Workday (WDAY) CEO Carl Eschenbach joins Asking for a Trend to discuss the HR software company's outlook and different avenues for growth.

Eschenbach expects 15% growth for Workday over the next two and a half years, ultimately driving a 30% operating margin. He notes that the company is focused on "multiple growth levers," with AI being one of the most important.

"An investment in Workday is an investment in AI. We've been on this journey for 10 years, and we are now monetizing it in many different dimensions," he tells Josh Lipton and Brian Sozzi. "For example, our renewal rates are very high. Customers don't take Workday out to bring in a new AI platform. We are the AI platform."

Eschenbach points to Workday's acquisition of HiredScore, allowing recruiting departments to increase their productivity and accelerate their time to hire by leveraging AI. He adds that the company is also focused on international growth as well as growing its human capital management platform and financials platform:

"The reason financials are really important to us is because a lot of the financials platforms are still on premises. They're not in the cloud. We estimate only 30% of workloads in financials has moved to the cloud. That means there's 70% opportunity for us to help those customers move to the cloud, their financials platform, and marry it up with their HR platform and run a common architecture across both."

Eschenbach also emphasizes the company's focus on partnerships: "They're innovating on top of us, and they're also very interested in figuring out how we can partner to drive their solutions to market in conjunction with ours. So it's a win for us. It's a win for our partners, and it's a win for ultimately our joint customers."

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This post was written by Melanie Riehl