We recently filed a Form 8-K with the U.S. Securities and Exchange Commission that includes two exciting updates: the addition of Michael C. Bush, CEO of Great Place to Work (GPTW), to our board of directors, and the closing of a $750,000,000 term loan facility and a $750,000,000 revolving credit facility.
Given this unprecedented time and the current environment we’re all navigating together, we wanted to provide more insights on what these important updates mean for Workday and how they’ll help build on our strong culture and financial position.
Why did Workday select Michael C. Bush to be on our board of directors?
As part of our ongoing efforts and partnership with GPTW, Workday leaders have long admired and respected Michael C. Bush. Given his understanding of the impact of a workplace’s culture on a company’s performance; his expertise in helping build great places to work for all; and his deep knowledge of techniques, real-world examples, and the need for stakeholder alignment on the topic; Michael will be a great addition to our board of directors.
We are also still actively searching for a third female board member, as part of California’s law mandating boards with six or more members include at least three females by December 31, 2021.
Will this impact Workday’s participation in upcoming GPTW rankings?
While Workday will continue to enlist GPTW’s services to survey our workforce and understand employee sentiment with the power of data, we will no longer participate in global Fortune GPTW rankings.
What does the financing mean for Workday and how will the money be used?
This financing will help strengthen our balance sheet and will help improve our liquidity position. As we look to grow and expand our organization on our path to $10 billion, it’s important we have available cash to support various corporate and investment activities—including mergers and acquisitions, research and development, and capital expenditures—as part of our continued growth aspirations.
Corporate financings are part of Workday's long-term capital structure strategy and this credit facility was planned prior to the recent global COVID-19 pandemic.
This blog post contains forward-looking statements related to Workday that are subject to risks, uncertainties, and assumptions. If any of these risks or uncertainties materialize or if any of these assumptions prove incorrect, the actual results of Workday could differ materially from the results expressed or implied by these forward-looking statements. Forward-looking statements in this communication include, among other things, statements about the potential benefits and contributions of a new director joining Workday’s Board of Directors, statements about Workday’s new credit facilities and their potential impact on Workday’s financial position, strategies, plans, objectives, expectations and intentions, and statements about current or future economic conditions. Risks and uncertainties include, but are not limited to: (i) breaches in our security measures and/or unauthorized access to our customers’ and other users’ data; (ii) service outages and other disruptions to our data center and computing infrastructure operations; (iii) Workday’s ability to implement its plans, objectives and other expectations with respect to its credit facilities; (iv) Workday’s failure to manage its growth effectively; (v) market and industry growth slowing; (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) the development of the market for enterprise cloud applications and services; (viii) acceptance of our applications and services by customers, including any underlying technology such as machine learning, artificial intelligence, and blockchain; (ix) adverse changes in general economic or market conditions, including as a direct or indirect result of the recent coronavirus pandemic; (x) the regulatory, economic, and political risks associated with our international operations; (xi) delays or reductions in information technology spending; (xii) changes in sales, which may not be immediately reflected in our results due to our subscription model; (xii) delays in the deployment of our applications; (xiii) regulatory risks related to new and evolving technologies such as machine learning artificial intelligence, and blockchain; and (xiv) additional risks included in our filings with the Securities and Exchange Commission (SEC), including our Form 10-K for the fiscal year ended January 31, 2020, and our future reports that we may 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 intend to, update any such forward-looking statements.
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