Workday said Rob Enslin, most recently CEO of UiPath, will become president and chief commercial officer. Workday also reported better-than-expected third quarter results.
Enslin will be stepping into a newly created role. Enslin, who is also an alum of Google Cloud and SAP, will be responsible for Workday's revenue growth, sales, partnerships and customer experience. Enslin will join Workday effective Dec. 2. He stepped down at UiPath in May.
Workday reported third quarter earnings of 72 cents a share, non-GAAP earnings of $1.89 a share, and revenue of $2.16 billion, up 15.8% from a year ago. Wall Street was expecting Workday to report third quarter non-GAAP earnings of $1.76 a share on revenue of $2.13 billion.
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CEO Carl Eschenbach said Workday delivered "solid performance" and that "organizations are increasingly consolidating on the Workday platform to reduce total cost of ownership, simplify their operations, and our AI solutions."
As for the outlook, Workday said fourth quarter subscription revenue will be $2.025 billion, up 15% from a year ago. For fiscal 2025, Workday is projecting subscription revenue of $7.703 billion, up 17%.
Speaking on a conference call with analysts, Eschenbach said the company saw growth in most of its geographies and industries, but government and education stood out. He said 90% of wins in the quarter were full suite implementations.
He added:
"AI is top of mind for every CEO right now, and they're all looking for the right partner to guide them through this transformation. Our customers know that an investment in Workday is an investment in AI, and we're seeing a ton of excitement and demand for our AI solutions. In Q3 alone, more than 30% of our customer expansions involved one or more AI solutions."
Eschenbach said that Workday Illuminate and its AI agents will drive growth going forward.
Constellation Research's take
Constellation Research analyst Holger Mueller said:
"Workday had a good quarter beating the street on the top and bottom lines. Workday broke the $2 billion quarterly revenue mark – a key milestone, as it is on the way to $10 billion in revenue. The growth and good cost discipline helped Workday to grow 30 cents in EPS year over year. The addition of Rob Enslin should help Workday expanding its customer access, as he brings C-Suite relationships from his time at both SAP and Google. The pressure is on Carl Eschenbach and team is on the go-to-market side. On the product side, Workday will have to get going and make its AI strategy tangible, and show what difference it can make for customers' employees daily."
