Workday Inc at Goldman Sachs Communacopia & Technology Conference Transcript

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

Question: Kasthuri Rangan - Goldman Sachs - Analyst : So Carl, I want to start off with a tough question. Workday has been a founder -- first of all, disclosures, Conflict disclosures relating to Goldman Sachs and linked to Workday IR Safe Harbor, both of those can be found on the Goldman Sachs website and the Workday websites, respectively. With that out of the way, I want to start off with the Workday has been a founder-led company. It's tough to be an operational CEO coming in and filling that role. So how complicated this is? And why is this not even tougher than you ever thought before? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 4:30PM, WDAY.OQ - Workday Inc at Goldman Sachs Communacopia & Technology Conference

Question: Kasthuri Rangan - Goldman Sachs - Analyst : That's great. Where do you see the company going in the next five years? If you were to come back to Goldman Sachs Communacopia 2029, what would you like Workday to look like?

Question: Kasthuri Rangan - Goldman Sachs - Analyst : So expanding margins and still growing at 15%, that -- how confident are you -- you put out the target, but what are the things that give you confidence that you can achieve those targets?

Question: Kasthuri Rangan - Goldman Sachs - Analyst : And I'm glad in some since we lowered the threshold a little but gives you a lot more breathing room to explore over the next three to four years, how you can grow sustainably at a 15% clip while driving operating margins REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 4:30PM, WDAY.OQ - Workday Inc at Goldman Sachs Communacopia & Technology Conference

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Got it. Carl, what are the changes you've made to the company on the operational side in your last one year sole CEO?

Question: Kasthuri Rangan - Goldman Sachs - Analyst : And it comes across in my conversations with people that work for you. You're huge galvanizing force, and they feel very inspired, they can run through brick wall. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 4:30PM, WDAY.OQ - Workday Inc at Goldman Sachs Communacopia & Technology Conference

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Maybe not brick walls, but --

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Gili is looking and saying Kash. You've not asked an AI question, so I'm going to let you ask the question.

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Carl, I wanted to ask you a question on the data set. Your former colleague, Pat Grady was on stage with us just a couple of hours ago.

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Okay. Okay. So it's good to -- I suppose you know his views on just -- since he shared that with the broader stage, his view is that the data incumbency, you cannot take it for granted. The data can be inaccessible, but I'm sure is an application SaaS incumbent. You have a very strong view on the parts of the data and how the data can be used to train your LLMs, et cetera. What is the counter to more of a venture capital is pure as to be appointed, things could be disrupted. He said, he does give the SaaS incumbents an advantage because they have the data, but it's not 100% clear that it is easily accessible that you cannot rest on it. And I'm sure you're very aggressively looking at how you can leverage this data better than any other start-up can. Can you talk to us more about how this data really a source of competitive advantage?

Question: Kasthuri Rangan - Goldman Sachs - Analyst : And he exactly said that, too. So this LLM magic is accessible to the SaaS incumbent. So they have equal opportunity to tap into the renovation while still taking advantage of the data.

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Gili is probably saying, I'm so glad Kash. I'm tired of being your agent. So look at your own agent, okay. So that's what --

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Well, I got to tell you, we hosted Marco Argenti, our CIO, his last point was you got to be nice to your LLMs. We kind treat them like your children, parent them really well, and they will behave and they'll. Am I being nice?

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Carl, can you talk a little bit more about the partner strategy. It looks like it's a brand-new thing in the playbook for Workday. So one year into this new love for the partner strategy or new line of partners, how are they responding? What more avenues do you see ahead to tap into the partner community to expand your scope of business?

Question: Kasthuri Rangan - Goldman Sachs - Analyst : I say introvert to extrovert.

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Aneel, if you're listening. I love you. Introvert to extrovert. So Carl as companies grow -- become larger, they mature. It's hard to really innovate. How do you think about how can Workday innovate at the scale that you're at? And what's the role of M&A and tuck-in acquisitions in that regard?

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Will that -- so you still would largely expect to keep that 15% growth rate and 30%

Question: Kasthuri Rangan - Goldman Sachs - Analyst : Like, somebody on the stage has been asked that question.

Question: Kasthuri Rangan - Goldman Sachs - Analyst : On that note, Carl, we wish you well in your role and successful Rising next week. We really appreciate the partnership with Goldman. And I know it takes a commitment to come out and spend time with us and our clients, but we really thank you.