It was exciting news for Workday following the unprecedented rise in its third quarter earnings that climbed above estimates. The enterprise software company which sells cloud-based enterprise financial software and human capital management during the quarter, announced the acquisition of Adaptive Insight, a business planning Cloud Company that test and create complex business scenarios. The £1.21 billion acquisition deal this summer saw Workday rolling out new products such out the Workday People Analytics that applies artificial intelligence to power augmented analytics that provides customers with strategic metrics that are critical in their business.
The company’s declared earnings rose by 33 percent on a revenue of £582.28 million before certain costs like stock compensation of 31 cents per share. Wall Street was projected earnings of only 14 cent per share on revenue of £566.46 million. For the previous quarter, Workday was unprofitable with a net loss of £119872.44 recorded.
However, the company’s latest success has increased shareholders confidence. The software giant announced that its subscription revenue increased by 35 percent, to £489.20 million for the quarter. This is a significant achievement for a company among businesses switching their strategic software and applications to cloud based.
The fourth quarter guideline for the company has not been released, but it was able to convince investors of its short term prospects. Based on this, Workday has successfully brought to a stop a string of dubious quarters that made its stock tumble immediately after that action.
The acquisition transaction which on October 31, 2018, saw Workday assuming the unvested equity of £117.52 issued to employees of Adaptive Insights. The company will also fund the consideration from its balance sheet.
Adaptive Insights is a business planning platform that has joined forces with Workday to accelerate finance transformation. Adaptive Insight’s CEO Tom Bogan said the company was joining Workday to drive holistic and strategic business planning, implementation and digital transformation for their customers. Workday’s employees-customer centric approach to develop cloud based enterprise software will help increase the binding force of the companies, he stated.
With today’s digital and dynamic business atmosphere, leaders across organizations are collaborating to find common ground on planning to the changing trends of business while driving performance and growth and to empower their businesses to leverage next generation strategy in planning as a comparative advantage. Workday is combining its cloud platform with the Adaptive Insights business planning platform available all over the world and used by thousands of customers for businesses of all types and sizes with its strategic finance and HR application suit. The merger between Workday and Adaptive Insights will empower customers to analyze, better plan and execute across the enterprises in a single system. It’s a leading platform that will drive their business transformation and financial acumen.
With the launch of People Analytics and the acquisition of Adaptive Insights, Workday has focus on products that are largely based on analytics. These product plans will give Workday’s customers greater value from their investments. Also, its financial management tools sale to existing HCM installed base looks so healthy. At this point, Workday has match words with action by showing vision in its main HCM space and look for a way to be profitable in2019.