A month has gone by since the last earnings report for Workday (WDAY) . Shares have added about 6.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Workday due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Workday's Q3 Earnings Surpass Estimates on Healthy Revenue ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Workday (WDAY) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Workday currently has an average brokerage recommendation (ABR) ...

Workday, Inc. (WDAY) recently introduced improved capabilities in its AI (artificial intelligence)- based platform Illuminate to help build a thriving workforce by fostering employee retention for greater organizational success. The improved capabilities of Illuminate, currently available in Workday Peakon Employee Voice (the AI-powered employee listening solution), will enable managers to access AI-generated content summaries and emerging issues from a vast volume of employee feedback across more than 60 l ...

Workday, Inc. (WDAY) recently announced that DISA Global Solutions and GoodTime have obtained Workday Design Approved Integration status and have been incorporated into the Workday platform. The move accentuates Workday’s strong emphasis on creating an ecosystem of enterprises that provides best-in-class complementary offerings and delivers successful outcomes for the joint customers. By joining the program, partner solutions gain extensive visibility and exposure to WDAY’s vast customer base through Workda ...

Core Insights - Workday has introduced new AI capabilities in Workday Peakon Employee Voice to assist managers in retaining top talent and enhancing employee engagement [1][4] - The innovations aim to alleviate manager burnout by providing actionable insights from employee feedback, thus driving organizational success [2][4] Product Innovations - Generative AI-Powered Content Summaries analyze employee feedback across 60+ languages, enabling organizations to address concerns like workload and burnout proactively [3][4] - On-Demand Comment Summaries allow targeted analysis of feedback by department or location, facilitating specific improvements in employee engagement [3][4] - Rules-Based Questions enable tailored surveys at critical moments in the employee lifecycle, providing data-driven insights to enhance the employee experience [3][4] Market Context - The need for effective employee retention strategies is heightened in the current business landscape, with managers playing a crucial role in fostering engagement and loyalty [2][4] - Workday's dataset includes over one billion aggregated employee responses and 200 million pieces of written feedback from 160 countries, providing deep insights into global workforce trends [4][5] Customer Impact - Companies like EQ and BDR Thermea Group have successfully utilized Workday Peakon Employee Voice to turn insights into action, resulting in higher employee engagement [5][7] - Workday itself has leveraged employee feedback to implement beneficial changes, such as a Work From Almost Anywhere policy, leading to increased flexibility scores and a 35% rise in employee satisfaction regarding growth and career paths [7][8] Availability - The new features, including Generative AI-Powered Comment Summaries, On-Demand Comment Summaries, and Rules-Based Questions, will be available to customers in the first half of 2025 [8]

Financial Performance - Total revenues for the three months ended October 31, 2024, were $2.16 billion, a 16% increase from $1.87 billion in the prior year period[107]. - Subscription services revenues for the same period were $1.96 billion, reflecting a 16% increase from $1.69 billion year-over-year[113]. - GAAP operating income increased by 88% to $165 million for the three months ended October 31, 2024, compared to $88 million in the prior year[107]. - Non-GAAP operating income for the three months ended October 31, 2024, was $569 million, a 23% increase from $462 million in the prior year[107]. - Professional services revenues for the three months ended October 31, 2024, were $201 million, a 15% increase from $175 million in the prior year[113]. - GAAP operating income was $165 million, or 7.6% of revenues, for the three months ended October 31, 2024, compared to $88 million, or 4.7% of revenues for the prior year[128]. - Non-GAAP operating income was $569 million, or 26.3% of revenues, for the three months ended October 31, 2024, compared to $462 million, or 24.8% of revenues for the prior year[128]. Revenue Backlog and Retention - The gross revenue retention rate was 98% as of October 31, 2024, indicating strong customer satisfaction and retention[114]. - Total subscription revenue backlog reached $22.19 billion as of October 31, 2024, up 20% from $18.45 billion a year earlier[115]. Cash and Liquidity - Cash, cash equivalents, and marketable securities totaled $7.16 billion as of October 31, 2024, a 4% increase from $6.88 billion a year earlier[107]. - As of October 31, 2024, the company's liquidity sources included cash, cash equivalents, and marketable securities totaling $7.2 billion, primarily for working capital and corporate purposes[133]. - Cash provided by operating activities for the three months ended October 31, 2024, was $406 million, a decrease from $451 million in the same period of 2023, attributed to increased employee-related payments of $119 million and supplier payments of $62 million[134]. - For the nine months ended October 31, 2024, cash provided by operating activities improved to $1.3 billion from $1.2 billion in 2023, driven by higher cash collections of $555 million due to increased sales[136]. - As of October 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $7.2 billion, down from $7.8 billion as of January 31, 2024[158]. Expenses and Costs - Total costs and expenses were $2.0 billion for the three months ended October 31, 2024, an increase of $217 million, or 12% from the prior year[117]. - Costs of subscription services were $329 million for the three months ended October 31, 2024, an increase of $66 million, or 25% from the prior year[118]. - Costs of professional services were $201 million for the three months ended October 31, 2024, an increase of $19 million, or 11% from the prior year[119]. - Product development expenses were $647 million for the three months ended October 31, 2024, an increase of $28 million, or 5% from the prior year[120]. - Sales and marketing expenses were $620 million for the three months ended October 31, 2024, an increase of $82 million, or 15% from the prior year[123]. - General and administrative expenses were $198 million for the three months ended October 31, 2024, an increase of $22 million, or 12% from the prior year[124]. Employee and Headcount - The company added 2,124 employees, bringing total headcount to 20,493, a 12% increase year-over-year[107]. Cash Flow Activities - Cash used in investing activities for the three months ended October 31, 2024, was $450 million, primarily due to the acquisition of Evisort for $302 million and capital expenditures of $47 million[137]. - Free cash flows for the three months ended October 31, 2024, were $359 million, down from $391 million in the prior year, mainly due to increased employee-related payments[140]. - Cash used in financing activities for the three months ended October 31, 2024, was $282 million, primarily for share repurchases of $158 million and taxes paid of $124 million related to equity awards[138]. - For the nine months ended October 31, 2024, cash used in financing activities totaled $996 million, mainly due to share repurchases of $597 million[138]. Capital Expenditures and Financing - The company expects capital expenditures to be approximately $300 million in fiscal 2025, focusing on data centers and office facilities[137]. - The company authorized a new share repurchase program in August 2024, allowing for the repurchase of up to $1.0 billion of Class A common stock[143]. - The company may seek additional debt or equity financing as part of its long-term capital strategy, influenced by macroeconomic trends and growth initiatives[133]. Market and Economic Risks - An immediate increase or decrease of 100 basis points in interest rates would have resulted in an approximately $58 million market value reduction or increase in the investment portfolio as of October 31, 2024[158]. - The company is exposed to foreign currency exchange risk due to global transactions, with significant exposures to the euro, British pound, Canadian dollar, and Australian dollar as of October 31, 2024[157]. - The Senior Notes have fixed annual interest rates, eliminating economic interest rate exposure on these debt obligations, but their fair values are still subject to interest rate risk[159]. - Borrowings under the 2022 Credit Agreement bear interest at a variable rate, exposing the company to market risk from changes in underlying index rates[159]. - The company enters into foreign currency derivative hedging transactions to mitigate risks associated with foreign currency exchange fluctuations[157]. - The investment portfolio is managed to preserve capital and meet liquidity needs, with no investments made for trading or speculative purposes[158]. - Fixed rate securities may experience adverse market value effects due to rising interest rates, while floating rate securities may yield less income if interest rates fall[158]. - The company recognizes declines in fair value of debt securities classified as "available-for-sale" on the Condensed Consolidated Statements of Operations if the decline is attributable to credit losses expected to be nonrecoverable[158]. - Recent macroeconomic events have negatively impacted global economies and financial markets, increasing foreign currency exchange risk and interest rate risk for the company[156].

Centoni, EVP and Chief Customer Experience Officer at Cisco, Brings Proven Expertise in Elevating Customer SuccessPLEASANTON, Calif., Dec. 3, 2024 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, today announced the election of Liz Centoni, executive vice president and chief customer experience officer at Cisco, to its board of directors. Centoni is a seasoned leader who has a passion for leveraging technology to drive custome ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Workday (WDAY) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Workday currently has an average brokerage recommendation (ABR) ...

Following my coverage on Workday (NASDAQ: WDAY ) in Sep’24, which I recommended a buy rating due to my expectation that growth could accelerate to 20%, this post is to provide an update on my thoughts on the businessI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be dra ...

Workday TodayWDAYWorkday$249.99 -3.41 (-1.35%) 52-Week Range$199.81▼$311.28P/E Ratio41.46Price Target$288.14Add to WatchlistWorkday NASDAQ: WDAY lowered its full-year guidance, which isn’t exactly a good thing. However, the company continues to expect solid double-digit growth and to sustain the pace next year, so the price implosion it caused is a likely opportunity to buy. This company lowered its guidance but remains the leader in its field, providing a scalable plug-and-play platform for financial and ...