Workday, Inc.

Welcome to Workday's second quarter fiscal year 2022 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. I will now hand it over to Mr. Justin Furby, Vice President of Investor Relations.

Thank you, Operator. Welcome to Workday's second quarter fiscal 2022 earnings conference call. On the call, we have Anil Bushri and Chano 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 and documents we file with the Securities and Exchange Commission including our 2021 annual report on Form 10-K and most recent quarterly report on Form 10-Q for additional information on risks, 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 GAAP 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 customers page of our website includes a list of selected customers and is updated monthly. Our third quarter quiet period begins on October 16, 2021. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal 2021. With that, I will hand the call over to Anil.

Thank you, Justin, and good afternoon, everyone. Thank you for joining us today for our second quarter fiscal year 22 earnings call. I'm pleased to report that Q2 was one of our strongest quarters in company history, but combined with Q1, this was the best first half of the year in terms of ACV growth in over three years. We came into the year expecting our business to accelerate, but the pace of digital acceleration across HR and finance is exceeding even our own expectations. Our leadership position continues to strengthen, driven by a broadening of our product portfolio and exceptional execution. The growing Workday customer community now includes 55 million users and 50% of the Fortune 500, of which approximately 90% are live on Workday. Channel will share more shortly on our go-to-market success, and Robin will provide specifics in our raised growth outlook for the second half of the year. But let me share first some of the highlights from Q2. Let's start with Workday HCM. Our position as an innovator and market leader with our differentiated suite of products has never been stronger. We continue to attract new customers, and many of our current customers continue to grow their investments with us. In Q2, we welcome CVS Health, Iberdrola, Vallejo Management Services, California Pizza Kitchen, and Heidelberg Cement AG to the Workday family, along with many other new HCM customers. While these new wins are very important to us, we remain equally focused on delivering excellent service to our current customers, and that includes delivering on our commitments to them. Amongst the many go-lives of Q2, I would like to highlight Harman International Industries, BJ's Wholesale Club, and Old Dominion. In addition to the strong growth from Core HCM, this was our first full quarter with Pecan. I'm pleased to report we got off to a great start delivering the largest quarter in Pecan history with early success selling back into our installed base. A true testament to the incredible Pecan product and even better Pecan team. We also continue to see strong traction for our financial management suite of applications. We believe that a combination of our expanded set of offerings, including planning, spend management, and accounting center, and the acceleration of digital transformations by the Office of the CFO, are collectively driving broader adoption of our finance offerings. In fact, the highlight in Q2 was nearly 50% ACV growth in the Workday Adaptive Planning business, showcasing that our strategy of meeting customers where they are continues to drive significant success. In addition, we continue to see momentum build in our core financial deployments. New core financial customers in Q2 included Cinemark USA, University of Wisconsin System, and Wise Markets. Notable core friends GoLives included the University of Southern California, KeyBank North America, and Fox Corporation. Moving on to the innovation front, we are focused on broadening our platform and extending our product capabilities to create additional levers for long-term growth. As a recent example, and to continue seizing on the great opportunity we have internationally, this quarter we announced our intent to deliver Workday payroll for Australia and Germany. As you know, our country-specific payrolls are very compelling to customers, and we're excited to deliver these new solutions as levers of growth for these markets. We also recently announced that Workday has achieved ready status for the Federal Risk and Authorization Management Program, or FedRAMP, at a moderate impact level, with full authority to operate estimated for spring 2022. With this achievement, we materially advanced our position to help federal agencies accelerate digital transformation in order to help them modernize their business systems and gain real-time insights to address critical challenges across their organizations. Switching to the people front, we continue to invest heavily in our company culture to sustain our belief that happy employees deliver the highest levels of satisfaction to our great customers. On that note, starting in Q4 of this year, We'll be extending a cash bonus plan company-wide to further ensure our people feel valued, motivated, and properly recognized. Robin will update you later on our margin expectations for the back half of the year. This is a direct reflection of our business momentum and the confidence we have in our workmates to grow the business to $10 billion in revenues and beyond. With our outstanding first half of fiscal year 22, we are seeing acceleration in our business. As I look ahead, my optimism for Workday's future couldn't be higher. We have a great team in place and a significant global opportunity in front of us as companies continue to embark on their HR and finance transformation journeys. With that, I'll turn it over to our co-CEO, Chano Fernandez. Over to you, Chano.