Workday (WDAY) - NYSE
  • Jul. 7, 2015, 12:41 PM
    • After following markets lower earlier today, Workday (WDAY +1.1%) has turned positive in the wake of a column from The Information's Steve Nellis arguing Microsoft (NASDAQ:MSFT) should buy the cloud HCM/financials software leader.
    • Nellis: "Only Salesforce (NYSE:CRM) and Workday have enough revenue momentum to help Microsoft become a major seller of software for tracking customers, employee records and financials. But Workday is the better choice for several reasons, including the fact that Salesforce’s products feel dated."
    • CNBC reported in May Microsoft held buyout talks with Salesforce, the sole enterprise cloud software pure-play larger than Workday, while adding the companies "remained far apart on a price."
    • With a current market cap of $14.8B - would the company be willing to sell at $19B-$20B? - Workday would be a much less costly acquisition for Microsoft than Salesforce ($45.3B market cap). Both the company's forward sales multiples and expected growth rates are notably higher than Salesforce's.
    | Jul. 7, 2015, 12:41 PM | 7 Comments
  • Apr. 29, 2015, 3:02 PM
    • After following markets lower most of today, enterprise cloud software vendors have jumped thanks to a Bloomberg report stating cloud CRM software giant Salesforce ($51B market cap) has been approached by a potential buyer, and is working with bankers to field offers.
    • Gainers include Workday (WDAY +6%), ServiceNow (NOW +4.3%), NetSuite (N +4.3%), Marketo (MKTO +2.7%), Zendesk (ZEN +1.2%), Cornerstone OnDemand (CSOD +1.6%), Castlight (CSLT +2.4%), and Jive Software (JIVE +1.5%).
    • Though the cloud software market has seen plenty of M&A activity, a Salesforce deal would easily be its largest. Workday ($17.5B market cap) is the second-largest enterprise cloud pure-play. ServiceNow ($11.6B) is #3.
    | Apr. 29, 2015, 3:02 PM | 2 Comments
  • Feb. 26, 2014, 6:31 PM
    • Along with its FQ4 results, Workday (WDAY) has announced the acquisition of Identified, a developer of HR analytics software that aims to provide insights into job candidates and recruiting activity.
    • The purchase appears to be an acqui-hire: Workday says Identified's R&D team is "expected to enhance search capabilities and accelerate the delivery of predictive analytics and machine learning throughout Workday’s suite of applications."
    • LinkedIn has also shown a keen interest in this area. Three weeks ago, the company announced it's acquiring Bright, a job search engine/listing platform that relies on analytics and machine learning algorithms to match workers and employers.
    • WDAY +2.7% AH. Shares were initially lower post-earnings.
    • FQ4 results, guidance/details
    | Feb. 26, 2014, 6:31 PM | 2 Comments
  • Oct. 24, 2013, 12:09 AM
    • Ahead of tomorrow's Q3 report, NetSuite (N) has struck a deal to acquire TribeHR, a developer of cloud HR apps aimed at SMBs. NetSuite plans to fuse the startup's offerings with its SMB-focused cloud ERP apps.
    • "Really there has been no HR offering in the mid-market," states NetSuite CEO Zach Nelson (a little hyperbolically). He sees an intergrated ERP/HR solution allowing SMBs to do away with manual HR processes, and also talks up the value of TribeHR's social/collaboration tools.
    • The purchase means NetSuite will compete more with Workday (WDAY), which leads the cloud HR market and also offers cloud ERP software. But Workday has a stronger focus on large enterprises. Ultimate Software (ULTI), Cornerstone OnDemand (CSOD), and Paylocity (reportedly eying an IPO) also compete in cloud HR.
    • Separately, NetSuite and others see an opportunity for the company to poach clients from SAP's SMB-focused Business ByDesign cloud apps, which the German software giant has decided to pare its investments in. NetSuite has launched a Business ByDesign migration program.
    • SAP has reportedly invested €3B in Business ByDesign development over 7 years, but the platform has never generated more than €23M/year in sales in 3 years of availability. Business ByDesign resources will be shifted towards SAP's Hana Cloud, which runs cloud apps on top of the popular Hana in-memory database.
    | Oct. 24, 2013, 12:09 AM
Company Description
Workday, Inc. provides enterprise cloud applications for human capital management, payroll, financial management and analytics. It offers innovative and adaptable technology focused on the consumer Internet experience and cloud delivery model. The company applications are designed for global... More
Sector: Technology
Industry: Application Software
Country: United States