Huge Puts on Workday Inc
Jan 19 $100 Puts Sweep (3) at the Ask: 630 @ $6.1 vs 85 OI; Ref=$104.16
https://www.benzinga.com/markets/option ... nday-trade
The global Human Capital Management (NASDAQ:HCM) market size is expected to grow 9.2% annually over the next five-year period.
The industry is expected to grow from $14.50 billion in 2017 to $22.51 billion by 2022.
Revenues grew 40.6% over the year to $523 million, significantly ahead of the Street's forecast of $507 million.
EPS of $0.24 was also ahead of the market's forecast of $0.15.
By segment, subscription revenues grew 42% to $434.5 million and professional services revenues grew 34% to $90.8 million.
Overall, for the year, Workday forecast revenues of $2.093-$2.1 billion, compared with the market forecast of $2.05 billion.
First, it announced a fixed fee, pre-configured application package for US-based medium enterprises.
Secondly, it has announced its intention to enter the Platform-as-a-Service market by opening the Workday Cloud Platform to its customers' partners, independent software vendors, and developers.
This move opens up yet another competitive front against Salesforce.
The market also is awaiting the release of Workday Prism Analytics, expected to be launched this fall.
Prism is an analytic solution that has been developed on Amazon as part of Workday's cloud services by leveraging the Platfora acquisition.
Prism will allow organizations to pull data from a variety of sources into Workday for analysis.
When asked about competitors like Automatic Data (ADP - Get Report) , Bhusri explained that ADP is both a partner and a competitor.
He said ADP is a 50-year-old company that is transitioning to the cloud, while Workday as born in the cloud.
Highlights
Summary numbers: Revenues of USD 524.85 million, Net Earnings of USD -82.53 million.
Gross margins widened from 68.79% to 69.86% compared to the same period last year, operating (EBITDA) margins now -9.36% from -15.99%.
Year-on-year change in operating cash flow of 141.71% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
Earnings growth from operating margin improvements as well as one-time items.
Company Profile
Workday, Inc. engages in the provision of enterprise cloud applications for finance and human resources. It delivers financial management, human capital management and analytics applications designed for the world’s largest companies, educational institutions, and government agencies.
Shebly Seyrafi, FBN Securities: Reiteratse a Sector Perform rating, and raises his price target to $115.
Brian White, Drexel Hamilton: Reiterates a Buy rating, and raises his price target to $133 from $122.
Ross MacMillan, RBC Capital: Reiterates an Outperform rating, and raises his price target to $119 from $116.
J. Derrick Wood, Cowen & Co.: Reiterates a Market Perform rating, and raises his price target to $100 from $93.
Keith Bachman, BMO Capital: Reiterates a Market Perform rating, and raises his price target to $117.
Steve Koenig, Wedbush: Reiterates a Neutral rating, and raises his price target to $104 from $101.
Michael Nemeroff, Credit Suisse: Reiterates a Neutral rating, and raises his price target to $100 from $94. "
David Duffield and Aneel Bushri are legends in the HR tech field.
They built PeopleSoft Inc. into a tech powerhouse in the 1990s, and then sold their firm to Oracle Corp. (Nasdaq: ORCL) in 2004 for a cool $10.4 billion.
Back in 2010, Workday had 160 clients. That tally now exceeds 1,000. The firm is currently eyeing the roughly 23,000 large-scale ERP and HCM clients, most of which are serviced products from Oracle and/or SAP SE (NYSE: SAP).
Workday also reported a sharp 41% spike in revenue to $525.3 million. Quarterly profits rose sharply and were 60% ahead of forecasts.
David Duffield and Aneel Bushri are legends in the HR tech field.
They built PeopleSoft Inc. into a tech powerhouse in the 1990s, and then sold their firm to Oracle Corp. (Nasdaq: ORCL) in 2004 for a cool $10.4 billion.
Back in 2010, Workday had 160 clients. That tally now exceeds 1,000. The firm is currently eyeing the roughly 23,000 large-scale ERP and HCM clients, most of which are serviced products from Oracle and/or SAP SE (NYSE: SAP).
Workday also reported a sharp 41% spike in revenue to $525.3 million. Quarterly profits rose sharply and were 60% ahead of forecasts.
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