Workday, Inc. stock research
FY2024 Q1
Workday (WDAY) Gross Margin — Quarter Ended Apr 30, 2023
Revenue and gross profit both increased from the preceding quarter and from the same quarter one year ago. Cost of revenue was lower sequentially but slightly higher year over year, resulting in gross margin improvement compared with both prior periods.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2024 Q1
Revenue and gross profit both increased from the preceding quarter and from the same quarter one year ago. Cost of revenue was lower sequentially but slightly higher year over year, resulting in gross margin improvement compared with both prior periods.
- The higher gross margin this quarter was accompanied by a larger revenue base and a lower cost of revenue relative to the prior quarter. The year-ago comparison shows revenue grew faster than cost of revenue, supporting margin expansion.
- Gross margin improved compared with the immediately preceding quarter and also improved compared with the same quarter one year earlier. Revenue and gross profit were higher in both comparisons, while cost of revenue was lower sequentially and higher year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.2%
Gross profit
$1.3B
Revenue
$1.7B
Cost of revenue
$417.0M
Quarter-over-quarter change
+4.9 pts
Year-over-year change
+3.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 31, 2023 | $1.6B | $1.2B | $488.3M | 70.3% |
| Apr 30, 2023 | $1.7B | $1.3B | $417.0M | 75.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
+4.9 pts
Year-over-year change
Apr 30, 2022
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The higher gross margin this quarter was accompanied by a larger revenue base and a lower cost of revenue relative to the prior quarter. The year-ago comparison shows revenue grew faster than cost of revenue, supporting margin expansion.
Gross margin improved compared with the immediately preceding quarter and also improved compared with the same quarter one year earlier. Revenue and gross profit were higher in both comparisons, while cost of revenue was lower sequentially and higher year over year.
Monitor whether the cost of revenue trend returns to sequential growth or continues to decline, as it directly affects gross margin direction.