Adaptive filed its form S-1 for an offering of up to $100 million on May 17. The purchase simplifies the development cycle for Pleasanton, Calif.-based Workday. Workday CEO Aneel Bhusri said with the acquisition We will accelerate our financial planning roadmap by two to three years.” He noted “the plan will be to take the Adaptive product and sell it up market through our fairly sizable sales force.” The S-1 shows Adaptive lost $42.7 million for the year ended January 31, compared to a loss of $44.7 million for fiscal; 2017. Revenue for fiscal 2018 was $106.5 million an increase of 30.2 percent from $81.8 million a year earlier. Most revenue comes from subscriptions. Although Workday has financial applications, it is principally known for selling HR products to enterprise-level companies. Adaptive CEO Tom Bogan, who Bhursi described as a friend of several years, will report to Bhursi. Bogan said Adaptive’s customer base is 23 percent enterprise, 43 percent midmarket and slightly more than one third, SMB. Workday lost $321,222 for fiscal 2017, narrowed from $384,699 in red ink in fiscal 2016. The company had $2.14 billion in revenue for the most recently ended year, a 36.1-percent increase from $1.57 billion the prior year. The longer-term implications for competitors is interesting since Oracle NetSuite sells Adaptive Planning for NetSuite as an integrated service.Last modified on Friday, 15 June 2018
WORKDAY BUYING ADAPTIVE INSIGHTS Featured
So much for the Adaptive insights initial public offering. Workday is acquired the cloud-based budgeting and planning software company. Workday this week said it will pay $1.55 billion for Palo Alto, Calif.-based Adaptive, including $150 million in unvested equity issued to the target company’s employees.