Workday, a provider of enterprise cloud applications for finance and human resources, announced its latest enterprise client list.
Workday Financial Management clients
# Metropolitan Washington Airports Authority
# Virgin Voyages.
# Denny’s
# Panera
# T. Rowe Price
# Zillow have
Workday Human Capital Management clients
# Alimentation Couche-Tard
# GE Appliances
# Husqvarna Group
# KONE Corporation
# St Vincent’s Health Australia
# Twenty-First Century Fox
Kelsey Mason, analyst at TBR, said Workday continues prioritizing top-line growth over profitability, which is paying off as the vendor had major Q3 signings in the U.S. and Europe including GE Appliances and KONE, respectively. Continuing to sign large enterprises is crucial as Workday uses these as reference customers drive adoption in key regions and industries.
In addition to recent customer wins, Workday continues to successfully move customers into production with more than 70 percent live on Workday applications. Recent deployments include Airbus Group, Centrica, First Financial Bank, ING Group, and Saint Luke’s Health System.
“We continue to see strong customer demand as organizations across industries select and deploy Workday Financial Management and Workday HCM,” said Phil Wilmington, co-president of Workday.
Workday revenue growth
Workday said its revenues were $409.6 million (+34.2 percent) during fiscal third quarter ended October 31, 2016.
Subscription revenues of Workday were $335.7 million, an increase of 38.3 percent from the same period last year.
Workday’s operating loss was $109.9 million, or negative 26.8 percent of revenues, compared to an operating loss of $70.2 million, or negative 23.0 percent of revenues.
“We continue to lead with product differentiation, technology innovation, and customer success, and believe these are significant differentiators for Workday in the market,” said Aneel Bhusri, co-founder and CEO of Workday.
TBR analyst report on Workday
Workday has launched three new solutions in the quarter: Student, Learning and Planning, which already has 70 customers. Bringing Learning and Planning into deals alongside HCM and Financials as well as its data-driven functionality will help Workday engage in more strategic conversations with the C-suite.
Kelsey Mason, analyst at TBR, said engaging with the C-suite aligns Workday more closely to SAP and Oracle and while the vendor has high win rates against these competitors, it lacks the same global scale and the cash to build additional data centers.
Instead, a long-term infrastructure partnership with AWS and Workday-focused acquisitions by global SIs such as Accenture and Wipro will expand Workday’s global reach. Workday can then focus on building out its portfolio to more closely match the breadth of incumbents’ offerings, and use cash on hand to make strategic, niche acquisitions. TBR expects data to be the focus of some of these purchases.
In 2017 Workday will put emphasis on the midmarket, using its implementation tools to lower costs, as well as its partnership with Microsoft as an inroad to these accounts. Additionally, Workday will find new ways to expose data to customers and monetize that data to create new revenue streams.
Workday announced plans to launch a Data-as-a-Service (DaaS) solution in 2H17. DaaS would allow customers to anonymously contribute data to the service, allowing other users to benchmark their own metrics against second-party data.
While other vendors investing in DaaS such as Oracle are primarily doing so from a marketing perspective, Workday’s back-office approach is unique.
Baburajan K
editor@infotechlead.com
