Workday 2Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Not sharing customer counts any more

“Due to the increasing size of our business and the diverse mix of very large to medium-sized customers, we decided that we will no longer share specific customer counts on a quarterly basis.”

Unum and BofA are both new customers

“Unum, a Fortune 500 company and leading provider of financial protection benefits throughout the workplace selected Workday for both HR and finance. In the second quarter, we welcomed two more extremely notable Fortune 500 financial services companies. The one we can mention is Bank of America, one of the nation’s leading financial institutions and our new largest customer to date.”

Big systems integrators are building large practices in workday

“I would say 24 months we’ve seen big investments from the large SIs, historically we had small boutique system integrators who’ve been terrific partners from really from day one, be the majority of the implementations. But last few years starting with Deloitte, followed by Accenture, then IBM, now Price Waterhouse, now HP, now CSC, we really have most of the key SIs building out fairly large practices in Workday.”

Getting comfortable moving up market

“I’d characterize where we are today is that we’ve gotten very good at selling to medium size companies. And if you look at our customer list, medium size meaning 3,000, 4,000, 5,000 to 10,000 employees. And where the next push is to go above that size. But very comfortable now with medium size companies and I wouldn’t have said that 12 months ago. We were definitely dealing with smaller companies, but like Netflix going live and Lifetime Fitness with 18,000 employees being life across all of our products, we’re just gaining confidence and continuing to move up market.”

Greenfield is all cloud

“n the world of HR, and the same with whole troupe in the world CRM, the market has flipped. It’s hit a tipping point where, if companies are starting with a Greenfield, they are going to choose cloud versus on premise and for all of the people that are on premise they are increasingly switching to cloud. The functionality is there, the scalability is there, the functionality is now ahead of where the legacy systems sit. And added to that the systems integrators have all over the last couple years gotten much, much better not taking the legacy system out and putting in the cloud system and automating the old processes but actually using Workday or salesforce or any of these cloud solutions to transform the business”

HP and BAC show we can scale up to any size

“HP set a new benchmark in terms of size company that can go live on Workday. So that’s definitely with Bank of America now is HP there’s not really any corporate entity out there that we see that we couldn’t scale to meet their needs.”

95% customer satisfaction

“I also think it’s the customer satisfaction where we’re running at north of 95% customer satisfaction as much as level our sales people are customers are best sales people and they talk with each other.”

A CFO is typically a conservative buyer

“showing a CFO who’s typically a conservative buyer, a new way of running their financial systems, not just a new technology platform. And so, we’re getting better and better at selling to them and marketing to them.”