Tim Beyers

Something they mentioned during the quarter, it's pretty small now, but if there is outperformance here, it'll be something to watch.

Zscaler is among the many companies that is now offering its customers the ability to pay a bucket of money to use any service you want at any time you want it.

They call that program ZFlex.

That accounted for $175 million in total contract value in the most recent quarter.

That was up 70%.

quarter over quarter.

So, something to watch there.

But let's move on to Workday, which has dramatically underperformed the market.

Again, ticker WDAY, about 30% year-to-date.

Let me give you some numbers here for the quarter.

Non-gap operating margin of 28.5%.

I think that's pretty good.

The overall, on a non-GAAP basis, that margin was up 215 basis points year over year.

That is very good, if that can continue.

Operating cash flow was up just about 45% year over year to $588 million.

And then, of course, lots more AI.

Everybody's talking about this.

What Workday said specifically is that

AI products added more than 1.5 points of ARR growth this quarter, and 75% of net new deals and 35% of all customer expansions were AI-related.

Subscription revenue grew 15% to $2.244 billion.