Notes from the Workday S1 IPO Filing

Workday, one of the largest and fastest growing Software-as-a-Service (SaaS) companies, just filed their S-1 to go public. Workday was co-founded by the founder of PeopleSoft, David Duffield, who fought the PeopleSoft acquisition by Oracle and lost. Workday’s equity control was set up such that it would not be subject to any hostile takeovers in the future.

Here are notes from the Workday S-1 IPO filing:

  • Provides software for human capital management (HCM), payroll, financial management, time tracking, procurement and employee expense management (pg. 1)
  • Deliver a new product update three times per year (pg. 1)
  • 325 customers (pg. 2)
  • 1,450 employees (pg. 2)
  • IDC estimates that the SaaS market will grow at a compound annual growth rate of 24%, from $23 billion in 2011 to $67 billion in 2016 (pg. 2)
  • Native iOS app for iPhone and iPad combined with an HTML5 app for Android and Windows Mobile (pg. 4)
  • Growth strategy (pg. 5)
    Expand customer base
    Strengthen and extend the suite of applications
    Expand internationally
    Deepen relationship with existing customer base (a.k.a. up-sell)
    Develop partner ecosystem
    Leverage corporate culture
  • Incorporated in March 2005 as North Tahoe Power Tools, Inc and in July 2005 changed name to Workday, Inc (pg. 6)
  • Revenues (pg. 9)
    2009 – $25.2M
    2010 – $68M
    2011 – $134.4M
  • Losses (pg. 9)
    2009 – $49.9M
    2010 – $56.2M
    2011 – $79.6M
  • Accumulated deficit of $329.5M (pg. 10)
  • Customer contracts are typically 3-5 years (pg. 14)
  • The co-founders/co-CEOs control a majority of the voting stock (pg. 29)
  • Professional services revenues (pg. 45)
    2009 – $11.5M
    2010 – $31.4M
    2011 – $45.8M
  • Sales and marketing expense (pg. 45)
    2009 – $20.9M
    2010 – $36.5M
    2011 – $70.4M
  • $325M in subscription backlog as of July 31, 2012 (pg. 53)
  • Workday HCM product modules (pg. 72)
    Workday HR Managment
    – Workday Lifecycle Management
    – Workday Organization Management
    – Workday Compensation Management
    – Workday Absence Management
    – Workday Benefits Administration
    – Cloud Connect for Benefits
    Workday Talent Managment
    – Workday Onboarding
    – Workday Goal Management
    – Workday Performance Management
    – Workday Succession Planning
    – Workday Career and Development Planning
  • The relationship with does not include any revenue sharing arrangements (pg. 81)
  • VC ownership (pg. 105)
    Greylock – 11%
    NEA – 10.1%

Workday’s S-1 paints a fascinating story of building a multi-billion dollar SaaS company in seven years by burning over $325M in capital, and no signs of slowing down. Workday’s management team is in it for the long-haul and will be extremely successful.

What else? What are some other thoughts or comments on the Workday S-1 IPO filing?

One thought on “Notes from the Workday S1 IPO Filing

  1. Not a lot of professional services revenue, so either decent opportunity for them to grow that portion of revenue or the software is easy to implement. Good either way. Interesting that there’s no revenue share with sfdc, but that’s very good for them and good negotiations.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.