Deutsche Bank Sees Big Deals, Big Billings Beat for Workday

In a report published Thursday, Deutsche Bank analyst Karl Keirstead reiterated a Hold rating and $100.00 price target on

. In the report, Deutsche Bank noted, “Workday posted another strong quarter, with billings of $206m up 56% y/y, well above guidance of $180 million and in-line with what we believe was the buy-side consensus of ~$205 million. Subscription revenue growth was 77% y/y (down modestly from 80%+ in prior quarters) and for FY15 Workday raised its guidance for both total revenues (to $760-$770m, up from $730-$750m, for growth of 62%-64%) and total billings (to $940m-$960m, up materially from $890-$910m, for growth of 57%-61%). Remarkably, both guidance ranges still look conservative. Workday also beat non-GAAP operating loss estimates (negative 10% compared to our estimate of negative 13%).” Workday closed on Wednesday at $90.30.