Cloud software vendor Workday just announced its biggest customer win to date -- discount retail giant Walmart.
In an 8-k filing with the US Securities and Exchange Commission, Workday said Walmart has purchased a subscription to Workday's Human Capital Management, Recruiting, Learning, and Planning products.
Walmart has more than 2 million employees and is considered the world's largest private employer. Based on that employee count, the deal could, over time, be worth $100 million to $200 million in annual revenue for Workday, Drexel Hamilton analyst Brian White noted in a research report.
"However, Workday did not specify the number of Wal-Mart employees that will be part of this subscription," White said. "Also, a deal of this size will take some time to ramp and thus we do not expect the full revenue impact be felt in the first year or two."
Shares of Workday are up around 7 percent. Workday said it is not updating financial guidance for Q4 of the current fiscal year ending January 31, 2017 or for fiscal year ending January 31, 2018.
Workday released its Learning and Planning products last September at its Workday Rising conference in an effort to dramatically boost its footprint and addressable market. Out of its newer releases, Workday Planning has the most revenue potential given that so many companies still plan on spreadsheets. Workday Learning, which relies heavily on video and peer sharing of knowledge, is designed as a companion to the company's core HR software.