Workday, Inc. stock research
FY2024 Q4
Workday (WDAY) Gross Margin — Quarter Ended Jan 31, 2024
Revenue was stable compared to the previous quarter, while gross profit increased and cost of revenue also increased, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue lower.
Gross margin takeaway
Quarter ended Jan 31, 2024 · FY2024 Q4
Revenue was stable compared to the previous quarter, while gross profit increased and cost of revenue also increased, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue lower.
- The year-over-year improvement in gross margin is the most notable change, as revenue and gross profit both grew while cost of revenue declined.
- Sequentially, gross margin weakened slightly from the prior quarter, as cost of revenue increased while revenue was unchanged. Year over year, gross margin strengthened, with cost of revenue lower while revenue and gross profit were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.1%
Gross profit
$1.5B
Revenue
$1.9B
Cost of revenue
$460.0M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+5.7 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 |
|---|---|---|---|---|
| Apr 30, 2023 | $1.7B | $1.3B | $417.0M | 75.2% |
| Jul 31, 2023 | $1.8B | $1.3B | $448.0M | 74.9% |
| Oct 31, 2023 | $1.9B | $1.4B | $429.0M | 77.0% |
| Jan 31, 2024 | $1.9B | $1.5B | $460.0M | 76.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2023
-0.9 pts
Year-over-year change
Jan 31, 2023
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin is the most notable change, as revenue and gross profit both grew while cost of revenue declined.
Sequentially, gross margin weakened slightly from the prior quarter, as cost of revenue increased while revenue was unchanged. Year over year, gross margin strengthened, with cost of revenue lower while revenue and gross profit were higher.
Monitor the trend in cost of revenue relative to revenue, as the sequential increase in cost of revenue contributed to margin compression.