Workday, Inc. stock research
FY2024 Q2
Workday (WDAY) Gross Margin — Quarter Ended Jul 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was slightly higher than the preceding quarter but lower than the year-ago period, resulting in a gross margin that was slightly lower than the prior quarter but higher than the same quarter last year.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was slightly higher than the preceding quarter but lower than the year-ago period, resulting in a gross margin that was slightly lower than the prior quarter but higher than the same quarter last year.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which reflect a favorable relationship between revenue growth and cost of revenue trends.
- Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.9%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$448.0M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+2.5 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% |
| Jul 31, 2023 | $1.8B | $1.3B | $448.0M | 74.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
-0.3 pts
Year-over-year change
Jul 31, 2022
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, which reflect a favorable relationship between revenue growth and cost of revenue trends.
Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Monitor the trend in gross margin relative to the prior quarter to assess whether the slight weakening continues.