Please welcome Vice President of Investor Relations, Justin Furby.
Thank you. Thank you, and welcome to Workday Rising and Financial Analyst Day 2022. It is great to be with you all here live in beautiful, sunny, cheery Orlando, Florida for our first in-person Analyst Day in three years. I have to say, I've had the opportunity to walk the floor for the last 10 minutes, and I must say, this group ages pretty well. Well, we too at Workday have aged pretty well over the last few years. As you'll hear throughout the day, our business has scaled considerably since Rising 2019. That scale has created unique opportunities for us as we think about the next phase of our growth. Before we launch into today's program, I'm gonna spend a couple of minutes orienting you on what to expect today for the next couple of hours.
To kick things off, you'll hear from our Co-CEOs, Aneel Bhusri and Chano Fernandez, who will bring you up to speed on the momentum we've seen in our business and share a bit about our strategy going forward. We'll hear from executives across our strategy and product and technology organization on how our relentless innovation continues to expand our market opportunity. We will then go to a short break, and when we return, you'll hear how we're capitalizing on all of the innovation to drive enduring, profitable growth. Unfortunately, our Co-President, Doug Robinson, was unable to join us today. For you'll be graced by Chano Fernandez a second time for the second section. Barbara will then bring us home on the financial model, and then we'll invite everyone up on stage for Q and A.
We'll have plenty of time to take your questions here in the room. For those of you here in Orlando, at the conclusion of the Q and A, we'll also have a networking reception just outside these doors here. Two last things before we get going. First, I just wanna recognize that this event takes a lot to put on and would not be possible without the tireless efforts of multiple people, including the fantastic Annie Bowden on the IR team, our designer extraordinaire, Kyle Scudder, Daniel Davis in our events team, and lots of other people that have helped put this day forward. One last housekeeping item. This is our safe harbor statement. Today's presentation may contain certain forward-looking statements.
Some of the matters we'll be discussing today include forward-looking statements regarding our products, strategies, operations, opportunities, or financial items that are based on the information we have as of today and our current beliefs with respect to the future of our business. These statements are subject to risks, uncertainties and assumptions, and our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Further information on risks that could affect our results are included in our most recent filings with the SEC, which are available on our IR webpage. Phew, okay. With that out of the way, it is my privilege to welcome onto the stage our co-founder and co-CEO, Aneel Bhusri.
Well, welcome everybody. It's great to see so many familiar faces back in person. Who would've thought the last time we had this event three years ago, it would be another three years. I would say during the pandemic, I wasn't sure if it was gonna be three years or five years or seven years. Who knew? It's great to be back in person. The world obviously looks very different than it did in 2019. As we come out of the pandemic, I think, you know, it's as a CEO and talking to a lot of CEOs, we were all hoping after the pandemic, we might get a breather. And instead, we've come into this world where there's so much geopolitical stuff going on. You saw the CPI report today.
We've got inflation. I mean, we went from the pandemic to now, what looks like a tough economic time. You know, but this is becoming old hat for Workday. We've been around long enough to have seen these storms before and weather them. All we can do is the best we can do. You know, we can't control what happens with the overall economy. We just adjust our business accordingly. What we can do is focus on taking care of our people, which I'm very proud of what we did during COVID. We struck the balance of making sure our employees were safe but also running a solid business during that period of time.
I think we innovated new ways to take care of our customers. You know, with the example of Walmart and GE, they went live within weeks of each other with not a single person on site. If you had told me before COVID we could do that, wouldn't have believed it. But that's actually become some of our best practice work now, is our ability to do a lot of work remotely. Although I will say that I, for one, am tired of being on Zoom. What we have done. Let me just click through this a little bit just to show you the growth we've had since then. What we have done is really focus on continuing to build the foundation. During the last three years, we hired 5,000 people. We didn't freeze.
We didn't stop innovating. It was tough to innovate 'cause we were in, you know, we're all in different places, and we wouldn't get the collaboration I'm already seeing it come back really quickly as people are back in the office. I was in Boulder with Chano and the management team last week and our board of directors, and there were 400 people in the office, and you could just feel the energy of people coming back in the office. We'll be more flexible with how many days people are in the office, but we do expect them to come back in starting in early October. During that period of time, we grew subscription revenues from $2.8 billion to $5 billion.
I mean, 80% growth in subscription revenues. I give Chano and Doug a ton of credit, our product folks who continue to build great products, and then our services people really jump through the hoops. You'll hear from Sheri Rhodes later today to make sure that our customers were still happy and feeling well taken care of, even though we couldn't be there in person. From a customer momentum perspective, you know, HR continues to chug along. I know there's always been questions about how mature is this product line. As we dig deeper into the market, as we dig deeper into the medium enterprise opportunity, which has now become a fairly sizable run rate business, you'll hear more about that later.
The international opportunity, now the federal opportunity, we still believe there's a ton of room in HR. Now we are over 50% of the Fortune 500, so we get invited to all the dances to compete. I mean, you know, when we compete, I like our chances to compete. The win rates have remained consistently high during COVID. We had win rates going into COVID. They pretty much stayed that way coming out of COVID. The big change though is financials really started picking up as we started exiting COVID. We had a great second quarter following a great first quarter. Obviously, we had the big Salesforce win. That was a big one for us.
Even American Electric Power is another Fortune 500 company. We're starting to see the flywheel effects. I spent today with KeyBank, who is now live on Workday Financials, a fairly sizable bank. We're diving deeper into financial services, and there's clearly a roadmap that we can build to really become, I believe, the dominant player for financials in financial services. You know, there's always been this talk, and sometimes you guys write about it, about, well, back office is gonna get put on hold during the pandemic, and maybe again in a recession. The first thing I would take issue with is I really just don't see us as back office. That is a client-server mindset.
When I sit down with a CEO today, one of their top three or four items is always my talent, my people, my employee engagement, and it all starts with, "I've got to change the way I'm running my HR side. I've got to move from administrative to truly being a talent-driven organization." You'll hear about what we're doing with skills. But that is a top five, and you can just look at any survey. You know, in today's world, where we've moved away from an asset-centric world to a people-centric world, I don't believe HR is back office. I think it is a front office application, and the CHRO has a seat at the table with the CEO almost as much as anybody else in the business. I think similar things are happening with finance.
Finance was put under the gun during COVID. You know, who knew how the plans were gonna evolve? We were changing our plans on a monthly basis. No one had been through this before, and finance had to step up. Now, in some cases, that meant projects were delayed because they were just trying to keep the lights on. As we come out of the pandemic, people realize the weaknesses of the legacy systems, the weaknesses of planning and execution, analytic systems not being connected. Old line planning system, old line execution system, they couldn't keep up with the changes in business. We're actually seeing people come to market now who have been really cautious before because they realize they can't keep doing business the way that they do.
I do think that focus on being mission-critical is really core to who we are. These are mission-critical systems. Maybe they're not the ones that are the most exciting systems that have been called historically back office, but I really think that has changed. I attribute that change and our strong execution to why we were able to weather the pandemic the way we did and why we've been weathering this new economic realities the way we are. Chano's gonna get up now shortly and talk about the market landscape from a customer perspective and a growth strategy. I'll be around for questions. Again, great to see so many friendly faces here.
I hope you're all enjoying being in Orlando and being together. This is my first in-person meeting other than our sales kickoff a few months ago. I'm having a ball. It is different being able to walk around rather than not being able to move because the Zoom camera doesn't follow. With that, I'm gonna give it to you, Chano.
Thank you, Aneel. He was telling me he felt a bit rusty on the stage, but I don't think so. He's, you know, he's really authentic. Anyhow, as Aneel said, great seeing many of you, some of you that have joined us for years before. Welcome to all of you, that is the first time that are in the Financial Analyst Day. I mean, I'm really lucky to spend significant time talking to customers. Honestly, it's the best part of my job, other than maybe talking to you.
On my countless conversations with customers, what I can tell you is that, you know, a lot has evolved in terms of the needs from the customers during the last few years, but there is something that clearly stays there very strong, and that is, you know, digital transformation remains at the top of their agendas. If you had opportunity to walk the corridors and talk to them, hopefully that gets reconfirmed, right? Clearly there are a few core challenges that cuts across, I would say the C-suite, geographies and industries. That is customers are facing tremendous amount of change, you know, and the ability they have in order the need to adapt and be agile is more important than ever. There is where I feel that we are partnering and supporting them.
They're facing much more complexity as well, which is really impacting the way they're managing their businesses and the way they're managing their workforces too. As Aneel shared before, and commented and also this morning, customers are really the driving force behind all the innovation we're building, and we're committing to really helping them to thrive and adapt in the changing world and the changing economy that they're going through. You know, many of you know we strive to maintain a 95% customer satisfaction rating for our customers. I'm pleased to announce that in 2022 we did it again, as we have for the last 13 years in a row, which we are very pleased about, because this is why we exist. You know?
We exist to provide the right solutions to deliver a great experience for our community of change-makers, and that is what is relevant and important to us. I wanna touch base on a few of the growth opportunities as we move to the new next phase, which is to becoming, as you know, a $10 billion company, and basically ensuring that through that journey, we keep a 20%+ subscription revenue growth. We covered this last year and last time we were together, at that time through Zoom, but I think it is important because these are the drivers that are moving, you know, our growth going forward, which we'll cover much more in detail.
As well, the strategies and the key initiatives we're mainly focused on and where we're driving most of the investments that we're doing. Clearly, Office of the CHRO, where the strategy is to keep winning the core here, right? Keeping and maintaining, expanding our leadership position. When it comes to the Office of the CFO, what we're focused on is expanding market share and becoming the dominant player in the services-based industries. Hopefully, we'll show you some data later on that will give you a little bit more confidence on the progress that we're having on that journey. International, as we always say, is crucial to driving both Office of the CHRO and Office of the CFO growth and a key growth vector for us going forward.
Today, a medium enterprise remains a very strong fit, and once where platform or suite platform, as we describe it, office of the CHRO and office of the CFO, is super relevant and is the way those companies are buying. A few other areas of focus you're gonna hear on today, and potentially these are more ones that we have commented less on the past, right? We have a massive opportunity to deliver value through our winning partnerships. If you've been through at the conference, you've been hearing about, you know, industry-driven partnerships, and you've been hearing about the Industry Accelerators. Those we are building them with our SIs. Again, that's a great opportunity of growth going forward that Sam will touch base on.
With that as a high-level setup, let's get more into detail, and I wanna welcome on stage, Pete Schlampp, our Chief Strategy Officer. Pete.
I just want happy thoughts, happy friends, happy songs, happy love. Just wanna dance around, clothes are off, forget about.
Thank you, Chano, and welcome everybody to Orlando. Thank you for coming out here. It is great to be back at our first Financial Analyst Day since 2019. Since then, lots has changed, including almost doubling our subscription revenue since that point. It's amazing to think that we've come that far in just the amount of time since we've been together. My role is Chief Strategy Officer, and the objective of that is to help us chart the course to $10 billion and beyond as efficiently and as quickly as possible. I gotta tell you, it is a great time to be responsible for strategy here at Workday. I wanted to, first of all, just talk about our opportunity, and our opportunity for truly long-term growth, I believe is pretty incredible.
Our opportunity has in fact increased about 20%, in the last year to $125 billion. Of that, approximately, $20 billion of expansion, let me drill into that just a little bit. The majority actually is coming out of the human capital management market, which might be a bit of a surprise. Let's talk about that a bit. If you go into that three-quarters of the expansion that comes from HCM, about 9% or about $9 billion of that is coming from organic growth of the market itself, and about $6 billion of that is coming from new markets that we've gotten into in the HCM space. If you look at the rest of that, then it's financial management.
As you think about the financial management market, the majority of that has been organic growth, and we've spent a lot of time improving our product market fit within the financial management market. By the way, I should mention that the financial management market is clearly a larger market to begin with, to grow on. We've been increasing our product market fit in that market so that we can increase our win rates. Not only is our market opportunity very significant, but we are, according to Gartner, the market share leader in cloud-based ERP from a revenue standpoint, coming in at 19.1%. As you look at those three top companies up there, we are the only one of those three that is gaining share according to Gartner. That's the cloud ERP market.
Gartner also, of course, measures who's a leader in the market. We have been lucky enough to be the leader year after year in cloud human capital management suites. They also have a new Magic Quadrant this year as well. We are a leader in the service centric ERP space as well. As we speak, Gartner is in the process of delivering a new planning Magic Quadrant as well. Opportunity, share, leadership from a innovation, vision, and execution standpoint. The result of that is we get to have massive scale as a business. I thought this was a really interesting view of our business. If you think about now, we announced that we have 60 million users using Workday on a regular basis.
If you look at Okta's At Work report, which measures unique logins into software, if you look at the enterprise software players, we are second only to Microsoft 365, which is pretty incredible. You can see what we have to handle from a scale standpoint from the infrastructure, but also this has implications on what we're gonna be able to do and build going forward when it comes to data, and it plays right into the points of leverage that we look at in our business model. Let's talk about that. Our business model is thriving, and it is because we look at these points of leverage that we can take. It begins with what we do at the core. Fundamentally, what Workday does is we take offline processes, and we digitize them.
What we do is we look for processes that are common processes across different industries, and then we can leverage those across customers within industries. If customers have differences between their different businesses, we ask them to configure, not customize. That allows us to kind of stamp it out once and apply it over and over and over again. We win. Once we have that, we win systems of record. Those systems of record are very sticky for our customers. They are the heart of the customer's data. They are the digital system or record of truth of what's happening in their physical world. Once we have a customer, we focus maniacally on their customer success. You'll see that today if you have a chance to go and speak to our customers at Rising.
Just ask a couple of them, and you'll see how much we focus on their success. That comes through our CX organization. We make sure that it comes through with our partners. It also comes through in our focus on our user experience as well. We want them to love Workday and continue to come back to us. We build our products on a single platform. From a technology standpoint, that's fantastic. One of the big benefits of that is a single data model. So all the data goes into a single data model across all of those applications. That allows us also to build applications that work better together than they do standalone. That's a big differentiator for us. It also, if you think about it from a data model standpoint, allows us to leverage this data, and I'll talk about that in a second.
As all of these applications work, as all these transactions happen, we record it in the Workday service. When we do that, we can leverage that data to build better applications, but also to do machine learning on it. When we're able to do machine learning on it, we're able to do a few things. One is provide better personalized experiences, better insights, more automated workflows. Finally, when we get all the way up this step, all the way up these points of leverage, we get to a point where our customers love us. We've got the best applications, the best data. We've earned the right to sell more products back to those customers. Let's talk about the office of the CHRO for a second. A couple areas that we think that we are uniquely different in the office of the CHRO.
First of all, starting with the fact that we are the most trusted brand in HR software. Over 50% of the Fortune 500 are now using Workday as their core system of record for HR. As you get higher up the stack in the Fortune 100, Fortune 50, et cetera, that percentage actually gets higher. Again, we really focus on that because we believe our customers are our best marketers and our best salespeople. Our customers trust us. They come to events like Workday Rising, and they wanna hear about what the new things are that they can use, what's the new value that they can get out of Workday. We also have the broadest portfolio of HR software that I mentioned together. Workday works better together. We have the world's most scalable people data cloud.
We talked about today having over 1,500 customers live on the Skills Cloud and over 5.7 billion verified skills on the Skills Cloud. Nobody comes close. Nobody touches that. That innovation goes into our products like recruiting and learning and talent marketplace and other products in the future. We did that by building an ML foundation, a machine learning foundation underneath that will allow us to add more ML in the future, like the Skills Cloud that will be very hard to replicate in the space. As I mentioned, we focus on landing those core systems of record, those core HCM wins. Once we do that, we're able to then invest, sell more of our other products and invest in making those products better.
I'll talk, for instance, about recruiting, where we are becoming an industry standard, but we still see significant opportunity ahead. We have just announced two new products in this space, candidate engagement and messaging. Candidate engagement, think of it as like CRM for recruiting. We get to add more products even into these sub-product spaces. Learning, where we are quickly becoming an industry leader. We're opening up new opportunities there with our connected learning platform by introducing Cloud Connect for Learning. This is a business that is driving significant new attach rates because companies are investing so much in reskilling their employees right now. The talent optimization market. We are leveraging that skills foundation that we had to create one of the fastest-growing SKUs that we have ever had at Workday.
As I mentioned, over 1,500 customers today using the talent optimization product. This is only half the story. Just earlier this year, in February, we closed the acquisition of VNDLY, which enabled us to bring in the extended workforce into this sphere. Now, the extended workforce, those are contingent workers, gig workers, statement of work type of labor. As macro conditions change, workers want more flexibility. Employers want more flexibility as well. Projections are that nearly half of the U.S. workforce by 2027 is gonna be the extended workforce. Now Workday is the one system of record for all of your full-time, hourly, and extended workforce, and we can sell our products back into that population as well.
We're increasingly pursuing innovation to address the frontline workers, and that includes things like payroll and time tracking, absence management, scheduling, and that's enabling us to go into markets, areas that have high frontline worker counts, areas like the U.K., France, Germany, and Australia, as well as industries like retail, hospitality, healthcare, and manufacturing. You're gonna see a lot more of this in the presentation from David and Terrance in just a little while. Okay. Let's switch over to the office of the CFO. The headline here is we are all in on industry. If you heard us this morning, you heard us talk about industry, industry, and that is what's really driving our growth inside the office of the CFO. We are leading in the service-based industries, those industries where people are at the center of their business.
Having the proximity to our human capital management system is a huge benefit when it comes to selecting the financial management products. We also have focused on building a system where planning, execution, and that's the transactional part of the system, and analysis are together in a single system, enabling customers to do that cycle. We like to say everybody plans. Everybody does plan, execute, analyze. Having that in a single system, being able to make those cycles faster, is a huge benefit and differentiator for us in our space. You heard Chano talk about our value proposition and how important adaptability is right now. Change is coming at businesses everywhere, and having a system that enables our customers to change is incredibly important for them.
We especially, on the office of the CFO, it's important that we, that our products are easily changeable. When something changes, customers can make changes to our product in hours, not weeks or months. Finally, the composability of our platform is also a large differentiator. When I say composability, I mean the ability to take other clouds and connect them together with the Workday system. That is by using products like Extend and Prism and Adaptive. That composability enables our customers to bring together data from the back office, the middle office, and the front office all together in a single system, giving CFOs visibility into the entire business.
This is an example of the financial services industry being able to, for instance, take policy and claims data, loans, deposits, and credit cards, pull that in via Accounting Center, gives the CFO visibility across the entire landscape of the business. This morning, we announced Industry Accelerators from Workday. What those are is it's our way to involve our GSI partners as well as our ISV ecosystem to drive more value for our customers on an industry basis. Our key partners in this that we announced today, Accenture, Deloitte, KPMG, and PwC, are all in with us. They're bringing their industry expertise into this, into this program. What are they? Three parts of the program. One is we want to accelerate the CFO's transition to the cloud.
We're taking all the expertise that we've had for years within those industries and our partners have had within those industries, and essentially making templates, package services solutions, et cetera, to allow our customers to move to the cloud faster. That's one. Two, the software ecosystem are creating specialized connectors to the different clouds and on-premises systems to essentially make that front, middle, and back office connect faster. Three, a set of industry-specific solutions that we are developing, but also our partners are developing and our customers are developing, together that essentially make it a better fit for their industry. This all accounts for. It all comes down to a better focus on industry.
You heard in our last earnings call a few weeks ago, us getting to the point where we have our first industry, where we have a billion-dollar run rate in our subscription revenue, which is financial services. This is the first. We think about it as the first. We've got a few more that are right behind it. Again, those very service-centric industries, healthcare, government, professional services, and education. Then as we continue to move on, we'll see the other industries that we focus a lot on in with our human capital management solutions, tech and media, retail and hospitality, government, transportation. Let's talk just for a second about M&A, but I'm gonna be a little bit, I'm not gonna give you exactly what you want.
I'm gonna start by saying our primary focus at Workday is to innovate organically. Everything I just told you about how we build things together, products work better together, et cetera, that happens because we focus on organic innovation. You're gonna hear from Sayan and Terrance and David talk about that in a little while. In certain cases, in a few cases, we do pursue M&A, where we can get into a market faster, there's a technology that's unique, or we need to deepen our expertise in a certain industry vertical. A couple examples. With Platfora and with Stories.bi, we were able to take technology, bring that in, and that yielded businesses for us like Prism, Accounting Center, People Analytics. Peakon Employee Voice, VNDLY, Extended Workforce. Those were markets that had gotten a head start.
We looked at them, they were ahead of us. We weren't gonna be able to get to where they were in time, so we said those were the right acquisitions for us in those two spaces. You could look at Zimit, which helped us in the professional services industry because that is a service-based CPQ or configure price quoting system. We are very specific. There's a high bar when we decide to do M&A. Again, you know, the culture needs to be right, the talent needs to be right, the product has to be right, the team has to be right. There's a high bar there. We are, as you can hopefully tell from my talk, we're really excited about our long-term opportunities.
We feel like we have great sustainable differentiation, these points of leverage that are gonna serve us well for some time, and an expanding opportunity for us to take advantage of. Now I'm gonna turn it over to Sayan, who's gonna talk about how we're investing in our applications and our technology. Thanks very much.
I got my head out the sunroof. I'm blasting my favorite tunes. I only got one thing on my mind. You got me stuck on a summer night.
Hey, good afternoon, everyone. Since the last time we've met, I've taken on a new role leading all of product and technology at Workday, and I thought some of the key reasons that we took P&T and made it P&T are really salient to the conversation we're having today. A lot of what we need to do going forward involves cross-cutting initiatives that touch both the platform and the applications. In fact, all of our most critical initiatives span both technology and product teams. Increasingly, the lines between our applications and our platform are becoming blurred. We're delivering and will be delivering applications that fall outside of traditional enterprise boundaries. We're talking more about that in a minute, but overall, we believe that by bringing these teams together, we'll see increased alignment, increased efficiency, and greater leverage.
Pete just spoke about our significant market expansion opportunities across a number of growth vectors and how we're uniquely positioned, whether by industry, by geography, or by persona. We've grown by every measure, and some of that success is because we've never been content to stand still with our platform. Workday's always been focused both on what we need now and what we need in the future. What's gonna carry us to 10 billion, and what's gonna carry us beyond that? Our fundamental goal is to make Workday the preferred business operating platform for the present and future to support our customers in their continued success. We've evolved our architecture to the point where it supports some of the largest customers in the world, more than 60 million users on the platform, and it's growing.
The great thing about our architecture is that because of some of the foundational decisions that we made right at the start, we've been able to continue to evolve to meet every challenge we face so far, and to do so in a way that really hasn't been disruptive to our customers. I'd like to take a quick look at what we got right from the start. How we create a platform that's built for change and illustrate these founding principles that are still at the heart of our incredibly exciting journey. We began in the cloud, and as we all know, in those days, the public cloud was immature. We built our own data centers to deliver a best-in-class service to our customers. We started with an in-memory object model, and that was different than anything our competitors were doing at the time.
That approach has given us a lot of advantages down the road. By deeply integrating business processes into the platform, we gave our customers flexibility and adaptability to solve their current problems, but also future problems. By deeply integrating machine learning into the platform instead of making it a feature or an application, we gave every customer the ability to improve and speed their decision-making. This is all at the heart of what we refer to as our intelligent data core. That's where we integrate data security, workflow, and processing together, and we've done that from the very beginning. We've also placed all customers on a single code line. That ensures that everyone is running the exact same version of Workday everywhere. They're updated all the time, and no customer was left behind, and there are no disruptive upgrades.
We are also reliable with a best-in-class SLA at 99.7% and an actual measured performance year-to-date of 99.997%. We're scalable. We serve, as I mentioned, over 60 million users right now and over 440 billion transactions a year, and that's growing by 67% year over year. We're performing. Over 96% of all transactions at Workday complete in less than a second. Our user experience is ambient. We're accessible from wherever you are. That's the web and that's native mobile, of course, but that's also SMS or can be in natural workspaces like Teams or Slack. Of course, we're secure. Security is paramount at Workday. All Workday apps are governed under a common configurable security model, and our cloud experience is governed by privacy and security foremost.
Our architecture has evolved as our customers and their needs have grown and changed. While it might be recognizable from afar to somebody in 2005, it's unrecognizable in the detail now. We've converted our monolithic structure into horizontally scaled microservices. That's improved resilience and performance. We've also integrated our acquired solutions like planning and analytics to handle these workloads that our original architecture wasn't optimized for. All this has happened and continues to happen behind the scenes. It's ideally without our customers ever really noticing unless and until they tap into our latest features and see the benefits from this ongoing commitment to innovation. By any metric you wanna consider, so that's number of customers, it's number of users, numbers of transactions, our data under management, we continue to grow all while supporting and innovating for our customers.
The existential question we asked ourselves at the founding of Workday was, can we effectively deliver a cloud platform for managing the money and people of the world's largest and most demanding companies? Over the last 17 years, we've answered that question again and again with a resounding yes. Now we have to answer a different question: how do you build on this success, not be complacent, and continue to be transformative? In this next phase, we will do that by providing nonlinear leverage, both for Workday and for our customers, by harnessing our own innovation and the innovation across the industry. Our customers have firsthand experienced the benefits of the evolution of our products and technology, but now they get to experience a revolution that builds on that.
One evolution was offering our customers the ability to leverage a public cloud alongside of our own data centers. The revolution will be public cloud first, where we blend the innovations that Workday delivers with the continuous innovation from our public cloud partners. The public cloud provides us with unique advantages. It makes global expansion easier, it allows our customers to more easily meet local or regional data residency requirements, and it decreases Workday's own capital expenditures and our time to market. The public cloud maximizes the effectiveness of our solutions as well. These hard boundaries of specific applications fitting specific categories are blurring. Our unique architecture allows us to build apps that combine different kinds of workloads, and it more effectively solves our customers' business problems. Public cloud helps us deploy, optimize, and scale these applications more effectively.
It also gives us access to technology that strengthens many of our own offerings. In many cases, we can replace components that we use to develop ourselves with public cloud options. It's, you know, the key innovation of yesterday becomes the undifferentiated heavy lifting of tomorrow, and we are able to move our own development resources forward. You've all seen today evolution in how we've launched Workday Extend to put the power of our own development platform into our customers' and partners' hands. They can build their own applications for their specific needs, but with the same look and feel as Workday. They can leverage our security model, our business process flows, and allows them to operate with much higher speed, better security, and lower cost than alternatives.
Already, we have over 750 applications built on Extend, allowing customers to reduce or simplify their technology footprint to address immediate or novel problems, or to differentiate their business operationally or culturally. With Extend, they also get Workday Orchestrate, and that allows them to drive complex business processes into Workday or drive complex business processes out of Workday. You've probably also heard our announcement today about Workday App Builder, which provides that same set of extend capabilities to the business user, not just the developer. Our revolution is going to be an API-first platform, opening up many, many more possibilities for customers and partners to use Workday as a fundamental building block of their enterprise. Finally, machine learning. You've seen our evolution since the beginning. Workday has always built ML into the fabric of our platform with capabilities like Skills Cloud.
From the outset, we realized that ML was not a feature, it wasn't an application, it was actually a transformation of the traditional software paradigm. The revolution will be that we'll take this to its logical conclusion. ML will be at the heart of everything we do. This is gonna enable our customers, of course, to make better decisions faster, but it also allows us to use ML to optimize, secure, and operate our own service. We'll do all of this while staying true to our founding values. We'll make sure that these technologies augment and enable people. They reduce bias rather than perpetuating it. All of these revolutions will show you how we continue to deliver on our promise to innovate on behalf of all of our customers.
We've evolved our platform while holding true to the central principles that are unique to Workday and have been essential in our success to date. Now we're embarking on a revolutionary journey, allowing our customers to get far more out of Workday as a platform, leveraging it as an essential foundation for how they operate their enterprise. With that, I think I've set the stage for how our customers are taking advantage of the capabilities we provide them, and that doesn't matter whether that's in Financials, HR, planning, analytics, procurement, or beyond. I'm gonna hand it over to our group GM of Financials, Terrance Wampler. Thanks, Terrance.
All right. Thank you, folks. I'm Terrance Wampler. I'm the Group GM for our oCFO product area. I've been at Workday for three years now, but I was at Oracle for 25 years before that, building financial software. Over the next few minutes, what I wanna do with you guys is kinda introduce you to our product strategy or our vision for what we wanna do around our oCFO buying center. I wanna talk to you about a few key product innovations that we're delivering, and then I also wanna give you a few customer success stories. With that, let's get started. The first thing we wanna talk about is, we have our vision, and our vision is to unlock the potential of the processes, people, and data for every CFO.
Now, what we mean by that is, we basically wanna help finance evolve into a high-functioning collaborative team that the business trusts and respects. We move them into a strategic advisor role out of kind of that transaction operator role. Now, the way that we're gonna do that is by a simple four-part product strategy. The first thing we're gonna do is we're gonna meet our customers where they are. What that means for us is some of what Pete talked about. We're gonna go really deep in industry. The way we're gonna go deep in industry is a combination of building out very specific industry features within our product set, and second, by making sure that we integrate to industry-specific ISVs in a meaningful way that our customers can use, and that shows we understand their IT ecosystem as we go forward.
The second thing we're gonna do is enable organizational agility, and we're gonna do that by allowing them to adapt to change, and we'll talk about some of the ways that works inside our system. Third is we're going to deliver trusted business intelligence or business insight, and we're gonna do that by making sure that we can unite data across the customer's ecosystem in a meaningful way for them. Finally, we're gonna create intelligent business processes by essentially infusing them with machine learning and making sure that we can eliminate risk and all manual intervention as we go through and do it. Okay. Sayan had referred to Workday as a fundamental building block for our customers' enterprise.
One of the really neat things about our architecture is that we can use those building blocks to actually build out across industries, and let's talk about how we're gonna do that. First, as we automate most of this back office processing, finance can then focus on the analysis of the middle and front offices. The middle office is kind of where the magic's at. That's where they're gonna be able to do their cost and profitability analysis. This is where they're going to be able to do their risk management. This is where they're gonna be able to do revenue optimization. This is even where they're gonna do some business modeling and figure out what they might do and where they might grow.
Of course, that front office is gonna be where the industry-specific applications, the ISV solutions usually, they're the customer-facing things that we have. As we go forward, one of the things you'll see is the middle office is where finance can be a little bit more strategic. It gets really industry-specific really fast. We think that we're really well positioned to support this middle office revolution. We think we can do that because we have a set of product capabilities by industry within these solutions that are middle office, but we also have the ability with our intelligent data hub to be able to deliver, virtual ledgers and other things for these customers.
Now, Sayan had talked about the idea that with our intelligent data core, our partners, as well as our customers, can actually blend data, and they can even build out their own applications in this kind of middle office. Some examples around that is we had PwC build out funds transfer pricing for banking. We've had Workday Services build out net patient revenue for hospitals, and we even had Huron build out demand planning for professional services. Some good examples about how we're building, plus we're partnering with our ISVs and our SIs to actually get these comprehensive industry solutions for the oCFO. Now, to illustrate some very specific examples of what we're investing in, within product, let's talk about a few examples. First is for professional services, and there we're building out CPQ for services.
Think about this as like a guided selling solution, where I'm going to be able to figure out pricing, quoting, that sort of in an automated way. Because it's for services, what I want you guys to imagine is a really complex statement of work that somebody does on a project being highly automated in how you build it out, just like you might for a product CPQ. Another example is in healthcare, and we're building out mobile inventory user experience. This is where a nurse or another first responder can basically order or at least check inventory levels for really important things like medicine or medical supplies. They do it on their phone because nobody has time to actually go to a laptop or something else. Finally, we're making a big investment around subscription management.
This is where you're gonna be able to go construct your innovative product offerings because you're looking for that continuous revenue model, and you want to be able to have that recurring model happen. Let's take a little bit of a dive into what that solution looks like. First, today, virtually every industry is either moving to adopt or at least incorporate a subscription model into their business, right? As these people try to figure out this predictable recurring revenue and build that model, they're gonna need a subscription management solution. While this is going to be targeted at first for some specific industries, we think this will apply to lots of places that might have embedded services or other things in their business.
Now, as they do this, you can see here we're gonna have the ability to see their new customers, new subscriptions, their renewals, their average contract value, and other things. Also remember that we're gonna be adding some of that intelligence, some of that machine learning, and we're gonna be able to drive things like take action on revenue, take action on billing, help you with forecasting of collection activities. All right. Now, the next thing we wanna talk about is details around enabling the agility in your organization. One key for us to be able to do that is our adaptable cloud architecture. A great example for us is in our planning solution.
What's happened here is we have customers that are modeling lots of dimensions and doing lots of things over time, but we now have customers that are modeling huge, complex models up to 100,000 levels or planning activities as they do it. We also have customers that are doing planning around workforce management, and they're modeling this around hundreds of thousands of employees, so it has a high scale, and companies can do a lot of adoption. To kinda illustrate this agility at scale in action, I wanna give you a reference. Team Car Care, who is the largest Jiffy Lube franchisor, they have about 500 stores and around 5,000 employees. Well, they're basically using our predictive planning capability to forecast how many guests per day, per half hour increment they're going to have in their stores.
The way they're increasing accuracy is by merging historical guest data and guest visits with external data like weather, and then they can predict how people will come into the office. You can imagine that affects workforce scheduling as well as it has financial repercussions. It also has them think about business models, about how to entice people in on days that might be slow, with some sort of incentive or discount. Really powerful stuff and how to be agile in terms of what you're building. Okay. We think a key to improving the lives of finance professionals is to be able to provide them with accurate, timely information that they trust.
This is all about unleashing the potential of that data that's usually already curated by finance. We think this starts with a unified reporting platform, where the enterprise and operational data is connected to that people and finance details. We think we're really well suited to do that. Now, another good example to give you a customer case of this is one of our customers in the trucking industry. Now they provide local, long distance, and international moving services. One of the things they've done is they've leveraged our Prism Analytics solution to basically mix data from their fleet management, their billing system, their customer satisfaction, and even their operations systems to basically generate a general manager dashboard that works for each of their depots.
What's really nice about this is now these managers can view a profit and loss by each driver, and with this, they can determine which drivers are most profitable. They can figure out and make recommendations on whether that driver should lease or buy the truck. They can even figure out whether drivers should be able to receive an advance on their pay as they go. Improving employee satisfaction, profitability, all those kind of things. Workday Accounting Center has been at the core of our intelligent data model here for a while. We introduced this in 2021, and it was primarily a solution for our financial services organizations, as they're trying to bring loan data or other business data into their accounting environment and need a better, more powerful way to do that.
We're about a year and a half later now, and we have almost 100 customers, and they're mostly large enterprise customers, and they're across about seven industries that we're talking about. To give you guys some data points about what's happening here, Fannie Mae. They've processed around 350 billion rows of loan data through our Accounting Center already. In another example, Sharp HealthCare, they've taken their medical record system, and they've paired that with some of the people and finance data in Workday, and now they have visibility into their entire patient revenue process at a nice level. That's that middle office kinda merging with that data core that we're talking about. Okay. Now finally, what we're gonna get to is our intelligent business process.
We're at Workday taking a very holistic approach to how we're gonna enable this intelligent automation, and we're gonna do it through the entire life cycle of a transaction, and we're gonna do it across all key flows. It's pervasive for us in what we're doing. By doing so, we're not only gonna be able to automate these business transactions so that they accurately process themselves, but we're also gonna provide recommendations on what might need to be changed in configuration, policy, or even a transaction. We have a combination of things where we have automated transactions. Think about things like journals or expense receipts or purchase orders or invoices in cash applications. We also have recommendation solutions, so things like Journal Insights that will identify anomalies in accounting patterns or Expense Protect, which actually looks for fraud in expense items.
More importantly, we're actually really excited to be looking at additional use cases. Things like self-reconciling accounts or predictive planning or supplier contract reviews or even flux analysis. We think that's great. We see incredible adoption and interest from our customers in these solutions. We're getting a lot of help, and we're getting the models to be built out because we're using a lot more data. Okay, we really think these innovations that I spoke of are helping usher in a new era of finance for our customers, and we think we're gonna be able to unlock the potential of the people, processes, and data of every CFO. All right, David, with that, I'll turn it over to you for CHRO.
Good afternoon, everyone. I'm David Somers. I'm the Group General Manager for the Office of the CHRO products here at Workday. My background is in innovation through startups, and I joined Workday four years ago through the acquisition of my company, Rally Team. It takes an innovation mindset to really leverage the Workday platform capabilities that Sayan just walked everybody through a bit ago. That's exactly what we've done in my group in the Office of the CHRO to execute on our mission, which is to create the future of work. We've not only built what our customers need to adapt and evolve today, but what they rely on to revolutionize the way they hire, develop, and optimize their talent.
As you've heard today, we are the market leader in the HCM space, and that affords us a unique opportunity to really expand our footprint across our customer base. Today, I wanna dive a little bit further into a few of those opportunities for you. First, with Skills Cloud and the product innovation and growth that surrounds that. Second, empowering the frontline worker and the manager. Finally, expanding our scope from beyond the traditional workforce to the extended workforce. Here at Workday, we believe that skills are the foundation for the future of work, and it's because of the Workday platform that we're able to put skills at the center of everything we do. With our continued investment in machine learning-enabled applications, we've seen significant momentum and adoption across our customer base. We have over 1,300 customers live today on Skills Cloud.
Since its launch in 2018, the use of skills has grown from roughly 25 million instances across all customer tenants to more than 5.7 billion today. Our customers use this data to understand the capabilities of their workforce and run their business. We've accelerated our roadmap, and we've delivered product features like recommended skills on jobs and skill assessments. If you listened to the keynote this morning, made a big announcement, we've opened up our Workday Skills Cloud, and we've delivered a set of APIs and pre-built ontology mappings that allow for a bi-directional flow of skills with third-party systems. With Workday, customers can make skills the foundation for their entire talent strategy. In fact, we're the only vendor who can really do this. To do this, you need more than just a list of skills.
You actually need a robust and scalable skills infrastructure. You need skills and machine learning capabilities actually embedded within all of your application footprint. You need sophisticated annotation technology. Finally, you need performant tooling to review and manage things like skill mappings. Skills also drive many of the application innovations and growth here at Workday. An example of this is in talent optimization. We're revolutionizing the way people manage their careers. Up until now, careers have been defined by HR teams, really from the top down. Our talent optimization solution creates a connected talent experience, linking skill development to career opportunities. This really shifts the dynamic and puts career pathing back into the hands of the employee. Once again, if you listen to the keynote, we're actually gonna take this one step further. We're bringing all employee performance data and feedback data into a continuous agile performance process.
This will give managers a more active role in developing and coaching their teams, enabling more meaningful one-on-ones and positively affecting things like employee attrition. Not to steal Chano's thunder, but there's so much momentum with our talent optimization solutions. It's one of our fastest-growing products ever, and we're just getting started. We've also leaned into our market leadership in HCM to become the market leader in recruiting, with nearly 75% of our customer base using Workday Recruiting today. There's so much more opportunity in the broader recruiting market, and we're expanding our roadmap even further. With the addition to new products like candidate engagement and messaging, we're providing a powerful way to personalize recruitment marketing activities and really open up the communication channels between recruiters and candidates. Another long-standing market that's being transformed with the advent of skills is that of learning.
Delivering learning based on current skill levels, business needs, and career aspirations makes it more relevant and impactful for both the learner and the organization. We're quickly becoming a leader in learning, and we're really taking advantage of the current market disruption with the legacy vendors in that space. We've seen significant momentum in this area as well, and we now have more than 2,000 learning customers. Over the last few years, we've seen firsthand how critical the frontline workforce is to business continuity. We've continued to innovate and deliver new products like scheduling and labor optimization. These products leverage AI at their core, and we can generate things like optimal shift schedules that match worker preferences with business constraints in Workday HCM and Finance and even third-party systems. Workday is uniquely positioned to support the frontline worker.
Everything from tactical check-in, check-out, to shift swapping, and the ability to get paid when they need it, all with an effortless, intuitive experience. Everything is tuned to the modality that they use most, mobile. Our workforce management investments in time tracking, absence, and scheduling are also key for industry growth into retail and hospitality, as well as manufacturing. We continue to expand our global payroll capabilities along with regionalizing HCM features in places like Germany and Australia to gain more market traction. Over time, we expect to enhance regional and global features in these areas, along with deepening our partner relationships in major markets, which Sam will talk about here in just a bit. Finally, the extended workforce is a key strategic lever that's becoming more and more important to many of our customers.
With VNDLY now fully integrated into Workday HCM, we're enabling our customers to streamline sourcing and management of their contingent, freelance, and outsourced talent. Today, Workday acts as a hub, triggering downstream systems and reporting for visibility and insight. Our near-term roadmap includes enabling direct sourcing of extended labor and assigning required learning, as well as connecting skills and talent mobility programs. As we continue to expand the product, we'll infuse machine learning across the VNDLY application. This will allow customers to determine the optimal path for hiring talent, either full-time or contingent, based on real-time labor costs and skill availability. Our strategy for the Office of the CHRO is well aligned with our customers' most pressing needs.
With our investments in Workday's skills platform, focus on empowering the frontline workers and managers and expanding beyond the traditional workforce to the extended workforce, this really puts us on a solid growth trajectory. With that, we're gonna head into a five-minute break, and when we return, you're gonna hear about how we're capitalizing on all of this great innovation that we just talked about. Thank you.
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Of colors that won't wash out.
I'll be leaving.
Ladies and gentlemen, our meeting will resume in one minute. One minute. Thank you.
Colors that won't wash out.
I've been dreaming.
Of colors that won't wash out.
I'll be leaving.
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Colors that won't wash out.
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Colors that won't wash out. Yeah.
Please welcome Chief Customer Officer, Sheri Rhodes.
I'm Sheri Rhodes, Workday's Chief Customer Officer, which actually means customer success, Workday Professional Services, support, and education. I've actually had the good fortune of also being a customer and a practitioner of Workday, previously at Western Union, at Symantec, and most recently as Workday CIO. I took this role. From a customer experience perspective, we have over 16,000 certified resources in our network that know how to deliver Workday value. 95% customer satisfaction. Actually, Aneel talked about that in the keynote for 13 years and running, especially in these changing environments. Also 95% on-time deployment, which we feel really proud of between our partners and ourselves from a Workday Professional Services standpoint. The evolving customer experience has changed. We had the pandemic, we have adapting customer needs, and we just have changing business.
We're really focused on evolving that in three primary ways. One is on just rebuilding customer intimacy, so we're doing that in three ways. One, we have strategic executive sponsors on hundreds of our key accounts, and we're reconnecting with those customers. We have in-person conferences resuming, Workday Rising obviously being one of them, which we were truly excited about, among a number of other marketing events. We have the sales partnership. We've spent a lot of time in the last 12 months making sure that best practices, processes, and tools between service and sales, so the sales to service handoff is smooth. That brings us to flexibility of our customer needs. During the pandemic, two years, we were delivering mostly in a virtual mode as well as hybrid.
Now we have virtual hybrid in person, so it's really up to customer's preference in terms of how we deploy our services. Then also education. For two years, we were virtual only, so we're back into in-person classes or online or hybrid. We have options for our customers. It's really their choice. Then the evolving business model. We have a wrapper service we call Workday Success Plans that includes advanced services such as advisory services, architecture support. It's really wrapping the customer for the life cycle of their relationship. Then too, we have a whole new community experience coming on board, which is our digital online portal. That comes out in November. It's really combining knowledge management, support, and collaboration for our customers all in one place, so they don't have to go to multiple front doors.
Actually, our volume in the digital community has grown 45% just in the last few months. We see an uptick of users there as well. We have proven methodologies. We have Launch, which is our prescriptive methodology, as well as Your Way, which is more customized depending on more complex customers. Launch has really taken off. We have over 500 customers that have been touched by Launch since we went live a couple of years ago, and it's a really good savings from a customer perspective. We have 35%-40% time to deployment as well as cost savings. We really see an uptick in our medium enterprise business. Also we see that our large enterprise customers are embracing that as well because it comes with a pre-configured kind of baseline tenant, so customers don't have to overthink their processes.
It's worldwide, which is great. We deploy to multiple countries, including Malaysia, Japan. There are multiple countries that have been enhanced this year as well. Really, that brings me to customer satisfaction will always be the goal. We're at an inflection point with our customers. We're constantly growing as a base, and so it means we need to look at things differently. That's where my partner, Sam, is gonna come in and talk about our new partner organization.
I got some magic in me. Every time I touch that track.
Good afternoon. My name is Sam Alkharrat. I'm the new Chief Partner Officer for Workday. What does that mean, you might ask? I think you've heard over the last, hour or so lots of sound bites about our partners and how they thread across our entire engagements. You've heard Pete talk about working with partners for our package solutions. You've heard how we co-innovate together. You've heard how we go to market together a little bit, and then we talked about innovation. Now Sheri just shared with you the evolution of our customer experience. We feel the evolution of our customer experience has to go hand-in-hand with the evolution of our partner ecosystem. Our partners have always played a critical role in every step of the engagement in earning trust and delivering value to our customers.
We wanna continue to do that, and we wanna accelerate it going forward. In my role as Chief Partner Officer, I'm focused on enabling a strategy and executing and operationalizing how we engage with our partners in order for them to bring value at every step of the journey for our customers and accelerate the Workday value as well. Before I get there, I've been on board for about five months, and I just wanted to share with you a couple of observations as I talk to customers and as I talk to partners. First of all, I just wanna say that all of our partners are all in on Workday. Every single partner I talk to sees Workday as a tier one partner and a tier one solution in their portfolio, which means we can grow together. We're relevant.
We move the needle together, and I think that's really important. They were looking to do more with us. They wanna be able to build new solutions with us on our platform. They wanna be able to drive down industry depth with us and increase the solutions. They wanna sell with us, and they wanna go to market with us in so many ways. Ultimately, they wanna increase the level of capacity and consulting and be able to drive more services into the customer base. When I talk to customers, it really resonates because it's very, very well aligned what they're looking for. Our customers are looking for higher level of SI capacity. They're looking for more industry depth. They're looking for faster time to value, and they have an increasing need of app and platform integrations. The two agendas really, really align very well.
As I spend more time with the executive team, everybody's leaning in to drive an unmatched partner experience of our new program going forward. let me tell you a little bit about our strategy, which is really three differentiating capabilities anchored with one unified partner program. The first area I wanna talk about is the innovation area. You've heard a lot about that today. You've heard from Sayan around how we have a public cloud, API first. You've heard about ISVs. You've heard about office of the CFO. You've heard about industry accelerators. All of those really come in from a co-innovation perspective. We can accelerate our innovation vector with partners because they have deep industry experience, and they offer our customers connectivity. They can connect, integrate, and build new applications in our platform. we're starting to see that happening.
You've heard 750 applications on Extend & Accelerating. You've seen we've announced yesterday the Industry Accelerators with our partners. That's just the beginning. We're seeing a tremendous acceleration of that. Ultimately, where that really matters is that it drives consumption of Workday. That's really important because once you land, you consume, you're more sticky, and you expand. I think that's what solutions do for you. They solve more complex problems and use cases, especially when you talk about things like the office of the CFO. The second area is our partners wanna grow with us, which means they wanna launch co-sell, resell programs. They wanna go into international markets with us. They wanna have the ability to go to customers and sell together. Recently we started with AWS.
You've heard about the public cloud first strategy, especially for our net new customers. We're starting to co-sell with AWS, and we're seeing some tremendous welcoming from the customer base. The net new base. There's migrations, and then there's also net new. What we're seeing is that it's much easier for the customers to be able to make a decision when the solution and the selling motion is integrated. That's gonna drive more land motion for us, and it's gonna drive higher velocity of net new logos. That capability is super important. Finally, when we talk about services, that's something our ecosystem has traditionally done very, very well in delivering to our customers and delivering to the expectations of our customers.
That requires now higher level of investments in education, in certifications, in being able to get partners into the system and onboard them very, very quickly into production. The faster and the more efficient we can do that, and the better experience we can provide, the better we can do the first two, which is innovate and sell together. That machinery is all now anchored into a partner program, which we also announced earlier this morning. Our new partner program is set to launch next year. We'll be unifying a lot of these motions. We'll bring in our channel ISV service partners, CSPs and cloud service providers, and our software partners all into a single program. We will drive tracks and tiers, and we will make sure there's performance metrics that drives competency for our customers.
Ultimately, we do see the demand to double the consulting capacity in the market over the next two years. That will drive a lot more adoption of Workday and a lot more advocacy for Workday as well. That's, in short, the strategy. I hope this is helpful. There's a lot more to come in this area. I just have to say, like, being five months here, it really feels good, and it feels like this is a great opportunity for us to transform our partner landscape. Thank you for listening, and may I invite Chano back to stage.
Thank you, Sam. It's great having you here driving and accelerating our sales efforts through the channel partner strategy. It's great to be working with you again, so that's all fantastic. All right, what am I kind of covering today? We're gonna be focusing on our growth vectors, how are those impacting basically strategy, and, you know, we're making them tangible, and hopefully they will provide some good insights for you, and some questions later on, I'm sure. The first one is clearly our largest growth vector today is the broadening land opportunity. This is still our biggest one, as I say, so it's still landing new customers today.
For some of you that were here in our last in-person analyst conference Rising in 2019, our fiscal year 2020, you saw that still our land business was at that point 80% of our business. The majority of our business was actually coming from land new ACV at that point in time. Clearly the business has evolved, right? Obviously, today and with the purposeful investment that we've been doing, both, I would say growing innovation and solutions and investing on our customer base sales teams, that balance is different today and that mix is different today, and it's more a 60/40. Even the balance is much more different than it was a few years back ago. The pie has increased.
It's still our land business today is larger than it was in FY 2020 in terms of absolute value. We now have 4,450 customers over that number that are core HCM or core FINS customers or clearly both on individual basis. That's great, but it's still a great opportunity ahead of us. We have 32,000 customers identified in our CRM system, Salesforce in this case, as you can imagine, you know, we know they are a good fit for us. As we keep broadening our sales efforts and go to market and our opportunity portfolio, that basically pipe becomes larger as well. We have, you know, tremendous great opportunity in front of us still to go forward.
As you know, as we're broadening basically the innovation and the portfolio that we do have, it's increasing as well the number of SKUs we land when we get into a new customer. You can see how that's evolved. Obviously, needless to say, you know, more SKU usually tends to drive larger deals and more stickiness. That at the end of the day was what we're looking for. Right. Another dynamic that we're seeing as we've been innovating and expanding our product portfolio is like we've been able to land in different ways. If you look what happened a few years ago, we were landing like in the U.S., large enterprise and core HCM.
Today is much more diverse across geographies, across solutions, across segments, which again, I think diversify the business, but as well derisk the business, if you wanna look at that way. One of the areas where we've been putting more focus on and it has been having an impact is really industry, as you heard before, right? There are a number of reasons why when we go deep on industry, we really penetrate in the front, in the middle, in the back office. We become much more meaningful, as you heard from Terrance before. Really this becomes much more strategic, right? When we land in industry, what we see is that the average HSP or average deal value or our landing is 50% higher than when we land on our non-core verticals or non-core industry.
That's meaningful. Medium Enterprise as well has been very strategic. We've been highlighting that one, and important to us. For those of you in the room that are not that familiar with our business, Medium Enterprise for us is businesses that are under 3,500 employees. We sell the same solution that we sell to the largest of our customers, but we become much more prescriptive on the scope, and we become much more. We do it in a way, as Sheri was mentioning before Launch, which is much more predictable in terms of time frames and fixed costs and some of the different approaches. Faster time to value at the end of the day. What we do in Medium Enterprise is different than our competitors. We try to go with an approach to value that is a full suite of platform.
Meaning that these customers are usually consuming majority of the HCM and financials at the same time, whereas our competitors try to go either one or the other on a single basis. In fact, over the last 12 months, roughly 50% of our new ACV landed basically from medium enterprise customers. International. We've been highlighting international as a very critical growth driver to what we do, and we're having very solid momentum in international. In Europe, which is a bit more mature for us, we've been focusing our strategy on doubling down in a number of core countries that we call them tier one countries, and those are, France, U.K., and Germany. Needless to say, those are the largest and most significant geographies that we do have. The efforts are paying off.
What we're seeing in the last period is 100% basically growth in new ACV coming from those countries in EMEA. APJ, clearly less mature than our strategies in EMEA, so we don't have yet that strategy in tier one countries. But it's been, you know, really a good contributor to our growth. If you look at the last 12-month period, we drove a 70% increase in new ACV landing deals in our APJ business.
Finally, through acquisitions like Adaptive Planning or Peakon, what we've been trying to do is landing differently with our customers, and those have been really helping us out on not getting on core relationships, and we've been seeing how we've been expanding and increasing win rates, but also at the same win, we're going to try to get those customers our core HCM, our core financials customers. We're seeing an acceleration with our Planning first customers becoming core financials, core HCM customers. All right. Let's transition now to a second growth factor that I wanted to cover with you today, which is accelerating the expand opportunity. We see our customer base sales motion as a truly significant opportunity for us over the coming years to go, right?
A few years ago, we had much more smaller sales coverage and, you know, a much more smaller set of portfolio of innovation to sell into our customer base, so that business was just representing 20% of our business, as you saw before. Today, and thanks to all the product innovation, but also as well to the customer base sales teams go-to-market investments that we've been doing, the business represent 40%+ and really is growing at a very rapid clip. I think we had some comments for you that we did on our last earnings call, and that was really meaningful what we saw there in Q2. One of the key success to this motion is obviously, well, I would say that, having a very referenceable and happy customer base.
Hopefully, you have the experience to touch on that one or make it more tangible over here at Workday Rising. Also that we had a great customer base, over 50% of our Fortune 500 and over 25% of the Global 2000. As we said before, land remains a key focus to keep just increasing this number of core customers that we do have. It's not just our customer base, the one that is growing. If I work this slide out from left to right, and maybe, you know, next year, I don't know if it is gonna fit here, you see a different set of solutions.
You see some of those, if you start on the left, you know, solutions like Extend, like scheduling, like messaging, like candidate management, like Accounting Center that are less than 10% penetrated. Then you see solutions in the middle, the orange one, we are increasing, you know, some good maturity, but we still have a great opportunity and way to go to keep expanding on some of those and are basically, you know, under 50% penetrated. Those are, you know, procurement, pricing, analytics, People Analytics, and learning and some of the others. But even our most mature products, you know, we are still doing well, and we're still tracking to do investments in places like payroll, like in Germany or payroll in Australia or then tracking on some of the others investments because we do see opportunity ahead.
What is important, I think, to know is that momentum is cross-based across solutions. When you look at it, the number one sales top solution in our customer base represents less than 15% of the ACV. The top ten represents less than 2/3 of the ACV. I don't know how you feel, but I like kind of that view of a very balanced business, but a diversified and de-risked business. We're increasing the deal sizes, and it has increased significantly during the last few years. I mean, a few years ago, I couldn't think that, or it was you were not seeing us doing a $1 million upsell on our customer base, right? Today, we, you know, those are quite normal and quite frequent.
The deal sizes have increased during the last few years, over 5%-45% on average in our customer base. Again, it's attributable, basically, as a result to the strategy that we've been putting on the go-to-market, but also as well, you know, the innovation that has been coming from the product teams. Both. Customer base is also obviously a key driver for financial expansion. That is clearly a big strategic focus for us, as you do know and are familiar with. It requires a different level of focus because, you know, the finance deals, they tend to take longer, and they require a bit different go-to-market motion. We're making a good dent.
You know, I don't think there is any inflection point, but there is some good gradual and very positive trend that is happening out there. I think that we're seeing that in industries like financial services, technology, retail, and hospitality. Some of these are some of our latest customers that have converted or have become from core HCM customers to core FINS customers. I really like as well one motion that we do have in our customer base, which is the digital AEs, right? What are the digital AEs? Well, clearly, as our deals have been increasing our customer base, the most of the AEs tend to focus on customer base AEs on the larger deal transactions.
We don't want to leave anything on the table, and we wanna make sure that we capture the value from those that are moving at very high speed and velocity deals. We introduced the customer base AEs that are helping us out with those transactions. That, you know, they're working on deals around planning or on deals around Peakon and we've seen, for example, a 50% increase attach from Peakon deals coming through the digital AEs. It's also a great way for creating future AEs, as you can imagine. Hopefully more to talk in the future, but we're very excited about this motion that we just put in place beginning of this year and this initiative. I wanna bring this section home just giving you a real example of a customer, right?
This company landed as an HCM customer 10 years ago. Over the years, they replaced a number of HCM silo systems to drive simplifications, agility, flexibility, and recently became a financial customer, taking on, you know, beyond core financials, of course, and Pricing, Accounting Center, basically analytics thing and some others to drive their business forward with some more M&A integration and some expansion that they were having with, they were having going through. Now, all told, this customer has increased their spend with us by a factor of 25x since they became a customer. Clearly it's been a combination of expanding the solution with us and the growth they've been experiencing as well as a company, right? This is a real true example. All right.
I wanted to cover the evolving industry opportunity that we do have, because as we've been saying, industry is becoming much more important, not only from a product investment, but also from a go-to-market point of view. When we think about industry, it really cuts across both our land and our expand motions. As we scale our market, we're thinking how do we scale it through industry, right? That's important for some of the reasons that I mentioned before. It's important as well because, you know, our messaging, planning, execute and analyze, planning, analyze and execute resonates very well when we go to some of these industry plays.
It's a great combination between the strategic product fit that we're doing, the go-to-market effort, the partner efforts that we're doing and some of the, you know, innovation that we're building with them. Let me touch base on some of the industries, and how we're bringing this strategy to life, right? Financial services I think is a great testament to it. I mean, we are penetrating over 70% of the Fortune 500 in Financials. We've seen a very significant step change of financial services customers that are taking on Financials during the recent time. As we expand here, it creates a much broader opportunity as well for some of the other Office of the CHRO solutions that we do have.
As well, we're thinking, you know, a good way to expand, potentially focus on some of our most mature international countries for industries like financial services. It's our first industry becoming a $1 billion, but I think with much more room to grow and to keep growing. Certainly not the last one, but again, you know, great example. What about healthcare as our next industry that I wanted to highlight? We have significant momentum in this industry. 60% attach rate in this industry for financial management and supply chain management. Since we started the journey in this industry back in 2015, journey meaning we put focus in terms of we're gonna create more product focus and depth there, but we're also gonna do investment on our customers, on our sales teams.
We have increased our customer base in terms of number count of customers by 10x. Certainly one that is very significant to us and one we see a lot of customers, you know, being HCM financials, supply chain management customers. Education and government is the next industry I wanted to cover. This is one of our most mature ones. This is the one having the highest attach rate in terms of our financial management solution, 75% attach rate. We are on our journey on Student, as you do know, and we've been highlighting, you know, how many customers have been going live on the solution. We're seeing that those operational systems are now in a good momentum, and you can see the momentum that is there and it's palpable for being ripped out.
We're continuously driving forward growth there. Again, a student being a good anchor for an industry to move HCM financials and being a student.
We also been doing well in state and local, and as you recently heard from us, we are starting our journey in the federal market, where we see there's a $2 billion opportunity. But again, it's gonna be a medium, long-term opportunity, nothing that would be impacting significantly in the short term. Professional services is an industry where we have a significant number of HCM customers. It's an industry where it makes a lot of sense from a financials perspective for we to have a play on. Because if you think what that industry is about, it's about the combination of talent and skills, allocating those to the right projects, and basically how you're measuring and monitoring and managing that, right?
Clearly somewhere we are seeing as well some of our HCM customers becoming financial customers and where you're gonna see us keep investing forward from a depth perspective. Retail and hospitality. This is our largest industry in terms of employees or workers in the system. As you can imagine, we have more than 40%-50% of the Fortune 500 retail and hospitality customers, and these are very large. We have significant momentum in FINS that we're driving in this industry as well. Accounting Center is a big driver for it too, as it is in financial services and some other industries. While we are not significantly mature here, you should look for us to keep expanding and deepening our go-to-market presence in this industry going forward in hospitality.
Again, we always give you examples some of the customers there, obviously, and some of the latest ones. Well, I want to close on some of the really exciting stories from Q2, right? Especially on technology and media. Again, another industry very similar to financial services, where we have 70% of our Fortune 500 in technology and media customers are our HCM customers and where we see a great opportunity ahead. Of course, in Q2, we announced Salesforce becoming a core financial customer. That's a big milestone, I think, for us and potentially for the industry. We're excited about the momentum that we can be trend-driving into this industry.
Hopefully this anchors what commented before on a high level that we aim to become, you know, continue to gain market share on the office of the CFO as a whole from industry-driven play, including with support from our partners. But as well, clearly be the dominant cloud FINS player, you know, in the services-based industries. I think we're making good progress as those legacy systems are becoming more ripe for rip and replace. I hope if I wanna leave you with one message, it's like, yeah, we had a great market momentum overall right now, but clearly we are not short of opportunity ahead.
There is a lot that we can still capture out there, a lot of work to do, but we're excited about for the opportunity that is, ahead of us and in front of us, and we appreciate your support. With that, I wanna hand things over to my dear friend and CFO, Barbara Larson.
Thank you, Chano. I'm Barbara Larson, the CFO of Workday, and most of my time with this community has been over Zoom. It's great to be here in person at Rising. For all of you that are joining remotely, thanks for being part of our event today, and look forward to meeting you in person soon too. Today you've heard about our strategy, how we're uniquely positioned to capture the market. You've heard how we continue to innovate and move our platform forward.
You've heard how we're strategically going to market to drive broad-based adoption of our solutions. Now I wanna bring that all home and talk about the opportunities and how they translate to enduring profitable and responsible growth. We've been on an incredible journey, which has led to healthy subscription revenue growth over the last several years. Despite our growth and scale, we're still in the early days of our opportunity. As Pete shared, our TAM is $125 billion in size, and even with our market leadership in the cloud, we continue to be less than 5% penetrated into our addressable market opportunity. In HCM, we're the clear market leader with more than 50% of the Fortune 500. We've seen acceleration there from mid-teens growth to low 20s. Driving that acceleration are several of the strategic growth drivers you've heard today.
Our customer base sales motion, medium enterprise, international, and continued execution, landing new large enterprise HCM customers in the U.S.. Even with that strong momentum at scale, we still see significant opportunity going forward with less than 10% market penetration in HCM. In FINS, we continue to take share, and our industry-first approach is clearly resonating. Q2 was a great validation of that. We had several important wins. You heard Chano talk about Salesforce, American Electric Power, and many others. We've scaled this business to greater than $1.2 billion in trailing twelve months subscription revenue, and we're still in the early days. As you all know.
This market has lagged HCM from a cloud adoption perspective. The growth rate has moderated slightly from low 30s to high 20s as we felt some impacts of COVID still felt on our FINS business. We've never felt better about where we are in our FINS journey today and our strategy going forward. Another way to think about the opportunity is from a geographic perspective. Nearly half of our global opportunity sits in the U.S. market. We've seen acceleration here driven by customer base, office of the CFO, and medium enterprise. Even with this success, we continue to see significant runway and are less than 10% penetrated into our opportunity. International is growing faster and still in the early days of market adoption. Despite the challenging market environment, international growth accelerated to 26%, and we're still early in the journey here.
We see significant long-term opportunity, particularly across our tier-one markets. Another way to look at the opportunity is through the lens of some of our strategic growth initiatives. As you heard today, we see clear momentum in medium enterprise, customer base, and industry. We have significant runway across each of those areas as well. In the mid-market, only 15% of that is penetrated on a logo basis, and we're even earlier days in our opportunity to expand that footprint. Speaking of customer base, we have the opportunity to continue to grow as our product portfolio and our customer community expands. We have greater than $10 billion of incremental opportunity to sell back into our customers. From an industry standpoint, we also see significant opportunity ahead.
In fact, in the U.S. market, nearly 80% of the total workforce is centered in service-based industries, which, as you know, is our focus with FINS. When you put all of that opportunity together, it drives our conviction in our goal of sustaining 20%+ subscription revenue growth on our path to $10 billion. Driving enduring growth remains our priority, and we feel great about the opportunity we have ahead. The strength of our business model also enables us with the opportunity to drive profitable growth. This is anchored in our best-in-class gross revenue retention rate, which has averaged 98% over the last five years. Companies have different way of calculating this. Let's be clear. Workday's definition excludes growth from things like employee count and price increases.
It includes down-sell that you might see within our customer base and, of course, customer churn. The strength of this metric is key to our model as well as our long-term growth and profitability. Said another way, we've averaged just 2% churn over the last five years. When you look at the median software company, approximately 8%, which is still very good, that six-point difference is significant, and it compounds over time. On this slide, we've got two companies, both at $5 billion in annual revenue at the same point in time. Company A has 2% churn like Workday. It's growing 20% year-over-year. Company B has the same new ACV bookings, but company B has 8% churn instead of 2%. You see the compounding effect. Every year, the difference between company A and company B's revenue increases.
By the time you get to the end of year four, company A has $1.5 billion or 16% higher revenue than company B. That gap becomes more pronounced as the business continues to scale. Solid retention is one of the powerful drivers of scale, but it's also a powerful driver of margin expansion because renewals in most businesses, including ours, has a very high margin. Strong growth retention provides the foundation for customer expansion opportunities. Customers are not only staying with Workday, they're going all in with Workday, fueling our continued growth in the number of strategic relationships. One of the ways we measure this is looking at customers with greater than $3 million in ARR. This has grown at a CAGR of mid-20s% over the last several years, and even faster growth with customers that have more than $5 million in ARR.
If you think about that longer term, so many companies are just getting started on Workday. You heard throughout the day, our portfolio continues to expand. At the same time, we've increased our focus on our customer base sales motion. Those two things, combined with solid 98% gross retention, have driven a 7 percentage point improvement in net revenue retention over the last four years. We continue to see momentum in the customer-based sales motion. We've been investing aggressively in sales and marketing, given all the opportunity we see ahead. Even as we do that, we continue to see a very efficient cost to acquire. Those economics drive our decision to continue to invest in sales and marketing. We've also driven long-term return on our R&D investments. Over the last five years, we've driven leverage through increased scale across the portfolio.
Looking forward, we see continued opportunity to drive leverage in R&D, but not at the cost of innovation. We plan to make incremental investments in R&D, just not at the same pace as revenue growth. Similar to R&D, we're driving nice gross margin expansion as well as a result of the mix shift to subscription revenue, combined with healthy subscription gross margin. As we look to the future, we continue to expect subscription revenue to outpace growth in services. As you heard Sam say earlier, we're investing in the ecosystem, which will continue to drive mix shift towards subscription. Given the strength of our model and the leverage we've seen across the business, our overall non-GAAP operating margin and operating cash flow margin have expanded nicely over the last several years.
As we've been talking about since the last Analyst Day, our FY 2023 margins are impacted by a few things, including our company-wide performance-based cash bonus, increased hiring, and certain costs like return to office, travel, in-person events, layering back into our business model. However, as we look out to FY 2024, we expect margin expansion to resume, driven by the same levers that I've already touched on, primarily R&D and gross margin expansion. From there, we continue to expect operating margin to scale to approximately 25% and operating cash flow margin to expand to 35%. That leads to both operating profit and cash flow growing at a high 20s CAGR over the next several years. That's really just one point on our journey. By no means, are we done there. Profitable growth remains our priority, and we see significant opportunity well beyond $10 billion.
Given the strength of our model as we continue to scale, we see opportunity for continued margin expansion from there. Now, our 25% operating margin target at $10 billion is non-GAAP, which is one of the primary ways we think about the business. GAAP results are another way we measure the business, and we've seen the delta between GAAP and non-GAAP margin narrow over time. The primary driver of that is stock-based comp. As we scale as a company and the pace of our headcount growth moderates, we expect stock-based comp as a percent of revenue to come down and trend in line with our tech peers. While we remain confident in our strategy to sustain enduring and profitable growth, we're also dedicated to doing so while also maintaining our long-held commitment for responsible growth.
When Workday was founded in 2005, we set out to redefine the enterprise software industry and to do what's right as we did it. We built the company on a core set of values that 17 years later, still guide our decisions and our actions. This includes how we show respect for our employees, how we innovate for customers, and how we care for the world around us. We measure success not only in financial terms, but how we operate in the world. Our ESG commitments are focused across three main stakeholders: employees, customers, community. I'll start with employees. We begin by working hard to create a culture where we can attract and retain the most diverse and inclusive workforce possible.
Once they're on board, we nurture a best-in-class employee experience, giving our workmates the opportunity to provide honest feedback on a weekly basis with Workday Peakon Employee Voice. These insights have helped us identify what's working and what's not, and help us improve and build a great place for everyone to work. Finally, VIBE is our commitment to value inclusion, belonging, and equity for all. A key part of that has been our goal to increase Black and Latinx employees in the U.S. by 30% and to double our leadership representation by 2023. We've exceeded our target for the overall representation, and we are well on our way to meeting our leadership goal. Moving to customer.
We develop solutions that are specifically designed to help our customers gain insights about equity within their workforce, to improve sustainability and resilience of their supply chains, and to help them manage their emissions reduction targets and improve their overall ESG performance. We also strive to care for the world around us, and Workday has done an incredible amount in this space. We've established science-based climate targets throughout our entire value chain, taking part in a global commitment to limit warming to 1.5 degrees Celsius. We've achieved net zero emissions in 2020 and lifetime net zero carbon footprint in 2021, and we're constantly working to advance policies that support the transition to a low carbon economy. Before we head into Q andA, I'm gonna close by recapping a few of the key takeaways from today. First, as we scale, so too does our opportunity.
Our market leadership position and relentless focus on innovation uniquely position us to continue taking share for many years to come. Second, our strategic growth areas of the business have clear momentum. Medium enterprise, international, industry, and customer base provide us with a foundation for future growth. And finally, our financial model is powerful, and it provides us with the opportunity to become one of the largest, most profitable software companies, all while holding true to our core values. With that, we're gonna take a brief moment to get set up for Q and A, and I'll be right back with the rest of the team in a minute.
Okay, great. We are gonna transition to Q and A, and without further ado, I'm gonna go over to Mark Murphy from J.P. Morgan. Mark, go ahead. Be kind.
I can't introduce myself now. Justin Furby already did. Great show. Thanks for having us here. I wanted to ask you, the first customer I bumped into today is with a Fortune 500 company, and I walked them to registration and then found out he works in the IT department of his company. Not HR, not finance, and the company hadn't sent anyone from HR or or finance to this conference. I'm just wondering how common is that trend where you see IT getting involved? Is that opening up a different type of you know, kinda greasing the skids for broader and deeper discussions with some of these companies?
Well, I'd say that, you know, since we started the company, we wanted to have a deeper relationship with IT. In many cases, some of our early customers were driven by IT, like Dave Smalley at Flextronics or Manjit Singh at Takeda. But in the last two years, we made a concerted effort to really engage with IT, not just because they're involved with the projects, but because Extend is really an opportunity for us to work with them and have them put their resources into the projects with the extensions that they can build together. IT is coming, and now there's something that's really in it for them other than just being somebody that watches out over the project.
Hey, guys. Alex Zukin from Wolfe. Congrats on throwing a great show. I guess, Aneel, I'll use a word that I know a lot of us dread, and it's not recession. It's actually the word inflection.
Yeah.
We've asked you, I think, for the last seven years about an inflection in the opportunity for financials.
It does seem like with the signing of Salesforce, with the signing of, you know, more than even a handful of Fortune 500 customers, maybe that's happening. I want. You know, you talked about not being considering yourself back-office anymore. Are you feeling or sensing from customers this kind of a shift in the imperative for digital transformation to the back office? It's a tough question because of the nomenclature used. Talk about that and talk about maybe and if you can, kind of what was the journey with Salesforce specifically to adopt Workday Financials?
Yeah. So let's start with just the general mindset. I do think that I'm not sure there ever has been or will be an inflection point on finance. It's been a steady grower. Some quarters it's 30%, some quarters it's 50%. Last quarter it was very high. A couple of big deals swing that. It's not like HR, where everybody decided at once they were gonna tear it out because the legacy systems were so bad. I think the reality is the legacy systems for finance are not heavy user-based systems. They're more used by just accountants. Planning might be different. The desire of CFOs to change systems was not as high as it was around HR, which touches every employee in the company.
Having said that, these times where change is really on us, whether it's planning or whether it's agility or now it's ESG, it really shows how broken those legacy systems are, which is why I think we're seeing that uptick. I'd also say, it's also the maturity of the product. You know, for Salesforce, AEP, these are Fortune 500 companies. We needed to match Fortune 500 functionality and financials, which we did in HR several years ago, and now we've done it in finance, and so I do think that bodes well going forward. The Salesforce cycle, I don't know when it started. It might have started five years ago. There's always the complexity of Oracle in there because Oracle was the database partner. So we had some fits and starts.
This last one started about 14 months. Is that right, Chano?
Yeah.
About 14 months.
A year ago.
It was. They went into great detail into the technology, to everything, into a real deep dive. Sayan was part of that. I think they came out and said, this is the right direction for them to go. This was at the highest levels. This was Bret Taylor, this was Amy, this was their new CIO, Juan, from UPS. They all got on board and got comfortable with it. It was a long sales cycle, which frankly, even the big HR ones are that way too.
Maybe just one B.
Yeah.
If you think about the last time we were out at the Analyst Day, there was this thought that, you know, HCM could grow kind of in the mid-teens% and Financials is gonna grow 30+%.
Yeah.
That was kind of the calculus to get to that 20.
Yep.
Given the TTM growth figures.
Yeah
... that we just saw, is that calculus different? Was it different, but it's gonna go back to that 15-30 kind of thing?
No, I think HCM has turned out to be more resilient. I credit Chano and team with really identifying the opportunities both in medium enterprise and going back to the customer base. I think finance had a bit of a lull because of COVID. I think that there's a reason why our growth rate has been higher than 20%. That's largely because, you know, frankly, both have been working, and I see upside. I don't see as much upside on HR from where we've been, because it didn't really take a hit during COVID, and I don't see it taking a hit now. I think the upside is on finance. It's not just core accounting now. It's planning, it's procurement.
It's you know, products that we didn't have before, like Accounting Center, that we now have this really broad suite to go into the office of the CFO. They don't have to buy it all at once. They can buy it, they can start with planning and move on. It's a much different game than it was four or five years ago.
Thanks. This is Brent Thill with Jefferies. Aneel, on your vision-
You can ask other people questions too.
You're doing really great.
Yeah.
Yeah. Good job. Good job, Bhusri. You're good.
Okay, sorry.
Aneel, on your vision of the back office, you mentioned you don't view yourself as back office, but can you give us your five-year vision of what you think you look like and how this is evolving? Barbara, just on the comment on margin, you drew a little arrow up on 24. What's your sense? Is that 100 basis points? Is it 150? How do you think? What, which. How should we interpret that in terms of your arrow on the screen? Thanks.
I'll take a crack at the first one, and then I'd love to hear from Pete and Sayan as well. You know, our vision for the next five years is not that different than it was when we started the company. We wanted to be the ERP provider for the service industries, recognizing that HR, we could be the provider for all industries, but with finance, we were not gonna target the manufacturing supply chain industries. That vision remains intact. I think what's changed and what continues to change is the focus of where we invest. Transactions are still very important, but they will, over time, just be table stakes. What's become much more important is planning on the front end.
What I think you'll see over time, and you saw it in the keynote today, more and more our investment is going into machine learning and AI to give our customers insight. They're generating all this data, both within a customer and across customers. There's tons of insight into that data that they can use to predict where the business is going in the future. Before, humans just couldn't get through that data quick enough, and by the time they got through it, the world had already changed. With machine learning, they can get through that data in nanoseconds and have real insight as to, you know, where their business or where their people are going.
I think it's a future of really smart applications as opposed to just automation, but actually smart applications that help guide the business, and then humans apply their judgment to guide the business in the way that they want to. I know Pete, Sayan, if you wanna add anything.
Yeah, Aneel said a lot of it there, which is, you know, we've been talking for years about two main buyers, two main people within the organization whose needs we satisfy, the CHRO and the CFO. I talked, you know, earlier today about the opportunity that we have in both those markets. They're both continuing to grow for us, by the way. You saw that in terms of the size of the opportunity. We are growing the opportunity within the office of the CHRO through entering new markets within the office of the CHRO. I think that there are other markets that we could continue to grow in there, but it's still serving the needs of the CHRO. On the CFO side, you know, we are just continuing to go there, right?
As you see us in the next five years, there's gonna be much more emphasis on industry. As we go deeper into the office of the CFO, we need to start to be more specific for the needs of the CFO by their industry, right? You'll see us, as we have in the past few years, introduce new capabilities. Some of them are gonna be monetizable on a per industry basis. As we choose those areas that we go into and that we develop into, we're gonna make sure that all of those are things that are need to have, right? They're gonna be very important capabilities for the CFO and the CHRO. There's, you know, enough of us for us to choose that we don't need to choose things that aren't must-have areas.
The last thing I'll say is data, right? I think that you see this theme that goes through all of the innovation that we've had for the past few years. Data is this through line through all of that, ML, Accounting Center, skills, et cetera. It is like leveraging that platform, that space that we have to collect all that data together. There's many more opportunities that we'll have, I think monetizable opportunities that we'll have because of data going forward.
I think there's a couple of, you know, secular trends that have been moving in our direction and are continuing to accelerate in our direction. One is, you know, the company was really founded on the idea that human capital was at the center, whether that was Financials or HCM. What we're seeing is a transformation where every business is a human capital-centric business. A lot of businesses didn't use to characterize themselves that way. Certainly coming out of the last couple of years, everyone is characterizing themselves that way, and that really plays into a lot of what we believe in from the very beginning. Then second, a lot of the areas of operation of the business are learning how to work more effectively together.
You can't think of recruiting and learning and contingent workforce and planning and scheduling and time tracking and financials and projects separately anymore. You have to think about how do you drive that all the way through and have oversight and have the flexibility and the speed to move. We have more and more customers saying, "We actually believe in the full vision of why you've stitched all this stuff together.
Sorry, about the margins?
Yeah. I'll go ahead and answer the margin. We aren't providing specific guidance in terms of our FY 2024 guidance, but we wanted to reiterate that we do expect margin to expand next year, and we're focused on executing the second half of this year, and we'll provide an update.
Great. Kirk Materne with Evercore. Thanks for having us, and nice to see you all in person. I have a couple questions, related questions on just the industry focus, both from a development perspective and then a go-to-market perspective. I guess I'll start maybe with Pete on just the development side of the house. You know, how high up are you guys thinking about going when you think about sort of the system of engagements in certain industries, right? There's certain people that have vertical specific functionality that are more at maybe the front of the house, but that's gonna interoperate with you all. So how do you think about sort of building it yourself versus maybe partnering with people that are more entrenched in those areas?
Chano, I was hoping you could just talk about sort of the go-to-market as you get more industry focused. How are you tweaking the sales model perhaps to make sure your salespeople can sort of speak the language of industry? That was it. Thanks.
Sure. I'll take a crack at it, and I don't know if Sayan has other things to say about this as well. In terms of the systems of engagement, we are focused again on the areas that are relative to people and their financials, right? If you saw what we have on the slide today, you saw us talk about the front office, middle office, the back office, and being able to tie those things together mostly from a data standpoint, and that is in service. Let's talk about the CFO. That's in service of the CFO getting visibility into what's going on in the front office. It is not, let's say, in the retail industry. It is not to become the front office, the system of engagement for the front office, but it's for the CFO to get visibility into that area.
That's not an area that we're gonna go. Certainly, do we want to have, do we wanna be the system of engagement for accounting, for treasury, for, you know, those areas within the CFO? For sure. Do we want for employees? Do we wanna be the system of engagement for employees? Yes. For HR business partners, for the analysts, et cetera, absolutely. Those are areas that we think about for the system of engagement and where we should win.
Specifically on the industry capabilities, it's more things like funds transfer pricing for financial services, average daily balance, the really unique flow through pieces of functionality that are unique to those industries. You know, in healthcare supply chain, and we've been at it. All those things I just talked about for a while, but it's actually bringing them all together in an industry story, and that's really under Chano.
Yeah, I think, Kirk, you know, we've been having dedicated go-to-market teams on some industries like ENG and healthcare. You see some of the data shared before, those been paying off more recently on financial services. It's starting to pay off, and we see a step change on the size of customers that are moving. Clearly, that would not been happening without the maturity that this man and the team are to bring in from the product perspective, and that brings a great point of view and the value across. Obviously, you know, it gets enhanced with what we're doing now with partners and some of the industry accelerators on the SI to bring and have a more comprehensive solution.
Clearly as that maturity gets there and those legacies get ready more for rip and replace, we are seeing and we are having more dedicated go-to-market teams. In some cases, as I mentioned, we're thinking of taking some of the FSIs broader, even international. Of course, in some of the mature countries, obviously U.K. would be a good start with which to go. Those, you know, those investments, what we're seeing is that they're paying off, right? It's like. Again, you can nurture at the beginning some dedicated go-to-market teams with maybe some industry, you know, spokesperson that might be overlay resources.
We try to minimize that period of time, and then more medium long term is really a couple of specific resources because when you have those dedicated teams, as you say, they get the value proposition, they get the language, but they need to basically do it as they're just working very focused on those motions. We are also looking into, you know, does it make sense to do it and to apply to customer base those things that are dedicated per industry as we're getting much more success in some of these industries. Not just land, but also some of the expand motions as we are converting more new customers from, you know, HCM to financial customers.
Hi. Phil Winslow, Credit Suisse. Great to see you all again in person. Aneel, I don't think you look like you've had too much pizza.
I did about two months ago, trust me.
Chano, a question for you. One of the numbers that really stood out was the 50% contribution from medium enterprises. You know, when you think about Workday, we always think about, you know, the largest, large enterprises being customers, but I think that number really jumped out to me. I guess the question there, you know, what are sort of the learnings been that's driving that inflection in that business? And when you think about sort of the growth algorithm going forward, sort of that core, so to speak, large enterprise versus the mid-enterprise, how do we think about that? And then Barbara, in terms of unit economics, is there any sort of difference that you see versus call it that core large enterprise base and this medium enterprise base?
Yeah. A great question. First of all, it's been during the last 12 months, and it's new ACV online coming from medium enterprise, right? We've been riding on that secular trend, as Sayan was saying, and we commented this on our earnings calls. We're gonna try to leverage on those during the pandemic, on those segments and those solutions that will provide higher yield. What happened, you know, during the pandemic, obviously you saw financials having more of a core financials headwind. You see some large enterprise companies being a little bit more concerned on doing those transformations, where they were being done remotely. I think the team did a phenomenal job on focusing and driving that effort through medium enterprise that proved much more resiliency, right?
Those medium enterprise customers have been buying both the financials and basically HCM at the same time. Then Sheri and the teams did a great job on really being very prescriptive on the time to value and on the scope of the solution and the fixed cost implementations that provided a great value proposition. I think that has been a great segment. It's shown us, to be honest, that it can be a great opportunity for us going forward. I believe as well that there's been some weakened basically situation from some of the competitors playing on that segment that I don't know if we're taking advantage of, but we've been really gaining market share. Wanna keep doubling down on that one. It's a great segment for us.
That does not mean that we don't have a great opportunity to win in large enterprise. We do. The second thing is some of those medium enterprise deals are still in ASP because, again, you saw the number of solutions we land with, nine. Much of that is driven from medium enterprise, so you still see $1 million+ deals there, more than one or two in ACV. Don't get mistaken that, you know, it's medium enterprise and they're tiny and they're not really contributing. They truly are.
Just one thing to add about medium enterprise. There's only a handful of countries in the world that have large populations of Fortune 500 companies. When you get outside the U.S., many of the markets like Germany and France and Spain and in Asia, they are medium enterprise markets. That is. As we become more international, we're gonna sell more medium enterprise business.
I'll just layer in on the unit economics, CAC. I think I would say, you know, between medium enterprise, large enterprise, they're relatively similar, so no meaningful difference, and I would just say the same for churn. Again, they're large, they're still large companies. It's not like it's S&P, where you typically see larger churn.
Good point.
Hey, sorry. Raimo Lenschow from Barclays. I don't wanna pitch Aneel against Chano on stage here now, but quick question. As you think about and evolve as a company, like Workday always has been very heavy on product innovation, product development, because there's such a big market that you're going against. If I look at your ratios compared to the peers, you always spent a lot more, which kind of is paying off now. On the sales side, though, you always kind of spent less than the other guys. Chano, I'm sure you kind of do the metrics on your sales productivity, et cetera.
What's the argument or what's the thinking for the long run, not just, you know, not current macro, kind of ignore that, but more in the long run in terms of doubling down more on sales as you have more product to sell there, and changing that ratio in a slightly different direction?
I think Chano and I are on exactly the same page. I mean, as we get more synergies from the rest of the business, we're investing them in sales and marketing. Different than our companies that are viewed as peers in the cloud, not SAP and Oracle, but our peers in the cloud. We set out to build something huge. I mean, ERP is not a single area of product, and it's super complicated, especially finance. We needed a massive R&D investment to get it going. As we start getting economies of scale through Sayan's efforts and just critical mass, I'd rather. I personally, I mean, you know, Barbara and I have this conversation all the time. I personally wouldn't want to keep driving up the operating margin.
I'd rather put it now back into sales and marketing as we, you know, as we get more global opportunity and frankly, a fairly benign competitive environment. I mean, it's not benign. We have two big competitors, but our world hasn't changed. You know, we've got the same competitors we had 17 years ago when we started the company. There's no Amazon, there's no, you know, there's no Google. Microsoft competes at the low end. We've got this, we've got a pretty static competitive environment. We should be racing out and getting as much market share as we can. Chano and I think, see this exactly the same, so.
Completely on the same page.
I don't always agree with what you write, Raimo Lenschow.
Hi, it's Mark Marcon from Baird. Thanks for doing this. It's been tremendous. I'm wondering, can you talk a little bit about two different things. One would basically be, you know, what you're seeing in terms of the international Global 2000, in terms of their recognition to digitize their systems and to go in for the best-in-class solutions that are out there, particularly on HCM, but also in terms of financials. That's just, you know, to what extent are we starting to see an inflection there? That's number one. Number two, what are the implications with regards to CapEx on a long-term basis as you continue to move more towards the public cloud? In addition to that, you know, thinking about APIs and partnerships.
Yeah. I can take the question on the Global 2000 one. I think we shared today 25% basically penetration Global 2000. If you go back a few years ago, we were certainly under 20% more like 17, 18. We're making progress there as those companies are understanding better the benefits of moving to the cloud in the different markets they do operate, and they do have different maturities, as you know, where those are based. We are expecting, based on our pipeline and the conversation we're having, to keep making progress there. Both, I would say in HCM perspective, as some of those as well are realizing that their legacy systems on the financial side, they are not really built up any longer to keep coping with the business.
I expect it to be gradual, but some of those, again, have become financial customers and I'm expecting that trend will continue.
Maybe how about Europe versus Asia-Pacific? No, over to you.
Sorry?
Like, how would you compare international Asia-Pacific versus Europe in terms of adoption?
Yeah. That's a great question. Clearly Europe is much more mature. You know, you go. The countries that we define in Europe as tier one, the one we're seeing because we're doubling down on that one, seeing very significant increased growth, right? I mentioned, you know, during the last period, 100% basically increase in new ACV. What I would say, when you go to APJ, obviously Australia and New Zealand in terms of cloud penetration is a different stage than some other geographies. But obviously Singapore, I would say is following, but it's a much smaller market, right, than some others. Yeah, that's how we compare it.
Cool.
Over on the right, your right. Michael Turrin, Wells Fargo. Thank you for hosting. Disappointed there aren't any mickey ears on stage. One of the questions we've been asking across enterprise software is who is over-monetizing versus under-monetizing? You have a very compelling set of slides on just where you are in terms of penetration. I think we're getting the question just in terms of how you go back to customers in an environment like this and sell effectively back into the base, given these often are larger deals up front. You've obviously added a lot more in terms of new product.
Just in having some of the customer conversations you're having currently, are there any observations you can share in terms of what gives you that right of preference to go back to customers now and engage on some of the new products and some of the innovations you've been working towards?
Yeah. You know, as Aneel was saying, it's mission-critical applications, right? At the end of the day, the customers are renewing because they're seeing value in the applications we're driving. What we've been trying to do, I mean, times like this, is go back to playbooks where we go more to tangible, basically ROIs and return on investments, which we do appreciate with customers. We leverage our referenceable customer base in terms of sharing with each other the use cases and how they're driving value. Sometimes, as I say, I had the privilege to talk to too many customers. I was talking to a CHRO and a CIO of a very global large bank, and they say, "Listen, the business case just goes on its own just on compliance." Sometimes that is underappreciated.
Don't get me wrong, they're seeing a lot of value in terms of managing their workforces and helping them out to bring them back to work, and, you know, managing their talent and so on and so forth. Just on compliance and data points and retiring all those legacy systems that they need to report on and they maintain, it costs a hell of a lot of money these days. It's working with them in partnership so they do understand that. Leveraging some of our referenceable customer base and go through those playbooks, we drive significant value and they wouldn't, we would not be having those retention ratios. We would not be mission-critical or adding value. That's what we're trying to ensure that we train our go-to-market teams to leverage now and we work with our partners that they do understand as well.
Yeah, from a technical side.
Well, it all starts with happy customers, right? Everything that you asked about starts with happy customers. I think you get the sense customers are pretty happy here. In a challenging economic environment, they tend to favor the safe choice versus startups for these new modules or any of these other products, and fewer is better. That trend really benefits us during a tough time where we see large companies saying, "You know, we looked at two or three of these companies. We're not sure they can be around. We're just gonna go with what you have. We know you're gonna be around, and we know you are our trusted partner. And by the way, we're happy." I think that's.
If you guys take away one thing from this conference is take away happy customers and that is our golden goose.
We also see that, you know, for a customer that's renewing, who's been on Workday for three years, let's say with Core HCM, and then they turn on talent optimization, they've amassed that data. The minute they turn on talent optimization, the ML already has the data set to work on. They're seeing immediate value in that second phase.
Hey, thanks. Derrick Wood at Cowen. I got a financial question and then a higher level question. Barbara, just to get some clarification, that 20% growth, is that organic? Does that include potential acquisitions, and is that an average, or is that kind of a commitment to do at least 20% every year until you hit $10 billion? You know, you gave operating cash flow margin targets. Any color on CapEx percentage of revenue? Just as kind of a toss-up to you guys from a broader perspective, I mean, I know we're early in the conference this week, but you know, just would be curious what you're hearing from customers from a macro standpoint, a demand standpoint. Is there pressure in budgets?
Is there more, you know, decision makers involved, or is there a lot of confidence that projects are high priority? Just would love to hear any color you've gotten so far.
I'll take the financial ones first. We are targeting to sustain 20%+ subscription revenue growth on our path to $10 billion, and that is a view based on the opportunity we have in front of us. It's organic, so M&A would be on top of that. Of course, we're carefully watching the environment and to the extent things materially worsen, that could have an impact on our growth rate, but it remains our focus.
Can I say one thing?
Yeah.
You used the word commitment. I would say it's our plan 'cause we do not control the outside world. Our plan in a relatively moderate world, which who knows where we're headed right now, is that. That commitment, that's out of our control.
Derrick, you had CapEx too as well.
Yeah.
CapEx clarly this year is an investment year. We do expect it to go down as a percent of revenue. I think the right way to think about it is probably around five or six, which is 5% or 6%, which is what we saw prior to this year.
Um-
On the customer questions.
Yeah.
I would say we will know more at the end of the week. There are a lot of meetings that are gonna be taking place after we're done with the keynotes, right? Not much more update than what we said on our earnings Q2 call.
Hi, Brad Zelnick with Deutsche Bank right over here. Thanks so much to Justin and Aneel and all of you for a great in-person event. I wanted to ask about Extend because it's something that's slowly becoming a lot more prominent, I think, to the Workday story, something we hear a lot about in speaking to partners and even customers. My questions are more in trying to understand the prioritization and how you monetize. Is it about winning more business and driving win rates 'cause you're better able to solve the customer problem? Is it about having, you know, partners that can develop applications themselves and monetize in that way? What are the different ways that it drives success for Workday and its customers?
Maybe for Sam in particular, as you think about the partner strategy and industries and how important that is, where does Extend play and fit into that? Thank you.
Why don't I start?
Yeah.
The answer is yes and yes. And yes on a bunch of other things as well. Extend is a paid product, one. Two, Extend allows us to create solutions in industries that increase win rates, increase presentation rates as well. We talked this morning, I don't know if you were at the keynote this morning, but we talked about just the explosion of solutions that are being created in the greater ecosystem. 25 packaged solutions this year, but 750 production applications now. We had DevCon this year, second annual. We had over 1,000 people there. We had just lots and lots of kind of people getting trained and coming into the ecosystem.
You know, Extend is a way for us to unlock a lot of different things that we need to do in the product. Last thing I'll say is Extend also makes it so Sayan and team doesn't have to build some things that otherwise customers would be asking us for. Sometimes there's these really unique requirements that a customer has and that they might be asking us, "Hey, can you please build this thing?" It would get in the way of the product roadmap. Instead, Sayan can focus on much higher value things that we can sell to all customers, and a customer can use Extend to kinda unlock those use cases.
Yeah, it absolutely helps us address the long tail, you know, of feature set, as Pete has mentioned. I also think it gives customers the ability to really engage with Workday. You know, I think one of the challenges as we've transitioned to the cloud in a lot of cases is it's happening outside of the IT department, right? You know, you're getting a lot of leverage.
A lot of the knobs and levers that the IT organizations used to traditionally have with their software applications got taken away. By giving them Extend, they are able to help fit and close gaps between what is delivered in the product and what the enterprise needs in a very strategic way. Then, of course, I'll let Sam talk to the partners, which of course are
Yeah. Well, I mean, thank you for the question. Our partners are obviously super excited about Extend and where it's going. It allows them to do several things. First of all, I think it's building a developer community out there, which is something that is gonna help us all kind of build the long tail and make sure that we're not doing everything on our own. Second, it's really giving our partners the ability to differentiate because they have deep expertise in these industries. They've done it for decades. They wanna differentiate themselves from each other, if you will, as they go to the customer. They are really uptaking Extend, and they're writing new applications, and they're writing new workflows. They're integrating at the data level, at this business process level.
They're creating a lot of use case scenarios that otherwise we wouldn't be able to do. At some point, we're gonna take those to market, and then start to monetize those as well. You know, building the solution and accelerating that innovation, but also taking it to market is super attractive to our partners.
Okay. We're gonna take two more as comfortable as those chairs look up there. Two more questions. We're gonna go right here.
Thanks, Justin. It's John DiFucci from Guggenheim.
You're back. Oh my God, you're back.
Ah.
I'm back. I'm not dead yet. Anyway, Brad kind of took my question, just to follow up with his question, how do you actually monetize it though? Like, how is it priced? Because I, Sam, we were out there talking to partners, they really are excited because they see it as something that they can build a business around. They can not only it supplements their implementation services, but they can even do it, take a page out of Chano's book and go back to their base and sell more things to what they need. It's pretty exciting and something I've been asking Aneel questions over the last, like, more than 10 years probably on this.
Like, when are you gonna open this up? 'Cause it's something unique. It's really cool. He would turn to his tech people and say, "When are we gonna open this up? 'Cause it's really cool.
Sayan finally said yes.
How do you monetize? Like, how is it actually priced? You know, how is it gonna be monetized?
Well, we see two ways of doing it. If you look at Deloitte's Accelerate to Zero solution, for example, right? It's a Deloitte-sold solution on Deloitte's paper, but it wraps into the channel motion for our Adaptive product. As they go and sell the use case for the ESG reporting, the Adaptive Workday product is sold as part of that motion. That's one motion is on partner paper, monetizing their IP on top of us as a platform, right? The other motion of that is us reselling partner solutions. We're piloting with a few of those right now to try and figure out where do we wanna selectively do this and where do we not wanna do this.
Our ability to also go to customers in potential areas that we're either missing or customers want that we don't have, and then be able to wrap a partner solution in that, allows us to monetize it as a Workday SKU, for example, and then pay the royalty back to the partner.
Yeah. The vast majority right now comes directly out of customers.
Right.
How are we charging the customers, Chano?
It is an SKU.
Is it based on?
Extend
how many CPUs you're running or is it
It's a calculation based on organizational size plus usage.
Okay.
If I'm a small organization and I'm using it a lot, or if I'm a large organization, right, and so both knobs are in that calculation.
Yeah. As they're building more and having more developers and building more use cases on Extend, it grows, of course.
Okay.
Right?
Yeah. It grows.
If I could, just a quick follow-up. Your infrastructure, like I said, I always thought it was really cool, but I also think there's a cost to it too. I think that's part of what your R&D is, part of that cost. It's embedded in there somewhere. I'm wondering if you could share at all, maybe Barbara, like what is the cost of maintaining your proprietary infrastructure, which is unique and has given you the flexibility in it from a technical perspective. Is there any way that you can break that out or even roughly?
Well, I mean, a lot of that is in our cost of subscription. Beyond that, you know, that's not something that we've broken out.
It's not broken out, but every application vendor has some level of proprietary technology. There's not a single one, SAP, Oracle, ServiceNow, Salesforce. We all have proprietary development platforms. I think ours is purpose-built and really cool for what we do in HR and finance. There are components that Sayan looks at replacing over time that are now probably available on open source, and we're constantly doing that. You know, everybody has their proprietary development platform that's purpose-built for applications.
Think of it staying, again, on the monetization more as a one that has a lot of room to expand. It's usually not one that you land and is small because we may discuss a use case or something they wanna do. Again, as they increase the usage, Sayan's saying and adding more and they see more use cases, and they're contributing. It has a long tail or potential, basically upside and expand.
Hey, guys. Brad Sills here, BofA Securities. Thanks so much for a wonderful event. I wanted to ask one on FINS and verticals here as well. Financials, 70% penetration in the, in the Fortune 500, 75% penetration in education. How did you get that far along in those verticals? One thing I noticed on those slides was that Accounting Center seemed to be the common theme. Is that simply what's required here? You turn that AI ML engine.
To fill in the blanks on some of those processes that Accounting Center can manage. A second question would be on customer satisfaction. How do you achieve those kinds of scores? 'Cause we often don't hear that as the case from other big ERP vendors. It seems to be a real differentiator. Thank you.
Okay. I'll take the industry and maybe I'll let Sheri comment on the customer satisfaction. First, on the financials. On financial services, what I share, Brad, is like we have 70% of the Fortune 500 as customers, right? We've seen a significant step change on what those customers have been taking on to core financial management and financial plus. We see that as a good opportunity for us to keep going forward. There is a lot of room there for attaching financials to our core HCM customer, basically because of the value proposition on Accounting Center. It is true on HCM, as you commented, we already have on our current customer base, there is 75% attachment on financials. Usually those customers, they then come to us because we do have a strong value proposition.
They may take it today or they may implement it down the road as once they've done the full ERP on HC and financials, but they like the operational assisting as enhancing the value proposition. Their financial management has that attached on our customer base today, but clearly the you know, there is a tremendous opportunity there we haven't touched yet. I mentioned with State and Local, which is outside of ENG, and of course, the opportunity that will come with FedRAMP.
Sheri, you wanna take on the.
Yeah. On customer side, I would say a couple things. One, we talked, it's a core value for the company, so every single employee in the company is focused on customers, so that is super helpful. I would also say we try to make sure that all of our deployment methodologies, we wanna make the customer go live as quickly as possible, right? So time to value, like we talked about earlier, is super important. The sooner the customer can realize value, the happier they are. We maintain those relationships for the life cycle of the account.
Okay, we are gonna close it there. Thanks everybody for joining. For those of you in person, again, we're gonna have happy hour networking right outside these doors. For everybody else on the webcast, thank you and have a good evening.