Sep. 25, 2014, 6:51 PM
- Workday's (NYSE:WDAY) cloud financial management apps, the company's second-biggest product after its mainstay human capital management apps (700+ customers), is now used by 100+ organizations.
- Major financial management clients include Netflix, Brown University, and ServiceSource. Workday, looking to grab share from SAP and Oracle's on-premise offerings at large and mid-sized businesses, has emphasized the apps' analytics/reporting features and ability to show an integrated view for disparate business data.
- Separately, Workday has announced the availability of Student Recruiting, an app the company claims "modernizes the way higher education institutions prospect and recruit students to better meet specific admission objectives." It's the first app for Workday Student, a broader solution for colleges that was first announced last year.
Sep. 22, 2014, 1:45 PM
- High-beta tech stocks are selling off hard as the Nasdaq registers a 1.3% decline. The selling is broad-based, with Internet, solar, and enterprise tech stocks all well-represented among the ranks of major decliners.
- Major Internet decliners: BIDU -4.7%. ANGI -7%. YELP -5.9%. AWAY -5.1%. CHGG -5.9%. GRUB -5.8%. P -5.2%. Z -4.6%. TRLA -4.8%. ATHM -7.9%. BITA -7%. DANG -5.9%. WB -5.3%.
- Solar: FSLR -4.5%. SCTY -7.5%. SPWR -4.5%. DQ -7.6%. JKS -5.5%. ASTI -6.3%. ENPH -5.5%. CSIQ -4.8%.
- Enterprise: WDAY -5.4%. GIMO -6.7%. VMEM -7.7%. IMPV -4.8%. MKTO -4.9%. SPRT -5.1%. CSOD -5.5%.
- Others: HIMX -4.6%. SIGM -5.6%. WATT -9.7%. CYNI -5.3%. ADNC -5.7%. PXLW -5%. SWIR -5.8%. MITK -6%. OCLR -6%.
Aug. 29, 2014, 1:00 PM
- Low expectations and a high short interest (11.9M shares as of Aug. 15) are proving a good mix for Veeva (VEEV +18.1%) following its FQ2 beat and guidance hike. Several firms have raised their targets.
- Workday (WDAY +5.5%), which sold off yesterday (and took peers down with it) following its FQ2 report, is following Veeva higher. As are Veeva partner Salesforce (CRM +2.1%) and several other cloud software names. NOW +2.9%. CTCT +3.4%. JIVE +2.5%. CSOD +2%. ULTI +1.9%. MKTO +1.9%.
- "We like [Veeva's] momentum with new products, the pace of customer deployments, and view the second-half guidance as likely conservative," says Deutsche (Buy).
- Pac Crest (Outperform) likes the fact Veeva's billings and subscription revenue each rose over 60% Y/Y, and that its large deal activity also grew. It sees a $5B addressable market for life sciences CRM/content management software.
Aug. 28, 2014, 2:45 PM
- Workday (WDAY -4.7%) has received several target hikes after beating FQ2 estimates and upping its FY15 (ends Jan. '15) guidance. But there have also been some cautious notes focused on cloud HR/financial software giant's valuation.
- Citi observes Workday trades at 15x 2015E sales, and says it has trouble seeing upside catalysts at current levels. Goldman points out Workday is trading at 11x estimated enterprise value/billings even if its upside scenario plays out.
- Cantor (target raised to $121) sees several reasons to be bullish. Among them: The ramp of Workday's recently-launched recruiting product; the pending launch of Workday Student; an enterprise software upgrade cycle; strong international growth (echoes of Salesforce); and expected announcements at the November Workday Rising conference.
- Wedbush (target raised to $106) expects new big data/analytics products to be shown off at the conference. It also sees room for a fresh guidance hike in 3 months, though it thinks it might be smaller than yesterday's hike.
- Workday used its CC (transcript) to hike its FY15 billings guidance by $50M to $940M-$960M (above revenue guidance of $760M-$770M). FQ3 billings guidance is at $225M-$230M (above revenue guidance of $200M-$205M).
- Salesforce (CRM -2%) and several other cloud software names are following Workday lower. CSOD -3.3%. MKTO -3.3%. DWRE -2.2%. JIVE -1.6%. N -1.4%.
Aug. 27, 2014, 4:16 PM
- Workday (NYSE:WDAY) expects FQ3 revenue of $200M-$205M, above a $195.6M consensus. FY15 (ends Jan. '15) revenue guidance is at $760M-$770M, up from a prior $730M-$750M and above a $748.7M consensus.
- The unearned revenue balance rose 4% Q/Q and 48% Y/Y in FQ2 to $481.5M; Y/Y growth was at 54% in FQ1. Free cash flow was -$37.4M, thanks in part to capex of $28.4M.
- Sales/marketing spend +68% Y/Y to $70.9M; R&D +60% to $59.9M; G&A +42% to $14.6M. The figures compare with revenue growth of 74%.
- Subscription revenue rose 77% Y/Y to $143.7M, and professional services 63% to $43.1M.
- FQ2 results, PR
Aug. 27, 2014, 4:06 PM
Aug. 26, 2014, 5:35 PM
Jul. 30, 2014, 3:58 PM
- Ultimate Software (ULTI +7.4%) beat Q2 estimates on the back of a 26% Y/Y increase in recurring revenue (84% of total revenue). The cloud HR software vendor also disclosed on its CC (transcript) it added three new enterprise clients with 10K or more employees; the largest has 40K.
- Full-year guidance for 23% revenue growth (25% recurring growth) has been reiterated. Q3 guidance for revenue of $127M is roughly in-line with a $127.3M consensus.
- A number of cloud software peers have also rallied. Cloud HR/talent management peers Workday (WDAY +6.5%) and Cornerstone OnDemand (CSOD +5.1%) are among the biggest gainers, but others are also doing quite well. CRM +2.7%. NOW +4.7%. LPSN +5.3%. MKTO +4.1%. CNQR +4.8%. JIVE +3.6%. N +4.2%.
Jul. 8, 2014, 12:45 PM
- Echoes of April: Following a big May/June rally that propelled the Nasdaq to new post-Dot.com bubble highs, momentum stocks are nosediving nearly across the board today.
- The selloff comes ahead of Alcoa's afternoon Q2 report, the unofficial start of earnings season. Some of the cash going out of equities is flowing into Treasurys.
- Notable 6%+ decliners: TWTR -7.6%. DDD -6.5%. SSYS -7.9%. P -7.7%. LNKD -7.1%. DATA -10.1%. SPLK -9.3%. WDAY -7.7%. YELP -8.3%. GOGO -6.5%. YOKU -6.6%. ZU -10.5%. NOW -6.8%.
Jun. 20, 2014, 1:27 PM
- Oracle missed FQ4 estimates thanks in part to weaker-than-expected license growth that has stoked fresh cloud competition fears. FQ1 guidance is in-line.
- Tibco, which has been dealing with competitive and execution issues for several quarters, posted FQ2 numbers that were slightly better than the outlook provided in a June 3 warning, but also issued weak FQ3 guidance.
- Many enterprise software names are trading lower, including several cloud software firms and a few companies viewed as big data/analytics plays: VMW -1.3%. SPLK -1.9%. DATA -2.3%. INFA -1.6%. MKTO -3.8%. JIVE -2.5%. CSLT -4.1%. BSFT -3.3%.
- Workday (WDAY -2.2%) is also among the decliners. Larry Ellison again went out of his way to take shots at the cloud HR leader during Oracle's earnings CC (transcript). "We already have a huge lead over Workday in cloud ERP ... In HCM, we are dominating Workday in Europe, and beating them in dozens of core HCM deals here in North America." Workday will probably beg to differ on the specifics.
May. 30, 2014, 1:49 PM
- High-beta enterprise tech names are particularly well-represented in a momentum stock selloff as Splunk, Nimble Storage, Violin Memory, and (especially) Infoblox fall post-earnings.
- Analytics/data visualization software vendors Tableau (DATA -6.5%) and Qlik (QLIK -4.1%), often hyped (like Splunk) as big data plays, are among the decliners. As is flash storage vendor Fusion-io (FIO -5.4%), which competes with Violin and (to a lesser extent) Nimble. But they're far from the only ones.
- Security decliners: FEYE -6.5%. CUDA -8.4%. IMPV -7.4%. PFPT -5.7%. VDSI -4%. QLYS -4.5%.
- Cloud software decliners: WDAY -4.1%. JIVE -4.3%. MKTO -7.4%. NOW -4.9%. TNGO -5.1%. CSLT -6.9%. TXTR -6.7%. RALY -11.6%.
May. 27, 2014, 5:35 PM
May. 27, 2014, 4:30 PM
- Workday (WDAY) expects FQ2 revenue of $173M-$178M and FY15 (ends Jan. '15) revenue of $730M-$750M. The former is above a $171.5M consensus, and the latter is both up from a prior $710M-$740M and favorable at the midpoint to a $735.4M consensus.
- FY15 billings guidance has been hiked by $40M to $890M-$910M. Thanks to "several new large customers," FQ1 billings totaled $208M (+94% Y/Y), above revenue of $159.7M and blowing past guidance of $165M. FQ2 billings are expected to be down Q/Q.
- Thanks to the billings print, Workday's unearned revenue balance rose 12% Q/Q and 54% Y/Y in FQ1 to $461.9M.
- Free cash flow was $11.5M.GAAP costs/expenses rose 70% Y/Y to $211.8M, with sales/marketing spend rising 77% to $68.2M and R&D spend 80% to $65.2M.
- WDAY +4.9% AH. FQ1 results, PR
May. 27, 2014, 4:04 PM
May. 26, 2014, 5:35 PM
May. 15, 2014, 1:11 PM
- Aneel Bhusri, who has been serving as Workday's (WDAY -3.4%) co-CEO with fellow co-founder David Duffield, is now the company's sole CEO. At the same time, Duffield is replacing Bhusri as chairman. (8-K)
- Baird's Steven Ashley doesn't see the shakeup as a big deal. "Everyone at Workday is doing what they did last week. The day-to-day hasn't really changed."
- Shares are joining many other high-beta tech names in selling off.
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