Shares of Workday rose by more than 5.5% to $231.24 in premarket trading on Tuesday after activist investor Elliott Management disclosed it had built a stake of more than $2 billion in the human resou... ...

PresentationJustin FurbyVice President of Investor Relations Hello. Thank you everybody. Welcome to Workday Rising. Welcome to Financial Analyst Day. This is our biggest conference ever. I don't know what the growth is, but I think it's pretty significant. I know this is our biggest Analyst Day event, which is good because this is by far the largest room that we've ever had. So thank you for not making it look too ridiculous and for showing up. We are glad that you made the trip out in all seriousness. Thi ...

Group 1 - ResInvest Group is in discussions to acquire Datteln 4, a 1 gigawatt coal-fired power plant [1] - The sale of Datteln 4 is part of Uniper's government-mandated divestiture as part of its rescue plan [1]

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] - The publication of thousands of quarterly earnings calls per quarter suggests a significant volume of content being generated and shared with readers [1] - The ongoing growth and expansion of coverage highlight the company's strategic direction towards increasing its market presence in transcript services [1]

Core Viewpoint - Workday's stock increased by over 5% in premarket trading following the announcement that Elliott Investment Management has acquired a stake exceeding $2 billion in the company [2] Company Summary - Elliott Investment Management is now one of Workday's largest investors, indicating strong confidence in the company's potential for growth and value creation [2]

Core Viewpoint - Activist investor Elliott Management has invested over $2 billion in human resources software provider Workday and publicly supports the existing leadership team [1] Group 1: Investment Details - Elliott Management has acquired a stake exceeding $2 billion in Workday [1] - The investment reflects Elliott's confidence in Workday's long-term value creation potential for shareholders [1] Group 2: Management Support - Elliott expressed appreciation for Workday's CEO and CFO, highlighting the significant progress the company has made in recent years [1] - The management team is described as experienced and effective in their operations [1] Group 3: Communication and Future Plans - Elliott noted that communication with Workday has been very smooth [1] - The firm is optimistic about Workday's multi-year development plan presented to financial analysts, believing it will deliver substantial long-term value [1]

Group 1 - Activist investor Elliott Management has acquired a stake exceeding $2 billion in Workday, expressing support for the company's leadership [1][2] - Workday's stock experienced a 9% increase prior to the market opening on Wednesday [1] - Elliott Management commended Workday's CEO and CFO for their effective management and strong progress in recent years [1][2] Group 2 - Elliott Management is optimistic about the multi-year plan presented at Workday's Financial Analyst Day, believing it will create significant long-term value for shareholders [2] - Workday acknowledged Elliott's support but did not provide details on specific initiatives [2] Group 3 - Workday announced a $1.1 billion acquisition of AI firm Sana, marking its third AI-related acquisition in less than two months [3] - The company is facing increased competition in the HR software sector, with rivals actively pursuing acquisitions to enhance market share and integrate AI technology into their offerings [3]

Core Insights - Elliott Investment Management L.P. holds a significant investment of over $2 billion in Workday, Inc. and expresses confidence in the company's leadership and growth potential [1] - The firm believes that the plan announced at the Financial Analyst Day will enhance Workday's operating model and capital allocation framework, driving long-term value creation for shareholders [1] Company Overview - Workday is recognized as a unique software franchise with industry-leading growth potential and best-in-class customer retention [1] - The management team, including CEO Carl Eschenbach and CFO Zane Rowe, has made substantial progress in recent years [1] Investment Management Context - Elliott manages approximately $76.1 billion in assets as of June 30, 2025, and is one of the oldest funds under continuous management [2] - The investor base of Elliott includes pension plans, sovereign wealth funds, endowments, foundations, high net worth individuals, and employees of the firm [2]

Summary of Key Points from the Conference Call Company Overview - The company discussed its unique position in the software industry, particularly in the context of the transition from on-premises software to cloud-based solutions and SaaS models [1][2] - The company has seen significant growth in its user base, increasing from 46 million contracted users to 75 million over the past five years [4] AI and Software Growth - The company highlighted the expanding opportunities in AI, stating that 75% of existing customers are using AI features, and 75% of new customers are purchasing AI as their first product [6] - AI-related annual contract value (ACV) has grown from over $250 million to more than $450 million, representing a 50% year-over-year increase [7] - The company emphasized that AI is integral to its product offerings and is driving growth, contributing approximately 1.5 percentage points to overall annual recurring revenue (ARR) growth [8] Talent Acquisition and Leadership - The company has made significant hires in leadership positions to drive growth, including a new GM for the medium enterprise segment and a former Google executive to lead the platform business [12][13] - The collaboration between new and existing talent is noted as a key strength for future growth [12] Financial Performance and Projections - The company expects to achieve over $8.8 billion in revenue for the current year, up from just under $6 billion in 2023 [37] - Non-GAAP operating margins are projected to increase from just over 20% in FY2023 to 29% by the end of the current year [41] - The company has set a target for subscription revenue CAGR through FY2028 to range from 12% to 15% [54] Capital Allocation and Share Buybacks - The company announced a $5 billion share buyback program through FY2027, emphasizing its commitment to returning capital to shareholders [59][62] - The focus remains on organic investment, particularly in AI, while also considering M&A opportunities that align with its strategic goals [66][67] Market Expansion and New Offerings - The company is focusing on expanding its presence in the medium enterprise market and has launched Workday Go to cater to this segment [33][90] - A new consumption-based pricing model called flex credits was introduced, allowing customers to pay based on usage, which is expected to enhance customer value and capture revenue [88] Data Integrity and AI Differentiation - The company is investing in improving data integrity and context, which is crucial for effective AI implementation in enterprise settings [93][96] - The unique architecture of Workday allows for the integration of AI into business processes, enhancing operational efficiency and effectiveness [84][96] Conclusion - The company is optimistic about its future, citing strong customer loyalty, innovative capabilities, and a robust growth strategy [15][16] - The leadership team is committed to driving durable growth while expanding operating margins, positioning the company for long-term success in the evolving software landscape [15][41]

Growth & Financials - Workday expects to add $1 billion in net new subscription revenue each year from FY23 to FY26E, reaching $8.8 billion in FY26E[46] - The company anticipates a Non-GAAP operating margin of 29% in FY26E, a 3 percentage point increase from 20.1% in FY23[49] - Workday projects stock-based compensation expense as a percentage of revenue to be approximately 17% in FY26E, a decrease of ~1 percentage point from 21% in FY23[52] - The company aims for a subscription revenue CAGR of 13%-14% through FY28 and a Non-GAAP operating margin of ~35% in FY28[55] - Workday intends to execute $5 billion in share repurchases through FY27[55, 56] AI & Product Innovation - Over 75 million users are under contract on the Workday platform[23, 24, 149] - More than 75% of net-new customer wins include one or more AI products[26] - Over 30% of customer expansions include one or more AI products[26] - Emerging Agentic AI SKUs are experiencing growth exceeding 200% year-over-year[33, 35] Market Expansion - Medium Enterprise customers account for over 50% of new customer ACV[44, 174] - The company is seeing ~20% FINS+ subscription revenue growth[44]