Latest news with #DaveDuffield
Yahoo
29-05-2025
- Business
- Yahoo
1 Large-Cap Stock with Competitive Advantages and 2 to Question
Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. That said, here is one large-cap stock with attractive long-term potential and two that could be stalling. Market Cap: $64.05 billion Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources. Why Is WDAY Not Exciting? 17.2% annual revenue growth over the last three years was slower than its software peers Workday is trading at $241.47 per share, or 6.6x forward price-to-sales. Read our free research report to see why you should think twice about including WDAY in your portfolio, it's free. Market Cap: $44.5 billion With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems. Why Are We Cautious About CMI? Sizable revenue base leads to growth challenges as its 6% annual revenue increases over the last two years fell short of other industrials companies Free cash flow margin dropped by 10.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Cummins's stock price of $330.24 implies a valuation ratio of 11.1x forward EV-to-EBITDA. If you're considering CMI for your portfolio, see our FREE research report to learn more. Market Cap: $100.2 billion Best known for its Marlboro brand of cigarettes, Altria (NYSE:MO) offers tobacco and nicotine products. Why Does MO Stand Out? Products command premium prices and lead to a best-in-class gross margin of 70.2% Excellent operating margin of 53.6% highlights the efficiency of its business model Robust free cash flow margin of 42.9% gives it many options for capital deployment At $59.39 per share, Altria trades at 11.2x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Q1 Earnings Outperformers: Workday (NASDAQ:WDAY) And The Rest Of The Finance and HR Software Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Workday (NASDAQ:WDAY) and the best and worst performers in the finance and hr software industry. Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 13 finance and HR software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.4% while next quarter's revenue guidance was 1.1% below. In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results. Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources. Workday reported revenues of $2.24 billion, up 12.6% year on year. This print exceeded analysts' expectations by 1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts' EBITDA estimates but a significant miss of analysts' billings estimates. "Workday delivered another solid quarter, a testament to the durability of our business and the relevance of our platform as CEOs increasingly turn to us to drive efficiency, agility, and growth," said Carl Eschenbach, CEO, Workday. The stock is down 12% since reporting and currently trades at $239.43. Is now the time to buy Workday? Access our full analysis of the earnings results here, it's free. Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Flywire reported revenues of $133.5 million, up 17% year on year, outperforming analysts' expectations by 5%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and revenue guidance for next quarter meeting analysts' expectations. Flywire delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.1% since reporting. It currently trades at $10.66. Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free. Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide. Global Business Travel reported revenues of $621 million, up 1.8% year on year, falling short of analysts' expectations by 1.9%. It was a softer quarter as it posted full-year EBITDA guidance missing analysts' expectations. Global Business Travel delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 9.1% since the results and currently trades at $6.26. Read our full analysis of Global Business Travel's results here. Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations. Workiva reported revenues of $206.3 million, up 17.4% year on year. This result topped analysts' expectations by 1.1%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts' EBITDA estimates. The company added 24 enterprise customers paying more than $100,000 annually to reach a total of 2,079. The stock is down 9.5% since reporting and currently trades at $67.19. Read our full, actionable report on Workiva here, it's free. Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ:MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards. Marqeta reported revenues of $139.1 million, up 17.9% year on year. This print beat analysts' expectations by 2.4%. Overall, it was a strong quarter as it also logged a solid beat of analysts' EBITDA estimates and a narrow beat of analysts' total payment volume estimates. Marqeta pulled off the fastest revenue growth among its peers. The stock is up 28% since reporting and currently trades at $5.24. Read our full, actionable report on Marqeta here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Workday's (NASDAQ:WDAY) Q1: Beats On Revenue
Finance and HR software company Workday (NASDAQ:WDAY) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 12.6% year on year to $2.24 billion. Its non-GAAP profit of $2.23 per share was 11% above analysts' consensus estimates. Is now the time to buy Workday? Find out in our full research report. Revenue: $2.24 billion vs analyst estimates of $2.22 billion (12.6% year-on-year growth, 1% beat) Adjusted EPS: $2.23 vs analyst estimates of $2.01 (11% beat) Adjusted Operating Income: $677 million vs analyst estimates of $621.7 million (30.2% margin, 8.9% beat) Q2 guidance for subscription revenue beats expectations, but full-year subscription revenue guidance in line Operating Margin: 1.7%, down from 3.2% in the same quarter last year Free Cash Flow Margin: 18.8%, down from 46.4% in the previous quarter Billings: $1.57 billion at quarter end, up 6.4% year on year Market Capitalization: $71.83 billion "Workday delivered another solid quarter, a testament to the durability of our business and the relevance of our platform as CEOs increasingly turn to us to drive efficiency, agility, and growth," said Carl Eschenbach, CEO, Workday. Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Workday grew its sales at a 17.2% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, Workday reported year-on-year revenue growth of 12.6%, and its $2.24 billion of revenue exceeded Wall Street's estimates by 1%. Looking ahead, sell-side analysts expect revenue to grow 12.8% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is above the sector average and suggests the market sees some success for its newer products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Workday's billings punched in at $1.57 billion in Q1, and over the last four quarters, its growth slightly outpaced the sector as it averaged 12.9% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Workday does a decent job acquiring new customers, and its CAC payback period checked in at 47.5 months this quarter. The company's relatively fast recovery of its customer acquisition costs gives it the option to accelerate growth by increasing its sales and marketing investments. It was good to see Workday narrowly top analysts' revenue expectations this quarter. Looking ahead, Q2 subscription revenue guidance was ahead of Wall Street Consensus, but full-year subscription revenue guidance was roughly in line. Additionally, its billings missed. Overall, this was a mixed quarter. The stock traded down 3.2% to $263.44 immediately after reporting. Workday's earnings report left more to be desired. Let's look forward to see if this quarter has created an opportunity to buy the stock. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
18-04-2025
- Business
- Yahoo
Q4 Earnings Review: Finance and HR Software Stocks Led by Workday (NASDAQ:WDAY)
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including Workday (NASDAQ:WDAY) and its peers. Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 14 finance and HR software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.1% while next quarter's revenue guidance was 1.4% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15.1% since the latest earnings results. Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources. Workday reported revenues of $2.21 billion, up 15% year on year. This print exceeded analysts' expectations by 1.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' billings estimates. "Our fourth quarter performance is a testament to Workday's value proposition as organizations seek to boost productivity, run more efficiently, and deliver incredible employee experiences," said Carl Eschenbach, CEO, Workday. The stock is down 13.4% since reporting and currently trades at $221.03. Is now the time to buy Workday? Access our full analysis of the earnings results here, it's free. Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ:MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards. Marqeta reported revenues of $135.8 million, up 14.3% year on year, outperforming analysts' expectations by 3%. The business had a very strong quarter with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' total payment volume estimates. The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $3.82. Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free. Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Flywire reported revenues of $117.6 million, up 22.4% year on year, falling short of analysts' expectations by 4.9%. It was a softer quarter as it posted revenue guidance for next quarter slightly missing analysts' expectations. Flywire delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 48.2% since the results and currently trades at $9.14. Read our full analysis of Flywire's results here. Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises. Paylocity reported revenues of $377 million, up 15.5% year on year. This print beat analysts' expectations by 2.7%. Overall, it was a strong quarter as it also logged a solid beat of analysts' EBITDA estimates. The stock is down 13.1% since reporting and currently trades at $183.98. Read our full, actionable report on Paylocity here, it's free. Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses. reported revenues of $362.6 million, up 13.9% year on year. This result was in line with analysts' expectations. It was a very strong quarter as it also produced EPS guidance for next quarter exceeding analysts' expectations and an impressive beat of analysts' EBITDA estimates. The stock is down 57.5% since reporting and currently trades at $40.94. Read our full, actionable report on here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
