E. Lief

E. Lief
Contributor since: 2012
I think that Facebook could grow a lucrative search business. They also have several other businesses in the pipeline that might succeed. However, developing and proving out these businesses, including search, will take time. There is also risk that many of them will not materialize. I think the current valuation already builds in a very high growth rate and a high degree of optimism in the viability of other revenue streams including search.
I disagree. Sure, there exists a valuation where WDAY is a definite buy. There is also a valuation where the founders get greedy and WDAY is clearly overpriced. More likely, however, shares will be priced at a level somewhere in between and you will need to analyze factors like the company's current and projected cost structure and growth to determine if it is a buy.
It is possible that CRM applications take less investment than ERP/HCM. Even if that is the case, I don't think the difference should be as big as what we are seeing. Also, Workday's R&D costs are significantly higher than NetSuite's, while NetSuite offers an even broader suite of products than Workday.
Yep, I agree that would have been a good approach.
I selected 2008 for WDAY because that was the first year with reasonable revenues. 2007 revenues for WDAY were under 500k. Then I found the years for CRM and N where revenues were closest to those of WDAY in 2008.
Thanks, i'm glad that you enjoyed it. I was a bit concerned that the charts without dates would be confusing. The reason I did not include them is that the dates are actually different for the three companies.
The idea was to compare the growth of the three. That means that the data for WDAY starts in 2008, the data for CRM starts in 2001, and the data for N starts in 2003. If they were compared at the same point in time they would be at very different stages in their business growth.
I have no doubt that Marc Benioff thinks that CRM is amazing. What founder doesn't think that way about his product?
I do think that the WDAY's approach of bringing principles from the consumer internet into enterprise software can make it a product that users love. The leading products today (PeopleSoft and SAP) are so not user friendly that they won't be difficult to outdo in that regard.