Workday, Inc.

Welcome to Workday's second quarter fiscal year 2023 earnings call. At this time, all participants are in 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. And with that, I will now hand it over to Justin Furby, Vice President of Investor Relations. Please proceed.

Thank you, Operator. Welcome to Workday's second quarter fiscal 2023 earnings conference call. On the call, we have Anil Bushri and Chana Fernandez, our co-CEOs, Barbara Larson, our CFO, and Pete Schlampp, 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 impact of the ongoing COVID-19 pandemic and recent macroeconomic events 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 and our 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, in our investor presentation, 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. Additionally, our quarterly investor presentation will be posted on our investor relations website following this call. Also, the customers page of our website includes a list of selected customers and is updated monthly. Our third quarter fiscal 2023 quiet period begins on October 15th, 2022. Unless otherwise stated, All financial comparisons in this call will be to our results for the comparable period of our fiscal 2022. With that, I'll hand the call over to Anil.

Thank you, Justin, and welcome to Workday's second quarter fiscal 23 earnings conference call. I'm pleased to report that Workday delivered a strong second quarter thanks to healthy demand across all product areas and geographies. Additionally, we closed on two of the larger deals that had pushed from Q1, which we referenced on last quarter's call. Our results, which outperformed across our key operating metrics, underscore the continued importance of digital transformation for finance and HR. And even with the uncertainty in this environment, we remain confident in our long-term growth prospects because Workday continues to serve as a mission-critical partner to our customers with a proven track record of success. Before I turn it over to Chano, who will share more on our go-to-market success, and Barbara, who will provide specifics on our Q2 financial results and outlook, I'd like to share some second quarter highlights. We had another strong quarter for Workday HCM, where the migration to the cloud continues with notable customer additions, including Electrolux, First Student, Group Adeo, Korean Air, and Raymond James. And as always, customer success remains a key differentiator for Workday. In Q2, we had several HCM go-lives, including Cox Enterprises, Southwest Airlines, and United Overseas Bank. Turning to Workday Financial Management, we saw very strong growth in the second quarter as we added two Fortune 500 core financial management customers, and I'm very excited to share that one of those was Salesforce, the global leader in CRM. Already a long-time Workday HCM customer and partner, Salesforce's expanded use of Workday now includes Workday Financial Management, along with Accounting Center, Workday Adaptive Planning, Prism Analytics, and more. Our growing partnership reinforces the opportunity we have to help support customers in the cloud. With this broad relationship, Salesforce becomes one of an increasing number of high-profile customers to expand from Workday HCM to both HCM and financial management. Other new financial management customers in Q2 included American Electric Power, which was the second of our Q2 Fortune 500 wins, Apex Fund Company, Dave & Buster's, Express LLC, and the State of Vermont. while key go-lives in Q2 included Comerica Bank, RSM, and the University of Virginia. In addition to the strong growth from our core suite of HCM and finance applications, Q2 also saw notable momentum across our broader portfolio of solutions. Workday Adaptive Planning recently celebrated its four-year anniversary as part of Workday, and I'm happy to share that we now serve more than 6,000 planning customers, including over 20% of the Fortune 500. It was also our second full quarter with Bentley as part of Workday, and we're already seeing solid results as it's opening up new opportunities for us to expand our relationship with customers who want to embrace a more holistic workforce strategy. We also continue to see strong adoption of Workday Extend and Prism Analytics as both solutions are providing organizations, including the Office of the CIO, with the ability to adapt in today's changing world. With Xtend, customers build apps that are tailored for their unique use cases, which can eliminate the need for other custom development tools. Over the last year, we have more than doubled the number of customers and now have more than 750 applications that have been developed on the Workday platform. And Prism Analytics, with now more than 1,000 customers, is enabling organizations to bring operational data into Workday to drive real-time business insights. These solutions are not only critical to our customer community, for enabling a new level of engagement with our partner community as well. And speaking of our customer community, customer service has always been one of our core values. As a result, we strive to maintain a customer satisfaction rating of over 95%, and I'm pleased to announce that in 2022, we surpassed this rating again, as we have for more than a decade. This achievement is a direct testament to the amazing work of our employees and their commitment to helping our customers thrive. We look forward to sharing more about our product innovation, customer success, and market opportunity in September at Workday Rising, our annual customer conference. This will mark the first time since 2019 that we'll be able to hold Workday Rising in person, and we are so excited to get more than 9,000 members of the Workday community together in Orlando, with thousands attending virtually for what is always a special event. In closing, we had a strong second quarter and the first half of the year. While we recognize that the current environment will likely moderate the pace of growth in the second half of the year, we firmly believe that the strong gets stronger during periods of economic uncertainty. And we will continue to manage the business with that mindset and expectation, all in support of driving enduring growth for many years to come. With that, over to you, Chano.