Workday, Inc.

Welcome to Workday's fourth 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. During the Q&A, please limit your questions to one. With that, I will now hand it over to Justin Furby, Vice President of Investor Relations.

Thank you, Operator. Welcome to Workday's fourth quarter fiscal 2022 earnings conference call. On the call, we have Anil Bushri and Chano Fernandez, our co-CEOs, Barbara Larson, our CFO, and Pete Schlampe, our Chief Strategy Officer. 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 risk, 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 2022 Annual Report on Form 10-K 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 first quarter fiscal 2023 quiet period begins on April 16, 2022. 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 fourth quarter fiscal year 22 earnings call. Before we begin, I want to spend a moment acknowledging the current situation in the Ukraine. Our thoughts are with all of those who are personally impacted by the devastating situation, including Workday contractors in Ukraine, workmates across the wider region in Europe, and families of military personnel who have been deployed in the region. Turning now to our business results, And please report that Workday delivered an exceptional fourth quarter, which helped us achieve the fastest growth in full-year new ACV bookings in over five years. This acceleration in our business, along with our relentless focus on employees, customers, and innovation, is serving as a strong foundation for driving durable growth on our path to $10 billion in revenues and beyond. Our business success is enabling us to attract talent at a pace we have never seen before, and is allowing us to continue to expand and support new customers across our broad suite of solutions aimed at the CHRO and CFO. Indeed, we now serve more than 60 million total users across 9,500 organizations, including more than 4,100 core HCM and finance customers. As our customer community continues to expand, so does our opportunity to serve them in more strategic ways. As Chana will soon share, we closed several significant transactions within our customer-based sales team in Q4. Our continued commitment to our customer success is also reflected in our industry-leading gross retention rate of over 95%. Additionally, we are seeing customers increase their engagement and usage of our applications, as evidenced by the over 440 billion transactions processed within Workday in fiscal year 2022, which is an increase of 67% over the previous year. Altogether, we now work with over 50% of the Fortune 500 and over 25% of the Global 2000. Before I turn it over to Chano, who will share more on our go-to-market success, and Barbara Larson, our new CFO, will provide specifics on our raised growth outlook for fiscal year 23, I'd like to share some fourth quarter highlights. First, momentum for our human capital management suite remains strong as organizations continue to transition their HR operations to the cloud. In Q4, we saw health and demand across all HCM product areas, driven by our ability to attract new customers while strengthening and deepening our relationships with existing ones. New customers in Q4 included Allied Financial, Fixed Sporting Goods, National Australia Bank Limited, Rite Aid Corporation, Smith Hill Foods, and 7-Eleven, to name a few. Notable HCM Go Lives in Q4 included Evanick Industries, Anheuser-Busch & Bev, and Wells Fargo Bank, as we continue to have over 70% of our ACM customers in production. Switching over to our financial management applications, Q4 was another solid quarter with several marquee wins, including GEMPAC Limited, Mass General Brigham, University of Melbourne, and U.S. Bank. During the quarter, we doubled the number of add-on core financial management wins when compared to the same period a year ago and had several customers go live, including Bright Horizons, Children's Centers, Sharp Healthcare, and SS&C Technologies. In addition to the strong growth from our core finance application, we saw continued momentum from our expanding suite of products that support the Office of the CFO, including planning, analytics, and spend management, where our strategic sourcing solution experienced roughly 50% new ACV growth. And our procure-to-pay solution grew even faster. We continue to see very healthy attach rates for our spend management solutions within our financial customers, illustrating how finance is increasingly partnering with their procurement peers to drive visibility and bottom-line impact for the single solution. As we head into fiscal year 23, we are confident in the opportunity we have in front of us and our ability to execute on our growth initiatives on our path to $10 billion in revenues. As such, we expect fiscal year 23 to be another strong year for us. Lastly, I'd like to share a couple updates related to Workday's board of directors. First, Tom Bogan, who most recently served as Vice Chairman of Corporate Development, retired from Workday on January 31st. And while we're excited for Tom and his well-deserved retirement, we're thrilled to announce that he has joined our board. Tom came to Workday in 2018 as part of the Adaptive Insights acquisition. The company led as CEO for nearly four years. During his time at Workday, Tom has been a trusted advisor, a true culture champion, and passionate leader who embodies Workday's values. We are fortunate that he will now lend his expertise and guidance to help us capitalize on new opportunities for the business and work to accelerate future growth. The second update I want to share is that Dave Duffield, my mentor, best friend, and Workday's co-founder and former CEO and chairman, has stepped down from our board of directors and will now carry the honorary title of CEO Emeritus. While Dave will no longer be on the board, remains our largest shareholder and will continue to provide us invaluable counsel as an advisor of Workday. When Dave and I started Workday nearly 17 years ago, our goal was to build a lasting multi-generational company with employees at the center and a relentless focus on customer service and innovation. We wanted to have fun along the way. The growth we've experienced this past year in the face of a challenging macro environment has only solidified my belief in the foundation that we have built thanks to an amazing group of employees and leaders who embrace our values and are committed to delivering the industry's best products and customer experience. I will end by saying that I'm quite optimistic about our future. With that, I'll turn it over to our co-CEO, Chano Fernandez. Over to you, Chano.