categories

HOT TOPICS

Subscribe to our Feed

Cloud Stocks: Workday Wants to Disrupt Cloud Computing Using Machine Learning

Posted on Wednesday, Jun 5th 2019

For the third year in a row, cloud-based financial and human resources enterprise services provider Workday (NASDAQ: WDAY) was ranked as the leader in Gartner’s Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises. Gartner recognized Workday for its Intelligent Capabilities, analytics, intuitive experiences and better business planning abilities. Workday’s recognition in the industry is also translating to higher revenues, as was evident in its first quarter result announcement.  

Workday’s Financials

Workday’s first quarter revenues grew 33% over the year to $825.1 million, ahead of the Street’s forecast of $814 million. Its net loss widened to $116.3 million, or $0.52 per share from $74.4 million, or $0.35 per share recorded a year earlier. On an adjusted basis, it recorded an EPS of $0.43 which was ahead of the Street’s forecast of $0.41 and grew over previous year’s $0.33.

By segment, Subscription services revenues grew 34% to $701 million, ahead of the management’s guidance of $692-$694 million. Professional services revenues grew 29% over the year to $124 million and exceeded the guidance of $120 million.

For the current quarter, Workday expects to earn subscription revenues of $746-$748 million and professional services revenues of $124 million. It expects to end the current year with subscription services revenues of $3.045-$3.06 billion and professional services revenues of $500 million. The market was looking for subscription revenues of $741.6 million for the quarter and $3.047 billion for the year.

Workday’s ML Focus

In its recent annual summit, Workday’s management focused on the growing importance of Machine Learning (ML) within cloud computing. It believes that ML will “disrupt the marketplace” as it helps customers make better decisions. It is already developing ML and graph processing capabilities that can be leveraged across all of its applications.

It is working with its customers and focusing on concrete use cases as are already apparent to them. The first application-specific use of ML and graph analysis is its newly launched Skills Cloud, which powers a Skills Insight feature that will discern team, employee, and candidate skills and offer-related recommendations on hiring, training, team building, and project planning. Workday is building its ML capabilities on open-source technology, and, in some cases, Workday-developed algorithms. These platform-level ML capabilities will help power augmented analytics and planning capabilities across its platform.

It is also working on deploying ML within the user experience arena. It is building a self-modifying user experience that will adapt to the customers as their needs change. The self-modifying user experience will be designed to learn from and adapt to that user.

Within the analytics segment, Workday released a unified reporting architecture for all Workday users, called the Discovery Board. The service leverages shared ML, graph and pattern-detection capabilities available across the platform and integrates it with natural-language generation capabilities to turn raw data into actionable insights. It plans to introduce multiple augmented analytics applications but has first started with a Workday People Analytics app. The app has been released to design partners and uses ML, graph, and NLG-powered insights to help organizations focus on hiring, workforce composition, diversity and inclusion, talent and performance, and retention and attrition.

The market is pleased with Workday. Its stock is trading at $195.79 with a market capitalization of $44.25 billion. It had touched a 52-week high of $217.73 last month. It had fallen to a 52-week low of $117.24 in June last year.

Photo Credit: Steven Miller/Flickr.com

This segment is a part in the series : Cloud Stocks


. Smartsheet Acquiring Bootstrapped Startups to Drive Growth
. Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups
. Netflix Price Hike Ruffles Competition
. How Will Carbon Black Differentiate?
. ServiceNow Grows Through Addition of Capital-Efficient Startups
. Zendesk and Freshworks Follow Different Acquisition Strategies
. Tableau Grows Through Small Acquisitions
. Open Platform Strategy Stands Intuit in Good Stead
. SaaS Companies NEED PaaS Strategy
. Will GoDaddy Follow the PaaS Route?
. Calling ALL PaaS Leaders
. Adobe Delivers Via PaaS
. A Look at Oracle’s 2018 M&A Activity
. What Apps Will Drive More Traction for Cloudera?
. Slack's App Focus Will Be Key to Post-IPO Success
. IBM Counts on its Cloud and Platform for the Turnaround
. Atlassian Acquires From its PaaS Marketplace
. What Should SAP Acquire to Triple its Value by 2023?
. Expect ServiceNow to Acquire From App Marketplace
. Should Alarm.com Follow a PaaS Strategy?
. Six Cloud Stock Picks Based on PaaS Prospects
. How Upwork Can Leverage the Virtual Company Trend
. Qualys Scouting For Acquisitions
. Should SAP Acquire Zendesk or Freshworks?
. HubSpot Counts on its API Strategy
. SurveyMonkey Eyes Acquisitions for Growth
. Workday Wants to Disrupt Cloud Computing Using Machine Learning
. Einstein and Open-Source Platform Lead the Charge for Salesforce
. DocuSign Prepares to Beat Rival Adobe
. Veeva Soars, But Dassault Acquires Medidata for $5.8 Billion
. Tableau Acquisition Signals Massive Analytics Push for Salesforce
. Oracle Joins Hands with Microsoft to Take on Amazon
. GoDaddy is Making Strategic Acquisitions for the Next Level of Growth
. Alteryx Sees Strong Momentum
. Adobe Leveraging Magento and Marketo to Deliver Blockbuster Performance
. Is Slack Overvalued?
. How Will Cloudera Address the Competition?
. Zoom is Not Bothered by Cisco or Microsoft
. Domo Counts on Enterprise Revenue for Growth
. Netflix Plays with Pricing and Games to Attract Subscribers
. CrowdStrike Has a Successful IPO
. Atlassian Crosses the Billion Dollar Revenue Milestone
. ServiceNow Believes Strength Lies in Tie-ups
. Partnerships are the Mantra for BlackLine
. SurveyMonkey Counts on Enterprise Segment for Growth
. HubSpot Soars to a New High
. Intuit Pushes AI to Simplify Tax Filing
. Splunk Sees Strong Cloud Momentum
. Forescout Partners with Big Names
. Smartsheet Tapping into the Government Sector
. Salesforce Continues its Shopping Spree
. Palo Alto Networks Targets the IoT Security Market
. DocuSign Focuses on the Mortgage Sector
. Oracle Brags About Autonomous Database
. Blackbaud Acquires YourCause to Grow Addressable Market
. The Market Expects a Lot More from Adobe
. Anaplan Makes its First Acquisition Post IPO
. Activist Investor Drives Market Interest in Box
. MongoDB's Formula for Success
. Coupa Aims for $1B Revenue
. Dropbox on a Rocky Road
. Medallia Banks on Acquisitions
. IBM Banks on AI
. Time For Skepticism with Netflix
. SAP Riding High on the Cloud
. Amazon's Faster Shipping Hurting its Earnings
. ServiceNow CEO Change Signals Focus on Acquisitions
. Will Google Acquire Fitbit?
. HubSpot Focuses on Its Platform
. BlackLine Partners with Google Cloud
. Rapid7’s Focus on Cloud SIEM Pays Off

Hacker News
() Comments

Featured Videos