Workday said Monday that it has more than 150 companies signed up for its Workday Financial Management with 80 of those in live deployments.
Expanding into financial software is critical for Workday, which is expanding beyond its core human capital management footprint. Workday sees the next-gen enterprise resource planning system as one that's based on the cloud and bridges HR and financials. For most non-manufacturing companies, Workday's approach makes sense.
Workday cited the City and County of Denver, Cushman & Wakefield, Etsy and LendingTree as financials customers.
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The company also added that its new financial management applications and features are generally available in Workday 25, which is the latest release. The features include inventory tracking, new analytics and reporting and product translations for local versions.
Workday Financial Management is available in French and Spanish and has country configurations for the U.S., UK, Canada, Ireland, Netherlands, Australia and New Zealand.
Last month, Workday spooked a few investors with its billings guidance for the third quarter. Workday said that the guidance was lower due to shorter duration billings. The second quarter results were strong.
Jefferies analysts John DiFucci and Brad Zelnick said in a research note:
Regarding root cause, we believe shorter billings duration and increased F4Q seasonality are resulting from increased competitive pressure from Oracle and SAP. Our field discussions suggest the competitive dynamic and irrational pricing from the larger players is lengthening sales cycles and in some cases requiring Workday to match more flexible payment terms. Management indicated a desire to be more flexible on billings duration vs. discounting, which we completely appreciate, though we are not entirely sure of the extent to which both dynamics are contributing factors.
Given that SAP and Oracle are using discounting to battle Workday on the software front financial management becomes even more important. Financial software is the sweet spot for SAP and Oracle.