Workday, Inc.

Welcome to Workday's fourth quarter and fiscal year 2021 earnings call. At this time, all participants are in a listen-only mode. We will conduct a question and answer session towards the end of the call. And with that, I will now hand it over to Mr. Justin Furby, Vice President of Investor Relations. Please go ahead.

Welcome to Workday's fourth quarter fiscal 2021 earnings conference call. On the call, we have Anil Bushri and Shana Fernandez, our co-CEOs, Robin Sisco, our President and CFO, and Pete Schlampp, our Executive Vice President of Product Development. Following prepared remarks, we will take questions. Our press release was issued after close of market and is posted on our website, where this call is being simultaneously webcast. Before we get started, we want to emphasize that some of our statements on this call, particularly our guidance, are based on the information we have as of today and include forward-looking statements regarding our financial results applications, customer demand, operations, and other matters. These statements are subject to risks, uncertainties, and assumptions, including those related to the impacts of the ongoing COVID-19 pandemic on our business and global economic conditions. Please refer to the press release and the risk factors in documents we file with the Securities and Exchange Commission, including our most recent quarterly report on Form 10-Q for additional information on risk, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Workday's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures including reconciliations with comparable gap results in our earnings press release and on the investor relations page of our website. The webcast replay of this call will be available for the next 90 days on our company website under the investor relations link. Also, the customer's page of our website includes a list of selected customers and is updated monthly. Our first quarter quiet period begins on April 16th, 2021. Unless otherwise stated, All financial comparisons in this call will be to our results for the comparable period of our fiscal 2020. With that, I will turn it over to Chano to share go-to-market highlights in the quarter. He will then turn it over to Anil, who will provide updates on the strategy and innovation front. And then Robin will close with our financials and guidance. We will then open the lineup for your questions. Over to you, Chano.

Thank you, Justin. I hope all of you joining us today are in good health and that your families are doing well. It has been a challenging few months of the pandemic, but there is significant cause for optimism. We had a very strong close to the year as companies increasingly realized that HR and finance are the true backbone of their digital transformation. This realization was leading to significant pipeline improvement. And as we enter FY22, we are well positioned to drive accelerated new bookings growth. Our solid results were driven by another quarter of strong execution of high conversion rates. We once again drove strength in North America and our DAF region, with vertical standouts in education and government, healthcare, and the professional services markets. Both the large and medium enterprise teams outperformed, driven by continued momentum in our installed base efforts, as well as improving performance in our net new business. The strength in our HCM solutions was a critical contributor to our Q4 performance, with notable customer additions in the quarter, including Nike, ABB, Anthem, companies worldwide, Cox Enterprises, Ferrovial Corporation, First Rand Bank, Laboratory Corporation of America, and PecanPay Retailers. We also saw significant uptake across our newer solutions that support the office of the CHRO, including people analytics, health and journeys, and talent marketplace. By leveraging these applications, organizations are addressing and fundamentally rethinking important questions, like how to end institutional bias, how to reshape the workforce to meet today's demands, and how to spot engagement risks and execution blind spots. The FINS Plus solutions also had a strong quarter and continues to represent an increasing percentage of our new business mix. We have several strategic core FINS wins in Q4, including a Fortune 500 win of Franklin Templeton, which included Accounting Center, Minnesota State Colleges and Universities, Century Insurance, the University of Maryland College Park, the Youth Children's Research Hospital, Vanderbilt University Medical Center. We are excited by the accelerating pipeline of PIMS opportunities, including emerging use cases with enterprise finance in product-based industries like retail and manufacturing. where recent wins include one of the nation's largest pizza chains, Zoomies, and exporting goods retailers with over 1,000 stores. And we once again saw solid demand for our suite of products that support the Office of the CFO and Chief Procurement Officer, including Workday Adaptive Planning, recent analytics, as well as Workday Strategic Sourcing, and our broader spend management solutions. Our installed base team also had another solid performance with more than 40% growth in new ACV bookings in Q4 against a very difficult comparison, a more than 50% growth for full year FY21. This team's execution was critical in driving growth over the past year. And we remain very optimistic that with an ever-expanding product portfolio, we can continue to increase customer wallet share in the years ahead. Our customer success and services organization also executed incredibly well, taking more than 254 HCM and Fins customers live in the quarter. Ensuring customer success has always been a core value for us at Huarte. And I'm incredibly proud of how our services team and our partners have responded in this environment, helping to take life, and virtually, I might add, a record number of workers on the Workday platform in FY21. Personally, one of the Q4 highlights was around our pipeline efforts. As we have described over the last two earnings polls, our pipeline generation has been improving since the onset of the pandemic. and I am pleased to say that trend continue and meaningfully accelerated in Q4 with record pipeline generation across all three regions. We still see some pipeline impact from COVID-impacted industries, but those headwinds appear to be lessening. The pipeline strength We have seen, along with the stabilization in new business demand, drives our expectations that new business growth will accelerate in FY22. On the personnel side, I wanted to congratulate my good friend Doug Robinson on his recent promotion to EVP of Global Sales. Doug has been incredibly impactful over his 10 years plus at QWERTY, most recently serving as head of North America Sales, with an impressive track record. where he not only played an instrumental role in helping us win some of the world's biggest brands, but he also established high levels of operational and sales excellence across our North America region that have been critical to workplace growth. In his new role, Doug will lead our global sales efforts, reporting directly to me, helping us to accelerate our business momentum while continuing to expand our international footprint. Congratulations, Doug, and I look forward to our continued partnership. Finally, before handing it over to Anil, and on behalf of the entire Workday leadership team, I would like to express thanks to all of our workmates across the globe. Your response to this challenging environment has been nothing short of amazing, and your resiliency has set us up for a strong year ahead. With that, I will turn it over to our co-founder and co-CEO, Anil Pulsri.