Yet another enterprise cloud software company, Workday, is all set to go public today. It has raised $637 million, by selling close to 22.8 million shares for $28 each. It will have a public float of around 14% after the IPO. It will be listed on the NYSE with the ticker “WDAY”, and currently has a valuation of $4.5 billion.
Workday’s primary offering is a cloud-based financial management and human resource management solution, which is used by more than 340 enterprise clients.
It generated close to $120 million in revenue in the first six months of 2012, but is yet to turn a profit.
While most consumer internet IPOs in the last couple of years have floundered, enterprise software companies have seen a warm reception at the public markets. Companies like Palo Alto Networks and Splunk have performed much better than the likes of Facebook, Zynga or Groupon.
Workday competes primarily with the likes of Oracle, SAP and Salesforce.com. As the cloud wars heat up, Workday might even end up being a hot acquisitiont target for one of the biggies.
Oracle has resumed its acquisition spree, and acquired yet another enterprise cloud startup, SelectMinds, which is a provider of cloud-based employee recruitment and HR services.
According to Oracle’s official press release, “SelectMinds’ applications enable organizations to empower recruiters, hiring managers and employees to leverage social connections to distribute job opportunities, source higher quality referrals, market their employment brand and manage corporate alumni relationships.”
SelectMinds will enable it to add more capabilities to Taleo’s feature set and offer a more comprehensive solution to enterprise customers — one that leverages social channels like Facebook and Twitter, as well as their employees existing social networks to improving their hiring capabilities.
“The combination of Oracle and SelectMinds’ complementary social sourcing capabilities is expected to create a comprehensive recruiting, candidate sourcing, and talent management offering for organizations to reach quality referrals through social recruiting.”
Oracle competes in this space with the likes of SAP, Salesforce.com, and a lot of other smaller players. This is yet another acquisition by the giant to leverage the cloud and “social” to improve its enterprise software offerings.
The exact terms of the acquisition haven’t been announced yet, but they should be reflected in Oracle’s next earnings release.
Workday is a cloud based enterprise software company which was founded by the founders of PeopleSoft after it was acquired by Oracle in 2005. It provides cloud based applications for enterprise functions like “human capital management (HCM), payroll, financial management, time tracking, procurement and employee expense management.”
In its S-1 filing, it states that:
“We achieved this leadership position [in the enterprise cloud space] through our innovative and adaptable technology, focus on the consumer Internet experience and cloud delivery model. Further, we believe we are the only company to provide this complete set of unified cloud-based applications to enterprises. Our applications are designed for global enterprises to manage complex and dynamic operating environments. We provide our customers highly adaptable, accessible and reliable applications to manage critical business functions that enable them to optimize their financial and human capital resources.”
WorkDay competes primarily with the likes of Oracle, SAP, Salesforce.com and NetSuite, besides a number of other heavyweights in this space. It has more than 1450 employees, and reported close to $135 million in revenue in the year ended January 31, 2012. It posted a net loss, however, of $80 million. It ended July 31, 2012 with around $122 million in cash.
It plans to raise close to $400 million in the IPO, and we expect it to continue to make losses in the years following the IPO, as it operates in a very competitive environment, before eventually turning a profit.
You can check out the entire Workday S-1 filing here: Workday – SEC
IBM is one of the latest tech giants to have scooped up a company in the booming social enterprise software space. It has acquired Kenexa, a social human resources, talent acquisition and management software company, for $1.3 billion.
Kenexa’s software enables corporate customers to handle performance management, compensation, career development, leadership training and all such boring HR stuff with a social twist. Kenexa is one of the more formidable players in the enterprise cloud apps space led by Salesforce.com. IBM competes with the likes of Oracle and SAP, who are also trying desperately to gain a foothold in this market. Oracle recently acquired Taleo, while SAP acquired SuccessFactors in a bid to dominate the space.
Kenexa’s products are used by more than 9000 companies across industries, and will complement IBM’s existing offerings.
IBM’s official statement says:
“The acquisition bolsters IBM’s leadership in helping clients embrace social business capabilities while gaining actionable insights from the enormous streams of information generated from social networks every day.
Kenexa, a leading provider of recruiting and talent management solutions, brings a unique combination of Cloud-based technology and consulting services that integrates both people and processes, providing solutions to engage a smarter, more effective workforce across their most critical business functions.
Kenexa complements IBM’s strategy of bringing relevant data and expertise into the hands of business leaders within every functional department, from sales and marketing to product development and human resources. As a result of this synergy, clients will be able to attract and develop the right skills to build the right teams, for the right projects, the first time.”
Salesforce.com has announced its earnings for the second quarter of 2012 (Q2 FY13). It reported total revenue of $732 million, up 34% year-over-year, with subscription and support revenue growing to $687 million and professional services revenue increasing to $44 million. While the sales growth is impressive, it posted a net loss of $9.8 million, as sales and marketing expenses continued to balloon. Its deferred revenue grew faster than revenue, increasing 43% to $1.34 billion.
Its cash and cash equivalents stood at exactly $1 billion, while its short term marketable securities declined to $107 million by the end of the quarter. Its operating cash flow this quarter was around $136 million.
Salesforce.com’s Chairman and CEO, Marc Benioff said:
“Our second quarter revenue growth was outstanding at 34% in dollars and 37% in constant currency. Salesforce.com’s social enterprise strategy is enabling companies to connect with customers, partners, and employees in completely new ways – and it’s creating new opportunities for their growth and ours.”
It has raised its earnings outlook for the next quarter and the full year, but its stock is down nearly 5% as profits continue to elude the leader in the enterprise cloud software market.
via Salesforce – SEC
Toyota Motor Corp. and and San Francisco-based Salesforce.com is setting up a social networking service called “Toyota Friend”, similar to Facebook and Twitter. The new service allow users to exchange real time updates with Toyota drivers, connect with local dealers and remotely obtain information about their hybrid vehicles, such as battery usage. It is expected to debut in Japan before it rolls out globally in 2012.
“This represents a concrete step towards creating a more mobile society,” Toyota president Akio Toyoda said at a press conference in Tokyo. “Toyota can learn a lot from an entrepreneurial firm like Salesforce.com.”
The new service primarily relies on third party smartphones and other mobile devices sold separately from its cars. The network will be powered by enterprise social network Salesforce.com’s Chatter and Toyota’s telematics platform.
Toyota is investing 442 million yen ($5.5 million) in Toyota Media Service, Microsoft Corp., aiming to bring Internet services to Toyota vehicles, is investing 335 million yen ($4.1 million) and Salesforce.com will be investing 223 million yen ($2.8 million) in the project.