It Might Be Time to Put Some Cash to Work in Workday
When Workday (NYSE: WDAY) released its fiscal third-quarter 2020 results early last month, there was nothing technically wrong with its headline numbers. Revenue had climbed more than 26% to $938.1 million, translating to adjusted (non-GAAP) net income of $0.53 per share. Both figures were well above expectations, and CEO Aneel Bhusri boasted that "companies of all sizes and industries continue to select" Workday's flagship human capital management (HCM) and financial software solutions to meet their needs.
Indeed, after adding half a dozen new Fortune 500 clients to its base, Workday now counts over 40% of that group, about 50% of the Fortune 100, and 17% of the Global 2000 among its more than 3,000 customers. What's more, its budding Workday Financial Management product by itself has grown its base to more than 800 total customers. And at the company's most recent investor day in October, Workday had only just informed investors that upselling its new Workday Planning product platform represents an incremental $5 billion market opportunity.
Of course, tacking on an extra $5 billion to its total addressable market was nothing to scoff at. But it also paled in comparison to what management outlined as their total addressable market (TAM) of $81 billion in 2018 -- a figure some industry estimates see soaring over 40% to $115 billion by the end of 2022.
Source Fool.com
