Stock Analysis on Net
Stock Analysis on Net

Workday Inc. (NASDAQ:WDAY)

$24.99

Common-Size Income Statement
Quarterly Data

Paying user area

Try for free

Workday Inc. pages available for free this week:

The data is hidden behind: . Unhide it.

Get access

This is a one-time payment. There is no automatic renewal.

We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Workday Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jul 31, 2025 Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
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)
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-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30).

Revenue Composition
Subscription services represent the dominant share of total revenues, consistently increasing over time from approximately 85% in early 2019 to over 92% by mid-2025. In contrast, professional services have steadily declined as a percentage of revenues, falling from about 15% to just around 7-8% during the same period. This indicates an increasing reliance on recurring subscription revenues versus one-time or variable professional services.
Cost Trends
The costs associated with subscription services have generally exhibited a moderate upward trend relative to revenues, rising from about 13.6% to nearly 16% by 2025. Costs linked to professional services show a consistent decrease from nearly 16% to under 9%, reflecting possible improvements in efficiency or changes in service delivery.
Overall costs of revenues have decreased from roughly 30% to between 24% and 25%, indicating improved cost management or operational leverage as subscription revenues grow. This has contributed positively to the gross profit margin.
Profitability Metrics
Gross profit margins have improved from around 70% to about 75% of revenues over the examined periods. This improvement correlates with reductions in total cost of revenues and shifts toward higher-margin subscription services.
Operating income has shown significant volatility but an overall improving trend. It started negative, with losses exceeding 14% of revenues in 2019 and early 2020, approached breakeven and positive territory intermittently, and progressively improved to achieve operating margins exceeding 10% by early 2025. Some fluctuations are noted around late 2021 to early 2023, possibly due to restructuring or consolidated expense management.
Expense Patterns
Product development expenses, which form the largest portion of operating expenses, have decreased substantially from over 42% to under 30% of revenues, indicating greater investment efficiency or scaling benefits. Sales and marketing expenses have also declined modestly from above 33% to roughly 27-28%, supporting margin improvements.
General and administrative expenses remained relatively stable, fluctuating between approximately 9% and 10% of revenues over the analysis period.
Restructuring costs appeared sparingly starting around 2023, with notable spikes negatively impacting profitability in certain quarters.
Other Income and Tax Impact
Other income (expense), net, has demonstrated a mixed but generally positive impact in more recent periods, contributing between 2% and 3% of revenues, which supports pre-tax income improvements.
Income tax provisions show variable effects with some quarters reflecting benefits and others provisions. A significant positive tax effect is apparent in the first quarter of 2024, corresponding to an unusually high net income margin that quarter.
Net Income Trends
Net income margins have echoed operating income patterns, initially negative with large losses exceeding 14%, gradually moving into positive territory in the second half of 2021 and early 2023, and reaching peaks above 60% in a single quarter due to extraordinary tax benefits. Excluding outlier quarters, net income margins tend to range between 3% and 9%, showing overall improved profitability alongside the firm’s revenue and cost structure evolution.