WHY YOU SHOULD CONSIDER ADDING THIS STOCK TO YOUR PORTFOLIO?

I have thought of writing about workday (WDAY) ever since I first noticed it a year ago. The fast growing in enterprise space it is taking on is quite eye catching. I work in a large IT company. We have had some program changes and switched to Workday about a year ago. At the very beginning, I thought it is just another software that might be in the market for a little while and then be replaced by someone else. But the more I use it, the more functions I am relying on it, the more I realized that this could be a future for many enterprise companies especially because of the multi-functions it carries through.

The name of this company, Workday, is quite representative of what this software does. Workday is A single system for finance, HR, and planning. It is helping enterprises around the world solve their biggest challenges. Workday is a cloud-based software vendor that specializes in human capital management and financial management applications. ... Its Composite Reporting tool, released in 2014, provided multidimensional financial and operational reporting and analytics designed to be scalable in large enterprises.

WORKDAY FINANCIALS

Founded in 2005, 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. (source: Wikipedia).

In the fourth quarter 2019, WORKDAY announced its continuous success in acquiring new business and exceeded its guidance set. Its subscription revenue continue to win the market with significant growth.

Data source: WORKDAY

Data source: WORKDAY

Workday now claims to an official win in entering Fortune 50 companies. Per its CEO Aneel Bhusri, 50 percent of Fortune 50 and 40 percent of Fortune 500 are WORKDAY customers. WORKDAY continues to be bullish on its expansion of customer base as an industry lead.

WORKDAY STOCK PERFORMANCE

Workday so far has demonstrated strong trending in its stock performance. It has become hedge fund increased interest. As you can see below, the volume is strong along with the stock price. Despite of the volatility we saw in the market, Workday has shown little sign of slowing down its growth.

Data source:  Yahoo Finance

Data source: Yahoo Finance

Data Source: Insider Monkey

Data Source: Insider Monkey

WORKDAY FUTURE

I have personally attended WORKDAY training to its software. I was impressed by its sales and marketing skills demonstrated. The win of a software company needs all dynamics to work together. It needs to be a combination of planning, execution, sales and marketing. Very often we found software vendor to fall short on some areas with strength in other areas. It seems to me that WORKDAY has it all evenly developed, which is crucial in further expansion of the company.

WORKDAY expects to grow 33 percent in its subscription revenue and set year 2020 revenue expectation at $3.1 billion, this is 3 times of what WORKDAY accomplished in 2016. The high growth of its customer base and revenue is driven by its value of core business value to offer innovative products with customers and employees in mind.

MY THOUGHT

I believe in simplicity and common sense. Workday makes sense because it solves a complicated and common issue that almost every enterprise company faces. It is simple, but is able to solve core issue. Money in the market is flowing into this stock. Software industry is very competitive. To be able to stand out of the crowd, it requires business acumen to be well integrated and implemented. So far WORKDAY has done a great job to it.

WORKDAY is a high growth with a limitless future if it continues to strike its core value while growing all key elements in a software business world. Its outstanding record can not be ignored. We should continue to keep it in mind as a strong potential to investment portfolio. So far all the signals sent to market are positive and my experience in using it has been very pleasant. With all these factors in consideration, I believe it as one of rare software companies I would step into. Your thoughts?


Simple Wealth For Women is a blogging website focusing on financial discussions. I help women to crush debt, learn how to invest and make more money. I show you simple approach and provide you with specific ideas to help you get to financial freedom and build an amazing life.
Sharing is caring. Please share this post if you find it helpful.