WorkDay Inc Stock Analysis: WDAY

Workday Inc provides enterprise cloud applications for finance as well as human resource
development internationally as well as in the United States. The company offers applications for
managing critical business functions for optimising financial and human capital resource
management. The company has also developed applications for financial and capital
management. It offers workday insight applications leveraging advanced data sciences as well as
machine learning methods.
Clients of the company include technology, financial serves, business and professional services,
healthcare and life sciences, retail and hospitality, manufacturing, education, government and
NPO industries. This company is based in Pleasanton California.

Results For Fiscal 2016 First Quarter

Total revenue amounted to USD 345.4 million which is an increase of 38 percent from the first
quarter of 2016 fiscal. Subscription revenues saw an increase of 39 percent from the same period
in the previous year. Operating loss was USD 73.6 million. This is a negative 21 percent of
revenues compared to operating loss of USD 53.4 million or negative 21 percent of the revenues
during the same time last year.
During Q1, operating cash flows were USD 161.5 million and free cash flows were USD 127.0
million. For trailing twelve months, free cash flows amounted to USD 188.1 million and
operating cash flows amounted to USD 327.9 million.
Net loss basic and diluted share was USD 0.41 as against USD 0.33 in the first quarter of fiscal
2016. Non GAAP net income per diluted share was USD 0.05 compared to non-GAAP net loss
per basic and diluted share of USD 0.02 for the same duration in the previous year.
The CFO of Workday, Robyn Sisco said "We have generated record quarterly revenues as well
as strong billings growth and trailing twelve month operating cash flows. Looking ahead, we
anticipate second quarter total revenue in range of USD 371 to 373 million or growth of 31 to 32
percent as compared to the previous year."

Analysis of Results
Shares were up sharply from their lows and investors were in profit taking mode after Workday
(NYSE: WDAY) broke the records for the FQ1 estimate and offered above consensus FQ2 sales
guidance. The stock however fell down 3.9 percent after hours.
Top line metrics for Workday were great with cloud app subscription revenue rising 39% YOY
to USD 280 million and professional services expanded by 31 percent to USD 65.4 million.

Further GAAP cost/expenses grew 38 percent YOY to USD 419.1 million with sales/marketing
accounting for USD 127.5 million and R&D USD 141.8 million. Cash Flow whether free or op.,
for last months amounted to USD 188.1 and 327.9 million. With USD 2.1 Billion in cash and
investments and USD 514 in convertible debt, the company ended FQ1 favourably.
However Wedbush downgraded ratings for investors to take a plunge in this stock because of its
poor performance since February and the risks involved.

Conclusion
Clearly, analysts are ambivalent about Workday Inc and WDAY in general at present. Further
movements can serve as good indicators of whether to invest in this index and company.
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Published at: http://daddyinsider.com/index.php/2016/06/06/workday-inc-stock-analysis-wday/