After re-pricing its offering from $24-26, Workday raised over $635 million with a $28 IPO yesterday and has gone as high as $48 this morning. Clearly, Wall Street was hungry – make that “starving” – for a tech IPO, after souring on consumer social media disappointments like Facebook, Groupon, and Zynga.
Workday is certainly on-trend with several Enterprise 2.0 buzzwords, its PeopleSoft founders have a good track record, and it has some blue-chip customers like HP and Google. The company has a SaaS-based HR offering combining HR management, payroll, and financials. It is growing fast – first half sales doubled to $120 million – but it’s still a relatively small company going head-to-head with Oracle and SAP.
Apparently, investors and customers like its pure cloud approach. Workday has also aggressively embraced mobile usage, but it is a little light on some of the other big enterprise tech trends. Workday made a nod to the social enterprise with a Salesforce Chatter integration, but it builds most of its own analytics and business logic: its API strategy (as a platform or as a plug-in) is still pretty sketchy. Workday doesn’t seem to be zeroing in on social recruiting yet.
But, hey, it’s a high-growth tech play that isn’t trying to build a consumer business. B2B is the flavor of the month. Right, Shutterstock?