Workday Signs Big HR Deal With Wal-Mart

Workday Inc WDAY has bagged a contract with Wal-Mart Stores, Inc. WMT under which the retail giant will subscribe to Workday’s Human Capital Management, Recruiting, Learning and Planning solutions.

In a regulatory filing, Workday also revealed it's not updating its financial guidance for the fourth quarter of the current fiscal year ending January 31, 2017 or for the fiscal year ending January 31, 2018.

Earlier Wednesday, Benzinga reported on a William Blair note which said Workday recently signed a big human resources deal with one of the world’s biggest retailers, with over 2 million employees globally.

“Though we are not privy to the size of the contract, it would represent by far the largest company Workday has ever signed—more than five times larger (on a headcount basis) than any of its existing HR customers,” analyst Justin Furby wrote.

Furby said Workday trumped SAP SE (ADR) SAP in getting the contract and the retailer will pursue a phased deployment of Workday over the next three to four years that would drive billings significantly.

“[W]hen fully scaled, we believe a deal of this size could represent $30 million or more of annual subscription revenue (though it is very difficult to get a sense of true contract terms),” Furby highlighted.

After being halted for a couple of hours, Workday traded recently at $79.96, up 7.5 percent.