Workday 3Q14 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

Winning business in legacy system conversions

“we are really the only vendor that has taken those companies live with a unified solution that includes HR, talent management, benefits all the like in one unified solution and taken them actually live and put them into the production whether it’s an HP or a Flextronics. And I think those data points are a starting point for why those large companies have chosen us. In almost all cases, they are facing an upgrade of a legacy system and you know the math on that. The legacy systems are so expensive to upgrade. They look at different alternatives”

Converting 10-20k person businesses

“We are now very comfortable with a 10,000 to 15,000 person organization going live on financials and the associated volumes. And our pipeline now has companies north of that size 20,000 employees and higher. ‘

Data is really the next step forward

“I think that the cloud has been a transformational platform, but in many ways what you can do with the data is really the next leap forward. I mean, at the end of the day, companies are getting better and better at automating their transaction and processes. These Insight Applications really truly make them run their – or help them run their businesses better. And I think if you look forward 5 years from now, vendors that are in a similar space like Workday will lead with the analytics and lead with these decision-making platforms and the transactional platforms will just be assumed to be there.'”

We can give a CEO data to make important decisions

“when we sit down with an executive – I sat down with a CEO of a large company and he was looking to understand what is a good career path for an entry level person, how best to address turnover? In the old days, we would have said here is a set of tools and you can slice and dice the data any way you would like and figure it out. Now, we can actually tell them with 70% confidence, this career path will lead to a successful employee down the road, this one won’t. We can tell you with – I mean, the confidence levels move around based on the data itself, but we can give them not just ideas of turnover issues, but actually recommendations on how they might solve it. So, I mean, from our perspective this is the future of enterprise computing and so we are going to start leading with it pretty strongly going into next year.”