Workday Inc (WDAY) 2023 Q2 法說會逐字稿

Welcome to Workday's Second Quarter Fiscal Year 2023 Earnings Call. (Operator Instructions) And with that, I will now hand it over to Justin Furby, Vice President of Investor Relations. Please proceed.

歡迎參加 Workday 的 2023 財年第二季度財報電話會議。 （操作員說明）現在，我將把它交給投資者關係副總裁賈斯汀菲比。請繼續。

Thank you, operator. Welcome to Workday's Second Quarter Fiscal 2023 Earnings Conference Call. On the call, we have Aneel Bhusri and Chano Fernandez, our co-CEOs; Barbara Larson, our CFO; and Pete Schlampp, our Chief Strategy Officer.

謝謝你，接線員。歡迎參加 Workday 的 2023 財年第二季度收益電話會議。在電話會議上，我們有聯合首席執行官 Aneel Bhusri 和 Chano Fernandez；我們的首席財務官芭芭拉·拉爾森；和我們的首席戰略官 Pete Schlampp。

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 and recent macroeconomic events 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 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.

在準備好的評論之後，我們將回答問題。我們的新聞稿是在收市後發布的，並發佈在我們的網站上，該電話同時進行網絡直播。在開始之前，我們要強調的是，我們在本次電話會議上的一些聲明，特別是我們的指導，是基於我們今天所擁有的信息，包括關於我們的財務結果應用、客戶需求、運營和其他方面的前瞻性聲明很重要。這些陳述受風險、不確定性和假設的影響，包括與持續的 COVID-19 大流行和近期宏觀經濟事件對我們的業務和全球經濟狀況的影響有關的那些。請參閱新聞稿以及我們向證券交易委員會提交的風險因素和文件，包括我們關於表格 10-K 的 2022 年年度報告和我們關於表格 10-Q 的最新季度報告，以獲取有關風險、不確定性和可能導致實際結果與此類聲明中所述的結果存在重大差異的假設。

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.

此外，在今天的電話會議中，我們將討論非 GAAP 財務指標，我們認為這些指標可作為 Workday 業績的補充指標。這些非公認會計原則措施應作為公認會計原則結果的補充而非替代或孤立考慮。您可以在我們的收益新聞稿、我們的投資者介紹和我們網站的投資者關係頁面上找到有關這些非公認會計原則措施的更多披露，包括與可比公認會計原則結果的對賬。

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 15, 2022. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal 2022.

在接下來的 90 天內，將在我們公司網站的投資者關係鏈接下提供此次電話會議的網絡直播重播。此外，我們的季度投資者報告將在本次電話會議後發佈在我們的投資者關係網站上。此外，我們網站的客戶頁麵包括選定客戶的列表，並且每月更新一次。我們 2023 財年第三季度的靜默期從 2022 年 10 月 15 日開始。除非另有說明，否則本次電話會議中的所有財務比較都將與我們 2022 財年可比期間的業績進行比較。

With that, I'll hand the call over to Aneel.

有了這個，我會把電話交給 Aneel。

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 2 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.

謝謝賈斯汀，歡迎參加 Workday 的 23 財年第二季度財報電話會議。我很高興地報告，由於所有產品領域和地區的健康需求，Workday 第二季度表現強勁。此外，我們完成了從第一季度推出的 2 筆較大的交易，我們在上一季度的電話會議中引用了這些交易。我們的業績在我們的關鍵運營指標中表現出色，突顯了數字化轉型對財務和人力資源的持續重要性。即使在這種環境中存在不確定性，我們仍然對我們的長期增長前景充滿信心，因為 Workday 繼續作為我們客戶的關鍵任務合作夥伴，並擁有良好的成功記錄。

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, Groupe 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.

在我把它交給查諾之前，他將分享更多關於我們進入市場的成功和芭芭拉，她將提供我們第二季度財務業績和前景的細節，我想分享一些第二季度的亮點。 Workday HCM 又迎來了一個強勁的季度，繼續向雲遷移，客戶數量顯著增加，包括伊萊克斯、First Student、Groupe Adeo、大韓航空和 Raymond James。與往常一樣，客戶成功仍然是 Workday 的關鍵差異化因素。在第二季度，我們有幾個 HCM 上線，包括 Cox Enterprises、西南航空公司和大華銀行。

Turning to Workday Financial Management. We saw very strong growth in the second quarter as we added 2 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 longtime 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.

轉向工作日財務管理。我們在第二季度看到了非常強勁的增長，因為我們增加了 2 個財富 500 強核心財務管理客戶，我很高興與大家分享其中之一是 CRM 的全球領導者 Salesforce。作為 Workday HCM 的長期客戶和合作夥伴，Salesforce 對 Workday 的擴展使用現在包括 Workday 財務管理以及會計中心、Workday Adaptive Planning、Prism Analytics 等。我們不斷發展的合作夥伴關係加強了我們在雲中幫助支持客戶的機會。憑藉這種廣泛的關係，Salesforce 成為越來越多的知名客戶之一，這些客戶從 Workday HCM 擴展到 HCM 和財務管理。

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 & Busters, Express LLC; and the state of Vermont, while key go-lives in Q2 included Comerica Bank, RSM and the University of Virginia.

第二季度其他新的財務管理客戶包括美國電力，這是我們第二季度獲得財富 500 強的第二個； Apex基金公司； Dave & Busters, Express LLC；和佛蒙特州，而第二季度的關鍵上線包括 Comerica Bank、RSM 和弗吉尼亞大學。

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 4-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 VNDLY 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.

除了我們核心 HCM 和金融應用程序套件的強勁增長外，第二季度我們更廣泛的解決方案組合也出現了顯著增長。作為 Workday 的一部分，Workday Adaptive Planning 最近慶祝了其 4 週年紀念日，我很高興地與大家分享，我們現在為 6,000 多名規劃客戶提供服務，其中包括超過 20% 的財富 500 強企業。這也是我們與 VNDLY 合作的第二個完整季度作為 Workday 的一部分，我們已經看到了實實在在的成果，因為它為我們開闢了新的機會，可以擴大與希望採用更全面的勞動力戰略的客戶的關係。

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 Extend, 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, but are enabling a new level of engagement with our partner community as well.

我們還繼續看到 Workday Extend 和 Prism Analytics 的大力採用，因為這兩種解決方案都為包括 CIO 辦公室在內的組織提供了適應當今不斷變化的世界的能力。借助 Extend，客戶可以構建針對其獨特用例量身定制的應用程序，從而無需其他自定義開發工具。去年，我們的客戶數量增加了一倍多，現在在 Workday 平台上開發了 750 多個應用程序。 Prism Analytics 現在擁有 1,000 多名客戶，它使組織能夠將運營數據引入 Workday，以推動實時業務洞察。這些解決方案不僅對我們的客戶社區至關重要，而且也使我們與合作夥伴社區的互動達到了一個新的水平。

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.

說到我們的客戶群體，客戶服務一直是我們的核心價值觀之一。因此，我們努力將客戶滿意度保持在 95% 以上，我很高興地宣布，在 2022 年，我們再次超過了十多年來的這一評級。這一成就直接證明了我們員工的出色工作以及他們致力於幫助客戶茁壯成長的承諾。

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're 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.

我們期待在 9 月的年度客戶大會 Workday Rising 上分享更多關於我們的產品創新、客戶成功和市場機會的信息。這將標誌著自 2019 年以來我們第一次能夠親自舉辦 Workday Rising，我們很高興能在奧蘭多召集 Workday 社區的 9,000 多名成員，其中數千人以虛擬方式參加這始終是一項特殊的活動.

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.

最後，我們的第二季度和上半年表現強勁。雖然我們認識到當前環境可能會減緩下半年的增長步伐，但我們堅信，在經濟不確定時期，強者會變得更強。我們將繼續以這種心態和期望管理業務，所有這些都是為了支持推動未來多年的持久增長。

With that, over to you, Chano.

有了這個，就交給你了，查諾。

Thank you, Aneel, and thank you to everyone for joining today's call. I want to begin by expressing my sincere thanks to the entire global organization for an incredible Q2. Every one of our nearly 17,000 workmates really leaned in and drove this result, and I couldn't be prouder of our execution. Great job, team. Our strong Q2 results were driven by momentum across several of our key growth initiatives, including customer base, international, medium enterprise and the office of the CFO, a testament to our strategy and the significant long-term opportunity that we have ahead.

謝謝你，Aneel，也感謝大家加入今天的電話會議。首先，我要衷心感謝整個全球組織帶來了令人難以置信的第二季度。我們近 17,000 名同事中的每一位都真正傾身並推動了這一結果，我為我們的執行感到無比自豪。幹得好，團隊。我們強勁的第二季度業績受到我們幾個關鍵增長計劃的推動，包括客戶群、國際、中型企業和首席財務官辦公室，這證明了我們的戰略和我們未來的重大長期機遇。

In addition, as Aneel mentioned, we closed the 2 largest deals that slipped out of Q1. And while the near-term market environment remains uncertain and we are not immune to it, we continue to see organizations of all sizes prioritizing their investments with Workday to continue their digital backbone transformation and drive increased agility and flexibility.

此外，正如 Aneel 提到的，我們完成了第一季度滑出的 2 筆最大交易。雖然近期市場環境仍然不確定，我們也無法倖免，但我們繼續看到各種規模的組織優先考慮他們對 Workday 的投資，以繼續他們的數字骨幹轉型並提高敏捷性和靈活性。

From a geographic standpoint, we executed incredibly well across our global markets. In the U.S., we saw healthy growth in the large enterprise, including 5 Fortune 500 core HCM or FINS wins, and in the medium enterprise, our suite approach continues to resonate, driving another quarter of very strong results. International performance was again a highlight as our investment in key regions and the ongoing journey to the cloud are resulting in significant growth. In EMEA, we had outperformance across a number of key countries, including France, Germany and the United Kingdom. And finally, in APJ, we had very solid performance in strategic markets like Japan and Australia.

從地理角度來看，我們在全球市場的表現令人難以置信。在美國，我們看到大型企業的健康增長，包括 5 項財富 500 強核心 HCM 或 FINS 獲勝，而在中型企業中，我們的套件方法繼續引起共鳴，推動了另一個季度的非常強勁的業績。國際業績再次成為一大亮點，因為我們在關鍵地區的投資和持續的雲之旅正在帶來顯著增長。在歐洲、中東和非洲，我們在包括法國、德國和英國在內的多個主要國家都有出色的表現。最後，在亞太及日本地區，我們在日本和澳大利亞等戰略市場的表現非常出色。

As you know, we go to market with land-and-expand sales motions, and both things drove healthy growth in Q2. Aneel already mentioned several of our core HCM and FINS wins, many of which were new customers to Workday. We also closed several strategic deals across our emerging land motions, including planning-first wins at ExxonMobil and Ninja Van and a Peakon-first led win at a 300,000-plus employee global organization headquartered in Europe.

如您所知，我們以土地和擴大銷售行動進入市場，這兩件事都推動了第二季度的健康增長。 Aneel 已經提到了我們的幾個核心 HCM 和 FINS 勝利，其中許多是 Workday 的新客戶。我們還完成了多項戰略交易，包括在埃克森美孚和 Ninja Van 的規劃優先交易，以及在總部位於歐洲、擁有 300,000 多名員工的全球組織中以 Peakon 為先導贏得的交易。

In addition to strengthening our land motion, our customer base sales teams in Q2 once again drove very strong results, including solid renewals and meaningful acceleration in new ACV with broad-based strength across a number of solutions, including core FINS, Extend, Peakon, learning, payroll and talent optimization. We're also seeing momentum built within our planning-first customers who are expanding their footprint by adding core HCM and financials. Carle Health is a great example of this. They started as a planning-first relationship and expanded their footprint to include core FINS in Q2. Industry is another area of significant opportunity and investment, and I am pleased to share that financial services is our first industry to exceed $1 billion in annual recurring revenue. Some of our most strategic transactions and go-lives in Q2 came out of our financial services team, including new lands that Aneel referenced at Raymond James and Apex Fund, expansion deals at Bank of Montreal and Cushman & Wakefield and go-lives at United Overseas Bank and Comerica.

除了加強我們的土地運動外，我們的客戶群銷售團隊在第二季度再次推動了非常強勁的業績，包括新 ACV 的穩固更新和有意義的加速，在包括核心 FINS、Extend、Peakon、學習、薪資和人才優化。我們還看到我們的計劃優先客戶正在通過增加核心 HCM 和財務來擴大他們的足跡。 Carle Health 就是一個很好的例子。他們從計劃優先的關係開始，並在第二季度擴大了業務範圍，將核心 FINS 包括在內。工業是另一個具有重大機遇和投資的領域，我很高興地分享，金融服務是我們第一個年經常性收入超過 10 億美元的行業。我們在第二季度的一些最具戰略意義的交易和上線來自我們的金融服務團隊，包括 Aneel 在 Raymond James 和 Apex Fund 引用的新土地、蒙特利爾銀行和 Cushman & Wakefield 的擴張交易以及在 United Overseas 的上線銀行和Comerica。

Other established industries, including health care and education and government also saw continued momentum and we are gaining steam in verticals such as retail/hospitality and technology/media, where wins included Salesforce, Avalara and GoPuff. Needless to say, we have several other industries that are on the path to $1 billion and beyond.

其他成熟的行業，包括醫療保健和教育以及政府也看到了持續的勢頭，我們在零售/酒店和技術/媒體等垂直行業獲得了動力，其中包括 Salesforce、Avalara 和 GoPuff。不用說，我們還有其他幾個行業正在邁向 10 億美元甚至更高的目標。

Our expanding partner ecosystem is becoming an increasingly important driver of our growth and industry success, and the excitement we're seeing within our partner community for the joint opportunity in front of us was on full display recently at Altitude, our annual partner event. Strategic system integrators such as Accenture, Deloitte, KPMG and PwC are not only ensuring successful deployment, but also serving as an innovation engine addressing our customers' needs. Together, we're also targeting industry accelerators with specific solutions and use cases. We look forward to sharing a lot more on this at Workday Rising in a few weeks.

我們不斷擴大的合作夥伴生態系統正在成為我們增長和行業成功的日益重要的驅動力，我們在合作夥伴社區中看到的對我們面前的聯合機會的興奮最近在我們的年度合作夥伴活動 Altitude 上得到了充分展示。埃森哲、德勤、畢馬威和普華永道等戰略系統集成商不僅確保成功部署，而且還充當滿足客戶需求的創新引擎。我們還共同針對具有特定解決方案和用例的行業加速器。我們期待在幾週後在 Workday Rising 上分享更多關於此的內容。

As we move through the second half of the year, we expect the environment to remain uncertain. And we see signs that in certain deal cycles, particularly some of our more strategic opportunities, there is increased scrutiny and potentially longer sales cycles, as buyers do extra work before making investment decisions during these uncertain times. The good news is that when companies go through their due diligence, we typically come out on top, given the compelling return on investment and reduced total cost of ownership that our solutions provide, our track record of successful deployments of scale and our reference base of thousands of customers who can speak to the meaningful business value that Workday delivers.

隨著我們進入下半年，我們預計環境仍將不確定。我們看到跡象表明，在某些交易週期，尤其是我們的一些更具戰略意義的機會中，審查會增加，銷售週期可能會延長，因為在這些不確定時期，買家在做出投資決定之前會做額外的工作。好消息是，當公司進行盡職調查時，我們通常會脫穎而出，因為我們的解決方案提供了令人信服的投資回報和降低的總擁有成本、我們成功部署規模的記錄以及我們的參考基礎成千上萬的客戶可以談論 Workday 提供的有意義的商業價值。

With that, I will turn it over to our CFO, Barbara Larson. Over to you, Barbara.

有了這個，我會把它交給我們的首席財務官 Barbara Larson。交給你了，芭芭拉。

Thanks, Chano, and good afternoon, everyone. As Aneel and Chano mentioned, we delivered a strong Q2 as enterprises of all sizes increasingly realize the need for a flexible, modern finance and HR solutions to navigate their businesses and drive change during these uncertain times. Subscription revenue in Q2 was $1.37 billion, up 23% year-over-year, and Professional Services revenue was $168 million, up 15%. Total revenue outside of the U.S. was $383 million, representing 25% of total revenue. 24-month backlog at the end of the second quarter was $8.37 billion, growth of 22%. The outperformance was driven by strong new ACV across both our land and expand sales motions along with solid renewals with growth and net revenue retention rates over 95% and over 100%, respectively. Total subscription revenue backlog at the end of Q2 was $13.47 billion, up 27%.

謝謝，查諾，大家下午好。正如 Aneel 和 Chano 所提到的，隨著各種規模的企業越來越意識到需要靈活、現代的財務和人力資源解決方案來引導他們的業務並在這些不確定的時期推動變革，我們實現了強勁的第二季度。第二季度訂閱收入為 13.7 億美元，同比增長 23%，專業服務收入為 1.68 億美元，增長 15%。美國以外的總收入為 3.83 億美元，佔總收入的 25%。第二季度末的 24 個月積壓為 83.7 億美元，增長 22%。出色的表現是由於我們的土地和擴大銷售行動中強勁的新 ACV 以及穩健的續約，增長和淨收入保留率分別超過 95% 和超過 100%。第二季度末的訂閱總收入為 134.7 億美元，增長 27%。

Our non-GAAP operating income for the second quarter was $302 million, resulting in non-GAAP operating margin of 19.6%. Margin overachievement was driven by a combination of topline overperformance, the timing of certain projects and some favorable expense variances. Q2 operating cash flow was $114 million, which reflects typical seasonality from our annual merit cycle increase. In addition, with the final 2 days of the quarter falling over a weekend, we saw roughly $40 million of collections shipped out of Q2 into early Q3, which will have a positive impact on our third quarter cash flow.

我們第二季度的非 GAAP 營業收入為 3.02 億美元，非 GAAP 營業利潤率為 19.6%。利潤率超額實現是由頂線超額表現、某些項目的時間安排和一些有利的費用差異共同推動的。第二季度運營現金流為 1.14 億美元，這反映了我們年度績效週期增長的典型季節性。此外，由於本季度最後 2 天的時間比周末晚，我們看到大約 4000 萬美元的收藏品從第二季度運到第三季度初，這將對我們第三季度的現金流產生積極影響。

Our largest investments continue to be in our people and attracting top talent to Workday. During the quarter, we successfully added approximately 1,000 net new employees, ending Q2 with a global workforce of more than 16,900. Our hiring was focused on adding key talent across strategic growth areas of the business, notably go-to-market resources and product innovation roles. Overall, we're extremely proud of the strong company-wide execution in Q2 and remain focused on leveraging our leadership position to drive sustainable 20% plus subscription revenue growth on our path to $10 billion in revenue.

我們最大的投資繼續在我們的員工身上，並吸引頂尖人才加入 Workday。在本季度，我們成功增加了大約 1,000 名淨新員工，截至第二季度末，全球員工人數超過 16,900 人。我們的招聘重點是增加業務戰略增長領域的關鍵人才，特別是上市資源和產品創新角色。總體而言，我們對第二季度全公司範圍內的強勁執行感到非常自豪，並繼續專注於利用我們的領導地位來推動可持續 20% 的訂閱收入增長，使我們的收入達到 100 億美元。

Turning now to guidance, which reflects the momentum in our business and the mission-critical nature of our solutions, while also balancing an uncertain macro environment, which Aneel and Chano described. With that context, we are maintaining our guidance for FY '23 subscription revenue of $5.537 billion to $5.557 billion, representing 22% year-over-year growth. We expect Q3 subscription revenue to be $1.418 billion to $1.420 billion, 21% year-over-year growth. We still expect professional services revenue to be $650 million in FY '23, as we continue to tightly align with our growing partner ecosystem to help ensure our customers have successful implementations that support the highest levels of customer satisfaction and business value.

現在轉向指導，它反映了我們業務的發展勢頭和我們解決方案的關鍵任務性質，同時也平衡了 Aneel 和 Chano 所描述的不確定的宏觀環境。在這種情況下，我們維持對 23 財年訂閱收入 55.37 億美元至 55.57 億美元的指導，同比增長 22%。我們預計第三季度訂閱收入為 14.18 億美元至 14.20 億美元，同比增長 21%。我們仍然預計 23 財年的專業服務收入將達到 6.5 億美元，因為我們將繼續與我們不斷發展的合作夥伴生態系統緊密結合，以幫助確保我們的客戶成功實施，以支持最高水平的客戶滿意度和商業價值。

For Q3, we expect professional services revenue of $164 million. We expect 24-month backlog to grow approximately 19% year-over-year in Q3. We now expect FY '23 non-GAAP operating margin of 19%, reflecting a more measured pace of hiring in the second half of the year as we continue to monitor the macroeconomic environment. Investing for long-term growth alongside ongoing expense discipline remains our priority. We continue to have confidence in the strength of our business model and in achieving 25% non-GAAP operating margin and 35% operating cash flow margin at $10 billion in revenue.

對於第三季度，我們預計專業服務收入為 1.64 億美元。我們預計第三季度 24 個月的積壓訂單將同比增長約 19%。我們現在預計 23 財年非 GAAP 營業利潤率為 19%，這反映了隨著我們繼續監測宏觀經濟環境，下半年的招聘步伐更加謹慎。投資於長期增長以及持續的費用紀律仍然是我們的首要任務。我們繼續對我們的商業模式的實力充滿信心，並以 100 億美元的收入實現 25% 的非公認會計準則營業利潤率和 35% 的營業現金流利潤率。

For Q3, we expect non-GAAP operating margin of 18%. GAAP margins for the third quarter and the full year are expected to be approximately 22 and 23 percentage points lower, respectively, than the non-GAAP margin. The FY '23 non-GAAP tax rate remains at 19%. We're raising our FY '23 guidance for operating cash flow to $1.64 billion. We now expect capital expenditures of $450 million this year to support our customer growth and continued business expansion. As a reminder, during the third quarter, we plan to pay off the principal balance of our $1.15 billion convertible debt in cash. When this occurs, our non-GAAP diluted share count will decrease by roughly 8 million shares. Due to the late Q3 timing, this share reduction will not be fully reflected in our non-GAAP weighted average share count until Q4.

對於第三季度，我們預計非 GAAP 營業利潤率為 18%。第三季度和全年的 GAAP 利潤率預計將分別比非 GAAP 利潤率低約 22 個和 23 個百分點。 '23 財年非 GAAP 稅率保持在 19%。我們將 23 財年的運營現金流指引提高到 16.4 億美元。我們現在預計今年的資本支出為 4.5 億美元，以支持我們的客戶增長和持續的業務擴張。提醒一下，在第三季度，我們計劃以現金償還 11.5 億美元可轉換債券的本金餘額。發生這種情況時，我們的非公認會計原則稀釋後的股票數量將減少大約 800 萬股。由於第三季度末的時間，這種份額減少將在第四季度之前不會完全反映在我們的非公認會計原則加權平均份額中。

And finally, I'll close by thanking our amazing employees, customers and partners for their continued support and hard work. We look forward to seeing you on September 13, either in-person or virtually, for our Financial Analyst Day, part of the broader Workday Rising program being held in Orlando, Florida, where we'll share more insights on our strategic product initiatives and long-term market opportunity.

最後，我要感謝我們出色的員工、客戶和合作夥伴的持續支持和辛勤工作。我們期待在 9 月 13 日的金融分析師日與您見面，這是在佛羅里達州奧蘭多舉行的更廣泛的 Workday Rising 計劃的一部分，屆時我們將分享更多關於我們的戰略產品計劃和長期市場機會。

With that, I'll turn it over to the operator to begin Q&A.

有了這個，我會把它交給運營商開始問答。

(Operator Instructions) Our first question comes from Kash Rangan with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Kash Rangan。

What a delightful way to spend Thursday afternoon, listening to your earnings conference call. Aneel and Chano and the rest of the team, a couple of things in my mind. One is previous quarter, you were one of the first companies to talk about deal slippage, et cetera. And how did that end up for this July quarter? What were the certain customer behaviors you saw in the month of July? And also, a question philosophically, as we open up and you have your first in-person user conference in a few years, what are the opportunities that are afforded to Workday as you enter calendar '23 as a result of doing all the in-person activities that you couldn't do as we were all working through this pandemic, be it growth rate acceleration, new product adoption strategy, what not. Just curious to get your thoughts. Congratulations, again.

週四下午聽你的財報電話會議是多麼令人愉快的方式。 Aneel 和 Chano 以及團隊的其他成員，我想到了幾件事。一個是上一季度，您是最早談論交易滑點等問題的公司之一。這個七月季度的結果如何？您在 7 月份看到的某些客戶行為是什麼？還有一個哲學問題，當我們開放並且您在幾年內舉行了第一次面對面的用戶會議時，當您進入日曆 '23 時，Workday 提供了哪些機會，因為您完成了所有的工作-當我們都在應對這種流行病時，您無法進行的人員活動，例如增長率加速，新產品採用策略等等。只是想知道你的想法。再次恭喜。

So I'll answer the first part and then hand it over to Chano. We did not see a slowdown in July, Kash. We did have a few deals slipped from Q1 to Q2, but Doug Robinson and the team closed those deals. We are very cognizant of macro environment heading into the second half of the year, and so we are taking a cautious stance on hiring, but we didn't see any slowdown in July. It was about as strong a month as we could have hoped for. Rising is a great opportunity for us. We always do better when we're in-person. It's just that simple. It's a chance to get reconnected with customers, make sure we're doing a good job for them, but equally importantly, as the product portfolio has grown, it's a chance to showcase some of the newer products and have that customer base motion continue to thrive.

所以我先回答第一部分，然後交給查諾。卡什，我們在 7 月份沒有看到經濟放緩。我們確實有一些交易從第一季度滑落到第二季度，但道格羅賓遜和團隊完成了這些交易。我們非常清楚進入下半年的宏觀環境，因此我們對招聘採取謹慎的態度，但我們沒有看到 7 月份的放緩。這是我們所希望的一個月的強勁表現。崛起對我們來說是一個很好的機會。當我們面對面時，我們總是做得更好。就是這麼簡單。這是一個與客戶重新建立聯繫的機會，確保我們為他們做好了工作，但同樣重要的是，隨著產品組合的增長，這是一個展示一些新產品並讓客戶群繼續動員的機會蓬勃發展。

So Chano, anything you want to add?

那麼Chano，你有什麼要補充的嗎？

Thank you, Aneel. Thank you, Kash. As Aneel commented, we saw strength across the whole quarter from beginning to end, but we're clearly seeing more uncertainty and excluding the pipeline going forward. Regarding to Rising, we are very excited. After 3 years, certainly, and it's about ensuring great relationship with the customer community and that bodes very well with Workday. And clearly, as customer base becomes a larger part of our business, this is a more opportunity and a great opportunity for us to build some good pipeline.

謝謝你，阿尼爾。謝謝你，卡什。正如 Aneel 評論的那樣，我們從頭到尾都看到了整個季度的強勁勢頭，但我們顯然看到了更多的不確定性，並且排除了未來的管道。關於瑞星，我們非常興奮。 3 年後，當然，這是為了確保與客戶社區的良好關係，這對 Workday 來說是個好兆頭。顯然，隨著客戶群成為我們業務的重要組成部分，這對我們來說是一個更多的機會，也是一個很好的機會來建立一些良好的管道。

Our next question comes from Mark Murphy with JPMorgan.

我們的下一個問題來自摩根大通的 Mark Murphy。

It's impressive to see these 2 big Fortune 500 core financial wins. Do you get the sense that the COVID lockjam is somehow clearing up there, despite all the recession headlines? Or do you see many finance teams still kind of lacking the smooth sailing they might need to do a cloud migration? And perhaps, you would have a little extra core FINS pipeline building up that might get released at some point, if that's the case. And then Barbara, just curious if there's any sense for the magnitude of change on the hiring pace that you're contemplating for the rest of the year?

看到這兩項財富 500 強核心財務勝利令人印象深刻。儘管有所有經濟衰退的頭條新聞，您是否感覺到 COVID 的僵局正在以某種方式清除？或者您是否看到許多財務團隊仍然缺乏進行雲遷移可能需要的順利航行？如果是這樣的話，也許你會建立一些額外的核心 FINS 管道，可能會在某個時候發布。然後是芭芭拉，只是好奇你在今年餘下的時間裡考慮的招聘速度的變化幅度是否有任何意義？

I'll ask Pete to answer the first question on the financial side. I'm sure there was definitely some pent-up demand, but Pete, do you want to...

我會請皮特回答關於財務方面的第一個問題。我敢肯定肯定有一些被壓抑的需求，但是皮特，你想...

Mark, good to talk to you. Right now, from what we're seeing, we're not seeing any difference in demand for our HCM and financials from what we've been seeing in the past, and that's obviously good news as we saw here in Q2. But what we will say is, as we go into more uncertain economic environments which are likely happening, then typically in those situations, buyers on the financial management side tend to delay those deals a little bit longer. So that's just based upon our experience being in this market for a while, and that's what we're kind of expecting to have happen going forward.

馬克，很高興和你談談。目前，從我們所看到的情況來看，我們沒有看到我們對 HCM 和財務的需求與我們過去所看到的有任何差異，這顯然是我們在第二季度看到的好消息。但我們要說的是，隨著我們進入可能發生的更加不確定的經濟環境，通常在這些情況下，財務管理方面的買家往往會推遲這些交易。所以這只是基於我們在這個市場上一段時間的經驗，這就是我們期待未來發生的事情。

And then, Mark, it's Barbara. On your question on the hires, I'm not providing a specific target other than to say, we expect fewer hires compared to the first half in the second half. So we'll continue to be flexible and disciplined based on the environment we see in the second half.

然後，馬克，是芭芭拉。關於你關於招聘的問題，我沒有提供具體的目標，只是說，與下半年相比，我們預計招聘人數會少於上半年。因此，我們將繼續根據我們在下半年看到的環境保持靈活和自律。

Our next question comes from Kirk Materne with Evercore ISI.

我們的下一個問題來自於 Evercore ISI 的 Kirk Materne。

I'll echo the congrats on the quarter. Actually, maybe this one, it sort of echoes Mark's question. But I was curious, when you look at the pipeline build right now relative to what's -- you guys can't control what sort of happens at the end of the deal cycle necessarily. But I was just kind of curious if the macro is having any impact at the front end of the funnel? Are you still seeing the same number of deals come in? When Doug's talking about sort of companies may be taking a pause, is it sort of just at the end? And I guess, is there anything you can do to make your products more modular in nature so that they can continue through the process without getting sort of stuck at one point within the sales funnel.

我會回應本季度的祝賀。實際上，也許這個，它有點呼應馬克的問題。但是我很好奇，當您查看現在相對於什麼的管道構建時 - 你們無法控制在交易週期結束時會發生什麼樣的事情。但我只是有點好奇宏是否會對漏斗的前端產生任何影響？您是否仍然看到相同數量的交易進入？當道格談到某些公司時，可能會暫停，是不是就在最後？而且我想，你能做些什麼來讓你的產品在本質上更加模塊化，這樣他們就可以繼續整個過程，而不會卡在銷售漏斗中的某個點上。

Chano?

查諾？

Thank you, Kirk. We felt good about the new pipeline build that we saw in the quarter across solutions and across geographies and barring any meaningful changes in the macro, we feel good about the pipeline we have for the second half. Certainly, we are never satisfied, and we are focused on continuing to build pipeline, particularly with some of the faster sales motions like our customer base motion and our land first motions because we can certainly create new opportunities, and we can still close them within the fiscal.

謝謝你，柯克。我們對本季度跨解決方案和跨地域看到的新管道建設感覺良好，除非宏觀發生任何有意義的變化，否則我們對下半年的管道感覺良好。當然，我們永遠不會滿足，我們專注於繼續建立管道，特別是一些更快的銷售行動，比如我們的客戶群行動和我們的土地優先行動，因為我們當然可以創造新的機會，我們仍然可以在內部關閉它們財政。

Our next question comes from Brad Sills with Bank of America.

我們的下一個問題來自美國銀行的 Brad Sills。

I wanted to ask a question about a comment you made earlier, Aneel, on a couple of the FINS wins being planning-first customers. Is there another set of the installed base of other modules around FINS that's brewing here that we could also see some upgrades that could come from? And then just any commentary on that planning-first pipeline as kind of a leading indicator potentially for more FINS additions.

我想問一個關於你之前發表的評論的問題，Aneel，關於 FINS 贏得的幾項勝利是計劃優先的客戶。是否還有另一組圍繞 FINS 的其他模塊的安裝基礎正在醞釀中，我們也可以看到一些升級可能來自？然後只是對計劃優先管道的任何評論，作為可能增加更多 FINS 的領先指標。

Yes. Well, we're now up over 6,000 planning customers, and each one of those to me is an opportunity to sell our core financial products. And that is probably the one land product in the world of finance that we can go in with first and have it be meaningful. And it's played out that way, and it plays out the way more and more. The more we get into financial planning and we continue to workforce planning, but the more we do financial planning, it's a great way in. But that's probably the one app that's our lead into core financials.

是的。好吧，我們現在有超過 6,000 名計劃客戶，對我來說，每一個客戶都是銷售我們核心金融產品的機會。這可能是金融世界中我們可以首先進入並使其有意義的一種土地產品。它就是這樣上演的，而且越來越多。我們越多地進入財務規劃，我們繼續進行勞動力規劃，但我們做的財務規劃越多，這是一個很好的方式。但這可能是我們引領核心財務的一個應用程序。

Our next question comes from Michael Turrin with Wells Fargo.

我們的下一個問題來自富國銀行的 Michael Turrin。

Congrats on the results here from me as well. You started somewhat an investment cycle ahead of all the uncertainty. I'm just wondering if there's anything you'd point back to that you're finding is able to provide a bit of a favorable offset. It sounds like you're not seeing as much of the shift in buying behavior as others across software pointing to? And maybe as a second part of the question, if you do see demand signals start to slow, you did have some comments suggesting second half growth could still moderate. How quickly are you able to toggle towards expense control and dial back as needed?

我也祝賀這裡的結果。在所有不確定性之前，你開始了一個投資週期。我只是想知道您是否會指出您發現的任何東西能夠提供一些有利的抵消。聽起來您沒有看到軟件中其他人指出的購買行為發生的變化那麼多？也許作為問題的第二部分，如果您確實看到需求信號開始放緩，您確實有一些評論表明下半年增長仍可能放緩。您能夠多快切換到費用控制並根據需要回撥？

What I'd say on the first part of the question, we know -- who knows how the future is going to play out. But I think one thing that's different about Workday and some of the other cloud companies is that we're still very lightly penetrated in our installed base. When I look at how much revenue we drive, it's not as high as some of our peers in the cloud, and so that's always a good place to sell during tough economic times. Your customers are already committed to Workday. They're already happy, and there -- and so I would say, we're less about toggling about expenses, more about toggling to a different sales strategy. And then I think what we're also doing is, we're dusting off the TCO analysis that we used to do many years ago during the '08, '09 collapse where we had to prove out our TCO in order to even get invited to the game. This market has not been about TCO, it's been about digital transformation, but we do have a very compelling TCO story as well. Chano, Pete or Barbara, you want add anything? Do you want to talk about the expenses, Barbara?

我在問題的第一部分要說的是，我們知道——誰知道未來會如何發展。但我認為 Workday 和其他一些雲公司的不同之處在於，我們在安裝基礎上的滲透率仍然很低。當我查看我們帶來的收入時，它並不像我們在雲中的一些同行那樣高，因此在經濟困難時期這始終是一個很好的銷售場所。您的客戶已經致力於 Workday。他們已經很高興了——所以我想說，我們不是要切換費用，而是要切換到不同的銷售策略。然後我認為我們也在做的是，我們正在重拾多年前在 08 年、09 年崩潰期間所做的 TCO 分析，我們必須證明我們的 TCO 才能獲得邀請到遊戲。這個市場不是關於 TCO，而是關於數字化轉型，但我們也有一個非常引人注目的 TCO 故事。 Chano、Pete 或 Barbara，你想添加什麼嗎？你想談談費用嗎，芭芭拉？

Yes, I think on the expenses, as we said, we're moderating the pace of hiring in the second half -- being cautious going into the second half, but we're going to continue to add resources. At the same time, we're going to be flexible based on the environment we see in the second half. So we feel confident if we need to toggle some of that hiring down in the second half that we can do that.

是的，我認為在開支方面，正如我們所說，我們正在放緩下半年招聘的步伐——進入下半年要謹慎，但我們將繼續增加資源。同時，我們將根據我們在下半年看到的環境變得靈活。因此，如果我們需要在下半年減少部分招聘，我們有信心做到這一點。

Our next question comes from Keith Weiss with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Keith Weiss。

Really great quarter you guys put up. And I think you could probably see kind of in all our questions -- a lot of us are trying to figure out like how do you guys pull this off while a lot of other of your peers are struggling? And Aneel, I think you're trying to get at it and you're talking a little bit about being more likely penetrated into the base. I was wondering if you could expand on that because a lot of us think of you guys as having a really good presence and a big presence in HCM, particularly in the U.S., maybe a little bit less so in Europe. Builds are definitely on the come. What do you mean by lightly penetrated in the days? It's just that there's a lot more to upsell and a lot more product to give to your customers. Can you give -- and why is that such an advantage at a time like this?

你們提出的這個季度真的很棒。而且我認為您可能會在我們所有的問題中看到某種 - 我們中的很多人都在試圖弄清楚你們是如何實現這一目標的，而你們的許多其他同行都在苦苦掙扎？還有 Aneel，我認為您正在嘗試解決問題，並且您正在談論更有可能滲透到基地中。我想知道您是否可以對此進行擴展，因為我們中的很多人都認為你們在 HCM 中有著非常好的影響力和巨大的影響力，尤其是在美國，在歐洲可能會少一些。構建肯定即將到來。你說的在天裡輕輕地穿透是什麼意思？只是有更多的追加銷售和更多的產品要提供給您的客戶。你能給 - 為什麼在這樣的時候會有這樣的優勢？

Well, I would just echo what I said in the previous answer. A happy customer is always an easier sale than a net new customer that doesn't have experience working with you. In terms of penetration, I'll turn that over to Chano to talk about where we are. Chano and Doug really were the drivers of our back to the base motion, and it's still relatively new for us. It's only a few years old versus, I think, other companies have had it more land and expand where we don't really have that opportunity. We land expanded and then we want to add more modules. Chano?

好吧，我只想回應我在上一個答案中所說的話。一個快樂的客戶總是比一個沒有與您合作經驗的新客戶更容易銷售。在滲透方面，我將把它交給查諾來談談我們在哪裡。 Chano 和 Doug 確實是我們回到基礎運動的驅動力，而且對我們來說仍然相對較新。它只有幾年的歷史，而我認為，其他公司已經擁有了更多的土地並在我們沒有真正機會的地方擴張。我們登陸擴展，然後我們想添加更多模塊。查諾？

Yes, that's correct, Keith. I would say first that our key growth drivers played out well during the quarter, both customer base, international, the office of the CFO, and media enterprise, they all behave pretty well across geographies and across different solutions. In terms of the penetration, as you know, we've been focusing more on the customer base because we've been heavily net new during a very long time, and we've been doing investments there that are paying off. And clearly, we've also been innovating and adding a significant number of solutions. So as Aneel was saying, when customers are happy and seeing value and we are focusing on showing the return on investment on those solutions, they tend to buy more and that is exactly what is happening across the segments. And clearly there, our penetration is lower when you compare to other peers that have been more heavily focused on customer base for a longer period.

是的，這是正確的，基思。我首先要說的是，我們的主要增長驅動因素在本季度表現良好，無論是客戶群、國際客戶、首席財務官辦公室還是媒體企業，它們在不同地區和不同解決方案中的表現都非常好。如您所知，就滲透率而言，我們一直更多地關注客戶群，因為我們在很長一段時間內一直是全新的，而且我們一直在那裡進行投資並獲得回報。顯然，我們也一直在創新並添加大量解決方案。因此，正如 Aneel 所說，當客戶感到高興並看到價值並且我們專注於展示這些解決方案的投資回報時，他們往往會購買更多，而這正是各個細分市場正在發生的事情。很明顯，與其他長期專注於客戶群的同行相比，我們的滲透率較低。

But I would say, both of the net new logos and customers we've never done business with and customer base behaves very strong this quarter. Having said all that, as we are saying, we're starting to see a bit more scrutiny, particularly on the larger deal cycles where customers will go a little bit more to another cycle of approval or a better reassurance of the full implementation projects or whatever that most likely will inventing or potentially some of the sales cycles on the larger transformational transactional deals around each financials.

但我想說的是，我們從未與之有過業務往來的淨新標識和客戶，以及本季度客戶群的表現都非常強勁。說了這麼多，正如我們所說，我們開始看到更多的審查，特別是在較大的交易週期中，客戶將更多地進入另一個批准週期或更好地保證完整實施項目或無論最有可能發明或潛在的一些銷售週期，圍繞每個財務的更大的轉型交易交易。

Got it. And if I could just sneak in a last one for Barbara. You guys have talked about sort of more conservatism in the back half guidance. And I'm assuming the outperformance that you guys saw in Q2, particularly in like that 24-month backlog, would have normally translated into sort of a raise of the guidance and you didn't raise the guidance. Can you give us some kind of sense of the magnitude of that conservatism in the back half now?

知道了。如果我能偷偷為芭芭拉做最後一個。你們在後半部分的指導中談到了更多的保守主義。而且我假設你們在第二季度看到的出色表現，特別是在 24 個月的積壓中，通常會轉化為對指導的提高，而你沒有提高指導。你現在能給我們一些關於後半部分保守主義的重要性的感覺嗎？

Yes. I'll just say, coming off a quarter as strong as Q2, we would have liked to have been able to raise our outlook for the full year. But while we outperformed and the business remains resilient, we also see evidence of increased scrutiny in certain sales cycle. So our outlook assumes a continuation of this in the second half.

是的。我只想說，在與第二季度一樣強勁的四分之一之後，我們本來希望能夠提高全年的前景。但是，儘管我們表現出色且業務保持彈性，但我們也看到了在某些銷售週期中加強審查的證據。因此，我們的展望假設下半年會繼續這種情況。

Our next question comes from Alex Zukin with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Alex Zukin。

Since Keith asked both of the exact question I was going to ask, I'll try to basically do it kind of go at it a different way. It feels like, Aneel, what you're saying is that there's a lot of surface area that you have left to kind of go after inside of your client base. And based on the TCO analysis, I'm assuming there's also an opportunity for a lot of your customers to consolidate, particularly on the HCM side from many point solutions to a platform, how is that message kind of resonating in your conversations? And how long before that type of a playbook can be run at the financials level? I realize and obviously, you're going in with the full suite right away. But just walk us through those dynamics, if you could.

由於基思問了我要問的兩個確切問題，我將嘗試基本上以不同的方式去做。感覺就像，Aneel，你所說的是，你有很多表面區域可以在你的客戶群內部進行追求。根據 TCO 分析，我假設您的許多客戶也有機會進行整合，特別是在 HCM 方面，從多點解決方案到平台，該信息如何在您的對話中引起共鳴？這種類型的劇本可以在財務層面運行多長時間？我意識到，很明顯，你馬上就帶著全套套房進去了。但是，如果可以的話，請帶我們了解這些動態。

Well, I'll just offer up a high-level view that happy customers are the most important thing that we have, right? I mean if you have a happy customer, they're just inclined to buy from you. And what we've seen, especially in large enterprises, they typically don't tie the HR and financials decision together. There are separate decisions, and a lot of these solutions like planning are also separate decisions. So as long as we keep that base happy, when these customers look for new solutions, we do have quite a bit of surface area, especially in the HR base, where we've got over, I think, 4,000 HR customers and 1,400 finance customers so that you can just see where that gap is. But also every time we come out with a new module, that's either something we built or an acquisition, it's an opportunity to go back to that base.

好吧，我只是提供一個高層次的觀點，即滿意的客戶是我們擁有的最重要的東西，對吧？我的意思是，如果您有一個滿意的客戶，他們只是傾向於向您購買。我們已經看到，尤其是在大型企業中，他們通常不會將人力資源和財務決策聯繫在一起。有單獨的決定，很多像計劃這樣的解決方案也是單獨的決定。所以只要我們讓這個基礎滿意，當這些客戶尋找新的解決方案時，我們確實有相當多的表面積，尤其是在人力資源基礎上，我認為我們已經克服了 4,000 名人力資源客戶和 1,400 名財務客戶，以便您可以看到差距在哪裡。但是，每次我們推出新模塊時，無論是我們構建的東西還是收購的東西，都是回到那個基地的機會。

One thing I'd add there, Aneel, just to give everybody some perspective on it is we've got 22 SKUs in our HCM portfolio, and we've talked about the fact that 14 of them have been made generally available in the last 4 years, just to give you some perspective on that. What you can read into that is, you've got a large percentage of SKUs that are not penetrated into that base yet. It's what we've been working on for years, and we do -- just to repeat again what Aneel and Chano said, which is focusing on making our customers happy, delivering the value that we've been talking about delivering to them, makes them want to buy more things from us. And so that's a key part of that strategy.

我要補充的一件事，Aneel，只是為了讓每個人都對此有所了解，我們的 HCM 產品組合中有 22 個 SKU，我們已經討論過其中 14 個已在上一個普遍可用的事實4年，只是為了給你一些看法。您可以讀到的是，您有很大比例的 SKU 尚未滲透到該基礎中。這是我們多年來一直在做的事情，我們也這樣做了——再次重複 Aneel 和 Chano 所說的話，即專注於讓我們的客戶滿意，提供我們一直在談論的價值，使他們想從我們這裡購買更多的東西。這是該戰略的關鍵部分。

Perfect. And then maybe just as a follow-up. I want to clarify because I want to drill in on this. Aneel, it sounds like what you're saying is July has been really good, but then from what I think Chano and Barbara are saying is that there is more scrutiny on sales cycles. There's more conservatism in the guide. But I guess, is that something you're actually seeing or you are preparing to see and adding a kind of heightened level of conservatism in the assumptions that you're making around close rates in pipeline generation, et cetera?

完美的。然後也許只是作為後續行動。我想澄清一下，因為我想深入研究這一點。 Aneel，聽起來你說的是 7 月份的情況非常好，但我認為 Chano 和 Barbara 的說法是對銷售週期進行了更多的審查。指南中有更多的保守主義。但我想，這是你實際看到的，還是你正準備看到的，並在假設你在管道生成等方面做出的接近率的假設中增加了一種高度的保守主義？

I think Chano is best to answer that one.

我認為Chano最好回答這個問題。

Yes. Alex, I will reassure July has been very strong. But in terms of the sales cycle moving forward, particularly in some of the larger ones around HCM and FINS, we are seeing some more scrutiny or grade in those sales cycles. As you can imagine, some of those cycles are long. So we definitely have different stages that they move from one to another, we can get some milestones. And it's kind of easy for us to check on the pace that those deals are moving. And as you can see, some of things are clearly and lengthening or potentially lengthening on the sales cycle.

是的。亞歷克斯，我會向你保證，七月的表現非常強勁。但就向前發展的銷售週期而言，特別是在 HCM 和 FINS 周圍的一些較大的銷售週期中，我們在這些銷售週期中看到了更多的審查或分級。可以想像，其中一些週期很長。所以我們肯定有不同的階段，他們從一個轉移到另一個，我們可以獲得一些里程碑。我們很容易檢查這些交易的進展速度。正如您所看到的，有些事情在銷售週期中明顯延長或可能延長。

Our next question comes from Scott Berg with Needham.

我們的下一個問題來自 Scott Berg 和 Needham。

Congrats on a good quarter, and I'll change it up from the macro questions at the moment, leave those for later. I had a question on the announcement during the quarter about your new FedRAMP status, in particular at the moderate security impact level. How should we think about that opportunity in Fed? I know you guys had some general success in the government angle as a whole throughout the domestic United States, but is that something that can be meaningful over time? Or is it really just kind of a maybe a smaller incremental opportunity?

恭喜你有一個好的季度，我會從目前的宏觀問題中改變它，把這些留到以後。我對本季度關於您的新 FedRAMP 狀態的公告有疑問，特別是在中等安全影響級別。我們應該如何看待美聯儲的這個機會？我知道你們在整個美國國內的政府方面取得了一些普遍的成功，但隨著時間的推移，這是否有意義？或者它真的只是一個較小的增量機會？

It can be very meaningful over time, but it's going to take some time for it to develop. Those sales cycles are longer than commercial sales cycles. They always have been. And so now as we have gotten that FedRAMP certification, now the sales cycles begin and they can be 12, 18, 24 month sales cycles. So -- but it's a meaningful opportunity. There's a lot of ex-PeopleSoft customers still running PeopleSoft there. So it's one that we invested in because we see it as a big opportunity, but also going to be patient in that it takes a while for the pipeline to develop.

隨著時間的推移，它可能非常有意義，但它需要一些時間來發展。這些銷售週期比商業銷售週期長。他們一直都是。所以現在我們已經獲得了 FedRAMP 認證，現在銷售週期開始了，它們可以是 12、18、24 個月的銷售週期。所以——但這是一個有意義的機會。有很多前 PeopleSoft 客戶仍然在那裡運行 PeopleSoft。所以這是我們投資的一個，因為我們認為這是一個巨大的機會，但也會有耐心，因為管道的開發需要一段時間。

Pete, do you want anything?

皮特，你想要什麼嗎？

I think you said it very well. It's a -- we see it as an over $2 billion opportunity for the business, but -- and something that we've been investing in for a while. It will take us some time to see that pay off because of these longer sales cycles. And we're -- I think also the government is -- should be a great customer for us, another customer that we can sell more things into than just core HCM over time.

我覺得你說得很好。這是一個——我們認為這對企業來說是一個超過 20 億美元的機會，但是——我們已經投資了一段時間。由於這些較長的銷售週期，我們需要一些時間才能看到回報。而且我們 - 我認為政府也是 - 應該成為我們的好客戶，隨著時間的推移，我們可以向其出售更多東西而不僅僅是核心 HCM 的另一個客戶。

Our next question comes from Brent Bracelin with Piper Sandler.

我們的下一個問題來自 Brent Bracelin 和 Piper Sandler。

Obviously, with increased scrutiny around larger deals, I appreciate that, but we're also seeing belt tightening across the broader enterprise. My question here with your focus around cross-sell, what's the narrative around cost savings, vendor consolidation to bundle HCM and FINS. With some of your larger customers, you're starting to get some high higher-profile Fortune 500 wins there. Love to hear if there's an appetite to further consolidate vendors from a cost savings perspective to bundle HCM and FINS, specifically with some large U.S. customers.

顯然，隨著對大型交易的審查越來越嚴格，我對此表示讚賞，但我們也看到整個企業都在收緊腰帶。我的問題是關於交叉銷售，關於成本節約、供應商整合以捆綁 HCM 和 FINS 的敘述是什麼。對於您的一些大客戶，您開始在那裡獲得一些備受矚目的財富 500 強企業。很高興聽到是否有興趣從節省成本的角度進一步整合供應商，以捆綁 HCM 和 FINS，特別是與一些大型美國客戶。

Well, that trend is definitely happening, and we saw it happen with a series of big financial wins in the second quarter, but I wouldn't underestimate the strength of our medium enterprise business. And I don't see the same belt tightening in the medium enterprise business, and they tend to buy the whole platform. So it's a pretty healthy market for us. It's kind of our run rate business, and they tend to want to have fewer vendors as possible because they don't want to spend all the money on best-of-breed and integration. Chano, anything you want to add?

嗯，這種趨勢肯定正在發生，我們看到它在第二季度的一系列重大財務勝利中發生，但我不會低估我們中型企業業務的實力。在中型企業業務中，我沒有看到同樣的勒緊褲腰帶，他們傾向於購買整個平台。所以這對我們來說是一個非常健康的市場。這是我們的運行率業務，他們往往希望盡可能少的供應商，因為他們不想把所有的錢都花在同類最佳和集成上。查諾，你有什麼要補充的嗎？

Very well said, Aneel. I would just say that some of the larger customers, they do retire double-digit number of legacy systems. So what we're trying to do right now, as Aneel was mentioning before, is ensuring that they understand very well the total cost of ownership and the benefits that our solutions will provide and the return on investments. And of course, we're getting in contact with other customers that have already implemented and really seen those become intangible. So that's the playbook we are putting in play. We've gone before some of these downturn cycles. Some of us are unfortunately old, but there is an advantage of that at times. And the whole management team, and we've seen that working before, as Aneel mentioned. So we're playing that playbook.

說得很好，阿尼爾。我只想說一些較大的客戶，他們確實淘汰了兩位數的舊系統。因此，正如 Aneel 之前提到的，我們現在要做的是確保他們非常了解總擁有成本以及我們的解決方案將提供的收益以及投資回報。當然，我們正在與其他已經實施並真正看到這些變得無形的客戶取得聯繫。這就是我們正在實施的劇本。我們已經經歷了其中一些低迷週期。不幸的是，我們中的一些人老了，但有時也有這樣的優勢。正如 Aneel 所說，整個管理團隊，我們之前已經看到過這種工作。所以我們正在玩那個劇本。

Our next question comes from Brad Zelnick with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Brad Zelnick。

Congrats on a great set of results. I want to follow up on Keith and Alex's line of questioning about happy customers, but also maybe from a little bit of a different angle. As you presumably still have the large renewal cohort flowing through the model that we talked about last year, is the current environment in any way impeding the magnitude of expansion that you would otherwise expect upon renewal? And in fact that factoring into what appears to be a conservative backlog guide for Q3 understandably so, just given the environment.

恭喜取得了一系列出色的成果。我想跟進基思和亞歷克斯關於滿意客戶的問題，但也可能從不同的角度。由於您可能仍然有大量更新隊列通過我們去年討論的模型，當前環境是否以任何方式阻礙了您在更新時預期的擴展幅度？事實上，考慮到第三季度的保守積壓指南，這是可以理解的，只是考慮到環境。

Barbara?

芭芭拉？

So for the backlog guide in Q3, our guidance takes into account the best view of the business that we see it today and that's reflected in our 24-month backlog guide for Q3. Keep in mind, the timing of renewals can fluctuate from quarter-to-quarter and have an impact on that backlog growth. And if you recall at the beginning of the year, we did discuss our expectation for the renewal base to return to a more normalized rate of growth for the full year, which continues to be our view.

因此，對於第三季度的積壓工作指南，我們的指南考慮到了我們今天看到的對業務的最佳看法，這反映在我們對第三季度的 24 個月積壓工作指南中。請記住，續訂的時間可能會隨著季度的變化而波動，並對積壓的增長產生影響。如果你還記得在年初的時候，我們確實討論了我們對續訂基數在全年恢復到更加正常化的增長率的預期，這仍然是我們的觀點。

Great. Any color, though, on just the expansion rate that you're seeing upon renewal?

偉大的。但是，僅在更新時看到的擴展率有什麼顏色嗎？

It remains very strong, Brad. I think it is a testament to the mission-critical of our applications and the customer satisfaction and the renewal ratios remain very good and very healthy across the board.

布拉德，它仍然非常強大。我認為這證明了我們的應用程序的關鍵任務以及客戶滿意度和續訂率仍然非常好並且非常健康。

Our next question comes from Ari Terjanian with Cleveland Research.

我們的下一個問題來自 Cleveland Research 的 Ari Terjanian。

Congrats on the results. Just wanted to follow up on some of the Fortune 500 wins in the quarter. What do you think finally drove those to go over the goal line? And more broadly, what's the timeline you're thinking about for go-lives for those? And the reason I'm asking, just wondering when -- if and when you think there could be more of a halo effect from some of these higher profile wins?

祝賀結果。只是想跟進本季度一些財富 500 強企業的勝利。你認為最終是什麼驅使那些人越過了球門線？更廣泛地說，你為這些人考慮的時間線是什麼？我問的原因，只是想知道什麼時候 - 如果以及何時你認為這些更高知名度的勝利可能會產生更多的光環效應？

I'm going to assume you mean on the finance side because on the HR side, we've always had a stream of Fortune 500 wins. And I think at this point, we're over 50% of that -- well over 50% of the Fortune 500 running us for HCM. On the finance side, I think it's a combination of the systems aging. It's a combination of our product becoming more mature, new products like accounting center that are really strategic to customers and Prism Analytics. So now we've got the full suite, and people have to modernize. They really don't have a choice. But I don't -- I mean I think this is -- it's just a healthy run rate business as opposed to this moment in time where it's going to go through the roof or I don't -- it's not that kind of business.

我假設您的意思是財務方面，因為在人力資源方面，我們總是有源源不斷的財富 500 強企業獲勝。我認為在這一點上，我們已經超過了 50% - 超過 50% 的財富 500 強企業為 HCM 運營我們。在財務方面，我認為這是系統老化的結合。這是我們的產品變得更加成熟、新產品（例如對客戶和 Prism Analytics 具有戰略意義的會計中心）的結合。所以現在我們有了全套設備，人們必須進行現代化改造。他們真的別無選擇。但我不 - 我的意思是我認為這是 - 這只是一個健康的運行率業務，而不是在這個時間它將通過屋頂或我不 - 這不是那種業務.

But the more data points we have of customers choosing us than going live, obviously, the better we are. Comerica went live this past quarter. That was -- that's a fantastic reference for us. A big regional bank going live is a great data point for us. Most of these projects are 12 months to 18 months. It all depends on the scope of what they're trying to do, and so it's a pretty reasonable time frame to get these projects live. If it's a smaller scale implementation, just core accounting, it can be done in less than a year. But if it's a series of modules, 12 to 15 to 18 months is pretty reasonable.

但是，與上線相比，我們擁有的客戶選擇我們的數據點越多，顯然我們就越好。 Comerica 上個季度上線了。那是 - 這對我們來說是一個很棒的參考。一家大型區域性銀行上線對我們來說是一個很好的數據點。這些項目大多為 12 個月至 18 個月。這一切都取決於他們試圖做的事情的範圍，因此讓這些項目上線是一個非常合理的時間框架。如果是小規模的實施，只是核心會計，不到一年就可以完成。但如果是一系列模塊，12 到 15 到 18 個月是相當合理的。

We have time for one more question, and our final question will come from DJ Hynes with Canaccord.

我們有時間再提一個問題，我們的最後一個問題將來自 Canaccord 的 DJ Hynes。

Congrats on the quarter. Chano, when you talk about scrutiny on deals, we've heard that from a lot of companies now. For Workday, what exactly does that mean? I mean, is it haggling on price? Is it more reference checks? Is it about implementation timelines and processes? Like what's involved there? Any color would be interesting to me.

祝賀本季度。查諾，當你談到對交易進行審查時，我們現在已經從很多公司那裡聽到了這一點。對於工作日，這究竟意味著什麼？我的意思是，它是在討價還價嗎？是更多的參考檢查嗎？是關於實施時間表和流程嗎？比如裡面有什麼？任何顏色對我來說都會很有趣。

Yes. Thank you for the question, DJ. It can vary, but you can think about it sometimes. It's just more scrutiny around the implementation time frame and the readiness they have on their side or on the partner side or on our side in terms of resources. It also means many times prioritization on projects, and which usually that happens, we typically come on top because we are mission-critical and because again, on the ROI and the TCO, but you are competing other project.

是的。謝謝你的問題，DJ。它可能會有所不同，但有時您可以考慮一下。只是對實施時間框架以及他們在資源方面或合作夥伴方面或我們方面的準備情況進行更嚴格的審查。這也意味著對項目進行多次優先排序，而且通常會發生這種情況，我們通常會排在首位，因為我們是任務關鍵型的，並且再次強調 ROI 和 TCO，但您正在與其他項目競爭。

It also means an additional level of approval or 2 additional levels of approvals of going up to the Board, depending on the level of approval. So those are some of the things that it typically means around business case, around management approvals around prioritization of projects and around reinsurance in terms of success and implementations and availability of resources and cost of opportunities and impact on potentially other investments or opportunities they are managing or considering.

這也意味著額外的批准級別或 2 個額外級別的批准，取決於批准的級別。因此，這些通常意味著圍繞業務案例，圍繞項目優先級的管理批准以及圍繞成功和實施以及資源可用性和機會成本的再保險以及對他們正在管理的潛在其他投資或機會的影響的一些事情或考慮。

I will turn the call back over to management for closing comments.

我會將電話轉回管理層以結束評論。

Everybody, have a good night.

大家，晚安。

Ladies and gentlemen, thank you for your participation on today's conference. This will conclude Workday's Second Quarter Full Year 2023 Earnings Call. Thank you again for joining us today, and have a great day.

女士們，先生們，感謝你們參加今天的會議。這將結束 Workday 的 2023 年第二季度全年收益電話會議。再次感謝您今天加入我們，祝您有美好的一天。