Workday Sees Continued Momentum Across Healthcare, Driven By Demand for Solutions to Advance the Future of Health

Rhea-AI Summary

Workday, Inc. (NASDAQ: WDAY) announced continued momentum in the healthcare industry during Q2. Several mid-sized healthcare organizations have selected and deployed Workday solutions to simplify business processes, attract talent, and scale access to care. The company's integrated platform for HR, payroll, finance, and supply chain data helps healthcare providers overcome challenges like supply chain issues and staffing shortages.

Notable selections include:

• The Center for Disability Services, Hebrew SeniorLife, Mary Free Bed Rehabilitation Hospital, Reid Health, Sea Mar Community Health, and Waverly Health Center chose Workday Financial Management, HCM, and Supply Chain Management.
• Columbine Health and GoHealth Urgent Care selected Workday Financial Management and HCM.
• Mercy Medical Center, Phelps Health, and SouthEast Alaska Regional Health Consortium deployed Workday Financial Management, HCM, and Supply Chain Management.

Workday's AI-embedded platform aims to help healthcare organizations of all sizes transform their business operations and improve patient and employee experiences.

Positive

• Continued momentum in the healthcare industry with multiple new client acquisitions
• Expansion of Workday's product suite adoption across various healthcare organizations
• AI-embedded platform offering comprehensive view across finance, workforce, operations, and supply chain data

Negative

• None.

Insights

Healthcare Technology Analyst

Workday's momentum in the healthcare sector underscores the growing demand for integrated enterprise solutions in mid-sized healthcare organizations. The adoption by diverse healthcare providers indicates a shift towards modernizing operational infrastructure to address critical industry challenges.

The integration of HR, finance and supply chain management in a single platform is particularly significant. It enables data-driven decision-making and operational efficiency, which are important in the current healthcare landscape marked by staffing shortages and supply chain disruptions. The AI-embedded platform further enhances these capabilities, potentially leading to improved resource allocation and patient care.

While this news is positive for Workday, investors should monitor the competitive landscape and Workday's ability to scale its healthcare-specific solutions to maintain its growth trajectory in this sector.

Financial Analyst

Workday's Q2 performance in the healthcare sector signals robust revenue growth potential. The company's success in securing multiple mid-sized healthcare clients across various specialties demonstrates its market penetration capabilities and the scalability of its solutions.

Investors should note that the healthcare industry's ongoing digital transformation presents a significant addressable market for Workday. The company's ability to offer a comprehensive suite of solutions positions it well to capture a larger share of IT spending in healthcare organizations.

However, it's important to assess how this sector-specific growth translates into overall financial performance. Investors should look for details on contract values, implementation timelines and profit margins in upcoming financial reports to gauge the full impact on Workday's bottom line.

Mid-Sized Healthcare Organizations Including Hebrew SeniorLife, Mary Free Bed Rehabilitation Hospital, Reid Health, Sea Mar Community Health, and More Select Workday to Achieve Rapid Time to Value

PLEASANTON, Calif., Sept. 5, 2024 /PRNewswire/ -- Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money, today announced continued momentum within the healthcare industry in Q2. Leading mid-sized organizations across the continuum of care including Columbine Health, The Center for Disability Services, GoHealth Urgent Care, Hebrew SeniorLife, Inc., Mary Free Bed Rehabilitation Hospital, Mercy Medical Center, Phelps Health, Reid Health, Sea Mar Community Health, SouthEast Alaska Regional Health Consortium, Waverly Health Center, and more are selecting and deploying Workday solutions for healthcare to simplify business processes, attract and retain talent, and scale access to care.

"Healthcare providers are facing incredible challenges: supply chain issues, staffing shortages, and the growing need to provide truly patient-centered care. To meet these challenges, they urgently need to update their data and technology systems," said John Kravitz, vice president and head of healthcare at Workday. "By bringing together HR, payroll, finance, and supply chain data, Workday helps healthcare organizations make smarter choices, adapt quickly, and focus their energy on what truly matters: providing excellent healthcare."

Workday helps healthcare organizations overcome outdated technology to improve efficiency, lower costs, and focus on delivering quality care. In Q2, health systems, ambulatory practices, and post-acute facilities continued to select and deploy Workday to drive savings, improve clinician experiences, and boost supply chain resilience:

• The Center for Disability Services, Hebrew SeniorLife, Inc., Mary Free Bed Rehabilitation Hospital, Reid Health, Sea Mar Community Health, and Waverly Health Center selected Workday Financial Management, Workday Human Capital Management (HCM), and Workday Supply Chain Management (SCM).
• Columbine Health and GoHealth Urgent Care selected Workday Financial Management and Workday HCM.
• Mercy Medical Center, Phelps Health, and SouthEast Alaska Regional Health Consortium deployed Workday Financial Management, Workday HCM, and Workday SCM.

"Workday is enabling us to consolidate and optimize the daily workflow our management team and staff experience through a one stop shop for HR, finance, and supply chain operations," said Jeff Cash, senior vice president and chief information officer, Mercy Medical Center. "With Workday, we can efficiently adapt our business processes to the ever-changing healthcare environment and continue to deliver The Mercy Touch to our workforce and patients."

With AI embedded into the core of the Workday platform, Workday helps healthcare organizations – regardless of size – transform their business. The Workday platform is simple to deploy and provides a comprehensive view across finance, workforce, operations, and supply chain data, enabling healthcare organizations to scale and improve patient and employee experiences.

For more information:

• Register to attend Workday Rising sessions in the digital program:
  • Healthcare Industry Insights for IT and HR Leaders [INI2305], September 18 at 11:00am PDT.
  • Healthcare for Finance and Supply Chain Leaders Industry Insights [INI2306], September 18 at 12:00pm PDT.
• Read the blog, "How Small and Mid-Sized Healthcare Organizations Accelerate With Workday."
• Discover how AdventHealth is using AI to improve hiring and talent retention here.
• Read the blog, "3 Ways Healthcare Organizations Can Build Better Supply Chain Resilience."

About Workday
Workday is a leading enterprise platform that helps organizations manage their most important assets – their people and money. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 10,500 organizations around the world and across industries – from medium-sized businesses to more than 60% of the Fortune 500. For more information about Workday, visit workday.com.

© 2024 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Workday's full-year and second quarter fiscal 2025 subscription revenue and non-GAAP operating margin, growth, demand, strategy, and investments. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to: (i) breaches in our security measures or those of our third-party providers, unauthorized access to our customers' or other users' personal data, or disruptions in our data center or computing infrastructure operations; (ii) service outages, delays in the deployment of our applications, and the failure of our applications to perform properly; (iii) privacy concerns and evolving domestic or foreign laws and regulations; (iv) the impact of continuing global economic and geopolitical volatility on our business, as well as on our customers, prospects, partners, and service providers; (v) any loss of key employees or the inability to attract, train, and retain highly skilled employees; (vi) competitive factors, including pricing pressures, industry consolidation, entry of new competitors and new applications, advancements in technology, and marketing initiatives by our competitors; (vii) our reliance on our network of partners to drive additional growth of our revenues; (viii) the regulatory, economic, and political risks associated with our domestic and international operations; (ix) adoption of our applications and services by customers and individuals, including any new features, enhancements, and modifications, as well as our customers' and users' satisfaction with the deployment, training, and support services they receive; (x) the regulatory risks related to new and evolving technologies such as AI and our ability to realize a return on our development efforts; (xi) our ability to realize the expected business or financial benefits of any acquisitions of or investments in companies, (xii) delays or reductions in information technology spending; and (xiii) changes in sales, which may not be immediately reflected in our results due to our subscription model. Further information on these and additional risks that could affect Workday's results is included in our filings with the Securities and Exchange Commission ("SEC"), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday's discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.

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SOURCE Workday Inc.

FAQ

Which healthcare organizations selected Workday solutions in Q2 2024?

In Q2 2024, healthcare organizations including Hebrew SeniorLife, Mary Free Bed Rehabilitation Hospital, Reid Health, Sea Mar Community Health, Columbine Health, GoHealth Urgent Care, and others selected various Workday (WDAY) solutions for their operations.

What Workday products are being adopted by healthcare organizations?

Healthcare organizations are adopting Workday (WDAY) Financial Management, Workday Human Capital Management (HCM), and Workday Supply Chain Management (SCM) solutions to improve their operational efficiency and address industry challenges.

How is Workday (WDAY) helping healthcare organizations address industry challenges?

Workday (WDAY) is helping healthcare organizations address challenges such as supply chain issues, staffing shortages, and the need for patient-centered care by providing integrated solutions for HR, payroll, finance, and supply chain management, supported by AI technology.

What benefits does Workday (WDAY) offer to mid-sized healthcare organizations?

Workday (WDAY) offers mid-sized healthcare organizations solutions to simplify business processes, attract and retain talent, scale access to care, improve efficiency, lower costs, and focus on delivering quality care through its integrated platform.