Workday, Inc.

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Workday, Inc.
Type Public
Traded as NYSE: WDAY
Industry Software
Founded March 2005
Headquarters Pleasanton, California, United States
Number of locations 20+ [1]
Area served Global
Key people Dave Duffield, Co-founder, Co-CEO and Chief Customer Advocate; Aneel Bhusri, Co-founder and Co-CEO
Products Human capital management, payroll, and financial management
Services Online software
Revenue $119.5 million[2]
Employees 2,400[3]
Website www.workday.com

Workday, Inc. is an on‑demand (cloud-based) human capital management and financial management software vendor. It was founded by David Duffield, the founder and former CEO of the ERP giant PeopleSoft, and former PeopleSoft chief strategist Aneel Bhusri following Oracle's hostile takeover of PeopleSoft in 2005. It targets the customers of rivals Oracle or SAP by offering them "online services at a fraction of the cost of upgrading from their incumbent vendors". In October 2012, it launched a successful initial public offering that valued the company at $9.5 billion.[2]

Early history

Workday was founded in March 2005 and launched in November 2006.[4] Initially, it was funded by Duffield and venture capital firm Greylock Partners. In December 2008, Workday moved its headquarters from Walnut Creek to Pleasanton, where PeopleSoft, founder Duffield's prior company, was located. Workday sells software and services using the SaaS model.[5][6]

On February 6, 2008, Workday announced that it had reached a definitive agreement to purchase Cape Clear.[7][8] In May 2008, Workday signed a large contract with Flextronics to provide human capital management software services.[9] Other large, multinational companies that have publicly disclosed contracts or deployments of Workday include Aviva,[10] Chiquita Brands,[11] CAE Inc., Fairchild Semiconductor,[12] Rentokil Initial,[13] Thomson Reuters,[14] and Time Warner.[15]

On April 29, 2009, Workday announced that it secured $75 million in Series E funding led by New Enterprise Associates. Existing investors Greylock Partners and Workday CEO and co‑founder Dave Duffield also participated in the round.[16] On October 24, 2011, Workday announced $85 million in new funding, bringing total capital raised to $250 million. Investors in the latest round included T. Rowe Price, Morgan Stanley Investment Management, Janus, and Bezos Expeditions, the personal investment entity of Amazon CEO and founder Jeff Bezos.[17]

Initial public offering

As of spring 2012, Workday had 310 customers, ranging from mid-sized businesses to Fortune 500 companies.[18] In October 2012, Workday launched its initial public offering (IPO) on the New York Stock Exchange with ticker symbol WDAY. Its shares were priced at $28 and ended trading Friday, October 12, at $48.69, "propelled the start-up to a market capitalization of nearly $9.5 billion including unexercised stock options". It sold 22.75 million Class A shares, raising $637 million. The IPO raised more cash than any launch in the U.S. technology sector since Facebook's $16 billion IPO in May 2012. Its shares surged 74% in their IPO, underscoring investor interest in cloud computing.[2]

Business model

Workday makes money by offering subscriptions to services rather than selling software. Expenses are booked up front when it signs on a new customer but the associated revenue is recognized over the life of multiyear agreements. Workday does "not expect to be profitable for the foreseeable future". Its revenue more than doubled to $119.5 million in the six-month period that ended July 31, 2012, while recording a net loss of $46.9 million.[2]

Corporate governance

Duffield holds voting rights to Workday shares that were worth $3.4 billion and Bhusri held rights to shares valued at $1.3 billion. Collectively, they hold 67% of the company's voting shares. This voting structure makes the event of a hostile takeover much more unlikely.[2]

Product

Workday has released 20 updates to its product line as of August 2013. It releases an update every 4 months.

References

  1. ↑ http://www.workday.com/company/contact_us.php
  2. ↑ 2.0 2.1 2.2 2.3 2.4 Clark, Don (12 October 2012). "Cloud-Computing Firm Workday's IPO Soars". Wall Street Journal. 
  3. ↑ Newcombe, Tom (18 December 2013). "Workday appoints Ashley Goldsmith as chief HR officer". 
  4. ↑ http://www.businessweek.com/print/magazine/content/06_46/b4009095.htm
  5. ↑ Bing, Jeb (5 December 2008). "Duffield Is Back:PeopleSoft Founder Moves New Company to Pleasanton". Pleasanton Weekly. 
  6. ↑ Temple, James (4 December 2008). "Workday Inc. Is Moving to Pleasanton". San Francisco Chronicle. 
  7. ↑ Workday press release
  8. ↑ Another ERP vendor buys into middleware ZDNet February 6, 2008
  9. ↑ http://www.informationweek.com/news/services/saas/showArticle.jhtml?articleID=207603344
  10. ↑ http://www.workday.com/resources/customer_case_studies/aviva.php
  11. ↑ http://www.informationweek.com/news/services/saas/207603344
  12. ↑ http://www.zdnet.com/blog/gardner/case-study-how-fairchild-semiconductor-leverages-the-workday-integration-cloud/4150
  13. ↑ http://www.hrmagazine.co.uk/hro/news/1020454/rentokil-initial-implements-cloud-technology-manage-66
  14. ↑ http://www.zdnet.com/blog/btl/workday-launches-workday-14-wins-thomson-reuters-deal/55079
  15. ↑ http://financial.tmcnet.com/topics/financial-technology/articles/192004-time-warner-deploys-workday-hr-payroll-solution.htm
  16. ↑ Barret, Victoria (30 April 2009). "Duffield Scores Biggest Round". Forbes. Archived from the original on 31 July 2012. 
  17. ↑ Hesseldahl, Arik (24 October 2011). "Exclusive: Aneel Bhusri’s Workday Raises $85 Million at a Whopping $2 Billion Valuation". All Things D. 
  18. ↑ http://blogs.workday.com/Blog/workday_rising_becoming_part_of_a_unique_ecosystem.html

External links

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