Workday: Stock Has Likely Bottomed, Presenting A Buying Opportunity

  • Workday reported Q1 revenue and earnings beating expectations, with a focus on expanding TAM in the public sector and international markets.
  • The company continues to build its partner ecosystem by adding Google Cloud Partners in Q1, as it accelerates its pipeline and drives higher ACV per customer.
  • Meanwhile, it rolled out the general availability of its AI Marketplace, giving customers access to AI solutions from Workday and its partners, thus deepening adoption and monetization opportunities.
  • Although the company faces increasing deal scrutiny as businesses are cautious, I believe that given its growth drivers and strong fundamentals, it is attractively priced to drive upside.

Introduction & Investment Thesis

Workday (NASDAQ:WDAY) is a cloud-based software company that provides solutions for financial management, spend management, human capital, planning, and analytics. I initiated a “hold” rating on the stock on March