#2 - Workday Inc (NASDAQ:WDAY)
Workday Inc. (NASDAQ: WDAY) - One of the key terms in the tech industry is recurring revenue. This means that instead of customers purchasing equipment for data storage or software, they subscribe to a cloud-based platform. And while Workday isn’t the first company to use the recurring revenue model, they are certainly finding it to be highly effective. Workday helps their customers manage human resources and financial industry needs through a series of cloud-based apps. In the third quarter of 2018, the company saw their subscription revenue increase nearly 35% year-over-year to $324 million. By the end of 2018, they had a subscription revenue backlog of $5.9 billion. Although WDAY is not yet profitable by GAAP standards, their non-GAAP earnings are showing impressive growth on the top and bottom lines. Analysts are projecting revenue growth of over 30% growth in this fiscal year and sales growth of 25%. The company is also generating strong per-share operating profits which grew from $1.03 in 2017 to $1.27 at the end of 2018 and are projected to reach $1.61 for fiscal year 2019. Since the start of 2019, Workday’s stock price is up over 17%.
About Workday
Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.
Read More - Current Price
- $239.12
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 20 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $287.04 (20.0% Upside)
