Workday, Inc.

Workday, Inc., is an American on‑demand (cloud-based) financial management, human capital management, and student information system software vendor. Workday was founded by David Duffield, founder and former CEO of ERP company PeopleSoft, along with former PeopleSoft chief strategist Aneel Bhusri, following Oracle's acquisition of PeopleSoft in 2005.[2]

Workday, Inc.
TypePublic
ISINUS98138H1014
Industry
FoundedMarch 2005 (2005-03)
Founders
HeadquartersPleasanton, California, U.S.
Area served
Worldwide
Key people
  • Aneel Bhusri (Chairman & co-CEO)
  • Carl Eschenbach (co-CEO)
Services
RevenueIncrease US$6.216 billion (2022)
Decrease US$−222 million (2022)
Decrease US$−367 million (2022)
Total assetsIncrease US$13.49 billion (2022)
Total equityIncrease US$5.586 billion (2022)
Number of employees
17,700 (January 2023)
Websiteworkday.com
Footnotes / references
[1]

In October 2012, Workday launched a successful IPO (initial public offering) that valued the company at $9.5 billion.[3] Competitors of Workday include SAP Successfactors, Ceridian, and Oracle.[4]

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 satisfaction survey.[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

2005 - 2015

Workday was founded in March 2005 and launched in November 2006.[7] Initially, it was funded by Duffield and the 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] Companies that have publicly disclosed contracts or deployments of Workday include Aviva,[12] Chiquita Brands, and other firms.[13][14][15][16][17]

On April 29, 2009, Workday announced that it had 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 the total capital raised to $250 million. Investors in the latest round included T. Rowe Price, Morgan Stanley Investment Management, Janus, and Bezos Expeditions.[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, which "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.[3]

2015 - present

In 2016, Workday launched a cloud-based Student information system[21] to augment its portfolio of financial management and human capital management products. 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 served as the chairman of the board until his resignation in April 2022, after which Aneel Bhusri took over as the chairman.[22]

In November 2021, Workdays announced its acquisition of VNDLY, a startup that helps companies manage external workforce personnel, for $510 million.[23]

Sequoia Capital's Carl Eschenbach replaced Fernandez as co-CEO in December 2022. The company also announced that Eschenbach would become its sole CEO after January 2024, when Bhusri will move to the role of executive chair.[24]

Business model

Workday sells subscriptions to its services. 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 the first quarter 2016, Workday announced annual revenue in excess of $1 billion for the first time ever in fiscal year 2016.[25]

Corporate governance

Duffield holds voting rights to Workday shares that are worth $3.4 billion and Bhusri holds voting 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.[3]

Product

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.[26] Bhusri said the move will allow customers to build custom extensions and applications to work with Workday.[27]

In January 2018, Workday announced that it acquired SkipFlag,[28] makers of an AI knowledge base that builds itself from a company's internal communications.[29]

Workday has released 39 updates to its product line as of September 2022, the most recent being "2022 R2". It releases a major update every 6 months, in 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.[30]

Acquisitions
Acquisition numberAcquired companyAcquisition dateLocationSpecialty
17VNDLY[31]November 2021Ohio, USAContractor and external staffing vendor management
16ZimitSeptember 2021Florida, USAQuotation management
15PeakonMarch 2021Copenhagen, DenmarkEmployee engagement
14Scout RFPDecember 2019California, USA & Riga, LatviaSourcing software
13TrustedKeyJuly 2019Washington, USAIdentity management
12Stories.biJuly 2018Prague, Czech RepublicAugmented analytics
11Adaptive InsightsJune 2018California, USABusiness planning
10RallyteamJune 2018California, USATalent agility platform
9SkipFlagJanuary 2018California, USAMachine learning (AI)[29]
8PatternAugust 2017California, USATeam collaboration
7PlatforaJuly 2016California, USAAnalytics
6ZaptionJune 2016California, USAContent management
5MediacoreOctober 2015British Columbia, CanadaLearning
4UpshotJuly 2015California, USATalent management
3GridcraftApril 2015Colorado, USAPlanning
2IdentifiedFebruary 2014California, USARecruiting
1CapeClearFebruary 2008Dublin, IrelandWeb services integration

Sponsorship

In May 2021, Workday signed a sponsorship deal with Formula One as the regional finance & human resource enterprise partner across the UK and Germany.[32] The deal was renewed and expanded in 2022, where Workday will be a regional partner of Formula One in a multiyear deal.[33]

In March 2023, Workday signed a multiyear sponsorship deal with McLaren as an official partner.[34]

References
  1. "US SEC: Form 10-K Workday, Inc". U.S. Securities and Exchange Commission. Retrieved February 27, 2023.
  2. Mac, Ryan. "Billionaire David Duffield's Workday Goes Public, Doubling His Fortune". Forbes. Retrieved 2022-01-06.
  3. Clark, Don (12 October 2012). "Cloud-Computing Firm Workday's IPO Soars". The Wall Street Journal. Retrieved 4 November 2014.
  4. "Workday Human Capital Management Alternatives". Gartner. Retrieved 19 May 2022.
  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. "Workday's Full Student Information System Launches | Inside Higher Ed". www.insidehighered.com. Retrieved 2022-04-06.
  22. Datta, Tiyashi. "Workday co-founder David Duffield resigns as chairman". nasdaq.com. Retrieved 2022-05-06.
  23. Ron Miller (November 18, 2021). "Workday to acquire external workforce management startup VNDLY for $510M". Tech Crunch. Retrieved December 19, 2021.
  24. Novet, Jordan (20 December 2022). "Workday names Sequoia's Carl Eschenbach as co-CEO, alongside Aneel Bhusri". CNBC.
  25. 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.
  26. Dignan, Larry. "Workday to open up cloud platform, enters PaaS fray | ZDNet". ZDNet. Retrieved 2017-09-01.
  27. "Why It's Time to Open Up the Workday Cloud Platform – Workday Blog". Workday Blog. 2017-07-11. Retrieved 2017-09-01.
  28. Engineering, Workday (2018-01-16). "Workday Acquires SkipFlag". Workday Engineering. Retrieved 2018-01-23.
  29. Gagliordi, Natalie. "Workday buys SkipFlag to bolster machine learning capabilities | ZDNet". ZDNet. Retrieved 2018-01-21.
  30. “”
  31. Miller, Ron (2021-11-18). "Workday to acquire external workforce management startup VNDLY for $510M". TechCrunch. Retrieved 2023-08-10.
  32. Yeomans, Georgina (2021-05-06). "F1 inks regional partnership with Workday". www.blackbookmotorsport.com.
  33. Mahadik, Gauresh (2022-05-05). "Formula 1 renews and expands partnership with Workday". SportsMint Media.
  34. "Workday become an Official Partner of McLaren Formula 1 Team". www.mclaren.com. Retrieved 2023-03-28.
  • Business data for Workday, Inc.:
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