F4Q13 Earnings Call
March 7, 2013 5:00 p.m. ET
Mike Haase – VP, Finance, Treasurer and IR
Mark Peek – CFO
Aneel Bhusri – Chairman, Co-Founder and Co-CEO
Adam Holt – Morgan Stanley
Heather Bellini – Goldman Sachs
John DiFucci – JP Morgan
Walter Pritchard – Citi
Jason Maynard – Wells Fargo
Brent Thill – UBS
Brendan Barnicle – Pacific Crest Securities
Richard Davis – Canaccord Genuity
Mark Murphy - Piper Jaffray
Steve Ashley - R.W. Baird
Laura Lederman - William Blair
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With that, I will hand the call over to Mike Haase.
Welcome to Workday's fourth quarter fiscal 2013 earnings conference call.
On the call we have Aneel Bhusri, our Chairman and Co-CEO, and Mark Peek, our CFO. Following their 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.
Statements made on this call include forward-looking statements such as those with the words will, believe, expect, anticipate and similar phrases that denote future expectation or intent regarding our financial results, applications, customer demand, operations and other matters. These statements are subject to risks, uncertainties and assumptions. Please refer to the press release and the risk factors in documents filed with the Securities and Exchange Commission, including our quarterly report on Form 10-Q for information on risks and uncertainties that may cause actual results to differ materially from those set forth in such statements.
In addition, during today's call we will discuss non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of Workday's performance, should be considered in addition to, not as a substitute for or an isolation from, GAAP results. Our non-GAAP measures exclude the effect on our GAAP results of stock-based compensation and an equity grant to the Workday Foundation. You can find additional disclosures regarding these non-GAAP measures including reconciliations with comparable GAAP results in our earnings press release and on the Investor Relations page of our website. Also the customers’ page of our website includes a list of selected customers and is updated at the beginning of each month.
The webcast replay of this call will be available for the next 45 days on our company website under the Investor Relations link. Our first quarter quiet period begins at the close of business April 16, 2013. Finally, unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal 2012.
With that, let me hand it over to Aneel.
I want to start by welcoming everyone to our fourth quarter earnings call. I want to offer some brief comments on our business before turning it over to Mark for the bulk of the discussions. So let’s get started.
Fiscal year 2013 was a great year for Workday, successfully delivered three updates, Workday 16, 17, and 18, providing our customers with hundreds of enhancements and new features for their Workday HCM, financials and payroll applications. Importantly all of our customers are on the current update Workday 18. And as a result, all of Workday’s development energy is devoted to our next update. This emphasizes what Dave and I refer to as power of one, one code line, one version, one community.
We also delivered two new applications during the year. The first one Workday Time Tracking is an application that allows enterprises to collect, process, manage time and labor for their global workforce. Our second new application was grants management delivered for the education and government markets. In fiscal year 2013, we also continued our heavy investment in the mobile capabilities of our applications bringing major enhancements to the Apple iPhone and iPad platforms.
For other mobile platforms, such as Android, BlackBerry and Windows Phone, we introduced a new touch optimized interface built on HTML 5. Our mobile efforts are of strong personal interest to me and will continue to be a big area of focus for Workday.
And lastly, this past November we announced two new applications, Workday Big Data and Workday Recruiting. The development efforts for both of these new applications are well underway and on track with Workday Big Data scheduled for general availability in the second half of this year and Workday Recruiting on scheduled to be for general available in early calendar 2014.
From a customer perspective we added 150 net new customers in fiscal year 2013 and more than 50 just in the fourth quarter. Some of our notable fourth quarter wins include Nissan Motor Company, Primark, Thiess, Del Monte, SunTrust Banks and Travelex, and we continue to gain traction with Workday financials. In the fourth quarter we welcomed our 50th financial management customer. Other financial management customers signed in fiscal year 2013 include the University of Rochester as well as JB Hunt, an existing Workday HCM customer that later decided to add Workday Financial Management. This is a trend we expect will continue.
Of course, customer wins are only part of the story, it’s really all about getting customers up and running on Workday and delivering a great experience for them. As of the end of the fourth quarter 265 customers were live with their HCM products and 18 customers were live on our financials applications. We’ve built a great ecosystem of deployment partners and are turning our own professional service efforts to supporting this ecosystem, improving tools to speed customer deployments and the ongoing customer success and satisfaction. It is just easier for companies to deploy Workday applications.