Workday Announces Fourth Quarter and Full Year Fiscal 2016 Financial Results

PLEASANTON, CA--(Marketwired - Feb 29, 2016) -  Workday, Inc. (NYSE: WDAY), a leader in enterprise cloud applications for finance and human resources, today announced results for the fourth quarter and fiscal year ended January 31, 2016.

Fiscal Fourth Quarter Results:

• Total revenues were $323.4 million, an increase of 43% from the fourth quarter of fiscal 2015. Subscription revenue was $261.8 million, an increase of 44% from the same period last year.
   
• Operating loss was $73.4 million, or negative 22.7% of revenues, compared to an operating loss of $50.4 million, or negative 22.3% of revenues, in the same period last year. Non-GAAP operating loss for the fourth quarter was $0.8 million, or negative 0.2% of revenues, compared to a non-GAAP operating loss of $8.6 million last year, or negative 3.8% of revenues.¹
   
• Net loss per basic and diluted share was $0.42, compared to a net loss per basic and diluted share of $0.32 in the fourth quarter of fiscal 2015. Non-GAAP net loss per basic and diluted share was $0.01, compared to a non-GAAP net loss per basic and diluted share of $0.06 for the same period last year.¹

Fiscal Year 2016 Results:

• Total revenues were $1.16 billion, an increase of 48% from fiscal 2015. Subscription revenue was $929.2 million, an increase of 52% from the prior year.
   
• Operating loss was $264.7 million, or negative 22.8% of revenues, compared to an operating loss of $215.7 million, or negative 27.4% of revenues, in fiscal 2015. Non-GAAP operating loss was $2.7 million, or negative 0.2% of revenues, compared to a non-GAAP operating loss of $53.2 million, or negative 6.7% of revenues, last year.¹
   
• Net loss per basic and diluted share was $1.53, compared to a net loss per basic and diluted share of $1.35 in fiscal 2015. Non-GAAP net loss per basic and diluted share was $0.01, compared to a non-GAAP net loss per basic and diluted share of $0.33 last year.¹ 
   
• Operating cash flows were $258.6 million and free cash flows were $125.0 million.²
   
• Cash, cash equivalents and marketable securities were approximately $1.97 billion as of January 31, 2016. Unearned revenues were $899.7 million, a 42% increase from last year.

"We ended FY16 on a high note with a very strong fourth quarter across product lines and around the world. Demand for our Financial Management and HCM products continues to rise, as do our competitive win rates," said Aneel Bhusri, co-founder and CEO, Workday. "The year ahead brings us an expanded addressable market with the delivery of Planning, Learning Management and Student applications that allow customers to drive employee engagement and productivity in new and transformative ways."

"Workday finished a very strong fiscal 2016 with a great fourth quarter. Total revenue for the year increased 48% to $1.16 billion, and we generated nearly $260 million in operating cash flows," said Mark Peek, co-president and chief financial officer, Workday. "Looking ahead to our fiscal 2017, we are increasing our billings guidance for the first quarter from $350 million to $360 to $365 million. Billings for fiscal 2017 are expected to be between $1.855 and $1.875 billion. For the first quarter, we expect subscription revenue of $277 to $278 million and total revenue of $337 to $339 million. Subscription revenue for the year is expected to be between $1.275 and $1.285 billion, and total revenue between $1.540 and $1.550 billion."

Recent Highlights

• Workday accelerated momentum for Workday Financial Management with 45 customers joining in the fourth quarter of fiscal 2016, bringing the total customer count for this application to more than 200. Workday has over 100 financial management customers in production and live customers in 35 countries.
   
• Workday ranked #2 on Fortune magazine's list of the 10 Best Large Workplaces in Tech and #6 on its list of the 50 Best Workplaces for Diversity.
   
• Workday announced plans to expand its partnership with ADP to provide multinational organizations with a seamless and unified global payroll experience, uniting Workday Human Capital Management (HCM) and ADP Global Payroll in a single user experience within Workday.

Workday plans to host a conference call today to review its fourth quarter and full year fiscal 2016 financial results and to discuss its financial outlook. The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed via webcast or through the company's Investor Relations website at www.workday.com/investorrelations. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 45 days.

¹ Non-GAAP operating loss and non-GAAP net loss per share for the 2016 and 2015 fiscal fourth quarters and fiscal years exclude share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization expense for acquisition-related intangible assets and debt discount and issuance costs associated with convertible notes. See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

² Free cash flows are defined as operating cash flows minus purchased property and equipment, property and equipment acquired under capital leases and purchased other intangible assets. See the section titled "About Non-GAAP Financial Measures" in the accompanying financial tables for further details.

About Workday
Workday is a leading provider of enterprise cloud applications for finance and human resources. Founded in 2005, Workday delivers financial management, human capital management, and analytics applications designed for the world's largest companies, educational institutions, and government agencies. More than 1,000 organizations, ranging from medium-sized businesses to Fortune 50 enterprises, have selected Workday.

Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to Workday's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "About Non-GAAP Financial Measures."

Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Workday's first quarter and fiscal year revenue and billings projections. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures, unauthorized access to our customers' data or disruptions in our data center operations; (ii) our ability to manage our growth effectively; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by our competitors; (iv) the development of the market for enterprise cloud services; (v) acceptance of our applications and services by customers; (vi) adverse changes in general economic or market conditions; (vii) delays or reductions in information technology spending; (viii) our limited operating history, which makes it difficult to predict future results; and (ix) changes in sales may not be immediately reflected in our results due to our subscription model. Further information on risks that could affect Workday's results is included in our filings with the Securities and Exchange Commission (SEC), including our Form 10-Q for the quarter ended October 31, 2015 and our future reports that we may 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.

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.

© 2016. 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.

Workday, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
			January 31,
			2016				2015 (1)
Assets
Current assets:
	Cash and cash equivalents		$	300,087			$	298,192
	Marketable securities			1,669,372				1,559,517
	Accounts receivable, net			293,407				188,357
	Deferred costs			21,817				20,471
	Prepaid expenses and other current assets			77,625				41,850
Total current assets				2,362,308				2,108,387
Property and equipment, net				214,158				140,136
Deferred costs, noncurrent				30,074				20,998
Goodwill and acquisition-related intangible assets, net				65,816				34,779
Other assets				57,738				45,790
Total assets			$	2,730,094			$	2,350,090
Liabilities and stockholders' equity
Current liabilities:
	Accounts payable		$	19,605			$	10,623
	Accrued expenses and other current liabilities			43,122				24,132
	Accrued compensation			91,211				56,152
	Capital leases			--				3,207
	Unearned revenue			768,741				547,151
Total current liabilities				922,679				641,265
Convertible senior notes, net				507,476				481,958
Unearned revenue, noncurrent				130,988				85,593
Other liabilities				32,794				15,299
Total liabilities				1,593,937				1,224,115
Stockholders' equity:
	Common stock			193				186
	Additional paid-in capital			2,247,454				1,948,300
	Accumulated other comprehensive income (loss)			799				(140	)
	Accumulated deficit			(1,112,289	)			(822,371	)
Total stockholders' equity				1,136,157				1,125,975
Total liabilities and stockholders' equity			$	2,730,094			$	2,350,090

(1)	Amounts as of January 31, 2015 were derived from the January 31, 2015 audited financial statements.

Workday, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
					Three Months Ended January 31,								Year Ended January 31,
					2016				2015				2016				2015
Revenues:
	Subscription services				$	261,799			$	181,866			$	929,234			$	613,328
	Professional services					61,628				44,407				233,112				174,532
Total revenues						323,427				226,273				1,162,346				787,860
Costs and expenses(1):
	Costs of subscription services					43,009				29,218				149,869				102,476
	Costs of professional services					59,671				40,737				224,558				162,327
	Product development					131,244				88,963				469,944				316,868
	Sales and marketing					121,073				88,469				434,056				315,840
	General and administrative					41,871				29,270				148,578				106,051
Total costs and expenses						396,868				276,657				1,427,005				1,003,562
Operating loss						(73,441	)			(50,384	)			(264,659	)			(215,702	)
Other expense, net						(6,505	)			(8,271	)			(24,242	)			(30,270	)
Loss before provision for income taxes						(79,946	)			(58,655	)			(288,901	)			(245,972	)
Provision for income taxes						1,182				811				1,017				2,010
Net loss					$	(81,128	)		$	(59,466	)		$	(289,918	)		$	(247,982	)
Net loss per share, basic and diluted					$	(0.42	)		$	(0.32	)		$	(1.53	)		$	(1.35	)
Weighted-average shares used to compute net loss per share, basic and diluted						192,485				185,696				190,016				183,702
(1) Costs and expenses include share-based compensation as follows:
			Costs of subscription services		$	3,636			$	1,431			$	12,060			$	6,053
			Costs of professional services			5,504				2,959				19,526				12,890
			Product development			30,372				17,142				109,362				63,938
			Sales and marketing			14,709				7,068				51,617				29,875
			General and administrative			15,052				10,784				57,405				43,292

Workday, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
				Three Months Ended January 31,								Year Ended January 31,
				2016				2015				2016				2015
Cash flows from operating activities
Net loss				$	(81,128	)		$	(59,466	)		$	(289,918	)		$	(247,982	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization					25,222				16,526				85,939				59,205
Share-based compensation expenses					69,273				39,384				249,970				156,048
Amortization of deferred costs					5,728				5,175				23,477				19,288
Amortization of debt discount and issuance costs					6,510				6,166				25,518				24,171
Gain on sale of cost method investment					--				--				(3,220	)			--
Other					2,381				269				1,047				2,924
Changes in operating assets and liabilities, net of business combinations:
		Accounts receivable			(122,684	)			(69,824	)			(105,264	)			(96,876	)
		Deferred costs			(14,572	)			(9,278	)			(33,899	)			(23,514	)
		Prepaid expenses and other assets			(3,368	)			(7,011	)			(28,366	)			(15,524	)
		Accounts payable			6,363				(483	)			6,824				1,120
		Accrued expense and other liabilities			23,024				2,204				59,724				3,964
		Unearned revenue			181,742				124,613				266,805				219,179
Net cash provided by (used in) operating activities					98,491				48,275				258,637				102,003
Cash flows from investing activities
Purchases of marketable securities					(640,419	)			(247,436	)			(2,125,841	)			(1,737,840	)
Maturities of marketable securities					639,995				282,998				1,901,858				1,419,454
Sales of available-for-sale securities					4,000				45,044				102,711				53,182
Business combinations, net of cash acquired					--				--				(31,436	)			(26,317	)
Purchases of property and equipment					(41,985	)			(37,665	)			(133,667	)			(103,646	)
Purchases of cost method investments					(100	)			--				(16,550	)			(10,000	)
Sale of cost method investment					--				--				3,538				--
Other					(760	)			--				(760	)			1,000
Net cash provided by (used in) investing activities					(39,269	)			42,941				(300,147	)			(404,167	)
Cash flows from financing activities
Proceeds from issuance of common stock from employee equity plans					20,560				15,459				45,656				36,239
Principal payments on capital lease obligations					(66	)			(1,474	)			(3,193	)			(9,759	)
Shares repurchased for tax withholdings on vesting of restricted stock					--				--				--				(8,291	)
Other					621				1,115				1,646				1,266
Net cash provided by (used in) financing activities					21,115				15,100				44,109				19,455
Effect of exchange rate changes					(143	)			(266	)			(704	)			(425	)
Net increase (decrease) in cash and cash equivalents					80,194				106,050				1,895				(283,134	)
Cash and cash equivalents at the beginning of period					219,893				192,142				298,192				581,326
Cash and cash equivalents at the end of period				$	300,087			$	298,192			$	300,087			$	298,192
Supplemental cash flow data
	Cash paid for interest			$	3,204			$	3,255			$	6,456			$	6,869
	Cash paid for taxes				472				777				2,124				943
	Non-cash investing and financing activities:
		Vesting of early exercise stock options		$	472			$	471			$	1,888			$	1,887
		Purchases of property and equipment, accrued but not paid			14,052				8,776				14,052				8,776
		Non-cash additions to property and equipment			764				--				7,256				--

Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Three Months Ended January 31, 2016
(in thousands, except per share data)
(unaudited)
	GAAP			Share-Based Compensation				Other Operating Expenses (1)				Amortization of Debt Discount and Issuance Costs			Non-GAAP
Costs and expenses:
Costs of subscription services	$	43,009		$	(3,636	)		$	(88	)		$	--		$	39,285
Costs of professional services		59,671			(5,504	)			(137	)			--			54,030
Product development		131,244			(30,372	)			(2,226	)			--			98,646
Sales and marketing		121,073			(14,709	)			(328	)			--			106,036
General and administrative		41,871			(15,052	)			(596	)			--			26,223
Operating loss		(73,441	)		69,273				3,375				--			(793	)
Operating margin		(22.7	)%		21.5	%			1.0	%			--			(0.2	)%
Other income (expense), net		(6,505	)		--				--				6,510			5
Loss before provision for income taxes		(79,946	)		69,273				3,375				6,510			(788	)
Provision for income taxes		1,182			--				--				--			1,182
Net loss	$	(81,128	)	$	69,273			$	3,375			$	6,510		$	(1,970	)
Net loss per share, basic and diluted (2)	$	(0.42	)	$	0.36			$	0.02			$	0.03		$	(0.01	)

(1)	Other operating expenses include employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets.
(2)	Calculated based upon 192,485 basic and diluted weighted-average shares of common stock.

Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Three Months Ended January 31, 2015
(in thousands, except per share data)
(unaudited)
	GAAP			Share-Based Compensation				Other Operating Expenses (1)				Amortization of Debt Discount and Issuance Costs			Non-GAAP
Costs and expenses:
Costs of subscription services	$	29,218		$	(1,431	)		$	(103	)		$	--		$	27,684
Costs of professional services		40,737			(2,959	)			(247	)			--			37,531
Product development		88,963			(17,142	)			(1,123	)			--			70,698
Sales and marketing		88,469			(7,068	)			(424	)			--			80,977
General and administrative		29,270			(10,784	)			(514	)			--			17,972
Operating loss		(50,384	)		39,384				2,411				--			(8,589	)
Operating margin		(22.3	)%		17.4	%			1.1	%			--			(3.8	)%
Other income (expense), net		(8,271	)		--				--				6,166			(2,105	)
Loss before provision for income taxes		(58,655	)		39,384				2,411				6,166			(10,694	)
Provision for income taxes		811			--				--				--			811
Net loss	$	(59,466	)	$	39,384			$	2,411			$	6,166		$	(11,505	)
Net loss per share, basic and diluted (2)	$	(0.32	)	$	0.21			$	0.01			$	0.04		$	(0.06	)

(1)	Other operating expenses include employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets.
(2)	Calculated based upon 185,696 basic and diluted weighted-average shares of common stock.

Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Year Ended January 31, 2016
(in thousands, except per share data)
(unaudited)
		GAAP			Share-Based Compensation				Other Operating Expenses (1)				Amortization of Debt Discount and Issuance Costs			Non-GAAP
Costs and expenses:
Costs of subscription services		$	149,869		$	(12,060	)		$	(414	)		$	--		$	137,395
Costs of professional services			224,558			(19,526	)			(768	)			--			204,264
Product development			469,944			(109,362	)			(7,201	)			--			353,381
Sales and marketing			434,056			(51,617	)			(1,482	)			--			380,957
General and administrative			148,578			(57,405	)			(2,095	)			--			89,078
Operating loss			(264,659	)		249,970				11,960				--			(2,729	)
Operating margin			(22.8	)%		21.6	%			1.0	%			--			(0.2	)%
Other income (expense), net			(24,242	)		--				--				25,518			1,276
Loss before provision for income taxes			(288,901	)		249,970				11,960				25,518			(1,453	)
Provision for income taxes			1,017			--				--				--			1,017
Net loss		$	(289,918	)	$	249,970			$	11,960			$	25,518		$	(2,470	)
Net loss per share, basic and diluted (2)		$	(1.53	)	$	1.32			$	0.06			$	0.14		$	(0.01	)

(1)	Other operating expenses include employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets.
(2)	Calculated based upon 190,016 basic and diluted weighted-average shares of common stock.

Workday, Inc.
Reconciliation of GAAP to Non-GAAP Data
Year Ended January 31, 2015
(in thousands, except per share data)
(unaudited)
		GAAP			Share-Based Compensation			Other Operating Expenses (1)				Amortization of Debt Discount and Issuance Costs			Non-GAAP
Costs and expenses:
Costs of subscription services		$	102,476		$	(6,053	)	$	(204	)		$	--		$	96,219
Costs of professional services			162,327			(12,890	)		(451	)			--			148,986
Product development			316,868			(63,938	)		(3,221	)			--			249,709
Sales and marketing			315,840			(29,875	)		(1,420	)			--			284,545
General and administrative			106,051			(43,292	)		(1,202	)			--			61,557
Operating loss			(215,702	)		156,048			6,498				--			(53,156	)
Operating margin			(27.4	)%		19.8	%		0.9	%			--			(6.7	)%
Other income (expense), net			(30,270	)		--			--				24,171			(6,099	)
Loss before provision for income taxes			(245,972	)		156,048			6,498				24,171			(59,255	)
Provision for income taxes			2,010			--			--				--			2,010
Net loss		$	(247,982	)	$	156,048		$	6,498			$	24,171		$	(61,265	)
Net loss per share, basic and diluted (2)		$	(1.35	)	$	0.85		$	0.04			$	0.13		$	(0.33	)

(1)	Other operating expenses include employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets.
(2)	Calculated based upon 183,702 basic and diluted weighted-average shares of common stock.

Workday, Inc.
Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows
(A Non-GAAP Financial Measure)
(in thousands)
(unaudited)
				Three Months Ended January 31,								Year Ended January 31,
				2016				2015				2016				2015
Net cash provided by (used in) operating activities				$	98,491			$	48,275			$	258,637			$	102,003
Purchases of property and equipment					(41,985	)			(37,665	)			(133,667	)			(103,646	)
		Free cash flows		$	56,506			$	10,610			$	124,970			$	(1,643	)

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 loss, non-GAAP net 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. The non-GAAP financial measures of non-GAAP operating loss and non-GAAP net loss per share differ from GAAP in that they exclude share-based compensation expenses, employer payroll tax-related items on employee stock transactions, amortization of acquisition-related intangible assets and non-cash interest expense related to our convertible senior notes, as applicable. Free cash flows differ from GAAP cash flows from operating activities in that it treats purchases of property and equipment, property and equipment acquired under capital leases and purchased other (non-acquisition related) intangible assets 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 and the ability of operations to generate cash. 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, as they exclude expenses that are not reflective of ongoing operating results. 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 future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. Additionally, management believes information regarding free cash flows provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments, to fund ongoing operations and to fund other capital expenditures.

Management believes excluding the following items from the GAAP Condensed Consolidated Statement 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 in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies. For restricted stock unit awards, the amount of share-based compensation expenses is not reflective of the value ultimately received by the grant recipients. Moreover, determining the fair value of certain of the share-based instruments we utilize involves a high degree of judgment and estimation and the expense recorded may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards. Unlike cash compensation, the value of stock options and shares offered under our Employee Stock Purchase Plan, which are elements of our ongoing share-based compensation expenses, is determined using a complex formula that incorporates factors, such as market volatility and forfeiture rates, that are beyond our control.
   
• Other Operating Expenses. Other operating expenses includes employer payroll tax-related items on employee stock transactions and amortization of acquisition-related intangible assets. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business. 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 its related amortization can vary significantly and are unique to each acquisition and thus we do not believe it is reflective of the ongoing operations.
   
• Amortization of debt discount and issuance costs. Under GAAP, we are required to separately account for liability (debt) and equity (conversion option) components of the convertible senior notes that were issued in private placements in June 2013. Accordingly, for GAAP purposes we are required to recognize the effective interest expense on our convertible senior notes and amortize the issuance costs over the term of the notes. The difference between the effective interest expense and the contractual interest expense, and the amortization expense of issuance costs are excluded from management's assessment of our operating performance because management believes that these non-cash expenses are not indicative of ongoing operating performance. Management believes that the exclusion of the non-cash interest expense provides investors an enhanced view of the company's operational performance.

Additionally, we believe that the non-GAAP financial measure, free cash flows, is meaningful to investors because we review cash flows generated from or used in operations after deducting capital expenditures, whether purchased or leased, and purchased other intangible assets, due to the fact that these expenditures are considered to be an ongoing operational component of our business. This provides an enhanced view of cash available to make strategic acquisitions and investments, to fund ongoing operations and to fund other capital expenditures.

The use of non-GAAP operating loss and non-GAAP net loss per share measures has certain limitations as they do not reflect all items of income and expense 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.