Workday (WDAY) 4Q 2015 Earnings Call Notes

Workday (WDAY) CEO Aneel Bhusri says they are starting to attract more multi-national companies to their platform

“Workday in Q4 and fiscal year 2016 with 1,181 customers representing an increase of over 100 customers from Q3 as we add Airbus, Marsh & McLennan, Kohl’s, and F. Hoffmann-LaRoche and 200,000 person global profession services organization as new HCM customers.”

Their business is more of a function of secular technology demand and is less affected by the global macroeconomic landscape

“As we wrap Q4 I know many of you would like some color on the macro environment and the competitive dynamics in our industry. Regarding the macro environment we continue to monitor our pipeline closely, but so far we have not witness any impact on demand.  We think demand for our products continues to be driven more by secular technology shifts where we enjoy a strong competitive advantage. Our business also has minimal exposure to China at this time.”

High win rates versus historical software incumbents

“On the competitive front I’m pleased to report that our win rates in Q4 were the highest we have seen over the past eight quarters. We fared very well against all of the major vendors in our market and enjoyed historically strong win rates against both of our legacy competitors SAP and Oracle, and our win rates were highest in the large enterprise market where we have a strong track record of customers success and star comparison to our legacy competitors and continue to struggle to provide live customers reference at scale.”

Second “software as a service” company to reach $1 billion in recurring revenues 

“We are incredibly thankful to our employees and our customers for helping us to become only the second peer enterprise SaaS Company to reach a $1 billion run rate in subscription revenues following our friends at”

Workday (WDAY) CEO Aneel Bhusri says system integrators partners have scaled their professional services organizations substantially

“Importantly, our big implementation partners including Accenture and Aon Hewitt, Deloitte, IBM, Mercer PWC have aggressively scaled their Workday practices over the past 12 months to meet the demands of our joint customers enabling Workday relying more heavily on the Partner Ecosystem for the majority of customer’s implementations. This shift allows Workday to deploy new headcount into other areas of the company.”

Workday (WDAY) CEO Aneel Bhusri says SAP & Oracle haven’t fully embraced the cloud

“I’d say first and foremost what’s impacting our competitors, our legacy competitors in particular is their inability to get customers live and in the production especially the large customers. And I think when both companies, when SAP and Oracle moved in to the cloud they were given a bit of a hall pass. They marketed the right terms, they used the same buzz word. But at the end of the day we all get measured about getting customers successful and in production and they failed.  They have some proof points here and there, but in the large part neither really embraced a true cloud model and I think they are paying the price for that.”

Workday (WDAY) CEO Aneel Bhusri says its all about client satisfaction with the product

“And again coming back we’re going to sound like a broken record on this, but it’s really coming back to customer success. We really do a great job getting customers into production and success. We’re running at 98% customer satisfaction. And that just becoming a much more important factor as the market matures.  After the legacy guys have had a couple of years of trying and not succeeding, getting customers into production, they begin to understand that there might not be so much meat behind the bone or meat on the bone in terms of actually not focusing on sales but actually customer success.”

Sales are accelerating as the product gains traction rather than growing linearly

“I won’t it caught us by surprise, because we’ve been planning for financials to take off. It did happen. It took off. And we’re seeing the platform deals, we’re seeing the high attach rates and we’re seeing the customer success. An interesting data point which will help you model this out. It took us a six years to get us to our first 100 financial customers and additional year to get to our 200 customer level. So obviously the pace of financials sales has accelerated quite dramatically in the last 12 months.”

Oracle FY 2Q16 Earnings Call Notes

Mark Hurd

A sample of customer wins in PaaS vs. companies like Workday

Now, I’m going to review a bunch of names. I just want you to get a context for sort of the brands we closed in the quarter. In ERP, Blue Shield of California, DHL, FDIC, McKesson, Toshiba, Mitsubishi Electric, [indiscernible], a very large phone company in France, a very large industrial manufacturing company, perhaps the largest in the world with over a $130 billion of revenue. In HCM, AAA, Allergan, City of Aspen, Crocs, think of many of these now that I’m naming again beats against Workday, Exelon, Kaiser, McGraw Hill, Genesis actually a replacement of Workday, Brocade, More HCM, the United Nations, Stanford University. In CX, AmBev – CXP and being customer experience, AmBev, Expedia, Halliburton, Lufthansa, Maersk, Motorola Solutions, Sears, Toshiba Mitsubishi and United Airlines. In PaaS, Anthem, IKEA, Kaiser, Kia Motors, Maersk, Qantas, Symantec and Windstream, I could have named a lot more.”

Lawrence Ellison

Complete suite cloud applications

“Oracle’s strategy is to differentiate our cloud products from our competitors. In SaaS, we differentiate by delivering the industry’s most complete suite cloud application. In customer experience, we offer a CX suite made up of sales, service, marketing, e-commerce, and a lot more. In human capital management, we have an HCM suite made up of human resources, recruiting, training and so on. In Enterprise Resource Planning, we are delivering an ERP suite net of a financials, supply chain, manufacturing and all the rest. Oracle is the first company to mark it a complete cloud ERP suite from mid-size and large enterprises. By pioneering this market, we have become the ERP market leader with over 1,500 cloud ERP customers. Cloud ERP is now our fastest growing SaaS application suite.”

We made it easy for customers to move existing Oracle databases to the cloud, now we have a differentiated product

“In past, we have differentiated by making it effortless for our hundreds of thousands of customers to move their millions of existing Oracle databases and job of programs to our cloud with a push of a button, thereby obtaining the low-cost and ease of use to the cloud without having to sacrifice any performance loss or any securities degradation. We now have a highly differentiated rapidly growing SaaS and PaaS businesses.”