Workday, Inc. stock research
FY2025 Q2
Workday (WDAY) Gross Margin — Quarter Ended Jul 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose in both comparisons, while gross margin improved slightly from the prior quarter and more notably from a year ago.
Gross margin takeaway
Quarter ended Jul 31, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose in both comparisons, while gross margin improved slightly from the prior quarter and more notably from a year ago.
- The sequential and year-over-year improvement in gross margin was driven by gross profit growing faster than revenue, as cost of revenue increased at a lower relative pace.
- Compared to the prior quarter, gross margin showed a modest improvement. Compared to the same quarter one year ago, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.5%
Gross profit
$1.6B
Revenue
$2.1B
Cost of revenue
$491.0M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| Oct 31, 2023 | $1.9B | $1.4B | $429.0M | 77.0% |
| Jan 31, 2024 | $1.9B | $1.5B | $460.0M | 76.1% |
| Apr 30, 2024 | $2.0B | $1.5B | $472.0M | 76.3% |
| Jul 31, 2024 | $2.1B | $1.6B | $491.0M | 76.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2024
+0.2 pts
Year-over-year change
Jul 31, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential and year-over-year improvement in gross margin was driven by gross profit growing faster than revenue, as cost of revenue increased at a lower relative pace.
Compared to the prior quarter, gross margin showed a modest improvement. Compared to the same quarter one year ago, gross margin was higher.
Monitor the trend in cost of revenue relative to revenue in upcoming quarters to assess whether gross margin can sustain its improvement.