Morgan Stanley Sees Strong Start To FY15 With Q1 Beat For Workday

In a report published Wednesday, Morgan Stanley analyst Jennifer Swanson Lowe reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Strong billings growth was the highlight of an overall healthy print, with total billings +94% YoY to $208M, ~25% ahead of us/cons. at $165M, and current billings +84% YoY to $215M vs. us at $169M. Mgmt. attributed the billings beat in part to $15-20M of business expected in Q2 that closed early, but WDAY would have posted a strong beat even without this benefit, while FY15 billings guidance still moves $40M higher. "Revenues outperformed as well at $160M vs. us/cons at $151M/$153M, while operating income at ($22.5M) also came in ahead of us at ($26.1M). Stronger billings also benefitted cash flow, with cash from operations at $21.7M, well above us/cons. at $5.2M/$9.0M.” Workday closed on Tuesday at $82.13.