WDAY

Workday Inc

TMT


Presented:06/05/2020
Price:$178.67
Cap:$41.99B
Current Price:$244.83
Cap:$65.12B

Presented

Date06/05/2020
Price$178.67
Market Cap$41.99B
Ent Value$35.34B
P/E RatioN/A
Book Value$11.07
Div Yield0%
Shares O/S235.00M
Ave Daily Vol2,898,535
Short Int4.11%

Current

Price$244.83
Market Cap$65.12B
Workday, Inc. engages in the development of enterprise cloud applications for finance and human resources. It delivers financial management, human capital management and analytics applications designed for companies, educational institutions and government agencies. The company was founded by David A. Duffield and Aneel Bhusri in March 2005 and is headquartered in Pleasanton, CA.

Publicly traded companies mentioned herein: Oracle Corp (ORCL), SAP SE (SAP GR), Workday Inc (WDAY)

Highlights

The presenter is long shares of Workday Inc (WDAY), which has nearly recovered from its COVID-19 selloff and now trades at ~$175 per share. During WDAY’s May 27th Q1’21 earnings call (FY2021 started February 1st, 2020), management explained that Q2 and Q3 would experience the largest COVID-19 impact, and therefore lowered FY2021 revenue guidance from $4.33B – $4.35B to $4.17B – $4.19B and ceased cash flow guidance. In the presenter’s view, expectations have been lowered far enough for the company to beat, especially given the seemingly improving sentiment as of recently, which could allow sales momentum to drive Q2 and Q3 beyond what the company expected as of late May. More importantly, however, he points to the company’s best-in-class position and its margin and FCF profiles as drivers for 2H FY2021 and FY2022 performance, and sees WDAY’s share price reaching $220 – $240 over the next twelve months. 

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Idea Discussion

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