 24.50% in 2025, indicating improved cost efficiency.
Profitability Metrics
Gross profit margins improved from 70.63% in 2020 to a peak of 75.60% in 2024, before a minor reduction to 75.50% in 2025. Operating income experienced a significant turnaround, moving from a loss of 13.85% in 2020 to a positive margin of 4.91% in 2025, indicating operational improvements despite some volatility in the interim periods.
Operating Expenses
Product development expenses steadily decreased as a percentage of revenues, from 42.73% in 2020 to 31.09% in 2025. Sales and marketing expenses fluctuated slightly but generally trended downward from 31.61% to 28.79%. General and administrative expenses remained relatively stable, around 9.5% to 10% of revenues across the years. A restructuring cost of 0.99% of revenues appears in 2025, suggesting organizational changes or cost optimization efforts.
Financial Income and Expenses
Interest income showed variability but increased notably from 1.14% in 2020 to around 4.14% by 2025. Interest expense remained relatively low and stable, decreasing slightly from 1.62% to 1.35% over the period. Other income and expenses showed fluctuations, with a generally positive net effect in the later years.
Income Taxes and Net Income
Income before taxes transitioned from a loss of 13.3% in 2020 to a positive income of 7.55% in 2025, reflecting overall profitability improvements. The tax provision was inconsistent, including a significant benefit of 14.12% in 2024 followed by a reversal in 2025. Net income followed a similarly volatile pattern, with losses early on, a notable peak of 19.02% in 2024, then settling to 6.23% in 2025. This volatility suggests non-operational influences affecting net profitability.