Anyone remember Peoplesoft (PSFT)? If so, you remember when Larry Ellison from Oracle took control of them via ‘hostile takeover.” I have many clients in the consulting space who still talk about that deal and how Larry essentially bought PSFT just to put them out of business.
Well, the founder and many top execs are running a new company now called Workday (WDAY).
I won’t bore you with details that I don’t understand myself. However, what I will share with you is insight from people in the industry who are experts in this sort of crap (the smartest people I know at the top of the consulting world): they love WDAY. From a management perspective, the good folks from PSFT perfecting the art of under promise/over deliver. If history is of any use, WDAY will be trading higher for the next several years, in a very methodical, almost clandestine fashion.
I own it for some long term accounts and will not consider selling it.
Here’s some background on WDAY.
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you’ve been holding out on me. I like this WDAY, has momo written all over it.
Chartpin: https://chartpin.com/#chart/1766
I work on simillar software(PSFT) and I attest this has potential. I know lot of people are checking\asking me about workday. Thought I will add some value from industry perspective.
Thx
Agreed. Workday has been expanding their data center technology presence extensively over the past year and are projecting to triple the square footage over the next twelve to eighteen months.
90% rev growth has me interested. Just curious- in these situations any metrics you can attempt to put a valuation on it?
Fun Fact: The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was founded in 2005 and is headquartered in Pleasanton, California.
Has anyone been able to value crm?
ORCL bought PSFT for ~$10bil, or roughly 3x their sales at the time. WDAY is trading at about 40x sales.
There is no question that its a disrupting technology, and the management are well pedigreed.
But ‘cmon – 40x sales? really?
Was thinking the same thing… and no profits for the foreseeable future. That said, their revenue accounting results in forced sandbagging, as they apply gaap consistent with tax principles, advancing expenses and deferring revenue. As such, the sales figure is arguably substantially understated, though it would require more digging to ascertain to what degree.
Maybe their strategy is to once again have Larry Ellison buy them and put them out of business.
Ellison already owns (and founded) NetSuite (N), and the PeopleSoft guys have 67% voting rights, so the hostile takeover game won’t work this time around.
Anyone believe that MSFT will become the leader in the cloud future?…..own the cloud?