Industry News Desk
Workday Discloses Its Financials Ahead of IPO
The start-up raised a total of $175 million since 2005, culminating last year with an $85 million round
Sep. 4, 2012 08:00 AM
Workday, the cloud-based HR company started by the guys who built PeopleSoft, is inching closer to going public.
The company filed to go public in July but took advantage of a provision in the regulations to postpone disclosing its financials. As it happens it lost $46.9 million in the six months ended on July 31 on revenues of $119.5 million, double its sales year-over-year. It lost $36 million in the same period last year.
It's looking to raise at least $400 million, presumed to be a placeholder figure. It's likely to be much bigger.
The start-up raised a total of $175 million since 2005, culminating last year with an $85 million round that valued it at a reportedly $2 billion.
In the fashion of Google and Facebook, Workday's co-founders Dave Duffield and Aneel Bhusri mean to have a dual-share structure that will keep them in control, a situation you can bet they wish they had at PeopleSoft to ward off a hostile takeover by Oracle.
Oracle is now threatened by Workday's SaaS version of PeopleSoft that sells to the enterprise.
"As a result, they have the ability to control the outcome of matters submitted to our stockholders for approval, including the election of directors and any merger," the prospectus released Thursday says. "This concentrated control will limit or preclude your ability to influence corporate matters for the foreseeable future."
The paperwork says Duffield owns 53% of Workday and. Bhusri 19%, Greylock Partners, the VC where Bhusri is a partner, owns 11%. Scott Sandell, a board member, owns 10% as does New Enterprise Associates, the venture firm where Sandell works.
The company claims upwards of 325 customers including Fortune 500s. Google has signed up, according to Bloomberg, meaning to replace its home-grown software.
Workday's roadshow should start in three weeks, suggesting an October debut.
Morgan Stanley and Goldman Sachs will take it out. It will list as WDAY.