The comments from analyst Yun Kim came after he attended the annual user conference and the Financial Analyst Day where there was record attendance of current and prospective customers. The focus was primarily on the gains of unified platform apart from other offerings such as analytics, free data-as-a-service, learning application, financial application and student application.
The brokerage viewed that there was nothing new in the presentation, although the event was informative. The firm was at a loss to understand the lack of discussion to penetrate into Fortune 500 accounts with the help of Workday's Financials app rather than highlighting expanded opportunity by attaching rates of additional modules to generate $2 billion more revenue.
"With its core human capital management (HCM) business reaccelerating, international market expansion progressing well and mid-market customers adopting Financial product, we think these positive trends could provide enough growth catalysts for the company to make its FY17 billings target without having to gain sizable traction for the Financials product within the large enterprise market," Kim said in a research note to clients.
However, the brokerage wants the company to witness strong traction in the enterprise market to expect any favorable risk/reward.
At time of writing, the stock gained $0.33, or 0.37 percent, to $90.12.
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