Workday Inc (WDAY) 2023 Q3 法說會逐字稿

Welcome to Workday's Third Quarter Fiscal Year 2023 Earnings Call. (Operator Instructions) With that, I will now hand it over to Justin Furby, Vice President of Investor Relations. Thank you. Justin, you may begin.

歡迎來到 Workday 2023 財年第三季度財報電話會議。 （操作員說明）有了這個，我現在將它交給投資者關係副總裁 Justin Furby。謝謝你。賈斯汀，你可以開始了。

(technical difficulty)

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and Chano Fernandez, our co-CEOs; Barbara Larson, our CFO; Pete Schlampp, our Chief Strategy Officer; and Doug Robinson, our co-President.

和我們的聯席首席執行官 Chano Fernandez；我們的首席財務官 Barbara Larson；我們的首席戰略官 Pete Schlampp；和我們的聯席總裁道格·羅賓遜 (Doug Robinson)。

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.

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，該電話會議同時進行網絡直播。

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 impact of the ongoing COVID-19 pandemic and recent macroeconomic events on our business and global economic conditions.

在我們開始之前，我們要強調的是，我們在本次電話會議上的一些聲明，尤其是我們的指導，是基於我們今天掌握的信息，包括關於我們的財務業績、應用、客戶需求、運營和其他事宜。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風險、不確定性和假設。

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.

請參閱新聞稿和我們向美國證券交易委員會提交的文件中的風險因素，包括我們 2022 年 10-K 表年度報告和我們最近的 10-Q 表季度報告，以了解有關風險和不確定性的更多信息和假設可能導致實際結果與此類陳述中提出的結果存在重大差異。

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 GAAP 措施應作為 GAAP 結果的補充，而不是替代或孤立於 GAAP 結果。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 GAAP 措施的額外披露，包括與可比較的 GAAP 結果的調節。

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.

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，我們的季度投資者介紹將在此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含選定客戶的列表，並且每月更新一次。

Our fourth quarter fiscal 2023 quiet period begins on January 15, 2023. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal 2022.

我們 2023 財年第四季度的靜默期從 2023 年 1 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 財年同期的結果進行比較。

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 Third Quarter Fiscal '23 Earnings Conference Call. I'm happy to report that we had a solid Q3 as we once again outperformed across our key operating metrics. There is no question that the macro environment presents increased uncertainty, but as we've said before, we are well positioned in this type of environment because our cloud finance and HR solutions are truly mission-critical. As our Q3 results showed, more and more organizations are selecting Workday as their trusted partner to help them successfully navigate today's changing world.

謝謝賈斯汀，歡迎來到 Workday 的第三季度 23 財年收益電話會議。我很高興地報告說，我們的第三季度表現穩健，因為我們在關鍵運營指標上再次表現出色。毫無疑問，宏觀環境帶來了更多的不確定性，但正如我們之前所說，我們在這種環境中處於有利地位，因為我們的雲金融和人力資源解決方案確實是關鍵任務。正如我們第三季度的結果所示，越來越多的組織選擇 Workday 作為他們值得信賴的合作夥伴，以幫助他們成功駕馭當今不斷變化的世界。

We remain confident in our ability to capitalize on the opportunity ahead and are pleased to announce our first-ever share repurchase program of up to $500 million under authorization. This program will help reduce the rate of our share dilution going forward and is driven by our belief that our share price is undervalued given the long-term growth opportunity ahead. Barbara will share details shortly, but know that we feel confident that we'll reach a scale where we can roll out this repurchase program while continuing to prioritize investing for long-term profitable growth.

我們仍然相信我們有能力利用未來的機會，並很高興地宣布我們有史以來第一個高達 5 億美元的授權股票回購計劃。該計劃將有助於降低我們未來的股票稀釋率，並且我們相信鑑於未來的長期增長機會，我們的股價被低估了。 Barbara 將很快分享細節，但她知道我們有信心達到一定規模，可以推出回購計劃，同時繼續優先投資以實現長期盈利增長。

With that, I'd like to share some highlights from the quarter. In Q3, we further solidified our position as a leader in cloud HR with notable new HCM customers, including Intermountain Health, SGS and Texas Roadhouse. In addition, we had several key HCM go-lives, including Best Buy, Canadian Tire Corporation and the state of Oklahoma. For Workday Financial Management, we continue to see strong demand and momentum in Q3. Key new wins included a Fortune 200 provider of information technology solutions, Cincinnati Children's Hospital Medical Center, EZCORP and Thomas Jefferson University. It's important to note that each of these customers have also selected us for HCM, reinforcing the power of the full Workday platform and providing further evidence that companies are going all in with us. Key financial management go-lives during the quarter included City of Baltimore and Medical University of South Carolina.

因此，我想分享本季度的一些亮點。在第三季度，我們憑藉 Intermountain Health、SGS 和 Texas Roadhouse 等著名的 HCM 新客戶進一步鞏固了我們作為雲 HR 領導者的地位。此外，我們有幾個關鍵的 HCM 上線，包括百思買、加拿大輪胎公司和俄克拉荷馬州。對於 Workday Financial Management，我們在第三季度繼續看到強勁的需求和勢頭。重要的新勝利包括財富 200 強信息技術解決方案提供商、辛辛那提兒童醫院醫療中心、EZCORP 和托馬斯杰斐遜大學。值得注意的是，這些客戶中的每一個都選擇了我們的 HCM，增強了整個 Workday 平台的力量，並提供了更多證據表明公司正在與我們一起全力以赴。本季度上線的主要財務管理包括巴爾的摩市和南卡羅來納醫科大學。

Q3 also saw us get back in person for Workday Rising, our annual customer conference for the first time since 2019. We had nearly 16,000 in-person and virtual attendees, and it was great to experience the energy and see firsthand how our community is growing and evolving. This was highlighted by the fact that this year's event has a large percentage of senior leaders, finance and IT attendees ever.

第三季度，我們還親自參加了 Workday Rising，這是我們自 2019 年以來首次舉行的年度客戶大會。我們有近 16,000 名現場和虛擬與會者，能夠親身體驗我們的活力並親眼目睹我們的社區如何發展真是太棒了和進化。今年的活動有很大比例的高級領導、財務和 IT 與會者這一事實突出了這一點。

One big takeaway from Rising is that our innovation story is resonating with customers as we evolve to be more open and connected. While we've traditionally targeted the offices of CHRO and CFO, we have placed increased focus recently on the office of the CIO, which presents another growth opportunity for us.

Rising 的一大收穫是，隨著我們變得更加開放和聯繫更加緊密，我們的創新故事正在與客戶產生共鳴。雖然我們傳統上以 CHRO 和 CFO 辦公室為目標，但最近我們更加關注 CIO 辦公室，這為我們提供了另一個增長機會。

One solution in particular that was a popular topic among IT attendees was Workday Extend. Workday Extend lets customers and partners build their own unique solutions on top of Workday, which is a huge point of emphasis for CIOs and, in their eyes, positions us even more as a true platform player. While we announced several availability at Workday Extend in 2020, we've continued to see accelerated demand for it over the last year as the need for organizations to quickly innovate and adapt in today's business environment increases.

一個特別受 IT 與會者歡迎的解決方案是 Workday Extend。 Workday Extend 允許客戶和合作夥伴在 Workday 之上構建他們自己獨特的解決方案，這是 CIO 的一個重要重點，在他們眼中，我們更像是一個真正的平台參與者。雖然我們在 2020 年的 Workday Extend 上宣布了幾項可用性，但隨著組織快速創新和適應當今業務環境的需求增加，我們在過去一年中繼續看到對它的需求加速增長。

We also announced new more personalized UX enhancements that meet every type of Workday user in the natural flow of their work such as mobile devices, Microsoft Teams and Slack, which helps us to address another CIO priority as they are more focused than ever on driving increased employee engagement.

我們還宣布了新的更加個性化的 UX 增強功能，以滿足各種類型的 Workday 用戶的自然工作流程，例如移動設備、Microsoft Teams 和 Slack，這有助於我們解決 CIO 的另一個優先事項，因為他們比以往任何時候都更加專注於推動增長員工敬業度。

And finally, we further reinforced our leadership in artificial intelligence and machine learning with the announcement of next-generation skills technology that allows customers to more easily and securely bring skills data in and out of Workday. This helps customers leverage the full power of machine learning to gain deeper insights into their workforce skills and deliver more personalized employee experiences.

最後，我們通過宣布下一代技能技術進一步鞏固了我們在人工智能和機器學習方面的領導地位，使客戶能夠更輕鬆、更安全地將技能數據傳入和傳出 Workday。這有助於客戶充分利用機器學習的全部力量，更深入地了解他們的勞動力技能，並提供更加個性化的員工體驗。

In closing, we once again delivered a solid quarter with strength across a number of key growth initiatives, showcasing why Workday is the backbone of digital business. And while we expect that the macro uncertainty will cause our growth to moderate in the near term, we continue to believe we are well positioned to navigate this environment and emerge even stronger. Driving constant innovation to address our customers' evolving needs has always been key to our success and will continue to be our focus in this environment.

最後，我們在一系列關鍵增長計劃中再次取得了穩健的季度表現，展示了為什麼 Workday 是數字業務的支柱。雖然我們預計宏觀不確定性將導致我們的增長在短期內放緩，但我們仍然相信我們有能力駕馭這種環境並變得更加強大。推動不斷創新以滿足客戶不斷變化的需求一直是我們成功的關鍵，並將繼續成為我們在這種環境下的工作重點。

With that, I'll turn it over to our co-CEO, Chano Fernandez. Chano, over to you.

有了這個，我將把它交給我們的聯席首席執行官 Chano Fernandez。查諾，交給你了。

Thank you, Aneel, and thank you to everyone for joining today's call. I want to start off by offering my sincere thanks to the more than 17,500 Workmates that help us deliver another solid quarter. Your relentless focus on the customer continues to push us and the broader Workday community forward. Great job, team.

謝謝 Aneel，也感謝大家參加今天的電話會議。首先，我要向 17,500 多名幫助我們實現又一個穩定季度的同事表示衷心的感謝。您對客戶的不懈關注繼續推動我們和更廣泛的 Workday 社區向前發展。幹得好，團隊。

I've been on the road a lot the last few months, including Workday Rising in Europe which has wrapped up in Stockholm and Workday Rising in U.S. back in September. I've had the opportunity to spend time with hundreds of customers and prospects, and there are a couple of key themes emerging.

過去幾個月我一直在路上，包括在斯德哥爾摩結束的歐洲 Workday Rising 和 9 月份在美國的 Workday Rising。我有機會與數百名客戶和潛在客戶共度時光，並發現了幾個關鍵主題。

First, despite all the challenges that companies are facing today, they increasingly realize the present need to modernize their HR and financial systems. The executives that I speak with have different viewpoints on what the macroeconomic climate will look like in the year ahead. But one thing they agree on is that the change is constant and it's nearly impossible to navigate with legacy systems.

首先，儘管公司如今面臨著種種挑戰，但他們越來越意識到當前需要對其人力資源和財務系統進行現代化改造。與我交談過的高管們對未來一年的宏觀經濟環境有不同的看法。但他們一致同意的一件事是，變化是持續不斷的，幾乎不可能使用遺留系統進行導航。

Second, there is a clear desire to consolidate and prioritize spend across a new organization's more strategic technology vendors. Given our positioning as the backbone of digital business across HR and finance, this trend has led to more and more companies going all in with Workday as they look to harness the power of their data across the enterprise. And when I look at our solid Q3 results across both the large and medium enterprise, it's a direct validation of these themes being seen across organizations of all sizes.

其次，顯然希望整合新組織更具戰略意義的技術供應商的支出並確定支出的優先級。鑑於我們作為人力資源和財務數字業務支柱的定位，這一趨勢導致越來越多的公司全力投入 Workday，因為他們希望在整個企業中利用數據的力量。當我查看我們在大中型企業中穩固的第三季度業績時，這直接驗證了這些主題在各種規模的組織中都得到了體現。

From a geographic standpoint, we saw solid results across North America with a number of CoreHR and FINS wins that Aneel mentioned, in addition to several strategic expansions across the Fortune 500. APA also outperformed with wins at Bank of Queensland, Fletcher Building, [Ono] Pharmaceutical and Trip.com, to name a few. And in EMEA, we had a number of important wins and expansions, including SGS, [Allianz] Medical Group and Equiniti.

從地域的角度來看，我們在北美看到了穩固的成果，Aneel 提到了一些 CoreHR 和 FINS 的勝利，此外還有財富 500 強中的幾項戰略擴張。APA 在昆士蘭銀行、弗萊徹大廈、[小野] 醫藥和Trip.com，僅舉幾例。在 EMEA，我們取得了一些重要的勝利和擴張，包括 SGS、[Allianz] Medical Group 和 Equiniti。

Our customer base sales team once again saw outstanding growth, a direct reflection of the trust that customers are placing in us and a validation of our strategy. We drove very strong renewal rates in Q3, and we closed a number of strategic expansions at companies such as Accenture, University of Maryland, the state of Nebraska, Pick n Pay, Puma and VF Corporation.

我們的客戶群銷售團隊再次實現了顯著增長，這直接反映了客戶對我們的信任以及對我們戰略的認可。我們在第三季度推動了非常強勁的續約率，我們結束了埃森哲、馬里蘭大學、內布拉斯加州、Pick n Pay、彪馬和 VF Corporation 等公司的一些戰略擴張。

As we shared at our recent Analyst Day, our customer base momentum is being driven by our broad portfolio. Solutions such as Journeys, Help and Talent Optimization, for example, are seeing strong adoption as customers look to support employee experience, while our scheduling, time tracking and payroll solutions are all resonating as customers increasingly focused on labor optimization. And other products such as Planning, Extend, Accounting Center, VNDLY and our Spend Management solutions are all contributing to this quarter's strength across the customer base.

正如我們在最近的分析師日分享的那樣，我們廣泛的產品組合正在推動我們的客戶群發展勢頭。例如，由於客戶希望支持員工體驗，Journeys、Help 和 Talent Optimization 等解決方案得到了廣泛採用，而隨著客戶越來越關注勞動力優化，我們的日程安排、時間跟踪和薪資解決方案都引起了共鳴。 Planning、Extend、Accounting Center、VNDLY 和我們的 Spend Management 解決方案等其他產品都為本季度客戶群的實力做出了貢獻。

Our industry focus continues to pay off. In Q3, nowhere was this more evident than the health care vertical where we had a strong growth in new ACV and where we surpassed $0.5 billion in annual recurring revenue. By far, the 2 largest costs for health care organizations are labor and materials. And by leveraging our full suite of HCM, FINS and supply chain solutions, they are able to help optimize spend across these critical areas. In fact, all of our larger Q3 health care wins were full suite and including Workday's supply chain management.

我們的行業重點繼續得到回報。在第三季度，這一點在醫療保健垂直領域表現得最為明顯，我們的新 ACV 增長強勁，年度經常性收入超過 5 億美元。到目前為止，醫療保健組織的兩大成本是人工和材料。通過利用我們的全套 HCM、FINS 和供應鏈解決方案，他們能夠幫助優化這些關鍵領域的支出。事實上，我們所有更大的第三季度醫療保健勝利都是全套的，包括 Workday 的供應鏈管理。

We also saw healthy momentum within the professional services industry highlighted by the aforementioned expansion at Accenture as we continue to co-innovate across the Workday platform, including significant new developments in the skills cloud, public cloud and accessibility.

隨著我們繼續在 Workday 平台上共同創新，包括技能雲、公共雲和可訪問性方面的重大新發展，我們還看到了上述埃森哲擴張突顯的專業服務行業的健康發展勢頭。

Other strategic wins in the professional services industry included Novozymes and Reed Global, which was a full suite win. Our expanding partner ecosystem is also becoming an increasingly important driver of our growth. Key to our strategy is driving core innovation across the platform, which increases the differentiation of our solutions, enables even faster innovation to address real-time customer challenges and allows our partners to leverage their deep industry and solution insights to differentiate in the market.

專業服務行業的其他戰略勝利包括 Novozymes 和 Reed Global，這是一個完整的勝利。我們不斷擴大的合作夥伴生態系統也正成為我們增長的越來越重要的驅動力。我們戰略的關鍵是推動整個平台的核心創新，這增加了我們解決方案的差異化，實現更快的創新以應對實時客戶挑戰，並允許我們的合作夥伴利用他們對行業和解決方案的深入洞察力在市場中脫穎而出。

Examples of recent partner-driven innovation built on the Workday platform include Accenture's digital revenue operations solution, which integrates CPQ capabilities with Workday's billing and revenue automation to enable seamless quote-to-cash functionality for software and technology companies.

最近在 Workday 平台上構建的合作夥伴驅動的創新示例包括埃森哲的數字收入運營解決方案，該解決方案將 CPQ 功能與 Workday 的計費和收入自動化集成在一起，為軟件和技術公司提供無縫的報價到收款功能。

Another great example is employee document management, built by partner Kainos on Workday Extend, which provides our customers with advanced document generation, access control storage and finely tuned document retention rules. These are just a few several solutions that were recently released by our partner ecosystem, and we have dozens more on the road map.

另一個很好的例子是員工文檔管理，由合作夥伴 Kainos 在 Workday Extend 上構建，它為我們的客戶提供高級文檔生成、訪問控制存儲和微調的文檔保留規則。這些只是我們的合作夥伴生態系統最近發布的幾個解決方案中的幾個，我們還有更多的路線圖。

As we move into our fourth quarter, the environment remains uncertain, which has led to increased scrutiny and the lengthening of certain sales cycles, particularly with the net new opportunities. While we aren't immune to this and see signs that it will persist into next year, we are confident in our diverse pipeline and are focused on executing in Q4 and laying a strong foundation for FY '24 and beyond.

隨著我們進入第四季度，環境仍然不確定，這導致審查力度加大和某些銷售週期的延長，尤其是在出現淨新機會的情況下。雖然我們不能倖免，並且看到它會持續到明年的跡象，但我們對我們多樣化的管道充滿信心，並專注於在第四季度執行並為 24 財年及以後奠定堅實的基礎。

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

有了這個，我將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 solid Q3 results in the face of continued economic uncertainty, a testament to strong execution across the company as well as the strategic and mission-critical nature of our solutions.

謝謝，查諾，大家下午好。正如 Aneel 和 Chano 所提到的，面對持續的經濟不確定性，我們在第三季度取得了穩健的業績，這證明了整個公司的強大執行力以及我們解決方案的戰略性和關鍵任務性質。

Subscription revenue in Q3 was $1.43 billion, up 22% year-over-year, and professional services revenue was $167 million, up 7%. Total revenue outside of the U.S. was $394 million, representing 25% of total revenue. 24-month backlog at the end of the third quarter was $8.62 billion, growth of 21%. The result was driven by solid new business sales and strong renewals, with gross and net revenue retention rates over 95% and over 100%, respectively. Total subscription revenue backlog at the end of Q3 was $14.10 billion, up 28%.

第三季度訂閱收入為 14.3 億美元，同比增長 22%，專業服務收入為 1.67 億美元，增長 7%。美國以外的總收入為 3.94 億美元，佔總收入的 25%。第三季度末 24 個月的積壓訂單為 86.2 億美元，增長 21%。這一結果是由穩健的新業務銷售和強勁的續約推動的，總收入和淨收入保留率分別超過 95% 和 100%。第三季度末未完成的訂閱總收入為 141 億美元，增長 28%。

Our non-GAAP operating income for the third quarter was $314 million, resulting in non-GAAP operating margin of 19.7%. Margin overachievement was driven by revenue outperformance, favorable cost variances across the business and the timing of certain expenses shifting into Q4.

我們第三季度的非 GAAP 營業收入為 3.14 億美元，非 GAAP 營業利潤率為 19.7%。利潤率超額完成是由收入表現出色、整個企業的有利成本差異以及某些費用轉移到第四季度的時間推動的。

Q3 operating cash flow was $409 million, growth of 6%. Our cash flow this quarter was impacted by a $55 million semiannual interest payment associated with our Q1 debt offering. We also paid off the principal balance on our $1.15 billion convertible debt with cash in October, resulting in a reduction to our non-GAAP diluted share count of roughly 8 million shares. Given the late Q3 timing, this share count reduction will be fully reflected in our non-GAAP weighted average share count in Q4.

第三季度運營現金流為 4.09 億美元，增長 6%。我們本季度的現金流量受到與第一季度債券發行相關的 5500 萬美元半年度利息支付的影響。我們還在 10 月份用現金還清了 11.5 億美元可轉換債券的本金餘額，導致我們的非 GAAP 攤薄股數減少約 800 萬股。鑑於第三季度的時間較晚，這一股份數量減少將充分反映在我們第四季度的非 GAAP 加權平均股份數量中。

During the quarter, we successfully added approximately 600 net new employees, ending Q3 with a global workforce of more than 17,500. We expect a strong moderation of hiring as we move into Q4, but we'll continue to add key talent across strategic growth areas of the business, notably go-to-market and product and technology. Overall, we're extremely proud of the strong company-wide performance in Q3, and we're focused on executing in Q4, our seasonally strongest quarter of the year.

本季度，我們成功淨增約 600 名新員工，截至第三季度，全球員工總數超過 17,500 人。我們預計進入第四季度時招聘會大幅放緩，但我們將繼續在業務的戰略增長領域增加關鍵人才，特別是上市以及產品和技術。總的來說，我們對第三季度全公司的強勁表現感到非常自豪，我們專注於第四季度的執行，這是我們今年季節性最強的季度。

Now turning to guidance, which reflects both the continued momentum in our business while also balancing an uncertain macro environment. With that context, our guidance for FY '23 subscription revenue is now $5.555 billion to $5.557 billion, representing 22% year-over-year growth. We expect Q4 subscription revenue to be $1.483 billion to $1.485 billion, 21% year-over-year growth. We now expect professional services revenue to be $645 million in FY '23 with the slight reduction driven by the delay of a large project. For Q4, we expect professional services revenue of $147 million.

現在轉向指導，這既反映了我們業務的持續發展勢頭，又平衡了不確定的宏觀環境。在此背景下，我們對 23 財年訂閱收入的指導現在為 55.55 億美元至 55.57 億美元，同比增長 22%。我們預計第四季度訂閱收入為 14.83 億美元至 14.85 億美元，同比增長 21%。我們現在預計 23 財年的專業服務收入將達到 6.45 億美元，但由於大型項目的延遲而略有下降。對於第四季度，我們預計專業服務收入為 1.47 億美元。

We expect 24-month backlog to grow approximately 19% year-over-year in Q4. We expect Q4 non-GAAP operating margin of approximately 17.5%, which includes some expenses that shifted out of Q3. Our FY '23 non-GAAP operating margin guidance is now 19.2%.

我們預計第四季度 24 個月的積壓訂單將同比增長約 19%。我們預計第 4 季度非 GAAP 營業利潤率約為 17.5%，其中包括一些從第 3 季度轉移出來的費用。我們的 FY '23 非 GAAP 營業利潤率指導現在為 19.2%。

GAAP operating margins for both the fourth quarter and the full year are expected to be approximately 23 percentage points lower than the non-GAAP margins. This includes a change to our employee stock plan that will take effect in Q4 to provide more flexibility to our employees during the open trading window each quarter. Our vesting date will move from the 15th to the 5th of each month for all outstanding grants, resulting in an acceleration of stock-based compensation expense of approximately $30 million in Q4. This change will result in reduced stock-based compensation expense by the same amount over the next few years and has no impact on our dilution.

第四季度和全年的 GAAP 營業利潤率預計將比非 GAAP 利潤率低約 23 個百分點。這包括對我們的員工股票計劃的更改，該計劃將於第四季度生效，以便在每個季度的開放交易窗口期間為我們的員工提供更大的靈活性。對於所有未償還的贈款，我們的歸屬日期將從每個月的 15 日改為 5 日，從而導致第四季度基於股票的薪酬支出加速增加約 3000 萬美元。這一變化將導致未來幾年基於股票的補償費用減少相同數量，並且對我們的稀釋沒有影響。

The FY '23 non-GAAP tax rate remains at 19%. We are maintaining our FY '23 guidance for operating cash flow of $1.64 billion, but are reducing our capital expenditures outlook to approximately $375 million, reflecting the timing of certain data center and real estate investments being pushed out to future periods. And as Aneel mentioned, we are pleased to announce a share repurchase program with authority to repurchase up to $500 million in shares over an 18-month period.

23 財年的非 GAAP 稅率保持在 19%。我們維持 23 財年 16.4 億美元的運營現金流指導，但將我們的資本支出前景下調至約 3.75 億美元，反映出某些數據中心和房地產投資被推遲到未來時期的時間。正如 Aneel 提到的，我們很高興地宣布一項股票回購計劃，該計劃有權在 18 個月內回購高達 5 億美元的股票。

We will continue to prioritize allocating capital towards organic innovation, followed by targeted M&A, but given our strong balance sheet and free cash flow, we intend to use a portion of our capital towards the repurchase of shares, enabling us to partially offset future dilution from employee stock programs. This repurchase program is a direct reflection of our confidence in the business and our view that our shares are currently undervalued.

我們將繼續優先將資本分配給有機創新，其次是有針對性的併購，但鑑於我們強大的資產負債表和自由現金流，我們打算將部分資本用於回購股票，使我們能夠部分抵消未來稀釋員工股票計劃。該回購計劃直接反映了我們對業務的信心以及我們認為我們的股票目前被低估的觀點。

While we are early in our planning cycle for next year and have an important Q4 ahead, we'd like to provide a preliminary view of FY '24. As discussed at our Financial Analyst Day, we have a significant long-term opportunity and multiple growth levers that drive our goal of sustaining 20% plus subscription revenue growth on our path to $10 billion in revenue. While this remains our multiyear goal, given the continued macro uncertainty, we believe it's prudent to provide a preliminary FY '24 subscription revenue range of approximately $6.5 billion to $6.6 billion or 17% to 19% year-over-year growth. This outlook takes into account the lengthening of sales cycles that we're currently seeing impact our net new business.

雖然我們處於明年計劃週期的早期，並且即將迎來重要的第四季度，但我們想提供對 FY '24 的初步看法。正如我們在金融分析師日上討論的那樣，我們擁有重要的長期機會和多重增長槓桿，推動我們在實現 100 億美元收入的道路上維持 20% 以上的訂閱收入增長目標。雖然這仍然是我們的多年目標，但考慮到持續的宏觀不確定性，我們認為提供 24 財年初步訂閱收入範圍約為 65 億美元至 66 億美元或同比增長 17% 至 19% 是謹慎的。這一展望考慮了我們目前看到的影響我們淨新業務的銷售週期的延長。

From a margin standpoint, we currently expect FY '24 non-GAAP operating margin expansion of 150 to 200 basis points from FY '23 levels, placing us firmly on track to our target of 25% non-GAAP operating margin and 35% operating cash flow margin at $10 billion in revenue. The expected margin expansion is driven by the scalability of our model, a strong moderation of hiring and ongoing expense discipline. We plan to operate the business with agility, and we'll continue to appropriately balance growth investments based on what we see in the underlying market environment. And finally, I'll close by thanking our amazing employees, customers and partners for their continued support and hard work.

從利潤率的角度來看，我們目前預計 24 財年的非 GAAP 營業利潤率將從 23 財年的水平增長 150 至 200 個基點，使我們堅定地朝著 25% 的非 GAAP 營業利潤率和 35% 的營業現金的目標邁進流動利潤為 100 億美元的收入。預期的利潤率增長是由我們模型的可擴展性、招聘的強勁放緩和持續的費用紀律推動的。我們計劃靈活地經營業務，我們將繼續根據我們在基礎市場環境中看到的情況適當平衡增長投資。最後，我要感謝我們優秀的員工、客戶和合作夥伴一直以來的支持和辛勤工作。

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

有了這個，我會把它交給接線員開始問答。

(Operator Instructions) Our first question is 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。

Fabulous, fabulous quarter given the macroeconomic conditions. I was wondering if you could give us some perspective. In some sense, this is a recession that everybody has been expecting, nobody's going to be surprised. I was wondering if you could offer some insights into how Workday has been able to execute so well during a tough time and other software companies are facing headwinds.

鑑於宏觀經濟狀況，這是一個非常棒的季度。我想知道你是否可以給我們一些觀點。從某種意義上說，這是一場所有人都在預料之中的經濟衰退，沒有人會感到意外。我想知道您是否可以就 Workday 如何在艱難時期以及其他軟件公司面臨逆風時表現出色提供一些見解。

And to the extent we get some relief next year, if the economy does improve, could you do even better considering that your results are actually quite impressive?

就明年我們得到一些緩解而言，如果經濟確實有所改善，考慮到你的結果實際上非常令人印象深刻，你能做得更好嗎？

Well, I don't think we'll comment next year just quite yet, Kash, but thank you for the kind comments. I think the value proposition of our products works in a downturn just as it does in a good market, just like we did in 2008, 2009 and every other downturn. Chano, do you want to add anything?

好吧，我認為我們明年還不會發表評論，卡什，但感謝您的友好評論。我認為我們產品的價值主張在經濟低迷時期和在良好市場中一樣有效，就像我們在 2008 年、2009 年和其他每一次經濟低迷時期所做的那樣。 Chano，你想補充什麼嗎？

No, I think I agree with what you said, Aneel. I believe the mission-critical applications of our solutions really resonates with our customers as they are modernized in their HR and finance solution. And as I said in my comments as well, Kash, there is a consolidation of spend across strategic (inaudible) vendors, and we clearly are being one of those these days.

不，我想我同意你所說的，Aneel。我相信我們解決方案的關鍵任務應用程序真正引起了我們客戶的共鳴，因為他們在人力資源和財務解決方案中實現了現代化。正如我在評論中所說，Kash，戰略（聽不清）供應商的支出正在整合，而我們顯然是這些天之一。

Our next question is from Kirk Materne with Evercore.

我們的下一個問題來自 Evercore 的 Kirk Materne。

I'll echo the congrats on a really nice quarter in a tough environment. I guess, Chano, you talked about some deal cycles extending. I was just wondering if you could talk a little bit about what you're seeing at the top of the funnel. Obviously, you guys sort of came out perhaps of the COVID recession a little bit later than some others. I think there's a fear out there that once we get through this current wave of deals in your pipeline, that there might be some sort of cliff in terms of net new billings. But it sounds like you guys feel pretty good about your pipeline. So I was wondering if you could just sort of expand on that.

在艱難的環境中，我會祝賀一個非常好的季度。我猜，Chano，你談到了一些交易週期的延長。我只是想知道您是否可以談談您在漏斗頂部看到的內容。顯然，你們可能比其他人晚一點走出 COVID 衰退。我認為人們擔心，一旦我們完成了您管道中當前的交易浪潮，就淨新賬單而言可能會出現某種形式的懸崖。但聽起來你們對自己的管道感覺很好。所以我想知道你是否可以對此進行擴展。

Thank you for your question, Kirk. Overall, companies continue to prioritize HCM and financials transformations, and we see ongoing momentum in important growth areas like our customer base team, what is a clear market trend, as I said, towards consolidation of vendors and as well the medium enterprise. There's good pipeline momentum, but maybe, Doug, you can add some color in terms of pipeline and deal dynamics overall.

謝謝你的問題，柯克。總體而言，公司繼續優先考慮 HCM 和財務轉型，我們看到重要增長領域的持續勢頭，如我們的客戶群團隊，這是一個明顯的市場趨勢，正如我所說，供應商和中型企業的整合。有良好的管道勢頭，但也許，道格，你可以在管道和整體交易動態方面添加一些顏色。

Yes. I think -- well, you captured 2 of it, which is I describe, Kirk, as -- we've got diversity of revenue streams. So as Chano mentioned, medium enterprise performed well. We've got the customer base motion. And that was a theme that I certainly heard at our customer conferences is our large customers wanting to consolidate, rationalize number of suppliers and expand their footprint with us. So I think that certainly helps.

是的。我認為 - 好吧，你捕獲了其中的 2 個，這是我描述的，柯克，因為 - 我們有多樣化的收入來源。正如 Chano 提到的那樣，中型企業表現良好。我們有客戶群動議。我在我們的客戶會議上肯定聽到的一個主題是我們的大客戶希望整合、合理化供應商數量並擴大他們與我們的足跡。所以我認為這肯定有幫助。

In terms of like top of the funnel sort of the core of your question, it's really interesting in that our Q3 pipeline build, so the pipe we're building now, which is largely about next year, met our internal targets. So we're seeing project formation. At the same time, we're seeing some projects elongate. I think Chano mentioned this, but they tend to be large enterprise net new. Those projects have extra steps to complete. At the same time, at the top end, the starting of projects is meeting the goals that we've established internally.

就你問題核心的漏斗頂部而言，我們的第三季度管道構建真的很有趣，所以我們現在正在構建的管道（主要是明年）達到了我們的內部目標。所以我們看到了項目的形成。與此同時，我們看到一些項目在延長。我認為 Chano 提到過這一點，但它們往往是大型企業網絡新人。這些項目需要完成額外的步驟。與此同時，在最高端，項目的啟動正在實現我們內部製定的目標。

Our next question is from Mark Murphy with JPMorgan.

我們的下一個問題來自摩根大通的馬克墨菲。

Yes. And I'll add my congrats. I'm interested in whether it's possible that the volatility of this type of environment where you have so many vectors moving around inflation, interest rates, FX, supply chain issues. Is it possible that it's coming together in a way that really elevates the Workday value prop with integrated planning, cloud-based, maybe more so than in the smooth sailing environment that we had in the last decade? Because as Kash mentioned, you're navigating your way through this very well.

是的。我要表示祝賀。我感興趣的是，這種環境的波動性是否有可能圍繞通貨膨脹、利率、外匯、供應鏈問題產生如此多的向量。它是否有可能以一種真正提升 Workday 價值支持的方式與基於雲的綜合規劃相結合，也許比我們在過去十年中擁有的順風順水的環境更重要？因為正如 Kash 所提到的，您在這方面做得很好。

I'm just wondering if you see any effect of that. Maybe it's increasing some of your win rates and maybe it builds up a little pent-up demand for some time in the future when the environment starts to improve.

我只是想知道你是否看到了任何效果。也許它會增加你的一些贏率，也許它會在未來一段時間內環境開始改善時積累一些被壓抑的需求。

Well, I guess I'd start with I wish that was the case across the board. We definitely see some -- you see -- in a downturn, you see some movement to -- well, I got to get on the right stuff to help me manage through these volatile environments. At the same time, there are other customers that are just cautious in making new decisions. And so I think they tend to balance each other out. I'm not sure there's a -- I'm not sure it's a big boost for us or a big negative for us. We're all seeing the same environment.

好吧，我想我會先說我希望全面如此。我們肯定會看到一些——你看——在經濟低迷時期，你會看到一些動向——好吧，我必須找到正確的東西來幫助我度過這些動蕩的環境。與此同時，也有一些客戶在做出新決定時持謹慎態度。所以我認為他們傾向於相互平衡。我不確定是否有 - 我不確定這對我們來說是一個很大的推動力還是對我們來說是一個很大的負面影響。我們都看到了相同的環境。

But there are definitely customers who are behind on making the transition. I feel like this is a catalyst to make that transition. And then there are others who already made the transition that maybe think, "Hey, let's be cautious on follow-on purchases." Chano, anything to add?

但肯定有一些客戶在轉型方面落後了。我覺得這是實現這種轉變的催化劑。還有一些已經完成轉型的人可能會想，“嘿，讓我們對後續購買保持謹慎吧。”查諾，有什麼要補充的嗎？

Nothing to add.

沒什麼可補充的。

Our next question is from Keith Weiss with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Keith Weiss。

This is Josh Baer on for Keith. I was hoping you could expand a bit on the macro assumptions that are embedded in that FY '24 subscription revenue guidance range. Just wondering what areas get worse, what stays the same when thinking about different geographies as well as new business from new logos or expansion and renewals from existing customers.

我是 Keith 的 Josh Baer。我希望您能稍微擴展一下 24 財年訂閱收入指導範圍中嵌入的宏觀假設。只是想知道哪些領域變得更糟，在考慮不同的地理位置以及來自新徽標的新業務或現有客戶的擴展和更新時，哪些領域保持不變。

Josh, thanks for your question. So the guidance range that we provided is our best view at this time. It takes into account the continued momentum across important growth areas such as customer base, medium enterprise, but also balancing that with lengthening sales cycles that we're seeing impact our business, particularly our net new opportunities. So given the uncertain environment, we provided an estimated subscription revenue range with that low end of the range, assuming a larger impact to sales cycles than we're currently seeing today.

喬希，謝謝你的問題。所以我們提供的指導範圍是我們目前最好的觀點。它考慮了重要增長領域（如客戶群、中型企業）的持續勢頭，但也考慮到我們看到影響我們業務的延長銷售週期，特別是我們的淨新機會。因此，鑑於不確定的環境，我們假設對銷售週期的影響比我們目前看到的更大，我們提供了一個估計的訂閱收入範圍和該範圍的低端。

Our next question is from Brad Zelnick with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Brad Zelnick。

Our next question is from Alex Zukin with Wolfe Research.

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

I'll extend my congratulations not only on the quarter, but on the prescriptiveness of the guide, both on top and bottom line, in what is clearly a very uncertain and tenuous environment. So I guess maybe just the first one, if we look at the patterns emerging in the sales cycles in the business, I guess, Aneel or Chano, can you guys compare and contrast this with -- from a pipeline perspective going into 4Q, what are you expecting the impact to be in your biggest quarter on bookings, on new ACV growth, on -- and maybe FINS versus HCM specifically where you feel a little bit better or compare and contrast that I think would be super helpful?

我不僅要對這個季度表示祝賀，還要對指南的規範性表示祝賀，無論是在頂線還是底線，在一個顯然非常不確定和脆弱的環境中。所以我想也許只是第一個，如果我們看看業務銷售週期中出現的模式，我想，Aneel 或 Chano，你們能比較和對比這個——從進入第四季度的渠道角度來看，什麼您是否期望影響最大的季度是預訂量、新的 ACV 增長，也許是 FINS 與 HCM，特別是在您感覺好一點或比較和對比的地方，我認為這會非常有幫助？

Well, let me just offer a high-level commentary. I spent a lot of time with other CEOs, and this is not 2008, 2009. No one sees the world coming to an end like they did at that time. I think right now, we're in a world of caution, where no one's quite sure what's going to happen, but things don't feel really bad. And so -- but caution and stopping can sometimes look the same. And so it's kind of hard to predict right now.

好吧，讓我提供一個高級評論。我花了很多時間與其他 CEO 在一起，這已經不是 2008 年、2009 年了。沒有人像他們當時那樣預見到世界末日來臨。我認為現在，我們處於一個謹慎的世界，沒有人完全確定會發生什麼，但事情並沒有讓人感覺很糟糕。所以——但謹慎和停止有時看起來是一樣的。所以現在很難預測。

Every CEO I talked to is still relatively feeling positive about their business, but worried about the economic underpinnings of what the fed is doing and the potential recession. And so I think the word that I keep coming back to is everybody is cautious. And I don't know how that -- Chano, how do you think that reflects in the pipeline in Q4 and other quarters? But it's -- this is not an end-of-the-world scenario, not at least yet, like '08, '09.

與我交談過的每一位首席執行官仍然對他們的業務感到相對樂觀，但擔心美聯儲正在做的事情的經濟基礎和潛在的衰退。所以我認為我一直強調的那個詞是每個人都很謹慎。而且我不知道 - Chano，你認為這如何反映在第四季度和其他季度的管道中？但它——這不是世界末日的情景，至少現在還不是，就像 08 年、09 年那樣。

Yes. Thank you, Alex, for your question. I would say, first, when it comes to HCM or FINS, we don't see any significant difference between one or the other. So they're proportionally impacted given the macro environment. When it comes to Q4, I would say we had the pipeline to execute on the quarter. Of course, that usually will not manifest as a prioritization because those projects have been already prioritized, but it may happen some lengthening of sales cycles as we said before, particularly on net new deals and opportunities that they're more scrutinized on those, right? And Doug already commented on the growth pipeline for next year.

是的。亞歷克斯，謝謝你的問題。我要說的是，首先，當涉及到 HCM 或 FINS 時，我們看不出兩者之間有任何顯著差異。因此，鑑於宏觀環境，它們受到的影響成比例。談到第四季度，我會說我們有在本季度執行的管道。當然，這通常不會表現為優先排序，因為這些項目已經被優先排序，但正如我們之前所說，銷售週期可能會有所延長，特別是在淨新交易和機會上，他們會對其進行更嚴格的審查，對吧？ Doug 已經對明年的增長渠道發表了評論。

Perfect. And then, I guess, if I think about what you're saying around net new and how well I think you're doing on renewals and selling into the base specifically, is it fair to assume that in the near term, there could be a bit more bookings concentration coming from existing customers? And kind of how well -- how important is that dynamic that informs some of your margin commentary for next year, given it should be a little bit easier, it should be a little bit more predictable to sell into the base?

完美的。然後，我想，如果我想一想你所說的關於 net new 的內容，以及我認為你在續訂和特別是銷售方面做得如何，是否可以公平地假設在短期內，可能會有來自現有客戶的預訂更加集中？以及如何 - 為明年的一些保證金評論提供信息的動態有多重要，因為它應該更容易一些，賣出基地應該更可預測一些？

Yes, Alex, it is fair to assume that there will be more concentration on the customer base and areas like medium enterprise, as we said before. And then hence, we'll put more focus on both marketing environments and sales go-to-market environment into those areas. Of course, that will potentially provide higher yield on these times.

是的，亞歷克斯，正如我們之前所說，可以公平地假設客戶群和中型企業等領域會更加集中。因此，我們將更加關注這些領域的營銷環境和銷售上市環境。當然，這可能會在這些時候提供更高的收益。

Our next question is from DJ Hynes with Canaccord.

我們的下一個問題來自 Canaccord 的 DJ Hynes。

Maybe building off Alex's last question there. I mean there's lots of interesting partner commentary in the script. I'm curious about the level of collaboration you have with partners on what they're working on with Extend or an industry accelerators. And assuming you have visibility there, maybe you could talk a bit about like where you draw the line on what Workday might own or build directly versus what you let go to partners.

也許在那裡建立亞歷克斯的最後一個問題。我的意思是劇本中有很多有趣的合作夥伴評論。我很好奇您與合作夥伴在 Extend 或行業加速器上的合作程度。假設你在那裡有可見性，也許你可以談談你在 Workday 可能擁有或直接構建的東西與你讓給合作夥伴的東西之間劃清界限。

Pete, do you want to talk about the product side first? And then Chano can talk about the partner side.

Pete，你想先談談產品方面嗎？然後 Chano 可以談談合作夥伴方面。

Sure. Thanks again for that question. As you heard us talk about the momentum with Extend that we've seen recently has been great, we talked about that a lot, both in Stockholm and in Orlando at our user conferences this year, now over 750 applications in production. When it comes to where that momentum is coming from, it is customers and it is partners as well. Partners are beginning to build on the Extend platform and Extend Workday applications as well as build net new applications that connect with HCM and financials. So far, the -- our customers have been getting value through both of those. The question of where do we draw the line between what is ours and what is our partners, I'll hand over to Chano.

當然。再次感謝這個問題。正如您聽到我們談論我們最近看到的 Extend 的發展勢頭一樣，我們在今年的用戶大會上在斯德哥爾摩和奧蘭多談論了很多，現在有超過 750 個應用程序在生產中。當談到這種勢頭的來源時，它是客戶，也是合作夥伴。合作夥伴開始構建 Extend 平台和 Extend Workday 應用程序，並構建連接 HCM 和財務的全新應用程序。到目前為止，我們的客戶已經通過這兩種方式獲得了價值。關於我們的問題和我們的合作夥伴之間的界限，我將交給 Chano。

Yes, I think as I commented on some of my prepared remarks, I mean clearly driving co-innovation with our partners across the platform is very critically important. You would say, where you draw the line when something is kind of you would define or I would define the last mile in a particular industry or we need some more content-driven specific understanding of that value add in that industry with a partner, there's where we see an opportunity to collaborate with our partners.

是的，我想當我評論我準備好的一些言論時，我的意思是明確地推動與我們的合作夥伴在整個平台上的共同創新是非常重要的。你會說，你會在什麼時候劃定界限，或者我會定義特定行業的最後一英里，或者我們需要與合作夥伴一起對該行業的增值有更多內容驅動的具體理解，有我們看到了與合作夥伴合作的機會。

I mentioned some of these solutions that we're building with (inaudible) for different industries, like the revenue operation solution, again, that is very critical to the software and technology companies. There are others that would be a bit more, let's say, across industries like the document management, employee document management that I provided on. But honestly, we don't see that as a core, let's say, value add from us in terms of building that solution.

我提到了我們正在為不同行業構建的一些解決方案（聽不清），例如收入運營解決方案，這對軟件和技術公司來說非常關鍵。比方說，跨行業還有其他一些，比如我提供的文檔管理、員工文檔管理。但老實說，我們並不認為這是我們在構建該解決方案方面的核心，比方說，增值。

But, of course, it's adding value to our customers there and partners take just advantage of the maturity of Extend to bring that value add that is resonating with our customers. So we're really pleased, as you can imagine, that customer partners can differentiate and bring additional offering to our customers.

但是，當然，它為我們那裡的客戶增加了價值，合作夥伴只是利用 Extend 的成熟度來帶來與我們的客戶產生共鳴的增值。所以我們真的很高興，正如你想像的那樣，客戶合作夥伴可以區分並為我們的客戶提供額外的服務。

Yes, makes sense. And then, Barbara, maybe I could sneak in a follow-up for you. The buyback is great to see as analysts always ask for more. Why not be more aggressive given where the stock is, the strength of the balance sheet, expected cash generation next year? Like what were the considerations there?

是的，有道理。然後，芭芭拉，也許我可以為你偷偷跟進。回購很高興看到分析師總是要求更多。考慮到股票的情況、資產負債表的實力以及明年預計產生的現金，為什麼不採取更積極的態度呢？那裡的考慮是什麼？

I'll answer that one because I think Barbara probably wanted to do more. You just don't know what you're going into a tough economic environment and cash is king. And so we wanted to be conservative. And if we come out in a good market environment in the next 6 to 9 months, you definitely could see more, but there's just a balance of risk.

我會回答那個問題，因為我認為芭芭拉可能想做更多。您只是不知道在艱難的經濟環境中您會遇到什麼，現金為王。所以我們想保守一點。如果我們在未來 6 到 9 個月內出現在良好的市場環境中，你肯定會看到更多，但這只是風險的平衡。

Our next question is from Raimo Lenschow with Barclays.

我們的下一個問題來自巴克萊銀行的 Raimo Lenschow。

Chano, the one thing that we're seeing in the industry at the moment is that there seems to be more money in HR post pandemic with a great reshuffle, et cetera. Could that -- are you seeing that in terms of like interest of pockets over customers are? And do you think that's kind of more a short-term thing and we're at the back part of that trend? Or do you think HR, HCM strategically is having a new position in the enterprise?

Chano，我們目前在行業中看到的一件事是，大流行後人力資源似乎有更多的錢，並進行了大洗牌，等等。可以嗎 - 你是否看到了客戶對口袋的興趣？你是否認為這更像是一種短期的事情，而我們處於這一趨勢的後面？或者您認為HR、HCM在戰略上對企業有新的定位？

Thank you, Raimo, for your question. I think both of them, to be honest, has some good tailwind out of the pandemic, but clearly, of course, that nets out or balance out with the macro environment we are living into. But I would say that some of the financial transformations, we see those in the market, and they are taking place as we speak. As a dynamic of companies having a tough time to just navigate through their finance modernization or honestly doing simple things like closing their books online in terms of many legacy platforms and in terms of a lot of manual processes that could just not happen once you were not in the office.

謝謝你，Raimo，你的問題。老實說，我認為他們倆都從大流行中受益匪淺，但顯然，這當然會抵消或平衡我們所處的宏觀環境。但我要說的是，我們在市場上看到了一些金融轉型，而且就在我們說話的時候，它們正在發生。作為一個動態的公司，他們很難通過他們的財務現代化或誠實地做一些簡單的事情，比如在許多遺留平台和大量手動流程方面在線關閉他們的賬簿，一旦你不這樣做就不會發生在辦公室。

Clearly, employee engagement as a whole in HCM, the skills area, all the machine learning and AI that we're bringing to those processes are obviously value add the companies do see and want to take advantage of and continue to be a great tailwind for the HCM value proposition as a whole.

顯然，HCM、技能領域、我們為這些流程帶來的所有機器學習和 AI 中的整體員工參與度顯然是公司確實看到並希望利用並繼續為公司帶來巨大推動力的附加值HCM 價值主張作為一個整體。

Yes. And then 1 follow-up is if you think about selling in this kind of slightly more tougher environment, can you talk a little bit maybe about the steps you're taking in terms of sales execution to kind of make sure you continue to deliver in this market? I'm thinking about higher pipeline coverage, kind of making sure you kind of -- you time the deals better, et cetera. Like where are we on that journey of implementing these kind of recession handbook kind of selling kind of policies that we used to take out in the older days?

是的。然後 1 個後續行動是，如果你考慮在這種稍微更艱難的環境中銷售，你能談談你在銷售執行方面採取的步驟，以確保你繼續交付這個市場？我正在考慮更高的管道覆蓋率，有點確保你 - 你更好地安排交易時間，等等。就像我們在實施這些經濟衰退手冊的旅程中一樣，我們過去常常採取的那種政策？

Doug, do you want to add some color there on the sales strategy in the market?

Doug，你想在市場銷售策略上添加一些顏色嗎？

Yes, sure. I think Aneel or you, Chano, might have mentioned it after Q1, but we pivoted to our ROI-based and TCO-based way to engage with customers right at Q1. Of course, we've always done business cases with our customers. But entering tougher environments, it comes down to TCO, hard dollars that you can take out, system rationalization productivity. So I think it's showing up really focusing with our customers on the HR side. So there's no doubt, tight labor markets.

是的，當然。我認為 Aneel 或你，Chano，可能在第一季度之後提到過它，但我們在第一季度轉向了基於 ROI 和 TCO 的方式來與客戶互動。當然，我們一直在與客戶進行商業案例。但進入更嚴酷的環境，歸根結底就是 TCO，您可以拿出的硬錢，系統合理化生產力。所以我認為它在人力資源方面真正關注我們的客戶。所以毫無疑問，勞動力市場緊張。

And so that's driving, I think, the TCO on that side of it. And it was touched on earlier by Aneel. We had a really good Q3 as it relates to financials. So FINS+ performed well. And those are ROI-driven as well. And those are companies looking for -- sure, it might start with an aging -- retiring older systems, but it pivots pretty quickly when they engage with us through that plan, execute, analyze and offering up more business agility in an uncertain environment. So those are the things from a go-to-market, from a field deployed resources standpoint that we're spending a lot of time with customers on, on the business case.

因此，我認為這正在推動它的 TCO。 Aneel 早些時候也談到了這一點。我們有一個非常好的第三季度，因為它與財務有關。所以 FINS+ 表現不錯。這些也是投資回報率驅動的。這些公司正在尋找——當然，它可能從老化開始——淘汰舊系統，但當他們通過該計劃與我們接觸時，它會很快轉向，執行、分析並在不確定的環境中提供更多的業務敏捷性。因此，這些是從進入市場，從現場部署資源的角度來看，我們在業務案例上與客戶花費了大量時間的事情。

Our next question is from Brad Sills with Bank of America Securities.

我們的下一個問題來自美國銀行證券公司的 Brad Sills。

I wanted to ask a question around backlog for next year. I think, Chano, you made some comments that you feel good about Q4 pipelines heading into Q4. And the question on everyone's mind is really what about next year. There's a lot of moving parts. In your conversations with office of CFO, office of HR, what are they saying with regard to budgets for next year? Do you feel pretty confident that you can sustain this kind of growth into next year as well?

我想問一個關於明年積壓的問題。我認為，查諾，你發表了一些評論，表示你對進入第四季度的第四季度管道感覺良好。每個人都在想的問題是明年會怎樣。有很多活動部件。在你與首席財務官辦公室、人力資源辦公室的談話中，他們對明年的預算有何看法？您是否有信心在明年也能保持這種增長？

Well, Brad, thank you for your question. Right now, we're exactly on those discussions, right, where companies are going through their planning and budgeting cycles, and it is a question of prioritization of projects. And we're having those discussions that, that was commenting on that are really TCO- and ROI-based, right? So clearly, here where you see some different scenarios on our guidance, particularly depending on what happens on some of the new local sales cycles that might put some lengthening.

好吧，布拉德，謝謝你的問題。現在，我們正處於這些討論中，對吧，公司正在經歷他們的規劃和預算週期，這是一個項目優先次序的問題。我們正在進行那些討論，那是關於真正基於 TCO 和 ROI 的評論，對嗎？很明顯，在這裡您可以看到我們指導中的一些不同場景，特別是取決於一些新的本地銷售週期可能會延長的情況。

And clearly, even though they might be building right now, maybe fall outside of next year or some of them that just may be pushing forward. But right now, we're having most of those discussions. Overall, we feel good given the momentum we have and given the momentum on the new pipeline build and the conversations we're engaging with and the strength of our customer base, our medium enterprise and the diversity of our business, as Doug has commented. But clearly, we are cautiously monitoring what's going on in the environment.

很明顯，即使他們現在可能正在建設中，也可能會在明年之外落成，或者其中一些可能正在推進。但現在，我們正在進行大部分討論。總的來說，正如 Doug 評論的那樣，考慮到我們擁有的勢頭、新管道建設的勢頭、我們正在進行的對話以及我們的客戶群、我們的中型企業和我們業務的多樣性的實力，我們感覺很好。但顯然，我們正在謹慎地監測環境中發生的事情。

And then one more, if I may, please, just on the verticals. You called out some strength in financials, health care. Is there a case to be made that perhaps you guys have more exposure to more resilient verticals with those, in particular, public sector education kind of less affected by perhaps the macro?

如果可以的話，請再來一個，就在垂直方向上。你在金融、醫療保健方面表現出了一些優勢。是否有理由認為你們可能更多地接觸更具彈性的垂直領域，尤其是公共部門教育受宏觀影響較小？

We're pretty diversified across all the industries and some have held up better than others. When I look at what's happening in Silicon Valley, we definitely have a bunch of tech companies, but we're not exposed to tech the way maybe a newer company might be where they got a huge amount of exposure to just tech companies. So -- and our tech companies tend to be the mature large companies. So I don't think there's any particular sector that's held us up. I would say financial services is strong, though. The one beneficiary of rising interest rates is the financial services sector and they continue to grow, and we have a very strong presence there.

我們在所有行業都非常多元化，有些行業比其他行業表現更好。當我看看矽谷正在發生的事情時，我們肯定有很多科技公司，但我們並沒有像新公司那樣接觸科技，他們可能只接觸科技公司。所以——我們的科技公司往往是成熟的大公司。所以我不認為有任何特定的部門阻礙了我們。不過，我會說金融服務很強大。利率上升的一個受益者是金融服務業，它們繼續增長，我們在那裡有很強的影響力。

Our next question is from Brent Thill with Jefferies.

我們的下一個問題來自 Jefferies 的 Brent Thill。

Aneel, just to follow up on the verticals. A number of the partners have been talking about strength in state and local government and higher ed. I'm curious if you could drill in on those 2 to give us a sense of what you're seeing right now in both those sectors.

Aneel，只是為了跟進垂直領域。許多合作夥伴一直在談論州和地方政府以及高等教育的實力。我很好奇你是否可以深入研究這兩個領域，讓我們了解你現在在這兩個領域所看到的情況。

I may turn that one over to Doug to talk about. Doug, are you there?

我可能會把那個交給 Doug 談談。道格，你在嗎？

Yes, sorry about that. I was on mute. The question was around education, government. Is that correct?

是的，對此感到抱歉。我是靜音的。問題是關於教育、政府的。那是對的嗎？

State and local and higher ed.

州和地方以及高等教育。

Yes. So both performed well in the quarter. We had a number of student -- Workday student deals, which for a while there, we were doing a number of financials, HCM on the higher ed side, but we took down some student deals in the quarter and showed really nice growth in Q3. And so we feel good about both of those verticals right now.

是的。因此，兩者在本季度都表現良好。我們有一些學生 - Workday 學生交易，有一段時間，我們在高等教育方面做了一些財務，HCM，但我們在本季度取消了一些學生交易，並在第三季度顯示出非常好的增長.因此，我們現在對這兩個垂直領域都感覺良好。

Barbara, can I just follow up real quick on international? It was the lowest growth in 5 quarters. Is there anything to point out in Europe versus the U.S. kind of just the classic still over what we've been hearing? Or is there anything specific on an execution? Can you just compare and contrast what you're seeing?

芭芭拉，我可以快速跟進國際嗎？這是 5 個季度以來的最低增幅。在歐洲與美國之間，有什麼值得指出的，就像我們所聽到的那樣經典嗎？或者執行有什麼具體的內容嗎？你能比較和對比你所看到的嗎？

I would say, clearly, the environment is more uncertain in Europe. Obviously, on top of everything else going on in the world, we have energy as a big challenge. And where we see, let's say, an increase signs of deals and sell cycles lengthening that tends to happen in Europe. And I would say, in general, we are more cautious overall what's going there in the near relative terms than in other markets and other segments.

我要說的是，很明顯，歐洲的環境更加不確定。顯然，除了世界上發生的所有其他事情之外，我們還面臨著巨大的能源挑戰。在我們看到的地方，比方說，交易和銷售週期延長的跡象越來越多，這往往發生在歐洲。而且我會說，總的來說，與其他市場和其他領域相比，我們在近期相對而言總體上更加謹慎。

We have time for 1 final question from Scott Berg with Needham.

我們有時間回答 Scott Berg 和 Needham 提出的最後一個問題。

I guess this one will be relatively straightforward as you all called out slowness in the enterprise segment a couple of different times. We talked about the mid-market being, I guess, relatively untouched. Can you help us kind of understand maybe what's going on in the mid-market to not really see any weakness today? I think that's an interesting kind of a change at least relative to what we're seeing out there.

我想這個會相對簡單，因為你們都多次提到企業部門的緩慢。我們談到了中端市場，我猜，相對未受影響。你能幫助我們了解中端市場正在發生什麼，今天真的看不到任何弱點嗎？我認為這是一種有趣的變化，至少相對於我們在那裡看到的情況而言。

And then as we think about the guidance within the mid-market, is the slowness or maybe additional macro uncertainty that's impacting the low end of the guidance, do you have some sort of conservatism baked into any potential slowdown in the mid-market also impacting that guidance?

然後當我們考慮中端市場的指導時，是影響指導低端的緩慢或額外的宏觀不確定性，你是否有某種保守主義融入中端市場的任何潛在放緩也影響那個指導？

Yes. I guess we've not said that the mid-market is not impacted. What we said is that, of course, we had overall more strength in the medium enterprise and in the customer base. If you look at what it tends to happen more scrutiny around either the business case or additional approvals, clearly, those are on the larger deals and larger companies that we usually -- we tend to see it more.

是的。我想我們並沒有說中端市場不受影響。我們所說的是，當然，我們在中型企業和客戶群方面的整體實力更強。如果你看看它往往會發生什麼，圍繞商業案例或額外的批准進行更多的審查，顯然，那些是我們通常的更大的交易和更大的公司——我們傾向於更多地看到它。

Our value proposition is strong and resonates and quicker time to value fixed cost of implementations, very predictive ones across HCM and finance in the mid-market, brings good ROI, brings good total cost of ownership in terms of the financials and main transformation as a whole, and that is a value proposition that mid-market is taking the same on a faster clip as they are modernizing and they're assisting on their platforms.

我們的價值主張是強大的和共鳴的，並且可以更快地評估實施的固定成本，在中端市場的 HCM 和財務方面非常具有預測性，帶來良好的投資回報率，在財務和主要轉型方面帶來良好的總擁有成本作為整體而言，這是一個價值主張，即中端市場在進行現代化改造並在其平台上提供幫助時，正在以更快的速度採取同樣的做法。

Ladies and gentlemen, thank you for your participation in today's conference. This will conclude Workday's Third Quarter Fiscal Year 2023 Earnings Call. Thank you again for joining us.

女士們，先生們，感謝你們參加今天的會議。這將結束 Workday 的 2023 財年第三季度收益電話會議。再次感謝您加入我們。