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Workday Announces Fiscal 2024 Fourth Quarter and Full Year Financial Results

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Fiscal Fourth Quarter Total Revenues of $1.9 Billion, Up 17% Year Over Year
Subscription Revenues of $1.8 Billion, Up 18% Year Over Year

Fiscal Year 2024 Total Revenues of $7.3 Billion, Up 17% Year Over Year
Subscription Revenues of $6.6 Billion, Up 19% Year Over Year
Operating Cash Flows of $2.1 Billion, Up 30% Year Over Year

PLEASANTON, Calif., Feb. 26, 2024 /PRNewswire/ — Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, today announced results for the fiscal 2024 fourth quarter and full year ended January 31, 2024.

Fiscal 2024 Fourth Quarter Results

Total revenues were $1.9 billion, an increase of 17% from the fourth quarter of fiscal 2023. Subscription revenues were $1.8 billion, an increase of 18% from the same period last year.Operating income was $79 million, or 4.1% of revenues, compared to an operating loss of $89 million, or negative 5.4% of revenues, in the same period last year. Non-GAAP operating income for the fourth quarter was $461 million, or 23.9% of revenues, compared to a non-GAAP operating income of $305 million, or 18.5% of revenues, in the same period last year.1,2Basic and diluted net income per share was $4.52 and $4.42, respectively, compared to basic and diluted net loss per share of $0.49 in the fourth quarter of fiscal 2023. Non-GAAP basic and diluted net income per share was $1.60 and $1.57, respectively, compared to non-GAAP basic and diluted net income per share of $1.00 and $0.99, respectively, in the same period last year.2,3 GAAP basic and diluted net income per share benefited from the $1.1 billion release of our valuation allowance related to all U.S. federal and state deferred tax assets, excluding certain state tax credits, in the fourth quarter of fiscal 2024.

Fiscal Year 2024 Results

Total revenues were $7.3 billion, an increase of 17% from fiscal 2023. Subscription revenues were $6.6 billion, an increase of 19% from the prior year.Operating income was $183 million, or 2.5% of revenues, compared to an operating loss of $222 million, or negative 3.6% of revenues, in fiscal 2023. Non-GAAP operating income was $1.7 billion, or 24.0% of revenues, compared to a non-GAAP operating income of $1.2 billion, or 19.5% of revenues, in the prior year.1,2Basic and diluted net income per share was $5.28 and $5.21, respectively, compared to basic and diluted net loss per share of $1.44 in fiscal 2023. Non-GAAP basic and diluted net income per share was $5.93 and $5.84, respectively, compared to non-GAAP basic and diluted net income per share of $3.73 and $3.64, respectively, in the prior year.2,3 As noted above, GAAP basic and diluted net income per share benefited from the $1.1 billion release of our valuation allowance related to all U.S. federal and state deferred tax assets, excluding certain state tax credits, in fiscal 2024.Total subscription revenue backlog was $20.9 billion, up 27% from the same period last year. 12-month subscription revenue backlog was $6.6 billion, and 24-month subscription revenue backlog was $11.7 billion, both increasing 20% year over year.Operating cash flows were $2.1 billion compared to $1.7 billion in the prior year. Free cash flows were $1.9 billion compared to $1.3 billion in the prior year.4Workday repurchased approximately 1.8 million shares of Class A common stock for $423 million as part of its share repurchase program.Cash, cash equivalents, and marketable securities were $7.8 billion as of January 31, 2024.

Comments on the News

“Workday’s results this quarter are a testament to the strength of our value proposition and the durability of our business,” said Carl Eschenbach, CEO, Workday. “We’re seeing continued momentum with full platform customer wins and expansions within our base, strengthening international performance, growth of our partner ecosystem, and the seamless execution of nearly 19,000 Workmates across the globe – all setting us up for an incredible fiscal year 2025.”

“Our relentless focus on innovation continues to fuel Workday’s success while helping to enable our customers to transform how they manage their two most important assets – their people and money,” said Aneel Bhusri, co-founder and executive chair, Workday. “As I step into my new role as executive chair, I look forward to working closely with Carl, the rest of our leadership team, and our product and technology organization to push the Workday platform to even greater heights and capitalize on the growth opportunity in front of us.”

“Our fourth quarter and full-year fiscal 2024 results reflect the momentum building across our key investment initiatives,” said Zane Rowe, CFO, Workday. “We are reiterating our fiscal year 2025 subscription revenue guidance of $7.725 billion to $7.775 billion, representing growth of 17% to 18%. We expect fiscal year 2025 non-GAAP operating margin of approximately 24.5%. Our outlook contemplates incremental investments to support enduring growth, while at the same time calls for continued margin expansion as we scale and optimize the business.”

Recent Highlights

Workday officially named Carl Eschenbach CEO effective February 1, 2024. Aneel Bhusri remains integral to the organization as co-founder and executive chair.Workday announced it has entered into a definitive agreement to acquire HiredScore, a leading provider of AI-powered talent orchestration solutions.Workday announced that its Board of Directors approved a new share repurchase program, with a term of 18 months, to repurchase up to an additional $500 million of shares of its Class A common stock.Workday announced new full platform customers for Workday Financial Management and Workday Human Capital Management (HCM), including HHS, Randstad, UHS of Delaware, and VXI Global Solutions.Workday and Insperity announced an exclusive strategic partnership and plans to jointly develop, brand, market, and sell a preeminent full-service HR solution for small and midsize businesses.Workday continued to build its global leadership bench, naming David Somers Chief Product Officer, Chikara Furuichi President of Japan, and Lynn Martin head of the Workday Federal business.Workday was named a Leader in the 2023 Gartner® Magic Quadrant™ for Financial Planning Software5 for the second time since the category’s inception last year.KLAS Research named Workday as Best in KLAS 2024 in enterprise resource planning (ERP) for the seventh consecutive year.

Earnings Call Details

Workday plans to host a conference call today to review its fiscal 2024 fourth quarter and full year financial results and to discuss its financial outlook. The call is scheduled to begin at 1:30 p.m. PT/4:30 p.m. ET and can be accessed via webcast. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

Workday uses the Workday Blog as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

1  Non-GAAP operating income and non-GAAP operating margin exclude share-based compensation expenses, employer payroll tax-related items on employee stock transactions, and amortization expense for acquisition-related intangible assets. See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.

2  Operating margin and net income (loss) per share are calculated based upon the respective underlying, non-rounded data.

3  Non-GAAP net income per share excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, and income tax effects. See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.

4  Free cash flows are defined as net cash provided by (used in) operating activities minus total capital expenditures. See the section titled “About Non-GAAP Financial Measures” in the accompanying financial tables for further details.

5  Gartner Magic Quadrant for Financial Planning Software, Regina Crowder, Matthew Mowrey, Vaughan D Archer, 5 December 2023.

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark, and MAGIC QUADRANT is a registered trademark of Gartner, Inc., and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

About Workday

Workday is a leading enterprise platform that helps organizations manage their most important assets – their people and money. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 10,000 organizations around the world and across industries – from medium-sized businesses to more than 50% of the Fortune 500. For more information about Workday, visit workday.com.

© 2024 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to Workday’s financial results as determined in accordance with U.S. generally accepted accounting principles are included at the end of this press release following the accompanying financial tables. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled “About Non-GAAP Financial Measures.” The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from our non-GAAP operating margin, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Workday’s planned acquisition of HiredScore, Workday’s partnership with Insperity and expected offerings, our intended share repurchases, Workday’s full-year fiscal 2025 subscription revenues and non-GAAP operating margin, growth and expansion, momentum, demand, strategy, and investments. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures or those of our third-party providers, unauthorized access to our customers’ or other users’ personal data, or disruptions in our data center or computing infrastructure operations; (ii) service outages, delays in the deployment of our applications, and the failure of our applications to perform properly; (iii) privacy concerns and evolving domestic or foreign laws and regulations; (iv) the impact of continuing global economic and geopolitical volatility on our business, as well as on our customers, prospects, partners, and service providers; (v) any loss of key employees or the inability to attract, train, and retain highly skilled employees; (vi) competitive factors, including pricing pressures, industry consolidation, entry of new competitors and new applications, advancements in technology, and marketing initiatives by our competitors; (vii) our reliance on our network of partners to drive additional growth of our revenues; (viii) the regulatory, economic, and political risks associated with our domestic and international operations; (ix) adoption of our applications and services by customers and individuals, including any new features, enhancements, and modifications, as well as our customers’ and users’ satisfaction with the deployment, training, and support services they receive; (x) the regulatory risks related to new and evolving technologies such as AI and our ability to realize a return on our development efforts; (xi) our ability to realize the expected business or financial benefits of any acquisitions of or investments in companies, including HiredScore; (xii) the risk that the HiredScore transaction may not be completed in a timely manner or at all; (xiii) negative effects of the announcement or consummation of the HiredScore transaction on Workday’s business operations, operating results, or share price; (xiv) delays or reductions in information technology spending; and (xv) changes in sales, which may not be immediately reflected in our results due to our subscription model. Further information on these and additional risks that could affect Workday’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.

Workday, Inc.

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

As of January 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

$              2,012

$              1,886

Marketable securities

5,801

4,235

Trade and other receivables, net

1,639

1,570

Deferred costs

232

191

Prepaid expenses and other current assets

255

226

Total current assets

9,939

8,108

Property and equipment, net

1,234

1,201

Operating lease right-of-use assets

289

249

Deferred costs, noncurrent

509

421

Acquisition-related intangible assets, net

233

306

Deferred tax assets

1,065

13

Goodwill

2,846

2,840

Other assets

337

348

Total assets

$           16,452

$           13,486

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$                  78

$                154

Accrued expenses and other current liabilities

287

260

Accrued compensation

544

564

Unearned revenue

4,057

3,559

Operating lease liabilities

89

91

Total current liabilities

5,055

4,628

Debt, noncurrent

2,980

2,976

Unearned revenue, noncurrent

70

75

Operating lease liabilities, noncurrent

227

182

Other liabilities

38

40

Total liabilities

8,370

7,901

Stockholders’ equity:

Additional paid-in capital

10,400

8,829

Treasury stock

(608)

(185)

Accumulated other comprehensive income (loss)

21

53

Accumulated deficit

(1,731)

(3,112)

Total stockholders’ equity

8,082

5,585

Total liabilities and stockholders’ equity

$          16,452

$          13,486

 

Workday, Inc.

Condensed Consolidated Statements of Operations

(in millions, except number of shares which are reflected in thousands and per share data)

(unaudited)

Three Months Ended January 31,

Year Ended January 31,

2024

2023

2024

2023

Revenues:

Subscription services

$              1,760

$              1,496

$              6,603

$              5,567

Professional services

162

150

656

649

Total revenues

1,922

1,646

7,259

6,216

Costs and expenses (1):

Costs of subscription services

272

274

1,031

1,011

Costs of professional services

189

180

740

704

Product development

635

615

2,464

2,271

Sales and marketing

558

490

2,139

1,848

General and administrative

189

176

702

604

Total costs and expenses

1,843

1,735

7,076

6,438

Operating income (loss)

79

(89)

183

(222)

Other income (expense), net

59

11

173

(38)

Income (loss) before provision for (benefit from) income taxes

138

(78)

356

(260)

Provision for (benefit from) income taxes

(1,050)

48

(1,025)

107

Net income (loss)

$              1,188

$               (126)

$              1,381

$               (367)

Net income (loss) per share, basic

$                4.52

$              (0.49)

$                5.28

$              (1.44)

Net income (loss) per share, diluted

$                4.42

$              (0.49)

$                5.21

$              (1.44)

Weighted-average shares used to compute net income (loss) per share, basic

263,102

257,322

261,344

254,819

Weighted-average shares used to compute net income (loss) per share, diluted

268,843

257,322

265,285

254,819

(1) Costs and expenses include share-based compensation expenses as follows:

Three Months Ended January 31,

Year Ended January 31,

2024

2023

2024

2023

Costs of subscription services

$                   31

$                   29

$                 120

$                 106

Costs of professional services

28

30

116

111

Product development

159

169

653

619

Sales and marketing

70

69

282

249

General and administrative

58

64

245

210

Total share-based compensation expenses

$                 346

$                 361

$              1,416

$              1,295

 

Workday, Inc.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Three Months Ended January 31,

Year Ended January 31,

2024

2023

2024

2023

Cash flows from operating activities:

Net income (loss)

$              1,188

$               (126)

$              1,381

$               (367)

Adjustments to reconcile net income (loss) to net cash

provided by (used in) operating activities:

Depreciation and amortization

72

89

282

364

Share-based compensation expenses

346

361

1,416

1,295

Amortization of deferred costs

57

48

213

175

Non-cash lease expense

24

24

96

92

(Gains) losses on investments

3

11

19

31

Accretion of discounts on marketable debt securities, net

(38)

(26)

(149)

(42)

Deferred income taxes

(1,063)

—

(1,058)

4

Other

7

29

(17)

57

Changes in operating assets and liabilities, net of business

combinations:

Trade and other receivables, net

(415)

(519)

(87)

(319)

Deferred costs

(159)

(129)

(342)

(293)

Prepaid expenses and other assets

(9)

17

69

(14)

Accounts payable

(9)

65

(72)

86

Accrued expenses and other liabilities

124

95

(95)

136

Unearned revenue

868

755

493

452

Net cash provided by (used in) operating activities

996

694

2,149

1,657

Cash flows from investing activities:

Purchases of marketable securities

(1,404)

(1,532)

(6,150)

(7,183)

Maturities of marketable securities

923

1,181

4,519

4,949

Sales of marketable securities

51

51

144

104

Owned real estate projects

(2)

(4)

(4)

(4)

Capital expenditures, excluding owned real estate projects

(46)

(73)

(228)

(360)

Business combinations, net of cash acquired

—

—

(8)

—

Purchase of other intangible assets

—

—

(10)

(1)

Purchases of non-marketable equity and other investments

(5)

(3)

(16)

(23)

Sales and maturities of non-marketable equity and other investments

2

—

2

12

Net cash provided by (used in) investing activities

(481)

(380)

(1,751)

(2,506)

Cash flows from financing activities:

Proceeds from issuance of debt, net of debt discount

—

—

—

2,978

Repayments and extinguishment of debt

—

—

—

(1,844)

Payments for debt issuance costs

—

—

—

(7)

Repurchases of common stock

(139)

(75)

(423)

(75)

Proceeds from issuance of common stock from employee

equity plans, net of taxes paid for shares withheld

72

67

155

152

Net cash provided by (used in) financing activities

(67)

(8)

(268)

1,204

Effect of exchange rate changes

—

1

(1)

(1)

Net increase (decrease) in cash, cash equivalents, and

restricted cash

448

307

129

354

Cash, cash equivalents, and restricted cash at the

beginning of period

1,576

1,588

1,895

1,541

Cash, cash equivalents, and restricted cash at the end

of period

$              2,024

$              1,895

$              2,024

$              1,895

Workday, Inc.
Reconciliations of GAAP to Non-GAAP Data

Reconciliations of our GAAP to non-GAAP operating results are included in the following tables (in millions, except percentages and per share data; operating margin and net income (loss) per share are calculated based upon the respective underlying, non-rounded data). See the section titled “About Non-GAAP Financial Measures” below for further details.

Three Months Ended January 31, 2024

GAAP

Share-Based
Compensation
Expenses

Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions

Amortization
of
Acquisition-
Related
Intangible
Assets

Income Tax
Effects (2)

Non-GAAP

Operating income (loss)

$           79

$         346

$          20

$           16

$           —

$         461

Operating margin

4.1 %

18.0 %

1.0 %

0.8 %

— %

23.9 %

Net income (loss)

$      1,188

$         346

$          20

$           16

$    (1,149)

$         421

Net income (loss) per share, basic (1)

$        4.52

$        1.31

$       0.07

$        0.06

$      (4.36)

$        1.60

Net income (loss) per share, diluted (1)

$        4.42

$        1.29

$       0.07

$        0.06

$      (4.27)

$        1.57

Three Months Ended January 31, 2023

GAAP

Share-Based
Compensation
Expenses

Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions

Amortization
of
Acquisition-
Related
Intangible
Assets

Income Tax
Effects (2)

Non-GAAP

Operating income (loss)

$         (89)

$         361

$           12

$           21

$           —

$         305

Operating margin

(5.4) %

21.9 %

0.7 %

1.3 %

— %

18.5 %

Net income (loss)

$       (126)

$         361

$           12

$           21

$         (12)

$         256

Net income (loss) per share, basic (1)

$      (0.49)

$        1.40

$        0.05

$        0.08

$      (0.04)

$        1.00

Net income (loss) per share, diluted (1)

$      (0.49)

$        1.40

$        0.05

$        0.08

$      (0.05)

$        0.99

Year Ended January 31, 2024

GAAP

Share-Based
Compensation
Expenses

Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions

Amortization
of
Acquisition-
Related
Intangible
Assets

Income Tax
Effects (2)

Non-GAAP

Operating income (loss)

$        183

$      1,416

$           66

$           75

$           —

$     1,740

Operating margin

2.5 %

19.5 %

0.9 %

1.1 %

— %

24.0 %

Net income (loss)

$     1,381

$      1,416

$           66

$           75

$    (1,389)

$     1,549

Net income (loss) per share, basic (1)

$       5.28

$        5.42

$        0.25

$        0.28

$      (5.30)

$       5.93

Net income (loss) per share, diluted (1)

$       5.21

$        5.34

$        0.25

$        0.28

$      (5.24)

$       5.84

Year Ended January 31, 2023

GAAP

Share-Based
Compensation
Expenses

Employer
Payroll Tax-
Related Items
on Employee
Stock
Transactions

Amortization
of
Acquisition-
Related
Intangible
Assets

Income Tax
and Dilution
Effects (2)

Non-GAAP

Operating income (loss)

$       (222)

$     1,295

$           52

$           85

$           —

$     1,210

Operating margin

(3.6) %

20.8 %

0.9 %

1.4 %

— %

19.5 %

Net income (loss)

$       (367)

$     1,295

$           52

$           85

$       (116)

$        949

Net income (loss) per share, basic (1)

$      (1.44)

$       5.08

$        0.21

$        0.33

$      (0.45)

$       3.73

Net income (loss) per share, diluted (1)

$      (1.44)

$       5.08

$        0.21

$        0.33

$      (0.54)

$       3.64

(1)

For the three months ended January 31, 2024, GAAP and non-GAAP net income per share were both calculated

based upon 263,102 basic and 268,843 diluted weighted-average shares of common stock.

For the three months ended January 31, 2023, GAAP net loss per share was calculated based upon 257,322

basic and diluted weighted-average shares of common stock. Non-GAAP net income per share was calculated

based upon 257,322 basic and 258,367 diluted weighted-average shares of common stock.

For the fiscal year ended January 31, 2024, GAAP and non-GAAP net income per share were both calculated

based upon 261,344 basic and 265,285 diluted weighted-average shares of common stock.

For the fiscal year ended January 31, 2023, GAAP net loss per share was calculated based upon 254,819 basic

and diluted weighted-average shares of common stock. Non-GAAP net income per share was calculated based

upon 254,819 basic and 261,641 diluted weighted-average shares of common stock. The numerator used to

compute non-GAAP diluted net income per share was increased by $3 million for after-tax interest expense on

our convertible senior notes in accordance with the if-converted method.

(2)

We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide

better consistency across the reporting periods. For fiscal 2024 and 2023, the non-GAAP tax rate was 19%. For

the year ended January 31, 2023, included in the per share amount was a dilution impact of $0.09 from the

conversion of GAAP diluted net loss per share to non-GAAP diluted net income per share.

Reconciliation of our GAAP cash flows from operating activities to non-GAAP free cash flow is as follows (in millions). See the section titled “About Non-GAAP Financial Measures” below for further details.

Three Months Ended January 31,

Year Ended January 31,

2024

2023

2024

2023

Net cash provided by (used in) operating activities

$                 996

$                 694

$              2,149

$              1,657

Less: Total capital expenditures (1)

(48)

(77)

(232)

(364)

Free cash flows

$                 948

$                 617

$              1,917

$              1,293

(1)

For the three months ended January 31, 2024, and 2023, total capital expenditures consisted of Capital expenditures,

excluding owned real estate projects of $46 million and $73 million, respectively, and Owned real estate projects of

$2 million and $4 million, respectively.

For the fiscal year ended January 31, 2024, and 2023, total capital expenditures consisted of Capital expenditures,

excluding owned real estate projects of $228 million and $360 million, respectively, and Owned real estate projects of

$4 million and $4 million, respectively.

About Non-GAAP Financial Measures

To provide investors and others with additional information regarding Workday’s results, we have disclosed the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) per share, and free cash flows. Workday has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Non-GAAP operating income (loss) and non-GAAP operating margin differ from GAAP in that they exclude share-based compensation expenses, employer payroll tax-related items on employee stock transactions, and amortization expense for acquisition-related intangible assets. Non-GAAP net income (loss) per share differs from GAAP in that it excludes share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets, and income tax effects. Free cash flows differ from GAAP cash flows from operating activities in that it treats total capital expenditures as a reduction to cash flows.

Workday’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Workday’s financial performance. Management believes these non-GAAP financial measures reflect Workday’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in Workday’s business. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Workday’s operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

Management believes excluding the following items from the GAAP Condensed Consolidated Statements of Operations is useful to investors and others in assessing Workday’s operating performance due to the following factors:

Share-based compensation expenses. Although share-based compensation is an important aspect of the compensation of our employees and executives, management believes it is useful to exclude share-based compensation expenses to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies. Share-based compensation expenses are determined using a number of factors, including our stock price, volatility, and forfeiture rates, that are beyond our control and generally unrelated to operational decisions and performance in any particular period. Further, share-based compensation expenses are not reflective of the value ultimately received by the grant recipients.Employer payroll tax-related items on employee stock transactions. We exclude the employer payroll tax-related items on employee stock transactions in order to show the full effect that excluding share-based compensation expenses has on our operating results. Similar to share-based compensation expenses, this tax expense is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business.Amortization of acquisition-related intangible assets. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of the related amortization can vary significantly and are unique to each acquisition and thus we do not believe it is reflective of ongoing operations. Although we exclude the amortization of acquisition-related intangible assets from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.Income tax effects. We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a three-year financial projection that excludes the direct impact of share-based compensation and related employer payroll taxes, and amortization of acquisition-related intangible assets. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For fiscal 2025 and 2024, we determined the projected non-GAAP tax rate to be 19%, which reflects currently available information, as well as other factors and assumptions. We will periodically re-evaluate this tax rate, as necessary, for significant events, relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions.

Additionally, with regards to free cash flows, Workday’s management believes that reducing cash provided by (used in) operating activities by capital expenditures is meaningful to investors and others because it provides an enhanced view of cash flow generation from the ongoing operations of our business, and it balances operating results, cash management, and capital efficiency.

The use of the non-GAAP measures of non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) per share, and free cash flows have certain limitations as they do not reflect all items of expense or cash that affect Workday’s operations. Workday compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review Workday’s financial information in its entirety and not rely on a single financial measure.

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Electra to Usher in the Next Era of Aviation with Advanced Production Facility in Springfield, Ohio

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July 21, 2026

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$850 million investment in Springfield and Clark County will move Direct Aviation from concept to reality, creating nearly 2,000 jobs and supporting production of up to 800 EL9 Ultra Short aircraft per year

SPRINGFIELD, Ohio, July 21, 2026 /PRNewswire/ — Electra today announced plans to establish its first production facility for the EL9 Ultra Short in the City of Springfield, within Clark County, a major milestone that will bring its nine-passenger hybrid-electric aircraft from development into scaled commercial production.

The initial phase will support capacity for up to 400 aircraft per year, later expanding to up to 800 aircraft per year.

The $850 million investment will create 1,975 new jobs, anchor production of the EL9 Ultra Short, and help meet demand for Direct Aviation, a new category of accessible, point-to-point air mobility. The EL9 Ultra Short is a nine-passenger fixed-wing aircraft that uses hybrid-electric propulsion and blown-lift technology to take off and land in as little as 150 feet. The new facility will be located at AirPark Ohio, adjacent to Springfield-Beckley Municipal Airport.

“Electra is opening a new era of aviation, one where flight is direct, accessible, and closer to the communities it serves,” said Marc Allen, CEO of Electra. “This agreement is the moment that our vision moves from demonstration into reality. In Springfield and Clark County, we found the rare combination this next era requires: a ready site, a skilled workforce, a deep aerospace and defense ecosystem, and state and local leaders with the commitment and vision to build it with us. We are grateful to the City of Springfield, Clark County, and the State of Ohio for welcoming Electra into this community as we prepare to bring the EL9 Ultra Short into production, through certification, and ultimately into service.”

The production facility will ensure Electra remains at the forefront of American global leadership in hybrid-electric aviation, with the EL9 Ultra Short unlocking new markets for commercial advanced air mobility, military logistics, and humanitarian applications. The decision to build in Springfield is a bet on reindustrializing America’s capacity to manufacture next-generation aircraft at scale in the Birthplace of Aviation.

“Ohio is where flight began, and the Dayton-Springfield area has become the national epicenter for advanced air mobility – the place where the next generation of aircraft is being designed, tested, and now built at scale,” said Ohio Governor Mike DeWine. “Electra’s decision to bring nearly 2,000 new jobs to Springfield will be transformative for Clark County, demonstrating Ohio’s unique ability to lead America into aviation’s next era.” 

Electra selected the site following a year-long competitive national site-selection process that evaluated more than 140 potential locations. Criteria included workforce availability, infrastructure readiness, long-term expansion capacity, state and local partnership, incentives, and proximity to the aerospace, defense, and advanced manufacturing talent needed to support EL9 Ultra Short production.

The new 96-acre facility will house production of the EL9 Ultra Short. The initial phase of development will start immediately with design, while construction of the facility will begin next year. The initial phase will support capacity for up to 400 aircraft per year. A second phase of development will expand capacity to up to 800 aircraft per year.

The company chose the Dayton-Springfield region because it offers advanced air mobility (AAM) companies a combination of assets found nowhere else in the country. Springfield-Beckley Municipal Airport is home to the National Advanced Air Mobility Center of Excellence (NAAMCE) and SkyVision, the FAA-approved ground-based detect-and-avoid system that enables beyond visual line of sight (BVLOS) flight testing in unrestricted airspace, which allows companies to move from concept to flight test faster than anywhere else in the nation. That infrastructure is complemented by growing AAM production near Dayton International Airport and the region’s proximity to Wright-Patterson Air Force Base and the Air Force Research Laboratory (AFRL), which together form one of the deepest concentrations of aerospace R&D talent in the world.

“JobsOhio and our partners at the Dayton Development Coalition are proud to welcome Electra’s first point-to-point hybrid-electric aircraft production facility to Ohio,” said JobsOhio President and CEO J.P. Nauseef. “This investment builds on years of collaboration to establish Springfield-Beckley Municipal Airport as a national hub for advanced air mobility. Here, Electra will have direct access to the nation’s premier AAM testing infrastructure, a proven aerospace workforce, a deep manufacturing supply chain and the unmatched research capabilities of Wright-Patterson Air Force Base—an ideal environment to innovate, scale and grow for decades to come.”

Electra’s investment will be supported by state and local incentives tied to job creation, workforce development, infrastructure readiness, and long-term manufacturing growth. An incentive package is being designed to support hundreds of new Ohio jobs over the coming years as Electra scales production in the region. The project will pursue a Job Creation Tax Credit from the Ohio Department of Development at a future Tax Credit Authority meeting. JobsOhio also plans to provide assistance with the project, which will be made public after a final agreement is executed.

The EL9 Ultra Short is designed to unlock Direct Aviation, a new category of air travel that connects people and places directly through point-to-point mobility using novel access points such as parking lots, barges, and sports fields. The aircraft is designed around Electra’s Rule of Six: access, quiet operations, payload, range, safety, and affordability. In 2025, the company secured $115 million in Series B funding to support pre-production and certification of the EL9 Ultra Short, led by Prysm Capital.

“This is a landmark moment for Electra and for aviation,” said Jay Park, Co-Founder and Managing Partner at Prysm Capital. “Building a new category of aircraft takes conviction at every step, and the Electra team has delivered on each one. We’re proud to be their partner as the EL9 goes from proving what’s possible to producing it.”

In May, Electra released the Direct Aviation Market Outlook, a nationwide analysis of U.S.-based travel. At the heart of this market are trips between 50 and 250 flying miles, where demand is both concentrated and largely unserved by existing aviation. Electra’s analysis found that meeting this demand will require between 12,000 and 16,000 aircraft between 2030 and 2040.

This announcement follows Electra and Safran Helicopter Engines’ life-of-program agreement to develop and produce the TG600 turbogenerator that will power the EL9 Ultra Short. The agreement includes an initial order for 250 units and establishes Safran’s TG600 as the core of the EL9’s hybrid-electric propulsion system.

Earlier this year, Electra and Bristow Group Inc. announced a Pre-Delivery Payment agreement with non-refundable deposits and binding terms and conditions aligned to commercial aviation industry standards, subject to aircraft certification, securing the first delivery slot for the EL9 Ultra Short hybrid-electric aircraft with the TG600.

Electra has also submitted the EL9 Ultra Short aircraft to the Federal Aviation Administration (FAA) for Part 23 type certification and anticipates a first flight scheduled for late 2027 or early 2028. The FAA recently closed the G-1 Issue Paper, formally establishing the certification basis for Electra’s EL9 Ultra Short aircraft and advancing the company toward the next phase of type certification.

“The first era of aviation began right here in the greater Dayton region,” Allen said. “It is fitting that aviation’s next era will be built here too — in Springfield and Clark County — where Electra will produce groundbreaking aircraft designed to transform the way people travel.”

Electra will also continue to operate parts of its business from its Manassas, Virginia facilities. Together, the two campuses will give Electra the structure, talent, and operating model needed to fuel its next chapter of growth. To learn more, visit electra.aero/ohiojobs.

About Electra

Electra.aero, Inc. (Electra) is an advanced air mobility (AAM) company building hybrid-electric Ultra Short airplanes that deliver unprecedented performance advantages to fly people and cargo seamlessly without airports, emissions, or noise. With the EL9 Ultra Short, Electra is pioneering Direct Aviation, the next level of connectivity that brings air travel closer to where we live, work, and play. Electra’s Ultra Short technology delivers 2.5x the payload and 10x longer range with 70% lower operating costs than helicopters and eVTOLs with significantly greater safety and far less certification risk.

Electra’s team includes some of the most respected and successful entrepreneurs and engineers in novel aircraft design, with over 40 prior aircraft successfully developed and/or certified. Lockheed Martin Ventures, Honeywell, and Safran are among Electra’s strategic investors along with Prysm Capital, the Virginia Innovation Partnership Corporation (VIPC), and other private investors. Electra’s contracted customers include the U.S. Air Force, the U.S. Army, the U.S. Navy, and NASA along with over 2,200 letters of intent from 60+ commercial customers, including both airlines and helicopter operators.

About JobsOhio 
JobsOhio, Ohio’s private nonprofit economic development corporation, enhances company growth and personnel development through business attraction, retention, and expansion across 10 competitive industry sectors. With a team of seasoned professionals, JobsOhio utilizes a comprehensive network to foster talent production in targeted industries and attract talent through Find Your Ohio. Collaborating with seven regional partners, including Dayton Development Coalition, Lake to River Economic Development, Ohio Southeast Economic Development, One Columbus, REDI Cincinnati, Regional Growth Partnership, and Team NEO. JobsOhio delivers world-class customer service to provide companies with a competitive advantage. In 2026 Ohio was named CNBC’s Top State for Business. Learn more at www.jobsohio.com. Follow us on LinkedIn, X , Instagram, and Facebook. 

Media Contacts:

Matthew Bowen
Vrge Strategies
matthew@vrge.us 

Matt Englehart
Englehart@jobsOhio.com
614-300-1152

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Introducing Harness Agent DLC: New Capabilities for the AI Agent Development Lifecycle

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26 minutes ago

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July 21, 2026

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Enterprises can now ship AI agents with the same governance, testing, and security they already trust for application code

SAN FRANCISCO, July 21, 2026 /PRNewswire/ — Harness, the AI Software Delivery Platform™ company, today announced it is extending its platform to cover the full AI Agent Development Lifecycle (DLC), giving enterprises a single set of pipelines and controls to build, test, deploy, and run agents the same way they already ship everything else.

Every enterprise is building AI agents, but most can’t get them past internal pilots or proofs of concept. According to Gartner®, “Only 8% of organizations have agentic AI in production.” The software delivery lifecycle enterprises trust for shipping application code hasn’t extended to agents yet, trapping the ROI of internal AI investments. Real innovation arrives once a company can run an agent live with the same trust and confidence it has in the rest of its software.

“When we started Harness, the vision was a safety harness for code,” said Jyoti Bansal, co-founder and CEO of Harness. “Until recently, that meant application code. Today it also means agentic code, written across engineering, product, sales, and support teams alike, each building agents for their own workflows. Everything you’ve done for software delivery over the last decade — governance, orchestration, security, testing — you can now do for agents in the same platform.”

Why AI agents break the traditional software delivery lifecycle

Traditional software works because it’s predictable. Application code is deterministic. Run the same test against the same code twice, and it produces the same result both times.

Agents don’t work that way: an agent’s underlying language model decides how to complete a task, and the same agent, given the same input, can choose a different tool or take a different action from one run to the next. A test that passes once offers no guarantee it will pass the next time. Incidents stop being reproducible on demand, which means the standard playbook for catching and fixing bugs doesn’t transfer either.

The stakes rise with the size of the business. A rogue agent can expose customer data, violate a compliance policy, or take an action nobody approved. Enterprises need a way to answer for what their agents are doing, and the traditional software delivery lifecycle was never built to give them one.

New Harness Agent DLC products and capabilities

Agent DLC closes the gap between building an agent and delivering it safely to production. Today’s launch includes five new products and capabilities spanning testing, deployment, operations, and governance:

Harness AI Evals make agent quality measurable, letting teams define eval datasets, wire up scoring functions, and set quality gates that automatically catch regressions whenever an agent or model changes.Agent Deployments extend the canary releases, approvals, and OPA guardrails that Harness already applies to Kubernetes deployments to managed agent runtimes like Amazon Bedrock AgentCore and Google’s Agent Runtime. Agents now ship through existing pipelines instead of a separate cloud-specific workflow.AI Configs support the release and management of prompts and model changes at runtime, backed by the same feature flagging infrastructure that already manages code releases. Teams can test what performs best and roll back instantly, without redeploying.AI Asset Catalog automatically discovers every agent, skill, and plugin built across an organization’s repositories and links each to an owner, so nothing ships or runs unaccounted for.Harness AgentTrace records what happens during a single agent run and across a full multi-step session, showing which path an agent took, where it slowed down, and how different models or prompts affect the outcome. Harness is also open-sourcing the foundational components behind AgentTrace, including harness-sdk and harness-evals, so developers can bring the same tracing primitives into their own AI applications.

In addition, existing Harness products already extend to agents without requiring any changes: Continuous Integration builds them like any other service, Artifact Registry tracks their versions and dependencies, AI Test Automation validates their responses in plain English criteria, and AI Cost Management extends spend visibility to every agent and model.

Securing the Agent DLC

Agents choose their own approach and path to get there, so their behavior is hard to predict and just as hard to secure. They expand their own attack surface by connecting to tools and APIs, spawning sub-agents, and inheriting trust from every model they touch. Static scans were never designed for this kind of risk. Harness is launching new security capabilities to close that gap.

Shift-left: constrain what agents can do before they ship.

Primitive Scanning flags misconfigurations in agent skills, prompts, and models.AIBOM captures every model, tool, and dependency an agent was built with.AI Testing runs agents against adversarial inputs and the OWASP Top 10 for LLMs.

Shield-right: enforce policy and maintain visibility once they’re live.

Agent Discovery and Posture Management continuously surfaces agents as they’re invoked, maps how they connect and orchestrate work, and assesses their posture across the organization.AI Firewall enforces policy in real time against prompt injection, tool misuse, and data exfiltration.

Together, these capabilities give Agent DLC a single audit trail from development to production.

Built on the Harness platform

Harness built context and intelligence directly into the platform with the Software Delivery Knowledge Graph, which captures and connects data from every stage of the delivery lifecycle, now spanning both applications and agents. Organizations relying on siloed tools don’t have that same connected view.

In June 2026, Harness introduced Autonomous Worker Agents, a platform for building and safely running AI agents inside software delivery pipelines. Worker Agents run as governed steps within those pipelines, covered by the same controls Harness already applies to every deployment.

Agent DLC extends that same context and governance across the full agent lifecycle. The pipelines, policies, approvals, and evidence that already apply to an organization’s code now apply to its agents too, so eval gates, deployment approvals, and security checks run as stages within a single pipeline, from the moment an agent is created through everything it does afterward.

Availability

Harness Agent DLC capabilities are rolling out now to Harness customers. For a full breakdown of what’s included at each stage of the lifecycle, visit https://www.harness.io/blog/introducing-harness-agent-dlc.

Gartner, Emerging Market Quadrant for AI Agent Development Platforms — Established Vendors, 8 June 2026. GARTNER is a trademark of Gartner, Inc. and/or its affiliates

About Harness

Harness is the AI Software Delivery Platform™ company, enabling engineering teams to build, test, and deliver software faster and more securely. Powered by Harness AI and the Software Delivery Knowledge Graph, the platform brings intelligent automation to every stage of the software delivery lifecycle after code — removing toil and freeing developers from manual, repetitive work. Companies like United Airlines, Morningstar, and Choice Hotels use Harness to accelerate releases by up to 75%, cut cloud costs by 60%, and achieve 10x efficiency across DevOps. Based in San Francisco, Harness is backed by Goldman Sachs, Menlo Ventures, IVP, Unusual Ventures, and Citi Ventures.

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VIVIFY Technology Hosts Governor Candidate Byron Donalds at South Florida Headquarters

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26 minutes ago

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July 21, 2026

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Delray Beach company demonstrates hydrogen energy platforms built to address Florida’s hurricane recovery, infrastructure growth, and data center demand

DELRAY BEACH, Fla., July 21, 2026 /PRNewswire/ — VIVIFY Technology today welcomed Florida Governor Candidate Byron Donalds to the company’s South Florida headquarters for a firsthand demonstration of its deployed hydrogen energy platforms: the HOG™ (Hydrogen Oxygen Generator), the CAT™ (Clean Air Technology) emissions control system, and the Flying Pig™, VIVIFY’s 1MW containerized hydrogen power unit.

The visit focused on the direct applications of VIVIFY’s technology to Florida’s most pressing infrastructure challenges: disaster recovery and hurricane resilience, power capacity for the state’s rapidly growing communities, and dedicated behind-the-meter energy for the data center build-out accelerating across the state.

The Flying Pig™ — a self-contained, 1MW hydrogen power system engineered for rapid deployment — is designed to be transported and operational within hours of arriving on site. In a post-storm environment, that means restoring critical power to Florida communities without waiting on grid repair timelines that can stretch for days or weeks.

“We didn’t build VIVIFY in Florida by accident,” said Jason Herring, Founder and CEO of VIVIFY Technology. “Hurricane season, the data center boom, communities being built faster than the grid can reach them: these are Florida realities. We built the answer here because the problem is here.”

Florida’s population growth has created compounding pressure on transmission infrastructure. New master-planned communities, industrial corridors, and data center campuses across the state are running into the same constraint: available grid capacity cannot keep pace with announced development. VIVIFY’s on-site hydrogen energy systems are engineered to close that gap, delivering dedicated power on the developer’s schedule rather than the utility’s.

“Every new community, every new data center, every growth corridor in this state runs into the same wall,” Herring said. “The grid can’t keep up. We built the technology that lets Florida build without waiting.”

Candidate Donalds toured the facility and engaged directly with VIVIFY’s engineering team and deployed systems.

“Hurricane recovery, new community development, the data center wave: these are the issues that define Florida’s future,” Candidate Donalds said. “The technology I saw today addresses every one of them.”

About VIVIFY Technology

VIVIFY Technology is a hydrogen energy company headquartered in South Florida. The company designs and develops hydrogen-based energy platforms — including its flagship Hydrogen Oxygen Generator™ (HOG™), the Clean Air Technology™ (CAT™) emissions control system, and the Flying Pig™ containerized power unit — engineered to deliver dependable, dedicated power for the most demanding infrastructure environments in operation today. Learn more at vivify-technology.com.

Forward-Looking Statements: This release contains forward-looking statements regarding VIVIFY Technology’s products, platforms, and intended performance. Forward-looking statements are subject to inherent uncertainty and reflect the company’s current expectations. Actual results may differ materially. The company undertakes no obligation to update any forward-looking statement except as required by law.

Media Contact
Ashley Stevenson, Chief Marketing Officer
ashley@vivify-technology.com

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