Workday Inc (NASDAQ:WDAY) Q3 2020 Earnings Conference Call - Final Transcript
Dec 03, 2019 • 04:30 pm ET
of these launches and the time it takes a new product to impact subscription revenue growth at our scale, these emerging products won't start to have any notable impact on our revenue growth until fiscal 2022 and beyond. In addition, while we are very excited by the pending Scout RFP acquisition and the long-term opportunity that we see ahead of us in the spend management category, Scout is expected to contribute less than 1% to our subscription revenue growth in FY '21.
With that context, we are currently planning for FY '21 subscription revenue of approximately $3.73 billion, growth of approximately 21% year-over-year. We continue to expect pronounced and compounding seasonality towards Q4, with our Q1 being the seasonally slowest in terms of net new bookings. We currently expect subscription revenue in Q1 of FY '21 to grow approximately 4% sequentially from Q4 FY '20. We remain focused on investing to drive long-term durable growth, while progressing towards our 25% plus non-GAAP operating margin goal.
While we are still in our FY '21 planning process, our early view of FY '21 non-GAAP operating margin is approximately 14%, which includes roughly 1.5 points of expected dilution from the Scout RFP acquisition. Thought another way, without the Scout acquisition, we would have expected a non-GAAP operating margin of approximately 15.5%.
I'll close by thanking our amazing customers, partners and employees for their continued support and hard work, which allowed us to deliver great results in the third quarter and have set us up for a strong finish to the year.
With that, I'll turn it over to the operator to begin Q&A.