Common-Size Income Statement
Quarterly Data
Workday Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-10-31), 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
- The proportion of subscription services revenue has steadily increased over the analyzed periods, rising from approximately 85% to over 92% of total revenues. Correspondingly, professional services revenues have declined from roughly 15% to just below 8%, reflecting a strategic shift or evolving business mix favoring subscription offerings.
- Cost Structure
- The costs associated with subscription services as a percentage of total revenues have exhibited a slight upward trend, moving from about 13.6% to over 16%. Conversely, the costs tied to professional services have decreased notably, from nearly 16% down to around 8%, indicative of improved operational efficiency or cost management within professional services. Overall, total costs of revenues have declined from approximately 29.5% to about 24.3%, enhancing gross profitability.
- Gross Profit Margin
- Gross profit margins have displayed an improving trend, increasing from approximately 70.5% to about 75-76% range in recent quarters, signifying effective revenue growth combined with better cost control on a consolidated basis.
- Operating Expenses
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- Product Development
- Expenditure on product development, as a percentage of revenues, has declined significantly from over 42% to around 27-29%, indicating a reduction in relative spending or increased efficiency in product-related investments.
- Sales and Marketing
- Sales and marketing costs have remained relatively stable with minor fluctuations, generally ranging between 27% and 33%, suggesting consistent investments in these areas aligned with revenue growth.
- General and Administrative
- General and administrative expenses have shown slight variability, mostly between 9% and 10%, reflecting stable overhead costs relative to revenue.
- Restructuring Costs
- Restructuring charges have appeared sporadically in later periods, notably increasing substantially in some recent quarters, which may indicate organizational changes or strategic optimization efforts impacting operational costs.
- Operating Income
- Operating income margins have improved over time, moving from negative territory (around -15%) in early periods to positive margins exceeding 10% in the latest quarters, demonstrating enhanced operational profitability driven by cost management and revenue growth.
- Other Income (Expense), Net
- There has been variability in other income or expense items, with some periods showing positive contributions of up to 8%, which generally support overall profitability.
- Income Before Taxes and Net Income
- Income before income taxes has followed a similar trajectory to operating income, improving from losses nearing -14% to positive returns above 13%. Net income margins reflect more volatility but generally show marked improvement from significant losses to strong positive margins, with some quarters evidencing substantial spikes, such as a notable surge to over 60% in one period, possibly due to one-time items or tax-related effects.
- Income Taxes
- Provision for income taxes as a percentage of revenues has been inconsistent, showing both small positive and negative values, with occasional periods of significant tax benefits or charges, influencing net income volatility.