Workday says it's displacing Oracle software, as it hits first-ever $1 billion annual sales
In its earnings on Monday, Workday announced $1.16 billion in total revenue for fiscal year 2016, up 48% from the previous year.
Its fourth quarter revenue and EPS numbers also beat street estimates, but its stock remained largely flat in after hours trading following lowered guidance that didn't meet expectations.
Regardless, it's still remarkable that Workday has been able to hit the $1 billion revenue mark, just 10 years after its founding in 2005.
Typically, only the most successful enterprise cloud software makers, such as Salesforce and LinkedIn, reach $1 billion in annual sales at that rate. Aside from those two companies, only ServiceNow has generated more than $1 billion in annual sales among cloud-only enterprise software makers.
But it's also a reflection that cloud vendors are eating into the space that has historically been dominated by legacy vendors like Oracle and SAP.
Workday CEO Aneel Bhusri says that it signed over 40 new customers in the financial sector, mostly at the expense of Oracle and SAP. Bank of America, for example, just replaced Oracle's software with Workday's last quarter, Bhusri noted.