Workday, an on-demand provider of enterprise software, filed
on Friday with the SEC to raise up to $400 million in an initial
public offering. Workday serves over 325 customers worldwide,
such as Aviva International, AIG, Four Seasons Hotels, and
Georgetown University, that utilize the software to address a
broad range of business applications, including payroll and human
capital management. Workday was one of 5 IPOs to file
last week, capping off 17 total filings in the month of August,
which was the most active month since March, 2012.
First half 2012 bookings grew 79% year-over-year to $179
million primarily due to the addition of 125 new customers.
Workday booked $199 million in sales for the 12 months ended July
31, 2012, 66% of which resulted from subscription revenues. Over
the last three years, Workday's revenue has grown at a CAGR of
75%. The company became cash-flow positive in the six months
ended July 31, 2012, generating $8.6 million in free cash flow,
compared to -$2.7 million in six months ended July 31, 2011.
Workday previously filed confidentially on June 28,
representing the seventh consecutive US filing (excluding
Santander Mexico's (BSMX) dual-listing) to have used the
confidential submission prior to publicly filing.
The company was founded in 2005 by David Duffield and Aneel
Bhusri. The two had previously worked together at global
enterprise software company PeopleSoft, which Mr. Duffield
originally founded in 1987. Duffield and Bhusri hold pre-IPO
stakes of 53% and 19%, respectively. Notable venture capital
backers include Greylock Partners (11%) and New Enterprise
The Pleasanton, CA-based company plans to list under the symbol
WDAY. Morgan Stanley, Goldman Sachs, Allen &
Company and J.P. Morgan are the joint bookrunners on the deal. No
pricing terms or exchange was disclosed.