Workday, Inc.

Workday, Inc., is an American on‑demand (cloud-based) financial management and human capital management software vendor. Workday was founded by David Duffield, founder and former CEO of ERP company PeopleSoft, and former PeopleSoft chief strategist Aneel Bhusri following Oracle's hostile takeover of PeopleSoft in 2005.[3]

Workday, Inc.
TypePublic
ISINUS98138H1014
IndustryCloud computing
Software
FoundedMarch 2005 (2005-03)
Founders
HeadquartersPleasanton, California, U.S.
Area served
Global
Key people
ProductsHuman capital management, payroll, financial management, and student administration
Services
Revenue US$ 3.63 billion (2019)[1]
US$ -146.1 million (2019)
US$ -127.96 million (2019)
Total assets US$ 6.82 billion (2019)
Total equity US$ 2.49 billion (2019)
Number of employees
  • 12,500
  • (FY 2020)
Websitewww.workday.com
Footnotes / references
[2]

In October 2012, it launched a successful initial public offering that valued the company at $9.5 billion.[4] Competitors include SAP Successfactors and Oracle.

In 2020, Fortune magazine ranked Workday Inc. at number five on their Fortune List of the Top 100 Companies to Work For in 2020 based on an employee survey of satisfaction.[5] San Francisco Business Times ranked Workday at number two on their Best Places to Work in the Bay in the largest companies category. [6]

History

Workday was founded in March 2005 and launched in November 2006.[7] Initially, it was funded by Duffield and venture capital firm Greylock Partners. In December 2008, Workday moved its headquarters from Walnut Creek, California to Pleasanton, California, where PeopleSoft founder Duffield's prior company, was located.[8][9]

On February 6, 2008, Workday announced that it had reached a definitive agreement to purchase Cape Clear Software.[10] In May 2008, Workday signed a large contract with Flextronics to provide human capital management software services.[11] Other large, multinational companies that have publicly disclosed contracts or deployments of Workday include Aviva,[12] Chiquita Brands,[13] CAE Inc., Fairchild Semiconductor,[14] Rentokil Initial,[15] Thomson Reuters,[16] and Time Warner.[17]

On April 29, 2009, Workday announced that it secured $75 million in funding led by New Enterprise Associates. Existing investors Greylock Partners and Workday CEO and co‑founder Dave Duffield also participated in the round.[18] On October 24, 2011, Workday announced $85 million in new funding, bringing total capital raised to $250 million. Investors in the latest round included T. Rowe Price, Morgan Stanley Investment Management, Janus, and Bezos Expeditions, the personal investment entity of Amazon CEO and founder Jeff Bezos.[19] As of spring 2012, Workday had 310 customers, ranging from mid-sized businesses to Fortune 500 companies.[20]

In October 2012, Workday launched its initial public offering (IPO) on the New York Stock Exchange with ticker symbol WDAY. Its shares were priced at $28 and ended trading Friday, October 12, at $48.69, "propelled the start-up to a market capitalization of nearly $9.5 billion including unexercised stock options." It sold 22.75 million Class A shares, raising $637 million. The IPO raised more cash than any launch in the U.S. technology sector since Facebook's $16 billion IPO in May 2012. Its shares surged 74% in their IPO, underscoring investor interest in cloud computing.[4]

In 2018 Workday acquired Filip Doušek's company Stories.bi.

The Co-CEO of Workday is Aneel Bhusri, who is a partner with Greylock Partners and handled senior leadership positions earlier in his career at PeopleSoft. In 2020, Chano Fernandez was promoted to Co-CEO. Dave Duffield serves as the Chairman of the Board.

Business model

Workday makes money by selling subscriptions to its services rather than selling the software outright. Expenses are booked up front when it signs on a new customer but the associated revenue is recognized over the life of multiyear agreements. In first quarter 2016, Workday announced annual revenue in excess of $1 billion for the first time ever in fiscal year 2016.[21]

Corporate governance

Duffield holds voting rights to Workday shares that were worth $3.4 billion and Bhusri held rights to shares valued at $1.3 billion. Collectively, they hold 67% of the company's voting shares. This voting structure makes the event of a hostile takeover much less likely.[4]

Product

Workday has released 34 updates to its product line as of March, 2020, its most recent being "2020 R1". It releases a major update every 6 months, every September and March

Workday operates data centers located in Ashburn, Virginia; Lithia Springs, Georgia; Portland, Oregon; Dublin, Ireland; Amsterdam, Netherlands; and also uses Amazon Web Services for its primary computing infrastructure platforms in order to accelerate its worldwide expansion.[22]

In February 2014, Workday acquired the startup Identified and its artificial intelligence Syman to create its Insight Apps line of products. The first products running SYMAN were announced at Workday Rising 2014.

In July 2017, Workday CEO Aneel Bhusri announced that the company had decided to open up its platform to developers, partners and third party software. As a result, Workday will enter the Platform as a Service (PaaS) market.[23] Bhusri said the move will allow customers to build custom extensions and applications to work with Workday.[24]

In January 2018, Workday announced that it acquired SkipFlag,[25] makers of an AI knowledge base that builds itself from a company's internal communications.[26]

Acquisitions
Acquisition numberAcquired companyAcquisition dateSpecialty
14Scout RFPDecember 2019Sourcing Solutions
13TrustedKeyJuly 2019Identity Management
12Stories.biJuly 2018Augmented Analytics
11Adaptive InsightsJune 2018Business Planning
10RallyteamJune 2018Talent Agility Platform
9 SkipFlag January 2018 Machine Learning (AI)[26]
8PatternAugust 2017Team Collaboration
7PlatforaJuly 2016Analytics
6ZaptionJune 2016Content Management
5MediacoreOctober 2015Learning
4UpshotJuly 2015Talent Management
3GridcraftApril 2015Planning
2IdentifiedFebruary 2014Recruiting
1CapeClearFebruary 2008Web Services Integration

References
  1. "Workday Announces Fourth Quarter and Full Year Fiscal 2020 Financial Results". www.workday.com. 27 February 2020.
  2. "US SEC: Form 10-K Workday, Inc". U.S. Securities and Exchange Commission. Retrieved March 15, 2018.
  3. Anders, George (October 7, 2013). "Snubbed By Oracle, Workday's Duffield And Bhusri Hit Jackpot". Forbes. Forbes. Retrieved 2020-12-28.
  4. Clark, Don (12 October 2012). "Cloud-Computing Firm Workday's IPO Soars". Wall Street Journal. Retrieved 4 November 2014.
  5. Jessica Snouwaert. "The 25 best companies to work for, based on employee satisfaction". Business Insider. Retrieved April 1, 2020.
  6. "Best places to work". Retrieved April 24, 2020.
  7. "Businessweek - Business News, Stock market & Financial Advice". Businessweek.com. Retrieved 4 November 2014.
  8. Bing, Jeb (5 December 2008). "Duffield Is Back:PeopleSoft Founder Moves New Company to Pleasanton". Pleasanton Weekly. Retrieved 4 November 2014.
  9. Temple, James (4 December 2008). "Workday Inc. Is Moving to Pleasanton". San Francisco Chronicle. Retrieved 4 November 2014.
  10. "Another ERP vendor buys into middleware ZDNet February 6, 2008". ZDNet. 6 February 2008. Retrieved 4 November 2014.
  11. "Workday Lands Software Industry's Biggest SaaS Deal". InformationWeek. Retrieved 4 November 2014.
  12. Archived November 5, 2011, at the Wayback Machine
  13. "Workday Lands Software Industry's Biggest SaaS Deal". InformationWeek. Retrieved 4 November 2014.
  14. "Case Study: How Fairchild Semiconductor leverages the Workday Integration Cloud". ZDNet. 2 May 2011. Retrieved 4 November 2014.
  15. "HR Magazine - Rentokil Initial implements cloud technology to manage data of 66,000 staff worldwide". Hrmagazine.co.uk. Retrieved 4 November 2014.
  16. "Workday launches Workday 14, wins Thomson Reuters deal". ZDNet. 15 August 2011. Retrieved 4 November 2014.
  17. "Time Warner Deploys Workday HR and Payroll Solution". Financial.tmcnet.com. Retrieved 4 November 2014.
  18. Barret, Victoria (30 April 2009). "Duffield Scores Biggest Round". Forbes. Retrieved 13 April 2016.
  19. Hesseldahl, Arik (24 October 2011). "Exclusive: Aneel Bhusri's Workday Raises $85 Million at a Whopping $2 Billion Valuation". All Things D. Retrieved 4 November 2014.
  20. "Workday Rising: Becoming Part of a Unique Customer Ecosystem". Blogs.workday.com. Retrieved 4 November 2014.
  21. Eugene Kim, Business Insider. "Workday says it's displacing Oracle software, as it hits first-ever $1 billion annual sales." Feb 29, 2016. Retrieved Jan 20, 2017.
  22. “”
  23. Dignan, Larry. "Workday to open up cloud platform, enters PaaS fray | ZDNet". ZDNet. Retrieved 2017-09-01.
  24. "Why It's Time to Open Up the Workday Cloud Platform - Workday Blog". Workday Blog. 2017-07-11. Retrieved 2017-09-01.
  25. Engineering, Workday (2018-01-16). "Workday Acquires SkipFlag". Workday Engineering. Retrieved 2018-01-23.
  26. Gagliordi, Natalie. "Workday buys SkipFlag to bolster machine learning capabilities | ZDNet". ZDNet. Retrieved 2018-01-21.
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