Enterprise services provider, Workday (Nasdaq: WDAY) recently announced its fourth quarter results that surpassed the market expectations.  It was a milestone quarter for Workday as it surpassed the 10,000 customer mark with more than 4,750 of those being core HCM and finance customers. It continues to improve its market offerings by adding AI and ML capabilities to its product lineup.

Workday’s Financials

Workday’s fourth quarter revenues grew 19.6% to $1.65 billion, ahead of the Street’s forecast by 0.84%. Non GAAP EPS was $3.64, ahead of the market’s forecast of $0.89.

By segment, Subscription services revenues grew 21.7% to $1.5 billion. Professional services revenues grew 2.6% to $150.9 million.

For the fiscal year, Workday’s revenues grew 21% to $6.22 billion and EPS was $3.64. Almost 629 billion transactions were processed with Workday, up 42%.

For the first quarter, the market estimates revenues of $1.69 billion and an EPS of $1.05. It expects Workday to end the year with revenues of $7.26 billion and an EPS of $4.64. Workday did not provide an outlook.

Workday Builds on its AI and ML Offerings

Workday continues to improve its product offerings by integrating AI and ML capabilities into its products. On the HR front, Workday Skills Cloud which is powered by AI and ML has been integrated with Workday Talent Optimization to support customers in their transition to a skills-first mindset. Recent reports reveal that nearly half of all live Workday HCM customers are leveraging Workday Skills Cloud, and Talent Optimization has become Workday’s fastest-growing SKU with an attach rate on new deals of more than 85% in the year.

Workday also enhanced its planning capabilities by introducing demand forecasting capabilities that leverage AI and ML to help retailers forecast business demand by considering external data such as sales and foot traffic history. Retail remains one of its biggest target industries, as more than 50% of the retail organizations in the Fortune 500 are Workday customers.

It is also accelerating investment on AI and ML through Workday Ventures fund. It announced a $250 million expansion of the fund to focus on high growth areas such as generative AI.

Workday is also expanding its market reach and is extending its infrastructure relationship with AWS to a more formal go-to-market motion. As per the revised agreement, Workday can now be sold through the AWS marketplace. As Workday continues to shift more deployments to its partner ecosystem, the transition is expected to drive higher efficiency and greater market adoption.

Its stock is trading at $187.08 with a market capitalization of $48.5 billion. It hit a 52-week high of $248.92 in March last year and a 52-week low of $128.72 in October last year.

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