Summary
Workday, Inc.'s 2018 10-K report highlights a company experiencing substantial growth in its cloud-based enterprise applications for finance and human resources. The company's strategy centers on continuous innovation and customer satisfaction, delivering major feature releases twice yearly. Workday's cloud architecture and multi-tenant approach enable rapid deployment of new features, offering customers the latest technology without significant upgrade costs. The company has successfully expanded its customer base to over 2,100 organizations, with no single customer accounting for more than 10% of revenue, indicating a diversified client portfolio. Financially, Workday reported significant year-over-year revenue growth, driven primarily by its subscription services. Despite this growth, the company continues to invest heavily in product development and sales and marketing, leading to operating losses. However, the company demonstrates strong operational cash flow and is focused on long-term growth and market expansion, particularly in international markets. The report also touches upon significant financing activities, including the issuance of convertible senior notes, and details the company's market position and competitive landscape, acknowledging strong competition from established players like SAP and Oracle.
Financial Highlights
44 data points| Revenue | $2.14B |
| R&D Expenses | $910.58M |
| Operating Expenses | $2.45B |
| Operating Income | -$303.22M |
| Interest Expense | $44.55M |
| Net Income | -$321.22M |
| EPS (Basic) | $-1.55 |
| Shares Outstanding (Basic) | 207.77M |
Key Highlights
- 1Workday reported total revenues of $2.14 billion for fiscal year 2018, a 36% increase over the previous year, driven primarily by subscription services revenue growth of 39%.
- 2The company maintains a diversified customer base, with over 2,100 customers and no single customer representing more than 10% of revenues in fiscal 2018.
- 3Workday is heavily investing in product development, with expenses totaling $911 million in fiscal 2018, underscoring its commitment to innovation and expanding its application suite.
- 4The company generated positive operating cash flow of $466 million, demonstrating the underlying strength of its business model.
- 5Despite revenue growth, Workday reported an operating loss of $303 million for fiscal 2018, reflecting significant investments in sales, marketing, and product development.
- 6Workday raised $1.15 billion through the issuance of convertible senior notes in September 2017, strengthening its financial position.
- 7The company's strategy involves continuous innovation with bi-annual major feature releases and weekly updates to its cloud applications.