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Workday (NAS:WDAY) Gross Profit

: $4,736 Mil (TTM As of Apr. 2023)
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Workday's gross profit for the three months ended in Apr. 2023 was $1,267 Mil. Workday's gross profit for the trailing twelve months (TTM) ended in Apr. 2023 was $4,736 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Workday's gross profit for the three months ended in Apr. 2023 was $1,267 Mil. Workday's Revenue for the three months ended in Apr. 2023 was $1,684 Mil. Therefore, Workday's Gross Margin % for the quarter that ended in Apr. 2023 was 75.22%.

Workday had a gross margin of 75.22% for the quarter that ended in Apr. 2023 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Workday was 73.25%. The lowest was 62.30%. And the median was 70.52%.


Workday Gross Profit Historical Data

The historical data trend for Workday's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Workday Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Gross Profit
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,987.23 2,561.95 3,119.86 3,710.70 4,500.64

Workday Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,031.84 1,112.71 1,163.31 1,192.78 1,266.87

Competitive Comparison

For the Software - Application subindustry, Workday's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Workday Gross Profit Distribution

For the Software industry and Technology sector, Workday's Gross Profit distribution charts can be found below:

* The bar in red indicates where Workday's Gross Profit falls in comparison to its industry or sector. The grey bar indicates the Gross Profit's extreme value range as defined by GuruFocus.



Workday Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Workday's Gross Profit for the fiscal year that ended in Jan. 2023 is calculated as

Gross Profit (A: Jan. 2023 )=Revenue - Cost of Goods Sold
=6215.818 - 1715.178
=4,501

Workday's Gross Profit for the quarter that ended in Apr. 2023 is calculated as

Gross Profit (Q: Apr. 2023 )=Revenue - Cost of Goods Sold
=1684.312 - 417.444
=1,267

Gross Profit for the trailing twelve months (TTM) ended in Apr. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,736 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Workday's Gross Margin % for the quarter that ended in Apr. 2023 is calculated as

Gross Margin % (Q: Apr. 2023 )=Gross Profit (Q: Apr. 2023 ) / Revenue (Q: Apr. 2023 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,267 / 1684.312
=75.22 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Workday  (NAS:WDAY) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Workday had a gross margin of 75.22% for the quarter that ended in Apr. 2023 => Durable competitive advantage


Workday Gross Profit Related Terms

Thank you for viewing the detailed overview of Workday's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.


Workday (NAS:WDAY) Business Description

Workday logo
Traded in Other Exchanges
Address
6110 Stoneridge Mall Road, Pleasanton, CA, USA, 94588
Workday is a software company that offers human capital management, or HCM, financial management, and business planning solutions. Known for being a cloud-only software provider, Workday is headquartered in Pleasanton, California. Founded in 2005, Workday now employs over 12,000 employees.
Executives
Frederick Wayne A.i. director 500 W MAIN ST., LOUISVILLE KY 40202
David A Duffield 10 percent owner C/O WORKDAY, INC., 6230 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Michael M Mcnamara director C/O FLEXTRONICS INTERNATIONAL LTD, 2090 FORTUNE DRIVE, SAN JOSE CA 95131
Thomas F Bogan director C/O WORKDAY, INC., 6110 STONERIDGE MALL RD, PLEASANTON CA 94588
Barbara A Larson officer: Chief Financial Officer 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Douglas A. Robinson officer: Co-President 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Lynne M Doughtie director C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, MC 5003-1001, CHICAGO IL 60606-1596
Michael C Bush director 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Richard Harry Sauer officer: EVP, General Counsel & Secty 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Ann Marie Campbell director 2455 PACES FERRY ROAD, ATLANTA GA 30339
Petros Dermetzis officer: Chief Products Officer 321 LIVORNA HEIGHTS ROAD, ALAMO CA 94507
Carl M. Eschenbach director C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Gomez Luciano Fernandez officer: Co-President 1A SHAWFIELD STREET,, RICHARDSON HOUSE, LONDON X0 SW3 4BA
Styslinger Lee J Iii director 2826 BALMORAL ROAD, BIRMINGHAM AL 35223
Robynne Sisco officer: Chief Financial Officer 3401 HILLVIEW AVENUE, PALO ALTO CA 94304

Workday (NAS:WDAY) Headlines

Other Sources

Workday Stock Could Outrun the Software Pack

By Yahoo Finance 2023-01-26