Workday CEO Aneel Bhusri's Return Positions Company to Make More Effective AI Investments, RBC Says

MT Newswires Live10-06 23:14

Workday (WDAY) Chief Executive Officer Aneel Bhusri's return to the helm positions the company to make more effective artificial intelligence investments and prioritize organic development over mergers and acquisitions, RBC Capital Markets said in a note.

Noting the company's upcoming Workday Rising event, RBC said Monday that it will look for management to provide updated AI metrics including AI annual recurring revenue, Flex Credits adoption, AI attach rates on net new deals, and contribution of AI to expansion deals.

Specifically, any disclosure around Flex Credit consumption patterns or per-agent economics will be well received by investors trying to underwrite the AI revenue opportunity, according to the note.

RBC maintained its outperform rating with a $240 price target.

Price: 189.26, Change: +0.30, Percent Change: +0.16

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