Added to YB: 2024-05-29
Pitch date: 2024-05-25
WDAY [bullish]
Workday, Inc.
-36.08%
current return
Author Info
@TechFundies has been a tech investor for over 20 years and ran a $1b hedge fund for 10 years. Follow on Twitter.
Company Info
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.
Market Cap
$37.6B
Pitch Price
$219.04
Price Target
337.99 (+141%)
Dividend
N/A
EV/EBITDA
24.65
P/E
60.28
EV/Sales
3.75
Sector
Software
Category
growth
Workday's Growth Trajectory: Balancing Challenges and Opportunities
WDAY Q1: Rev +18% YoY, macro pressures slowed seat expansion & renewals. Guidance implies further decel to 16% by Q4. Mid-term growth target cut to 17-19%. 24% pro forma margins, high SBC keeps GAAP low. Upside: AI tailwind, mid-teens growth + margin expansion. Risks: Slowing HCM growth, slow FINS adoption, dilutive M&A. Fairly valued at 23x FCF for 20% growth. -12% downside, 28-53% upside cases.
Read full article (3 min)