2023 Q1 Form 10-K Financial Statement

#000132781123000024 Filed on February 27, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2023 2022
Revenue $1.646B $6.216B $5.139B
YoY Change 19.63% 20.96% 19.01%
Cost Of Revenue $453.5M $1.715B $1.428B
YoY Change 16.34% 20.1% 19.2%
Gross Profit $1.193B $4.501B $3.711B
YoY Change 20.93% 21.29% 18.94%
Gross Profit Margin 72.45% 72.41% 72.21%
Selling, General & Admin $666.2M $2.452B $1.948B
YoY Change 21.21% 25.89% 18.25%
% of Gross Profit 55.85% 54.49% 52.49%
Research & Development $615.6M $2.271B $1.879B
YoY Change 14.48% 20.83% 9.18%
% of Gross Profit 51.61% 50.45% 50.64%
Depreciation & Amortization $89.96M $275.0M $263.0M
YoY Change 1.37% 4.56% 13.85%
% of Gross Profit 7.54% 6.11% 7.09%
Operating Expenses $1.282B $6.438B $5.255B
YoY Change 17.88% 22.51% 15.08%
Operating Profit -$88.96M -$222.2M -$116.5M
YoY Change -11.89% 90.81% -53.16%
Interest Expense $11.26M $102.4M $16.60M
YoY Change -471.4% 516.51% -75.87%
% of Operating Profit
Other Income/Expense, Net -$218.0K -$37.75M $132.6M
YoY Change -101.08% -128.46% -599.84%
Pretax Income -$77.92M -$260.0M $16.18M
YoY Change -7.04% -1706.41% -105.88%
Income Tax $47.78M $106.8M -$13.19M
% Of Pretax Income -81.52%
Net Earnings -$125.7M -$366.7M $29.37M
YoY Change 71.59% -1348.59% -110.4%
Net Earnings / Revenue -7.64% -5.9% 0.57%
Basic Earnings Per Share -$1.44 $0.12
Diluted Earnings Per Share -$0.49 -$1.44 $0.12
COMMON SHARES
Basic Shares Outstanding 254.8M shares 247.2M shares
Diluted Shares Outstanding 254.8M shares 254.0M shares

Balance Sheet

Concept 2023 Q1 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.121B $6.121B $3.644B
YoY Change 67.98% 67.98% 3.07%
Cash & Equivalents $1.886B $1.886B $1.534B
Short-Term Investments $4.235B $4.235B $2.110B
Other Short-Term Assets $416.7M $416.7M $327.4M
YoY Change 27.3% 27.3% 39.9%
Inventory
Prepaid Expenses
Receivables $1.570B $1.570B $1.243B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $8.108B $8.108B $5.214B
YoY Change 55.51% 55.51% 8.58%
LONG-TERM ASSETS
Property, Plant & Equipment $1.201B $1.451B $1.371B
YoY Change 6.96% 5.81% -1.13%
Goodwill $2.840B
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $263.5M $263.5M $256.8M
YoY Change 2.62% 91.47%
Other Assets $361.0M $498.0M $403.0M
YoY Change 5.78% 23.57% 30.11%
Total Long-Term Assets $5.378B $5.378B $5.284B
YoY Change 1.77% 1.77% 34.93%
TOTAL ASSETS
Total Short-Term Assets $8.108B $8.108B $5.214B
Total Long-Term Assets $5.378B $5.378B $5.284B
Total Assets $13.49B $13.49B $10.50B
YoY Change 28.46% 28.46% 20.42%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $153.8M $153.8M $55.49M
YoY Change 177.09% 177.09% -26.6%
Accrued Expenses $260.1M $915.0M $679.0M
YoY Change 33.0% 34.76% 24.06%
Deferred Revenue $3.559B
YoY Change 14.42%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $1.222B
YoY Change -100.0% -100.0% 10.82%
Total Short-Term Liabilities $4.628B $4.628B $5.068B
YoY Change -8.68% -8.68% 18.34%
LONG-TERM LIABILITIES
Long-Term Debt $2.976B $2.976B $617.4M
YoY Change 382.05% 382.05% -10.77%
Other Long-Term Liabilities $40.23M $296.6M $278.2M
YoY Change 66.07% 6.6% -40.3%
Total Long-Term Liabilities $3.016B $3.273B $895.6M
YoY Change 370.12% 265.41% -22.66%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.628B $4.628B $5.068B
Total Long-Term Liabilities $3.016B $3.273B $895.6M
Total Liabilities $7.901B $7.901B $5.963B
YoY Change 32.49% 32.49% 9.61%
SHAREHOLDERS EQUITY
Retained Earnings -$3.111B
YoY Change 13.36%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.586B $5.586B $4.535B
YoY Change
Total Liabilities & Shareholders Equity $13.49B $13.49B $10.50B
YoY Change 28.46% 28.46% 20.42%

Cashflow Statement

Concept 2023 Q1 2023 2022
OPERATING ACTIVITIES
Net Income -$125.7M -$366.7M $29.37M
YoY Change 71.59% -1348.59% -110.4%
Depreciation, Depletion And Amortization $89.96M $275.0M $263.0M
YoY Change 1.37% 4.56% 13.85%
Cash From Operating Activities $694.5M $1.657B $1.651B
YoY Change 12.89% 0.39% 30.14%
INVESTING ACTIVITIES
Capital Expenditures $77.33M $364.5M -$443.8M
YoY Change -195.04% -182.13% 69.12%
Acquisitions $0.00 $1.190B
YoY Change -100.0%
Other Investing Activities -$302.8M -$2.141B $0.00
YoY Change -15.46%
Cash From Investing Activities -$380.1M -$2.506B -$1.607B
YoY Change -13.51% 55.9% 29.46%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $74.67M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -7.895M $1.204B $110.3M
YoY Change -112.64% 991.89% -82.36%
NET CHANGE
Cash From Operating Activities 694.5M $1.657B $1.651B
Cash From Investing Activities -380.1M -$2.506B -$1.607B
Cash From Financing Activities -7.895M $1.204B $110.3M
Net Change In Cash 306.4M $354.5M $152.8M
YoY Change 28.69% 131.96% -76.6%
FREE CASH FLOW
Cash From Operating Activities $694.5M $1.657B $1.651B
Capital Expenditures $77.33M $364.5M -$443.8M
Free Cash Flow $617.1M $1.293B $2.094B
YoY Change -11.4% -38.28% 36.82%

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CY2022 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2021 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2023 wday Proceeds From Sale Of Debt And Equity Securities
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CY2021 us-gaap Payments To Acquire And Develop Real Estate
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CY2023 us-gaap Payments To Acquire Intangible Assets
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CY2021 us-gaap Payments To Acquire Intangible Assets
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PaymentsToAcquireOtherInvestments
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CY2023 wday Proceeds From Sale And Maturity Of Nonmarketable Equity And Other Investments
ProceedsFromSaleAndMaturityOfNonmarketableEquityAndOtherInvestments
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CY2022 wday Proceeds From Sale And Maturity Of Nonmarketable Equity And Other Investments
ProceedsFromSaleAndMaturityOfNonmarketableEquityAndOtherInvestments
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CY2021 wday Proceeds From Sale And Maturity Of Nonmarketable Equity And Other Investments
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CY2022 us-gaap Proceeds From Repayments Of Other Long Term Debt
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CY2021 us-gaap Proceeds From Repayments Of Other Long Term Debt
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CY2021 us-gaap Payments Of Debt Issuance Costs
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CY2021 us-gaap Payments For Repurchase Of Common Stock
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CY2023 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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CY2022 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
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CY2021 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
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ProceedsFromPaymentsForOtherFinancingActivities
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CY2022 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
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CY2021 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
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CY2023 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2021 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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354495000 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
152824000 usd
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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653200000 usd
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1387921000 usd
CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
734721000 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1895240000 usd
CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1387921000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1540745000 usd
CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2021 us-gaap Interest Paid Net
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CY2022 us-gaap Income Taxes Paid Net
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12563000 usd
CY2021 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
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51089000 usd
CY2022 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
47015000 usd
CY2021 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
54792000 usd
CY2023Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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1886311000 usd
CY2022Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2021Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
1384181000 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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1895240000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1540745000 usd
CY2023 us-gaap Fiscal Period
FiscalPeriod
<div style="margin-top:12pt;text-align:justify;text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Fiscal Year</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ended January 31, 2023.</span></div>
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-top:12pt;text-align:justify;text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, judgements, and assumptions include, but are not limited to, the identification of distinct performance obligations for revenue recognition, the determination of the period of benefit for deferred commissions, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, and the valuation of non-marketable equity investments. Actual results could differ from those estimates, judgements, and assumptions, and such differences could be material to our consolidated financial statements.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In February 2023, we completed an assessment of the useful lives of our data center equipment, including servers, network equipment, and integrated complete server and network racks. Due to advances in technology, as well as investments in software that increased efficiencies in how we operate our data center equipment, we determined we should increase the estimated useful lives of data center equipment from 3 years to 5 years. This change in accounting estimate will be effective beginning fiscal 2024.</span></div>
CY2023 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2023Q1 wday Variable Interest Entity Primary Beneficiary Number Of Entities
VariableInterestEntityPrimaryBeneficiaryNumberOfEntities
0 variableinterestentity
CY2023Q1 us-gaap Capitalized Contract Cost Amortization Period
CapitalizedContractCostAmortizationPeriod
P5Y
CY2023 wday Revenue From Contract With Customer Accounts Receivable Collection Period
RevenueFromContractWithCustomerAccountsReceivableCollectionPeriod
P30D
CY2023 us-gaap Advertising Expense
AdvertisingExpense
172000000 usd
CY2022 us-gaap Advertising Expense
AdvertisingExpense
131000000 usd
CY2021 us-gaap Advertising Expense
AdvertisingExpense
85000000 usd
CY2023 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="margin-top:12pt;text-align:justify;text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Warranties and Indemnification</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our cloud applications are generally warranted to perform materially in accordance with our online documentation under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our cloud applications infringe a third party’s intellectual property rights. We may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In our standard agreements with customers, we commit to defined levels of service availability and performance and, under certain circumstances, permit customers to receive credits in the event that we fail to meet those levels. In the event our failure to meet those levels triggers a termination right for a customer, we permit a terminating customer to receive a refund of prepaid amounts related to unused subscription services. To date, we have not experienced any significant failures to meet defined levels of availability and performance and, as a result, we have not accrued any liabilities related to these agreements on the consolidated financial statements.</span></div>
CY2023 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="margin-top:12pt;text-align:justify;text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentrations of Risk and Significant Customers</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, debt securities, and trade and other receivables. Our deposits exceed federally insured limits.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">No customer individually accounted for more than 10% of trade and other receivables, net as of January 31, 2023, or 2022. No customer individually accounted for more than 10% of total revenues during fiscal 2023, 2022, or 2021.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Other than the United States, no country individually accounted for more than 10% of total revenues during fiscal 2023, 2022, or 2021.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In order to reduce the risk of down-time of our cloud applications, we have established data centers in various geographic regions. We serve our customers and users from data center facilities operated by third parties, located in the United States, Canada, and Europe. We have internal procedures to restore services in the event of disaster at one of our data center facilities. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In addition, we rely upon third-party hosted infrastructure partners globally, including AWS, Google LLC, and Microsoft Corporation, to serve customers and operate certain aspects of our services. Given this, any disruption of or interference at our hosted infrastructure partners may impact our operations and our business could be adversely impacted.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are also exposed to concentration of risk in our equity investments portfolio, which consists of marketable equity investments and non-marketable equity investments measured using the measurement alternative. As of January 31, 2023, and 2022, we held one marketable equity investment with a carrying value that was individually greater than 10% of our total equity investments portfolio.</span></div>
CY2023Q1 us-gaap Available For Sale Debt Securities Amortized Cost Basis
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4764845000 usd
CY2023Q1 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
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1694000 usd
CY2023Q1 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedLossBeforeTax
17359000 usd
CY2023Q1 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
4749180000 usd
CY2022Q1 us-gaap Available For Sale Debt Securities Amortized Cost Basis
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2535791000 usd
CY2022Q1 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
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5000 usd
CY2022Q1 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedLossBeforeTax
4703000 usd
CY2022Q1 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
2531093000 usd
CY2023Q1 us-gaap Debt Securities Available For Sale Unrealized Loss Position
DebtSecuritiesAvailableForSaleUnrealizedLossPosition
3100000000 usd
CY2022Q1 us-gaap Debt Securities Available For Sale Unrealized Loss Position
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1500000000 usd
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DebtSecuritiesAvailableForSaleRealizedLoss
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