PLEASANTON, Calif. – Workday, Inc. (NASDAQ:WDAY), a provider of enterprise management solutions, announced today the appointment of Rhonda J. Morris, Chevron Corporation (NYSE:CVX)'s vice president and chief human resources officer, to its Board of Directors. This move is set to take place in early 2025 following Morris's retirement from Chevron.
Morris, with over three decades of global business and HR expertise, has been instrumental in Chevron's HR digital transformation, which included the integration of Workday's solutions. Her experience is expected to offer a customer-centric perspective to Workday's board, aligning with the company's strategy to deliver industry-leading solutions.
Workday CEO Carl Eschenbach welcomed Morris's appointment, highlighting her extensive experience in HR and her understanding of global enterprise needs as key assets that will contribute to Workday's mission of innovation and growth.
Morris's tenure at Chevron since 2016 has been marked by her leadership in people and culture strategy, covering aspects such as diversity and inclusion, talent management, and workforce planning. Her advocacy for technology solutions that enhance HR functions is aligned with Workday's objectives.
The addition of Morris to the board underscores Workday's commitment to customer-oriented product development and industry advancement. Workday serves over 10,500 organizations, including a significant portion of the Fortune 500, with its AI-driven enterprise platform that manages people and financial assets.
This announcement is based on a press release statement and should be considered in light of the inherent risks and uncertainties involved in forward-looking statements, as detailed by Workday in its SEC filings. The company clarifies that any unreleased services or features mentioned in public statements are subject to change and may not be delivered as planned.
In other recent news, Workday Inc . has seen a series of noteworthy developments. Following strong second-quarter results, the company's price target was increased by KeyBanc from $275.00 to $305.00, maintaining an Overweight rating. Workday revealed a 12-month calculated remaining performance obligation (cRPO) growth of 16.1%, surpassing estimates. However, third-quarter cRPO growth guidance of 14-15% fell short of market expectations due to ongoing deal scrutiny and moderation in headcount.
Workday also revised its medium-term targets, expecting its annual subscription revenue to grow by approximately 15% for fiscal years 2026 and 2027. Furthermore, the company anticipates its operating margin to expand to 30% by fiscal year 2027, a significant increase from the previously projected 25%. The company's second quarter results highlighted a 17% increase in subscription revenue, reaching $1.903 billion, and a 25% non-GAAP operating margin. Workday also kick-started a new $1 billion share repurchase program.
Analysts from Needham & Company and Piper Sandler maintained their positive ratings on Workday's shares, with Needham maintaining a Buy rating with a price target of $350, and Piper Sandler upholding an Overweight rating, raising the price target to $285 from $262. These recent developments reflect Workday's strategic shift towards profitability in response to a stagnant quarter-over-quarter environment and evolving headcount growth dynamics.
InvestingPro Insights
As Workday, Inc. (NASDAQ:WDAY) continues to expand its board and fortify its position in the market, the company's financial health remains a key factor for investors and industry observers alike. With a robust market capitalization of $67.36 billion, Workday showcases its substantial presence in the software industry. The company's impressive gross profit margin of 75.77% in the last twelve months as of Q2 2023 is a testament to its efficient operations and strong pricing power. Furthermore, Workday's revenue growth of 17.07% during the same period indicates a healthy expansion trajectory.
Investors should note the company's high earnings multiple, with a P/E ratio of 43.48, reflecting market expectations of future growth and the premium investors are willing to pay for Workday's earnings. This aligns with insights from InvestingPro, which highlight Workday's position as a prominent player in the software industry. Moreover, the company's strong return over the last three months, with a price total return of 19.17%, underscores the positive sentiment in the market and the confidence of investors in Workday's strategic initiatives.
For those seeking a deeper understanding of Workday's financial nuances, additional InvestingPro Tips are available, including insights into the company's balance sheet strength and analyst earnings revisions. In fact, 25 analysts have revised their earnings upwards for the upcoming period, further cementing the optimistic outlook for Workday. To explore these insights and more, interested parties are encouraged to visit InvestingPro for a comprehensive suite of tips and real-time metrics for Workday at https://www.investing.com/pro/WDAY.
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