Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Workday's share price is at risk of a downward multiple repricing.</li>
<li>GAAP profitability would be very hard to achieve, according to recent rhetoric.</li>
<li>An outside deal is a highly likely scenario that would resolve the company's current disadvantage to its larger peers.</li>
</ul>


Workday's share price is at risk of a downward multiple repricing.
GAAP profitability would be very hard to achieve, according to recent rhetoric.
An outside deal is a highly likely scenario that would resolve the company's current disadvantage to its larger peers.


Workday: The Rough Path Towards Profitability

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Workday Inc Class A / Equity Capital Markets

<ul><li>Workday managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.</li><li>In the quarter, subscription revenue increased by 20% year over year to $1.53 billion.</li><li>Outside of the United States, overall revenue was $420 million, which represents 25% of total sales.</li></ul>

Workday managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.In the quarter, subscription revenue increased by 20% year over year to $1.53 billion.Outside of the United States, overall revenue was $420 million, which represents 25% of total sales.

Workday Inc.: Expanding The Global Footprint

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Beijing Beisen Cloud Computing / Equity Capital Markets

<ul>
<li>China-Based HCM technology unicorn <a href="https://www.smartkarma.com/entities/beisen-holdings" target="_blank" data-smartkarma-citation="entities:36803:1" rel="noopener">Beisen Holdings (1667838D CH)</a>  filed for an IPO in Hong Kong. Morgan Stanley and CICC are leading the upcoming offering. </li>
<li>
<a href="https://www.smartkarma.com/entities/beisen-holdings" target="_blank" data-smartkarma-citation="entities:36803:1" rel="noopener">Beisen Holdings (1667838D CH)</a>  is the leading provider of integrated HR SaaS and talent management platform with ~12% market share of the overall cloud-based HCM industry in China. </li>
<li>We believe the company’s expected IPO valuation may reach $1B, making it one of the largest providers of cloud-native HCM solutions in China scheduled to go public this year. </li>
</ul>


China-Based HCM technology unicorn Beisen Holdings (1667838D CH)  filed for an IPO in Hong Kong. Morgan Stanley and CICC are leading the upcoming offering. 

Beisen Holdings (1667838D CH)  is the leading provider of integrated HR SaaS and talent management platform with ~12% market share of the overall cloud-based HCM industry in China. 
We believe the company’s expected IPO valuation may reach $1B, making it one of the largest providers of cloud-native HCM solutions in China scheduled to go public this year. 


Beisen IPO Preview and Valuation Analysis

<ul><li>Workday produced strong Q4 results and delivered an all-around beat with a decent performance in key operating measures and a 22% increase in subscription revenue for the quarter and the entire fiscal year.</li><li>While Talent Optimization is Workday's fastest-growing SKU with an attach rate on new transactions of more than 85% in fiscal year 2023, approximately 50% of all active Workday HCM customers currently use Workday Skills Cloud.</li><li>The company intends to boost margin expansion in fiscal 2024 while returning to a 20% plus subscription revenue growth when the environment recovers.</li></ul>

Workday produced strong Q4 results and delivered an all-around beat with a decent performance in key operating measures and a 22% increase in subscription revenue for the quarter and the entire fiscal year.While Talent Optimization is Workday's fastest-growing SKU with an attach rate on new transactions of more than 85% in fiscal year 2023, approximately 50% of all active Workday HCM customers currently use Workday Skills Cloud.The company intends to boost margin expansion in fiscal 2024 while returning to a 20% plus subscription revenue growth when the environment recovers.

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>Adobe is down 42% in 2022, and down 22% relative to the S&amp;P. </li>
<li>Valuation has been cut in half, and investors have voiced concerns and skepticism about its (incredibly) expensive acquisition of Figma in September.</li>
<li>Adobe remains better positioned than most large cap software peers as it maintained its guidance from October Analyst Day, highlighting the secular tide behind digital transformation efforts remains strong. </li>
</ul>


Adobe is down 42% in 2022, and down 22% relative to the S&amp;P. 
Valuation has been cut in half, and investors have voiced concerns and skepticism about its (incredibly) expensive acquisition of Figma in September.
Adobe remains better positioned than most large cap software peers as it maintained its guidance from October Analyst Day, highlighting the secular tide behind digital transformation efforts remains strong. 


United States

Workday, Inc. provides enterprise cloud-based applications. The Company offers human capital, spend, and financial management, as well as payroll, initiatives and higher education solutions. Workday serves the finance, healthcare, manufacturing, education, and technology industries worldwide.

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Workday Inc Class A (WDAY US)

Workday: The Rough Path Towards Profitability

Workday's share price is at risk of a downward multiple repricing. GAAP profitability would be very hard to achieve, according to recent rhetoric.

Vladimir Dimitrov, CFA

Workday Inc.: Expanding The Global Footprint

Workday managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. In the quarter, subscription revenue...

Baptista Research

Beisen IPO Preview and Valuation Analysis

Founder-led HR technology unicorn Beisen filed for an IPO in Hong Kong. We believe the company’s expected IPO valuation may reach $1B and see...

Andrei Zakharov

Workday Inc.: Major Drivers

Workday produced strong Q4 results and delivered an all-around beat with a decent performance in key operating measures and a 22% increase in...

Baptista Research

TMT Left for Dead Long Ideas: Adobe

Adobe's tumultuous 2022 highlighted by the expensive Figma acquisition. We think strategic merits are clear and 2023 becomes a reacceleration story...

Aaron Gabin

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