Workday Inc Q3 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : It's great to see how you promote internal talent, starting with Doug, it's a very long list. It's great that you're able to create the next generation of management, including Chano and Barbara and Robynne, et cetera. My question has to do with the net new ACV back to the base. We've been on it for 2 years, and there's no stopping of any -- no slowing down of momentum in that business aspect. Can you talk either, Chano or Aneel, about the opportunities ahead as the product portfolio continues to build? And you still keep adding new customers. But again, the base opportunity continues to be vibrant. Can you just expand a little bit more about how you plan to make that even more of a focus going forward? And congrats on a very strong quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2021 / 9:30PM, WDAY.OQ - Q3 2022 Workday Inc Earnings Call Aneel Bhusri - Workday, Inc. - Co-Founder, Co-CEO & Chairman of the Board Well, I might just touch on the new products, and Chano can touch on the go-to-market piece. I think one of the great things we have had both through internal development and through acquisition, most recently, Peakon and now VNDLY, our products that we can sell back to our really broad-based financial HR customer base. And on the finance side, we do the same thing with Scout. And it's -- and we hope to do that with Zimit, and planning has been across both product lines. That really has changed the game. We have these really powerful add-on products that are

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Maybe I could build off Pete's comment there. You brought up VNDLY. So it seems like a good segue to ask the question there. The product seems to be kind of a crossover between HR and finance. So can you talk a little bit about like where the buying center resides there? And really what the pain point is, like how would organizations typically manage that process if they didn't have a platform like VNDLY?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Yes. Okay. Makes sense. And then Robynne, maybe a follow-up for you. I think coming into this year, we had talked about net new bookings acceleration this year leading to faster subscription growth next year. With the updated guide and view of next year, we're at 20 and 20. And I realize it's a preliminary view of next year and any good preliminary view embed some conservatism. But is it fair to assume that if Q4 ends up how you're planning, we could still see subscription acceleration next year?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Maybe a couple for Robynne. Robynne, maybe you could elaborate on the 24-month backlog guide for 4Q? Really strong number, but it's a similar growth rate to 3Q, yet it's a 2-point easier compare. Anything else on your mind as you thought through the inputs to that 4Q guide?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Yes. Okay. That sounds good. And then as a follow-up, congrats on a couple of what looks like relatively small acquisitions. Maybe I missed it, but Robynne, any financial impact from these 2 deals once they close that we should keep in mind with respect to either revs or margins or backlog to call out or immaterial?