Zane Rowe: Yes, it’s good to hear from you. I’d say, generally, we’re at a unique opportunity here at the company to do exactly that, which is to lean in and to make smart investments Carl has highlighted a number of those, whether it’s partners, whether it’s international defense product. We’re at a point where I think this is an opportunity to really lean in on our TAM opportunity and that growth that we can see across the platform. So from the finance side, I think we benefit because we can make thoughtful investments and help the business grow both on the product side. Obviously, we talk about AI ML and the tremendous opportunity we have there. But then also on the go-to-market side, when I look at that balance between 75% domestic and 25% international, I just think it’s ripe with opportunity to grow on the international side, but do it in a thoughtful way, as Carl alluded to, on the EMEA side, with an uncertain backdrop, we’ve seen great opportunities there, and we’ve seen good growth there.
So I’m just pleased when I look at the opportunity to be here to leverage the finance side and to lean in on where we make these investments — and then we continue to see top line growth. And as I just mentioned on the RPO side, we can see significant RPO growth, but along with that, we have investments in interesting areas that create longer-term revenue growth and subscription revenue growth as well around the globe. Carl, that you add a few.
Carl Eschenbach: Yes. No, I think you said it well, Zane. We continue to invest on the go-to-market side, but I want to make sure everyone knows we’re investing heavily on the product and technology front as well. And Neil’s leading that charge with [Indiscernible] — we continue to invest to drive innovation here at Workday, and we’re leaning into the AI ML opportunity. which we think will bear fruit in the future. The other thing to think about is how do we get operating leverage from AI and ML internally. We think by using these technologies, we can actually drive better operating margin, which allows us to reinvest in go-to-market and products in the future. So there is kind of a flywheel effect we can get from the benefit of AI and ML.
Brad Zelnick: Great, stuff. Thanks so much guys.
Carl Eschenbach: Thank you.
Operator: We have time for two more questions. Our next question comes from the line of Michael Turrin with Wells Fargo. Please proceed with your question.
Michael Turrin: Hey, great. Thanks, congrats from me as well on the results. You’re getting a number of questions on the backlog metrics, but it’s really the consistency of those metrics that continues to impress. You’re guiding for low-20s growth again next quarter. So maybe you can expand on just what’s helping sustain such a consistent growth profile in an inconsistent environment? And then going back to the international side, there were some encouraging commentary around EMEA, but the growth rate there still lagging a bit. So just wondering if there are signs you’re seeing that can help the growth rate there and maybe pick back up and take some of the load off of the U.S. strength you’re seeing? Thanks.
Zane Rowe: Sure. Yes, I’ll start and then hand over to Carl. As we point out with backlog it’s really that relationship with the customer and the diversity of the business and the contract lengths that have helped support that. And it’s been Doug’s team interacting, interfacing with those customers. and leaning in more on the platform. And that’s what you see reflected in those RPO numbers. Our success that we’ve seen on the renewals has clearly helped our customers engage more, create more uplift as well as extend the duration of our relationship with them. So I think it’s that compounding effect. That you’ve seen over the last number of quarters. And again, I would highlight that not only do we lean in there, but we wouldn’t always expect as we look out for the remainder of the year or even into next year, it’s not that we’re pushing the backlog.
We’re focused on subscription revenue and continued subscription revenue growth — and the backlog just happens to be in that big RPO increase just happens to be a byproduct of the interaction and interface that we have with those customers in the long-term relationship that we’ve developed with them. Carl, that you maybe give a little bit more detail.
Carl Eschenbach: I think you’re asking specifically on the first question about how do we continue to do this. And I think it’s just the strength of the platform we have. And I think with some headwinds in the market that everyone continues to face, people are looking to do more with less. And by doing so, they’re looking for a total cost of ownership play. And I think we provide that both on the HCM side and the financials as people consolidate what I said earlier, from best-of-breed to best of suite. And it’s also driving a different level of employee experience. We’re helping drive productivity gains for our customers. We’re helping them upskill and rescale the folks. We’re delivering a new level of employee experience. And by doing all of those, people just continue to put more and more on top of our platform.
And even if it is our own SKU, they’re leveraging things like extend to build other solutions on top of the Workday platform. So I think this motion of selling back into the base is going to continue as people consolidate more and more on top of us. As it relates to the international growth, again, we’re highlighting we saw really good performance out of our team in EMEA, specifically and we’re encouraged by both the consistency and predictability of their performance and the strong pipeline that we’re building over there as we head into the second-half of the year. Let me say, though, on the flip side, if I can, Michael, right? Our U.S. team just continues to drive really solid performance as well, and they’re outperforming in a number of key areas like large enterprise and across some of those industries that we spoke about today.
Our education business, health care and financials. So we’re aiming to keep driving, right, our U.S. business and watching them continue to perform and outperform and at the same time, try to drive international growth. And it’s always important to remember, the international growth from bookings doesn’t actually get shown in — right in the same quarter, you’ll see it in the out quarters as we look to continue to drive that growth. We’ll see a slight shift over the coming years from 75-25 to something that we get more impact and more performance from the international teams.
Operator: Our next question comes from the line of Rishi Jaluria with RBC. Please proceed with your question.
Rishi Jaluria: Wonderful. Thank you guys, so much for taking my question. Nice to see continued strength and resilience in the business. I want to go back to talking about generative AI and your opportunity there. Clearly, a big opportunity to leverage the data you have and use it to make the product and platform better. But I want to talk about the opportunity to maybe utilize generative AI, both to accelerate migrations from legacy on-premise solutions in terms of making it easier for custom applications to migrate, as well as making it easier for that data to transform and maintain — transfer and maintain data fidelity? And maybe at the same time, even on your end, utilize generative AI to reduce the services attach rate and bring down that services mix a little bit over time. Any way you could help me kind of understand the way you can utilize it on that would be very helpful? Thank you so much.
