Workday Files S-1 Form For IPO

Posted Sep 2, 2012

Workday is a company that offers online tools to manage human resources, payroll, and finances.  The company has just filed an S-1 form declaring that they are planning to raise around $400 million in an IPO.  We knew that they were going to go public back in June, but the documents were kept a secret with the help of the JOBS Act.

In the filing, Workday said that in their most recent fiscal year (ending January 31, 2012), the company made $134.4 million in revenue and a net loss of $79.6 million.  Workday was founded in 2005 by former PeopleSoft executives Dave Duffield and Aneel Bhusri.

Below is how the company describes themselves in financial documents:

Workday is a leading provider of enterprise cloud-based applications for human capital management (HCM), payroll, financial management, time tracking, procurement and employee expense management. We achieved this leadership position through our innovative and adaptable technology, focus on the consumer Internet experience and cloud delivery model. Further, we believe we are the only company to provide this complete set of unified cloud-based applications to enterprises. Our applications are designed for global enterprises to manage complex and dynamic operating environments. We provide our customers highly adaptable, accessible and reliable applications to manage critical business functions that enable them to optimize their financial and human capital resources.

Among the risk factors listed on the filing is the fact that Workday has lost money every year, ?and we do not expect to be profitable for the foreseeable future.? Many of the other concerns are pretty much what you?d expect from most companies in the enterprise software-as-a-service market ? the ?intensely competitive? industry, the risk of a security breach, the long sales cycles, and the dependence on third-party data centers. The company also notes that the majority of revenues come from its Human Capital Management application, rather than the full suite of products.