Workday, Inc. (NYSE:WDAY) Q2 2019 Earnings Conference Call Transcript

Sep 04, 2018 • 04:30 pm ET


Workday, Inc. (NYSE:WDAY) Q2 2019 Earnings Conference Call Transcript


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Good afternoon, ladies and gentlemen. Welcome to Workday's Second Quarter Fiscal Year 2019 Earnings Call. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of the call.

And with that, I will hand it over to Mike Magaro, VP of IR. Mr. Magaro, the floor is yours.

Mike Magaro

Welcome to Workday's Second Quarter Fiscal 2019 Earnings Conference Call. On the call we have Aneel Bhusri, our CEO, Robynne Sisco, our Co-President and CFO and Chano Fernandez, our Co-President.

Following Aneel and Robynne's prepared remarks, we will take questions. Our press release was issued after the close of market and is posted on our website where this call is being simultaneously webcast.

(Forward-Looking Cautionary Statements)

With that, let me hand it over to Aneel.

Aneel Bhusri

Thank you, Michael and hello, everyone and thank you for joining us today. I am pleased to share the details of another strong quarter in Q2 continuing our momentum as a vendor choice for companies embarking on digital transformation across cloud, finance and HR. Our customer satisfaction rate remains among the highest in enterprise cloud software and the success of our customers is an incredibly important part of our enduring business longer term.

Let me share some of the highlights from Q2 beginning with HCM. As of today, more than 35% of the Fortune 500 and approximately 50% of the Fortune 50 have selected Workday for core HR. Our continued success amongst the largest companies in the world is a direct reflection of the value we place on live, happy and reputable customers. In the same quarter, some of the new customers we added include Eli Lilly and Company and Princeton Americas in North America, Siemens Healthineers in Europe and DBS Bank in our AsiaPacific region. Notable go-lives in Q2 include Humana, Michelin, Samsung, and Target.

We believe that our global HCM leadership position has once again being reinforced by industry analysts. Gartner published its Magic Quadrant for Cloud HCM Suites for mid-market and Large Enterprises on August 15 2018 and once again positioned Workday as a leader.

We also continue to see strong traction in cloud financial management where we had over 60% new customer growth in Q2 and also added another new Fortune 500 customer. We now have over 530 financial management customers including the eight in the Fortune 500.

In the second quarter, (inaudible) Corporate Services and Horizon Healthcare Services are few of the many new customers who selected Workday for core financial management. Also equally important, we had several customers go live in financial management in Q2 including Continental Casualty Company and Adventist HealthCare.

As we've continue to push into the financial's market place over the past several years, it has become very apparent that for many companies, the first push into the cloud is in the area of financial and operational planning. This market dynamic is the main reason we accelerated our path to the planning with the acquisition of Adaptive Insights which closed