Column: The ‘rich uncle’ business model

Investors just can’t stay mad at Workday. There was a tense moment in January, when the biz-to-biz cloud sensation announced that, only 15 months after its IPO, it would need an additional $600 million in cash for “general corporate purposes.” Jaws were momentarily clenched, but by the end of the next day, shares had recovered their initial losses and were settled comfortably in the green.

The market’s generosity was tested again last week when Workday reported a blowout fourth quarter — in every sense of the word. Compared to the previous year, Workday grew its top line by 74% and its (negative) bottom line by an even-larger 81%. Growth will slow in 2014, but margins won’t get any better; the company expects to lose more than $200 million this year. Once again, shares were down after-hours only to spike the next day and close with gains of 15%.

Full story at Minyanville.