Workday Inc


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SKU: WDAY Category:


Workday delivered a robust second quarter result and went on to achieve the target price from our last report. The company’s performance was driven by outstanding execution against a rapidly improving market backdrop as organizations accelerate the pace of digital transformation across finance and HR. In Q2, the company’s subscription revenue was $1.11 billion, up 20% year-over-year, driven by favorable in-quarter linearity, robust new business sales, and an over performance on customer renewals with gross retention of over 95%. Workday’s Professional Services revenue was $147 million, resulting in overall revenue of $1.26 billion. Their non-GAAP operating margin was as high as 23%, driven by a combination of favorable expense variances and top-line outperformance. The management was also able to generate $198 million in operating cash flows, a growth of 26% which is another big green flag. Workday is being able to make the most out of the digitization trends and we are optimistic about its future. We give it an ‘Outperform’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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