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Workday is market-leading in cloud HCM software, with 45% of the Fortune 500 as clients. It has successfully expanded into financials, planning, and analytics, which keeps growth in the mid-20s, and there are still plenty of opportunities, especially internationally. However, given the high level of stock-based compensation and related dilution, the company isn’t profitable on […]

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Workday has managed to escape much of the present market selloff, especially compared to many other tech names. One reason for that is its Q3 beat, and the company is indeed doing well, but there was some pull from Q4 boosting Q3 figures and growth is slowing down. There is also a huge amount of […]

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Acquisitions and new modules have expanded the TAM and will keep revenues growing for some time to come. While the company is non-GAAP profitable, there isn’t yet much operational leverage, and share-based compensation is huge. We don’t see much reason for multiple expansion either. In fact, multiples could contract in times of market turbulence when […]

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The company keeps doing almost everything right, with good growth, operational leverage and lots of free cash flow. There is no reason to think this won’t continue, but the picture is muddied by a large amount of share-based compensation. The company’s valuation is also quite stretched, in our view. Source: Workday Keeps On Rising, But […]

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Normally we’re not very keen on M&A, given their track record. However, Workday would offer several substantial benefits for Microsoft, more especially its efforts to spearhead its cloud platform Azure. Workday doesn’t come cheap though; Microsoft will have to pay through its nose for the company. Source: Should Microsoft Buy Workday? – Microsoft Corporation (NASDAQ:MSFT) […]

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Workday has multiple avenues for company growth. The end stage would be that it evolves into a platform offering a more or less complete suite of business software solutions, developed in-house and by third parties. For now, much of this growth is already priced in the shares, though. Source: Workday’s Opportunities Can Keep Growth Going […]

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The SaaS business model in enterprise software is clearly a very attractive business model commanding some prime valuations. It offers multiple growth avenues, and when done right, platforms can establish themselves as the de facto standard which enables increasing returns to kick in. Here we look at three such companies. Source: SaaS Is King | […]

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Cloud platforms open the possibility for significant economies of scale, scope and network effects. When these forces are strong, a virtuous cycle can ensue in which the company’s position becomes difficult to dislodge. We are comparing two such companies for their potential on these dimensions. Workday Versus Shopify, 2 Cloud Platform Companies Compared

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On Workday’s March 7, 2013 earnings call, the CFO (Mark Peek) said, “Approximately 63 million shares, including more than 14 million exercisable stock options not currently included in our share count, will be available to trade after the lockup expires. These totals exclude shares held by insiders and those subject to Rule 144.” Doing the […]

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