UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR For transition period from to Commission File Number 001-36773 ___________________________________ WORKIVA INC. (Exact name of registrant as specified in its charter) ___________________________________ D ...

Financial Data and Key Metrics Changes - In Q2 2020, total revenue was $83.9 million, a 14.1% increase from Q2 2019 [20] - Subscription and support revenue was $70.7 million, up 16.9% from the same quarter last year [20] - Professional services revenue was $13.2 million, a 1.2% increase from Q2 2019 [21] - Gross profit totaled $62.4 million, up 16.4% year-over-year, with a consolidated gross margin of 74.4% [25] - Operating loss was $1.9 million in Q2 2020, compared to an operating profit of $86,000 in Q2 2019 [27] - Cash, cash equivalents, and marketable securities totaled $509 million at June 30, 2020, an increase of $12.5 million from March 31, 2020 [28] Business Line Data and Key Metrics Changes - Subscription and support revenue retention rate was 94.5% for Q2 2020, down from 95.4% in Q2 2019 [24] - The number of contracts valued at over $100,000 per year increased by 28% year-over-year, totaling 716 contracts [24] - The number of contracts valued at over $150,000 increased by 44% from Q2 2019, totaling 342 customers [24] Market Data and Key Metrics Changes - Demand for the platform improved across all growth vectors, including EMEA and U.S. Government solutions [10] - The company noted that the potential delay of the ESEF reporting deadline by the FCA in the U.K. had no material impact on the outlook for EMEA [17] Company Strategy and Development Direction - The company is focused on leveraging partnerships with technology companies and advisory firms to drive long-term growth [10] - The transition to virtual marketing events has been successful, generating a significant number of sales leads [13] - The company is committed to developing and delivering new solutions on its platform as a key driver of success [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on opportunities despite challenges posed by the COVID-19 pandemic [9] - The company reinstated full-year guidance, close to pre-pandemic levels, based on improved visibility into new business [30] - Management noted that the sales team successfully adapted to virtual selling, leading to a normalization of closure rates [36] Other Important Information - The company is seeing strong engagement in the ESEF mandate discussions, using it as an entry point to broader platform sales [52] - The new platform's capabilities have been well-received, allowing for faster market entry and solution development [12] Q&A Session Summary Question: What changes were made to the sales team to close deals? - Management noted that the sales team adapted to virtual selling, which helped normalize closure rates despite challenges in certain industries [36] Question: How are customers in Europe responding to the ESEF mandate? - Management indicated that the potential delay in the ESEF mandate is not slowing down customer engagement or pipeline development [40] Question: What factors contributed to the decline in add-on revenue? - The decline was attributed to a combination of not taking price increases and solution churn, particularly in industries affected by COVID [45] Question: How is the partner channel performing? - Management reported strong partner activity, with partners recognizing the potential to build practices around the company's solutions [47] Question: What is the outlook for the ESEF mandate in EMEA? - Management has not heard of any significant delays in EMEA and remains optimistic about ongoing conversations with customers [66] Question: Can you elaborate on the allowance for receivables? - The allowance for receivables increased to $5.6 million, impacting billings, but adjusted figures would show a year-on-year increase in short-term billings [69] Question: What is the status of the next-generation platform? - The next-generation platform has been well-received, with management noting its stability and performance, and it is expected to enhance sales efficiency [78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-36773 ___________________________________ WORKIVA INC. (Exact ...

Workiva, Inc. (NYSE:WK) Q1 2020 Earnings Conference Call April 30, 2020 5:00 PM ET Company Participants Adam Terese - Director, Corporate Development and IR Martin Vanderploeg - President, CEO & Director Stuart Miller - EVP & CFO Conference Call Participants Alexander Sklar - Raymond James & Associates Matthew Lemenager - Robert W. Baird & Co. Terrell Tillman - SunTrust Robinson Humphrey Sarah Quander - Morgan Stanley Thomas Roderick - Stifel, Nicolaus & Company Michael Pochucha - Northland Capital Markets ...

[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This section presents **Workiva Inc.'s** unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Unaudited Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) This section presents **Workiva Inc.'s** unaudited condensed consolidated financial statements for the **three months ended March 31, 2020**, and **2019**, including balance sheets, statements of operations, comprehensive loss, changes in stockholders' equity, and cash flows, along with detailed notes on accounting policies, financial instruments, convertible notes, stock-based compensation, and revenue recognition [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents **Workiva Inc.'s** financial position, detailing assets, liabilities, and equity at specific dates Balance Sheet Highlights (March 31, 2020 vs. Dec 31, 2019, in thousands) | Metric | March 31, 2020 | December 31, 2019 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $393,434 | $381,742 | | Total current assets | $565,234 | $571,232 | | Total assets | $643,716 | $646,396 | | Total current liabilities | $221,993 | $231,932 | | Convertible senior notes, net | $282,798 | $280,601 | | Total liabilities | $573,944 | $581,053 | | Total stockholders' equity | $69,772 | $65,343 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details **Workiva Inc.'s** revenues, expenses, and net loss for the **three months ended March 31, 2020** and **2019** Statements of Operations Highlights (Three Months Ended March 31, in thousands) | Metric | 2020 | 2019 | YoY Change | | :-------------------------- | :----- | :----- | :--------- | | Total revenue | $85,801 | $69,963 | +22.6% | | Subscription and support revenue | $68,361 | $56,123 | +21.8% | | Professional services revenue | $17,440 | $13,840 | +26.0% | | Gross profit | $63,405 | $50,427 | +25.7% | | Loss from operations | $(9,154) | $(7,332) | -24.9% | | Net loss | $(10,573) | $(7,463) | -41.7% | | Basic and diluted net loss per share | $(0.22) | $(0.17) | -29.4% | [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Outlines **Workiva Inc.'s** net loss and other comprehensive income or loss for the **three months ended March 31, 2020** and **2019** Comprehensive Loss (Three Months Ended March 31, in thousands) | Metric | 2020 | 2019 | | :-------------------------------- | :------- | :------- | | Net loss | $(10,573) | $(7,463) | | Other comprehensive (loss) income, net of tax | $(9) | $52 | | Comprehensive loss | $(10,582) | $(7,411) | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Summarizes changes in **Workiva Inc.'s** stockholders' equity, including net loss and stock-based compensation, for the **three months ended March 31, 2020** Stockholders' Equity Changes (Three Months Ended March 31, 2020, in thousands) | Item | Amount | | :------------------------------------------------ | :------- | | Balances at December 31, 2019 | $65,343 | | Stock-based compensation expense | $9,936 | | Issuance of common stock upon exercise of stock options | $2,794 | | Issuance of common stock under employee stock purchase plan | $3,660 | | Net loss | $(10,573) | | Other comprehensive loss | $(9) | | Balances at March 31, 2020 | $69,772 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Provides a summary of **Workiva Inc.'s** cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary (Three Months Ended March 31, in thousands) | Activity | 2020 | 2019 | | :-------------------------------------- | :----- | :------- | | Net cash provided by operating activities | $4,749 | $5,119 | | Net cash provided by (used in) investing activities | $2,801 | $(16,592) | | Net cash provided by financing activities | $4,755 | $12,520 | | Net increase in cash and cash equivalents | $11,692 | $1,152 | | Cash and cash equivalents at end of period | $393,434 | $78,736 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Organization and Significant Accounting Policies](index=12&type=section&id=1.%20Organization%20and%20Significant%20Accounting%20Policies) Describes **Workiva's** business, revenue seasonality, and the adoption of new accounting standards - **Workiva** provides a **connected reporting and compliance platform** used by public/private companies, government agencies, and higher-education institutions, offering collaboration, data linking, and audit trails[40](index=40&type=chunk) - **Revenue** from **professional services** is higher in **Q1** due to **Form 10-K** filings; sales and marketing expense is historically higher in **Q3** due to the **annual user conference** (though virtual in **2020** may mitigate this)[42](index=42&type=chunk) - Adopted **ASU 2016-13 (Credit Losses)** **effective January 1, 2020**, with **no material impact** on financial statements[46](index=46&type=chunk) [2. Supplemental Consolidated Balance Sheet Information](index=13&type=section&id=2.%20Supplemental%20Consolidated%20Balance%20Sheet%20Information) Details specific components of accrued expenses and other current liabilities Accrued Expenses and Other Current Liabilities (in thousands) | Item | March 31, 2020 | December 31, 2019 | | :------------------------------ | :------------- | :---------------- | | Accrued vacation | $9,430 | $8,353 | | Accrued commissions | $2,791 | $5,561 | | Accrued bonuses | $4,122 | $7,121 | | Estimated health insurance claims | $1,089 | $1,040 | | ESPP employee contributions | $2,114 | $3,734 | | Customer deposits | $11,818 | $12,151 | | Operating lease liabilities | $4,341 | $3,064 | | Accrued other liabilities | $7,057 | $8,906 | | **Total** | **$42,762** | **$49,930** | [3. Cash Equivalents and Marketable Securities](index=13&type=section&id=3.%20Cash%20Equivalents%20and%20Marketable%20Securities) Provides a breakdown of **Workiva's** marketable securities and their fair values Marketable Securities (March 31, 2020, in thousands) | Item | Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | | :------------------------ | :------------- | :--------------- | :---------------- | :------------------- | | Money market funds | $367,978 | $— | $— | $367,978 | | Commercial paper | $2,961 | $— | $— | $2,961 | | U.S. treasury debt securities | $20,888 | $283 | $— | $21,171 | | U.S. corporate debt securities | $78,532 | $49 | $(124) | $78,457 | | **Total** | **$470,359** | **$332** | **$(124)** | **$470,567** | - Unrealized losses on U.S. corporate debt securities **totaled $124 thousand** as of **March 31, 2020**, but are **not believed to represent credit losses**[51](index=51&type=chunk) [4. Fair Value Measurements](index=15&type=section&id=4.%20Fair%20Value%20Measurements) Explains the classification of financial instruments based on fair value hierarchy levels - Cash equivalents are classified as **Level 1** (quoted prices in active markets), while marketable securities and convertible senior notes are classified as **Level 2** (quoted prices for comparable instruments or over-the-counter market)[53](index=53&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk) Fair Value Measurements (March 31, 2020, in thousands) | Description | Total | Level 1 | Level 2 | | :------------------------ | :------ | :------ | :------ | | Money market funds | $367,978 | $367,978 | $— | | Commercial paper | $2,961 | $— | $2,961 | | U.S. treasury debt securities | $21,171 | $— | $21,171 | | U.S. corporate debt securities | $78,457 | $— | $78,457 | | **Total** | **$470,567** | **$367,978** | **$102,589** | [5. Convertible Senior Notes](index=16&type=section&id=5.%20Convertible%20Senior%20Notes) Details the terms, carrying amounts, and interest expense related to **Workiva's** convertible senior notes - Issued **$345.0 million** of **1.125%** convertible senior notes due **2026** in **August 2019**, with **net proceeds** of **$335.9 million**[57](index=57&type=chunk)[140](index=140&type=chunk) - Initial **conversion rate** is **12.4756 shares** per **$1,000 principal**, equivalent to **$80.16 per share**. The company intends to settle conversions with a combination of cash and **Class A common stock**[58](index=58&type=chunk)[60](index=60&type=chunk) Convertible Senior Notes Carrying Amount (in thousands) | Component | March 31, 2020 | December 31, 2019 | | :------------------------------------------ | :------------- | :---------------- | | Liability component (net carrying amount) | $282,798 | $280,601 | | Equity component, net of purchase discounts and issuance costs | $58,560 | $58,560 | Interest Expense Related to Notes (Three Months Ended March 31, 2020, in thousands) | Item | Amount | | :-------------------------- | :----- | | Contractual interest expense | $970 | | Amortization of debt discount | $1,953 | | Amortization of issuance costs | $244 | | **Total interest expense** | **$3,167** | [6. Commitments and Contingencies](index=19&type=section&id=6.%20Commitments%20and%20Contingencies) Addresses potential future obligations and legal matters, noting **no material adverse effects** are expected - **No currently pending legal proceedings** are expected to have a **material adverse effect** on the **business**, **operating results**, **financial condition**, or **cash flows**[66](index=66&type=chunk) [7. Stock-Based Compensation](index=19&type=section&id=7.%20Stock-Based%20Compensation) Reports the **total stock-based compensation expense** and unrecognized amounts for restricted stock units - **Stock-based compensation expense totaled $9.9 million** for the **three months ended March 31, 2020**, **up from $8.2 million** in the prior year[70](index=70&type=chunk)[126](index=126&type=chunk) Stock-Based Compensation Expense by Category (Three Months Ended March 31, in thousands) | Category | 2020 | 2019 | | :------------------------ | :--- | :--- | | Cost of revenue | $856 | $766 | | Research and development | $1,583 | $1,900 | | Sales and marketing | $2,736 | $1,964 | | General and administrative | $4,761 | $3,563 | | **Total** | **$9,936** | **$8,193** | - Unrecognized compensation expense for **restricted stock units** was **approximately $79.0 million**, to be recognized over **2.6 years**[76](index=76&type=chunk) [8. Revenue Recognition](index=22&type=section&id=8.%20Revenue%20Recognition) Details revenue breakdown by type and expected recognition from remaining performance obligations Revenue by Type of Good or Service (Three Months Ended March 31, in thousands) | Type | 2020 | 2019 | | :------------------------ | :----- | :----- | | Subscription and support | $68,361 | $56,123 | | XBRL professional services | $13,432 | $11,410 | | Other services | $4,008 | $2,430 | | **Total revenues** | **$85,801** | **$69,963** | - Recognized **$63.6 million** of revenue from deferred revenue balances at the beginning of the period for **Q1 2020**[82](index=82&type=chunk) - Expects to recognize **approximately $269.2 million** from remaining **subscription performance obligations**, with **$187.4 million** over the next **12 months**[83](index=83&type=chunk) [9. Net Loss Per Share](index=22&type=section&id=9.%20Net%20Loss%20Per%20Share) Presents basic and diluted net loss per common share and weighted-average shares outstanding Net Loss Per Common Share (Three Months Ended March 31) | Metric | 2020 | 2019 | | :------------------------------------------ | :----- | :----- | | Basic and diluted net loss per common share | $(0.22) | $(0.17) | | Weighted-average common shares outstanding | 47,545,703 | 45,229,279 | - **Approximately 4.3 million shares** underlying convertible senior notes were **anti-dilutive** and excluded from diluted net loss per share calculation[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on **Workiva's financial condition** and **operational results** for the **three months ended March 31, 2020**. It covers the company's **business overview**, the **impact of the COVID-19 pandemic**, **key performance drivers**, detailed financial comparisons, and liquidity. The company reported significant revenue growth but also **increased net losses**, while navigating the **uncertainties** introduced by **COVID-19** [Overview](index=24&type=section&id=Overview) Provides a high-level summary of **Workiva's business model**, **platform** usage, and key financial highlights - **Workiva's platform** is used by **3,507 organizations**, including **nearly 75% of Fortune 500® companies**, for **connected reporting and compliance**[88](index=88&type=chunk) - The company operates on a **Software-as-a-Service (SaaS) model**, with **over 75% of subscription revenue** priced on a **solution-based licensing model** as of **March 31, 2020**[92](index=92&type=chunk) Revenue and Net Loss (Three Months Ended March 31, in millions) | Metric | 2020 | 2019 | YoY Growth | | :---------------- | :--- | :--- | :--------- | | Total Revenue | $85.8 | $70.0 | +22.6% | | Net Loss | $(10.6) | $(7.5) | -41.3% | [Impact of COVID-19](index=25&type=section&id=Impact%20of%20COVID-19) Discusses the effects of the **COVID-19 pandemic** on **Workiva's operations**, sales, and future financial outlook - **COVID-19** led to **remote work**, **restricted travel**, and **virtual marketing events**, but the **platform** remains **fully operational**[100](index=100&type=chunk) - The **pandemic** has **negatively impacted sales activities**, causing customers and prospects to **delay purchasing decisions**, and may lead to **reduced technology spending** or **contract renegotiations**[101](index=101&type=chunk) - The full **impact of COVID-19** on **business** and **operating results** is **uncertain** and may not be fully reflected until future periods due to the **subscription-based service model**[101](index=101&type=chunk) [Key Factors Affecting Our Performance](index=26&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Outlines **Workiva's growth strategies**, investment plans, and seasonal factors influencing financial performance - **Growth strategies** include expanding usage among existing customers via **solution-based licensing**, acquiring new customers in **finance, regulatory, risk, and reporting**, and introducing **new solutions**[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - Expanding across enterprises is expected to **increase seats and revenue** but may **lengthen sales cycles** due to **larger, more complex deals**[105](index=105&type=chunk) - Continued investment in **platform development**, **sales, marketing, professional services, and customer success** is planned, particularly for **EMEA**, **integrated risk**, **statutory reporting**, and **Wdata**[108](index=108&type=chunk) - **Professional services revenue** is **seasonal**, typically higher in **Q1** due to **10-K filings**, and **sales and marketing expenses** are historically higher in **Q3** due to the **annual user conference**[109](index=109&type=chunk) [Key Performance Indicators](index=27&type=section&id=Key%20Performance%20Indicators) Presents key metrics such as revenue, customer count, and retention rates for evaluating **business performance** Key Performance Indicators (As of March 31) | Metric | 2020 | 2019 | YoY Change | | :------------------------------------------ | :----- | :----- | :--------- | | Total revenue (in thousands) | $85,801 | $69,963 | +22.6% | | Subscription and support revenue (in thousands) | $68,361 | $56,123 | +21.8% | | Number of customers | 3,507 | 3,366 | +4.2% | | Subscription and support revenue retention rate | 94.5% | 95.7% | -1.2 ppt | | Subscription and support revenue retention rate including add-ons | 110.9% | 110.7% | +0.2 ppt | | Number of customers with annual contract value $100k+ | 670 | 493 | +35.9% | | Number of customers with annual contract value $150k+ | 308 | 207 | +48.8% | - **Customer attrition** in the latest quarter was **nearly half** **due to customers being acquired or ceasing SEC filings**[112](index=112&type=chunk) [Components of Results of Operations](index=28&type=section&id=Components%20of%20Results%20of%20Operations) Explains how **Workiva** generates revenue and categorizes its costs of revenue and **operating expenses** - **Revenue** is generated from **cloud-based software subscriptions** (**ratable recognition**) and **professional services** (**recognized as completed or performed**)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - **Cost of revenue** includes **personnel**, **third-party vendors**, **server usage (AWS, Google Cloud)**, **IT**, and **facility costs**[121](index=121&type=chunk) - **Sales commissions** with **amortization periods over one year** are **deferred and amortized over three years**[122](index=122&type=chunk) [Results of Operations (Comparison of Three Months Ended March 31, 2020 and 2019)](index=30&type=section&id=Results%20of%20Operations%20(Comparison%20of%20Three%20Months%20Ended%20March%2031,%202020%20and%202019)) Compares **Workiva's financial performance** across key income statement items for the specified periods Consolidated Statement of Operations Data (Three Months Ended March 31, in thousands) | Item | 2020 | 2019 | % of Revenue 2020 | % of Revenue 2019 | | :-------------------------- | :----- | :----- | :---------------- | :---------------- | | Total revenue | $85,801 | $69,963 | 100.0% | 100.0% | | Gross profit | $63,405 | $50,427 | 73.9% | 72.1% | | Total operating expenses | $72,559 | $57,759 | 84.6% | 82.6% | | Loss from operations | $(9,154) | $(7,332) | (10.7)% | (10.5)% | | Net loss | $(10,573) | $(7,463) | (12.3)% | (10.6)% | [Revenue](index=31&type=section&id=Revenue_Comparison) Analyzes the breakdown and growth of **subscription** and **professional services revenue** Revenue Breakdown (Three Months Ended March 31, in thousands) | Revenue Type | 2020 | 2019 | % Change | | :---------------------- | :----- | :----- | :------- | | Subscription and support | $68,361 | $56,123 | 21.8% | | Professional services | $17,440 | $13,840 | 26.0% | | **Total revenue** | **$85,801** | **$69,963** | **22.6%** | - Total customer count **increased by 4.2%** from **March 31, 2019**, to **March 31, 2020**[128](index=128&type=chunk) [Cost of Revenue](index=33&type=section&id=Cost%20of%20Revenue_Comparison) Examines the changes in costs associated with **subscription** and **professional services revenue** Cost of Revenue Breakdown (Three Months Ended March 31, in thousands) | Cost Type | 2020 | 2019 | % Change | | :---------------------- | :----- | :----- | :------- |\ | Subscription and support | $12,153 | $9,809 | 23.9% | | Professional services | $10,243 | $9,727 | 5.3% | | **Total cost of revenue** | **$22,396** | **$19,536** | **14.6%** | [Operating Expenses](index=33&type=section&id=Operating%20Expenses_Comparison) Details the trends and drivers behind research and development, sales and marketing, and general and administrative expenses Operating Expenses Breakdown (Three Months Ended March 31, in thousands) | Expense Type | 2020 | 2019 | % Change | | :------------------------ | :----- | :----- | :------- | | Research and development | $22,994 | $22,011 | 4.5% | | Sales and marketing | $36,117 | $25,365 | 42.4% | | General and administrative | $13,448 | $10,383 | 29.5% | | **Total operating expenses** | **$72,559** | **$57,759** | **25.6%** | - **Sales and marketing headcount increased by 34.9%** year-over-year, contributing to an **$8.8 million** **increase** in cash-based compensation and benefits[133](index=133&type=chunk) [Non-Operating Income (Expenses)](index=34&type=section&id=Non-Operating%20Income%20(Expenses)_Comparison) Reviews interest income, interest expense, and other non-operating gains or losses Non-Operating Income (Expenses) (Three Months Ended March 31, in thousands) | Item | 2020 | 2019 | % Change | | :-------------------------- | :----- | :----- | :------- | | Interest income | $1,706 | $492 | 246.7% | | Interest expense | $(3,554) | $(440) | 707.7% | | Other income and (expense), net | $718 | $(172) | (517.4)% | - **Interest expense increased by $3.1 million** due to the issuance of **senior convertible notes**[136](index=136&type=chunk) - Other income (expense), net **increased by $0.9 million primarily due to gains on foreign currency transactions**[137](index=137&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses **Workiva's** ability to meet short-term and long-term obligations using available cash and financing - **Principal sources of liquidity** as of **March 31, 2020**, were **$496.0 million** in **cash, cash equivalents, and marketable securities**[138](index=138&type=chunk) - Expects **current liquidity and operating cash flows** to be **sufficient for at least the next twelve months**, despite **incurring operating losses**[138](index=138&type=chunk) - Issued **$345.0 million** in **1.125% convertible senior notes** due **2026** in **August 2019**, generating **$335.9 million** in **net proceeds**[140](index=140&type=chunk) - **Cash provided by operating activities** was **$4.7 million** for **Q1 2020**, influenced by **net loss, non-cash charges, and changes in operating assets and liabilities**, including a **decrease in deferred revenue due to COVID-19 related credit risk**[141](index=141&type=chunk) - **Cash provided by investing activities** was **$2.8 million** for **Q1 2020**, **primarily from maturities and sales of marketable securities**, **offset by purchases**[143](index=143&type=chunk) - **Cash provided by financing activities** was **$4.8 million** for **Q1 2020**, mainly from **option exercises and ESPP proceeds**, **offset by tax payments for stock-based compensation**[145](index=145&type=chunk) [Contractual Obligations and Commitments](index=36&type=section&id=Contractual%20Obligations%20and%20Commitments) Confirms **no material changes** to **Workiva's contractual obligations** since the last reporting period - **No material changes** in **contractual obligations and commitments** since **December 31, 2019**[147](index=147&type=chunk) [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) States that **Workiva** has **no off-balance sheet arrangements** with unconsolidated entities - **No off-balance sheet arrangements** with **unconsolidated entities or financial partnerships**[148](index=148&type=chunk) [Critical Accounting Policies and Estimates](index=36&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms **no significant changes** to **Workiva's critical accounting policies and estimates** during the quarter - **No significant changes** to **critical accounting policies and estimates** during **Q1 2020**[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's **market risk exposures** have **not materially changed** since **December 31, 2019**, with further details available in the **Annual Report on Form 10-K** - **Market risk exposures** have **not materially changed** since **December 31, 2019**[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the **effectiveness** of **Workiva's disclosure controls and procedures** and reports **no material changes** in **internal control over financial reporting** during the **quarter ended March 31, 2020** [Evaluation of Disclosure Controls and Procedures](index=36&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Confirms the **effectiveness** of **Workiva's disclosure controls and procedures** as of **March 31, 2020** - **Disclosure controls and procedures** were evaluated and **deemed effective** as of **March 31, 2020**, providing **reasonable assurance** for **timely and accurate financial reporting**[155](index=155&type=chunk) [Changes in Internal Control Over Financial Reporting](index=37&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports **no material changes** in **Workiva's internal control over financial reporting** during the quarter - **No material changes** in **internal control over financial reporting** occurred during the **quarter ended March 31, 2020**[156](index=156&type=chunk) [Part II. Other Information](index=38&type=section&id=Part%20II.%20Other%20Information) Presents additional information not covered in the financial statements, including legal, risk, and equity matters [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) **Workiva** is involved in **legal proceedings** typical of its **business operations** but does not foresee any **material adverse effects** on its **financial condition** or **results** from current litigation - **No legal proceedings** are expected to have a **material adverse effect** on the company's **business**, **financial condition**, **operating results**, or **cash flows**[159](index=159&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section highlights the significant and **uncertain impact** of the **COVID-19 pandemic** on **Workiva's business**, including **negative effects on sales activities**, potential delays in customer spending, and **contract renegotiations**. It also reiterates other factors that could cause quarterly results to fluctuate, such as customer acquisition/retention, **economic conditions**, and **international operational risks** - The **COVID-19 pandemic** has **adversely impacted** the **business**, with **uncertain future developments** regarding its **duration, spread, and impact on customers and sales cycles**[161](index=161&type=chunk)[162](index=162&type=chunk) - **COVID-19** has **negatively affected sales activities**, potentially leading to **delayed purchasing decisions**, **reduced technology spending**, or **contract renegotiations** by customers[163](index=163&type=chunk) - Quarterly results may **fluctuate significantly** due to factors like **customer acquisition/loss**, **timing of revenue recognition**, **operating expenses**, **economic conditions** (including **COVID-19**), **renewal rates**, **pricing changes**, and **international operational risks**[166](index=166&type=chunk)[168](index=168&type=chunk) - The **subscription-based model** means **downturns in sales may not be immediately reflected** in **operating results**, and the company **cannot accurately predict renewal or upgrade rates**[171](index=171&type=chunk)[172](index=172&type=chunk) - **International sales** expose the company to various risks, including **localization needs**, **increased costs**, **data privacy laws**, **weaker intellectual property protection**, and **foreign currency fluctuations**[176](index=176&type=chunk)[178](index=178&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms **no unregistered sales of equity securities** and **no material change** in the planned **use of IPO proceeds**. It also details the company's purchases of **Class A Common Stock** for **tax withholding purposes** during the quarter [Sales of Unregistered Securities](index=43&type=section&id=Sales%20of%20Unregistered%20Securities) Confirms that **Workiva** made **no unregistered sales of equity securities** during the period - **No unregistered sales of securities**[179](index=179&type=chunk) [Use of Proceeds from Public Offerings of Common Stock](index=43&type=section&id=Use%20of%20Proceeds%20from%20Public%20Offerings%20of%20Common%20Stock) States **no material change** in the planned **use of proceeds** from **Workiva's public offerings** - **No material change** in the planned **use of IPO proceeds**[180](index=180&type=chunk) [Issuer Purchases of Equity Securities](index=43&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) Details **Workiva's** purchases of **Class A Common Stock** for **tax withholding purposes** Issuer Purchases of Equity Securities (Three Months Ended March 31, 2020) | Month | Total Number of Shares Purchased | Average Price Paid Per Share | | :------------ | :------------------------------- | :--------------------------- | | January 2020 | 4,065 | $45.15 | | February 2020 | 26,274 | $45.49 | | March 2020 | — | $— | | **Total** | **30,339** | **$45.44** | - Shares were purchased to satisfy **mandatory tax withholding requirements** upon **vesting of stock-based compensation awards**[181](index=181&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section discloses a consulting agreement with **Troy Calkins**, **Executive Vice President, Chief Administrative Officer and Corporate Secretary**, upon his retirement, including the **acceleration of vesting** for a portion of his **restricted stock units** and the **cancellation** of another RSU award - **Troy Calkins**, **EVP, CAO, and Corporate Secretary**, entered a **12-month** consulting agreement upon retirement, with an **hourly fee of $400**[182](index=182&type=chunk) - **75,281 restricted stock units** from his **2018 award** were **accelerated to vest** on **May 30, 2020**, and a **2020 RSU award** of **25,997 units** was **canceled**[182](index=182&type=chunk)[183](index=183&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all **exhibits** filed with the **Form 10-Q**, including **certifications** from the **CEO and CFO**, and **financial information formatted in Inline XBRL** - Includes **certifications** from **CEO and CFO** (**Sarbanes-Oxley Act Sections 302 and 906**) and **financial information in Inline XBRL format**[185](index=185&type=chunk) [Signatures](index=46&type=section&id=Signatures) The report is officially **signed by** the company's **President and Chief Executive Officer**, **Executive Vice President and Chief Financial Officer**, and **Senior Vice President, Treasurer and Chief Accounting Officer**, **confirming its submission** - Report **signed by Martin J. Vanderploeg** (**President and CEO**), **J. Stuart Miller** (**EVP and CFO**), and **Jill Klindt** (**SVP, Treasurer and CAO**)[188](index=188&type=chunk)

Workiva (NYSE:WK) Q4 2019 Earnings Conference Call February 20, 2020 5:00 PM ET Company Participants Adam Terese - Director, Investor Relations Marty Vanderploeg - Chief Executive Officer Stuart Miller - Chief Financial Officer Jill Klindt - Chief Accounting Officer Conference Call Participants Tom Roderick - Stifel Nick Negulic - SunTrust Chris Merwin - Goldman Sachs Rob Oliver - Baird Mike Grondahl - Northland Securities Stan Zlotsky - Morgan Stanley Kevin Ruth - Raymond James Operator Ladies and gentleme ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Workiva offers a cloud-based connected reporting and compliance platform, serving over 3,500 organizations, with 2019 revenue of $297.9 million despite ongoing net losses [Overview](index=5&type=section&id=Overview) Workiva's connected reporting platform serves 3,510 organizations, including Fortune 500 companies, with **$297.9 million** revenue and a **$48.1 million net loss** in 2019 - As of December 31, 2019, Workiva's platform was used by **3,510 organizations**, including nearly **75% of Fortune 500® companies**[15](index=15&type=chunk) - The Wdata component of the platform enables customers to connect and integrate data from various enterprise systems like ERP, GRC, and CRM, automating workflows and improving data integrity[16](index=16&type=chunk)[17](index=17&type=chunk) Financial Performance (2017-2019) (in millions) | Metric | 2017 | 2018 | 2019 | | :--- | :--- | :--- | :--- | | **Revenue** | $207.9 | - | $297.9 | | **Net Loss** | $44.4 | $50.1 | $48.1 | - In 2019, approximately **83% of revenue** was from subscription and support fees, with the remainder from professional services[35](index=35&type=chunk) Customer Retention Rates (as of Dec 2019) | Metric | Rate | | :--- | :--- | | Subscription & Support Revenue Retention Rate (excl. add-ons) | 94.7% | | Subscription & Support Revenue Retention Rate (incl. add-ons) | 113.0% | [Workiva Technology and Platform Milestones](index=6&type=section&id=Workiva%20Technology%20and%20Platform%20Milestones) Workiva's enterprise-grade technology, built on AWS and Google Cloud, ensures scalability and reliability, with continuous platform evolution since its 2010 SEC reporting solution - The company's technology utilizes Amazon Web Services and Google Cloud Platform, enabling on-demand scaling of compute and storage capacity[25](index=25&type=chunk) - Key platform milestones include the initial SEC reporting solution (2010), a broader platform launch (2013), the introduction of Wdata for large dataset management (2018), and a next-generation platform rollout with improved features like Workiva Connected Sheets (2019)[26](index=26&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Our Industry and Market Trends](index=7&type=section&id=Our%20Industry%20and%20Market%20Trends) Industry trends like disconnected data, complex regulations, and demand for machine-readable formats drive the need for Workiva's platform, highlighting the inadequacy of legacy processes - Industry trends driving demand include widespread and disconnected data, changing regulatory requirements like SOX and ESEF, and the growing use of machine-readable data (XBRL)[36](index=36&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) - The SEC has mandated phased-in deadlines for Inline XBRL reporting, starting June 15, 2019, for large accelerated filers and extending to all filers by June 15, 2021[40](index=40&type=chunk) - The European Securities and Markets Authority (ESMA) now mandates Inline XBRL for its ESEF taxonomy, affecting over 5,000 E.U. issuers for reporting periods ending on or after January 1, 2020[44](index=44&type=chunk) - Legacy business processes are insufficient for modern enterprises due to restricted access, inefficient collaboration, rigid workflows, manual dataset creation, and a lack of audit trails and controls[48](index=48&type=chunk)[49](index=49&type=chunk)[52](index=52&type=chunk) [Growth Strategy](index=11&type=section&id=Growth%20Strategy) Workiva's growth strategy focuses on expanding within existing customers, acquiring new ones, growing its partner ecosystem, and continuous platform innovation, with a key emphasis on international expansion - Core growth strategies include expanding within existing customers, pursuing new customers, expanding the partner ecosystem, offering more solutions, and continuous innovation[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - In 2019, the company began focusing investments in five key growth vectors: EMEA expansion, global statutory reporting, integrated risk, Wdata, and the U.S. federal government[70](index=70&type=chunk) - International expansion is a key priority, as approximately **96% of revenue** for the year ended December 31, 2019, was generated in North America[71](index=71&type=chunk) - The company achieved FedRAMP Moderate Impact authorization in October 2019, enabling it to help federal agencies manage a wider range of information types and expanding its market within the U.S. government[78](index=78&type=chunk) [Workiva Platform Use Cases](index=14&type=section&id=Workiva%20Platform%20Use%20Cases) Workiva targets four primary areas: Regulatory Reporting (SEC, ESEF), Non-Regulatory Reporting (FP&A), Integrated Risk (SOX, ERM), and Financial Services (Dodd-Frank, CCAR) - The company focuses its sales and marketing resources in four main areas: Regulatory Reporting, Non-Regulatory Reporting, Financial Services, and Integrated Risk[80](index=80&type=chunk) - Regulatory reporting use cases include SEC filings (10-K, 10-Q), European ESEF reporting, and global statutory reporting for multinational corporations[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - Integrated Risk solutions cover SOX compliance, internal audit management, Enterprise Risk Management (ERM), and policy and procedure management[87](index=87&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) [Competition, Sales, and Marketing](index=17&type=section&id=Competition%2C%20Sales%2C%20and%20Marketing) Workiva competes against manual processes, diversified software, niche solutions, and professional services, leveraging a "land-and-expand" sales strategy through direct and partner channels - Primary competitors include the status quo of manual processes using legacy software, diversified enterprise software providers, niche software providers, and professional services firms[102](index=102&type=chunk)[111](index=111&type=chunk) - The company employs a "land-and-expand" sales strategy focused on acquiring new customers and growing relationships within existing ones[106](index=106&type=chunk) - The sales organization uses a combination of field sales, inside sales, and partnership channels, supported by customer success and professional services teams[107](index=107&type=chunk)[109](index=109&type=chunk) [Intellectual Property, Employees, and Corporate Information](index=19&type=section&id=Intellectual%20Property%2C%20Employees%2C%20and%20Corporate%20Information) Workiva protects its technology with 44 issued patents and 19 pending applications, grew its employee count to 1,580 in 2019, and is headquartered in Ames, Iowa - As of December 31, 2019, the company had **44 issued patents** and **19 pending patent applications** in the United States[118](index=118&type=chunk) - Full-time employee headcount increased by **19.8%** from 1,319 at the end of 2018 to **1,580** at the end of 2019[125](index=125&type=chunk) - The company was formed in 2008, converted to a Delaware corporation in 2014, and is headquartered in Ames, Iowa[126](index=126&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) Workiva faces significant risks including unprofitability, intense competition, reliance on SEC filings, technological changes, data security, and a dual-class stock structure concentrating voting control [Risks Related to Our Business and Industry](index=22&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) The company faces risks from its history of net losses, intense competition, reliance on SEC filings, technological changes, third-party data center dependence, and evolving data privacy regulations - The company has a history of net losses, including **$48.1 million** in 2019, **$50.1 million** in 2018, and **$44.4 million** in 2017, and may not achieve or maintain profitability in the future[130](index=130&type=chunk) - A majority of revenue is derived from customers using the platform for SEC filings, and efforts to increase use in other applications may not succeed, potentially reducing the revenue growth rate[140](index=140&type=chunk) - The business relies on third-party data center hosting facilities, including Google and Amazon, and interruptions or delays in these services could impair service delivery[150](index=150&type=chunk) - The company is subject to complex and evolving U.S. and foreign data privacy laws, such as GDPR and CCPA, and failure to comply could result in significant fines and reputational harm[172](index=172&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - In August 2019, the company issued convertible senior notes, which introduce risks related to potential conversion, dilution, and the requirement to use cash for settlement, which could affect liquidity[223](index=223&type=chunk) [Risks Related to Ownership of Our Class A Common Stock](index=48&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) Ownership of Workiva's Class A common stock carries risks from price volatility, a dual-class structure concentrating **69% of voting power** with Class B holders, and anti-takeover provisions - The dual-class structure of common stock concentrates voting control. As of December 31, 2019, Class B stockholders held approximately **69% of the voting power**, limiting the influence of Class A stockholders on corporate matters[237](index=237&type=chunk) - Anti-takeover provisions, such as a classified board of directors and limitations on stockholder actions, may delay or prevent a change of control or changes in management[239](index=239&type=chunk)[240](index=240&type=chunk) - The company does not intend to pay dividends for the foreseeable future, meaning investors must rely on stock price appreciation for returns[249](index=249&type=chunk) [Unresolved Staff Comments](index=54&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments - None[252](index=252&type=chunk) [Properties](index=54&type=section&id=Item%202.%20Properties) Workiva's corporate headquarters is a leased 120,000 square foot office in Ames, Iowa, supplemented by additional leased facilities across ten U.S. cities and multiple international locations - The corporate headquarters is a leased space of approximately **120,000 square feet** in Ames, Iowa[253](index=253&type=chunk) - The company leases additional offices in ten U.S. cities and multiple international locations, including Canada, Europe, and the Asia-Pacific region[253](index=253&type=chunk) [Legal Proceedings](index=54&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings expected to have a material adverse effect on its business, financial condition, or operating results - Workiva is not presently a party to any legal proceedings that are expected to have a material adverse effect on the company[254](index=254&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[255](index=255&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=55&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Workiva's Class A common stock trades on the NYSE under "WK", while Class B is not publicly traded; the company has never paid cash dividends and does not intend to in the foreseeable future - Class A common stock is listed on the NYSE under the symbol "WK"[258](index=258&type=chunk) - The company has never declared or paid cash dividends and does not expect to in the foreseeable future[260](index=260&type=chunk) [Selected Consolidated Financial Data](index=57&type=section&id=Item%206.%20Selected%20Consolidated%20Financial%20Data) This section provides a five-year summary of Workiva's financials, showing consistent revenue growth to **$297.9 million** in 2019, alongside persistent net losses and increased assets due to convertible senior notes Selected Consolidated Statement of Operations Data (2017-2019) (in thousands) | (in thousands) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Total revenue** | $297,891 | $244,344 | $207,869 | | **Gross profit** | $212,879 | $178,484 | $147,624 | | **Loss from operations** | $(45,722) | $(49,788) | $(44,303) | | **Net loss** | $(48,134) | $(50,071) | $(44,426) | | **Net loss per share** | $(1.04) | $(1.15) | $(1.07) | Selected Consolidated Balance Sheet Data (as of Dec 31) (in thousands) | (in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $381,742 | $77,584 | | **Total assets** | $646,396 | $231,111 | | **Deferred revenue** | $206,186 | $173,716 | | **Convertible senior notes, net** | $280,601 | $— | | **Total stockholders' equity (deficit)** | $65,343 | $(9,740) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Workiva's 2019 financial performance, highlighting a **21.9% revenue increase** to **$297.9 million**, ongoing investments leading to a **$48.1 million net loss**, and a strong liquidity position of **$488.0 million** in cash and marketable securities [Results of Operations](index=65&type=section&id=Results%20of%20Operations) In 2019, total revenue increased by **21.9%** to **$297.9 million**, driven by subscription growth, while operating expenses rose **13.3%**, resulting in a **$48.1 million net loss** Revenue Comparison (2019 vs. 2018) (in thousands) | Revenue Type | 2019 | 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Subscription and support | $245,765 | $200,392 | $45,373 | 22.6% | | Professional services | $52,126 | $43,952 | $8,174 | 18.6% | | **Total revenue** | **$297,891** | **$244,344** | **$53,547** | **21.9%** | Operating Expenses Comparison (2019 vs. 2018) (in thousands) | Expense Category | 2019 | 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $89,921 | $81,602 | $8,319 | 10.2% | | Sales and marketing | $120,300 | $90,337 | $29,963 | 33.2% | | General and administrative | $48,380 | $56,333 | $(7,953) | (14.1)% | | **Total operating expenses** | **$258,601** | **$228,272** | **$30,329** | **13.3%** | - The decrease in General and Administrative expenses in 2019 was primarily due to the absence of separation agreement costs for the former CEO, which amounted to **$5.9 million** in cash-based and **$3.6 million** in equity-based compensation in 2018[316](index=316&type=chunk) [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) Workiva's liquidity was significantly bolstered by the **$345.0 million** convertible senior notes issuance in August 2019, resulting in **$488.0 million** in cash and marketable securities by year-end Cash Flow Summary (in thousands) | (in thousands) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Cash flow from operating activities** | $30,566 | $6,400 | $5,520 | | **Cash flow used in investing activities** | $(90,065) | $(5,632) | $(6,473) | | **Cash flow from financing activities** | $363,370 | $16,876 | $9,822 | - In August 2019, the company issued **$345.0 million** in 1.125% convertible senior notes due 2026, receiving net proceeds of **$335.9 million**[324](index=324&type=chunk) - Principal sources of liquidity as of December 31, 2019, were cash, cash equivalents, and marketable securities totaling **$488.0 million**[321](index=321&type=chunk) [Critical Accounting Policies and Estimates](index=73&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Revenue recognition under ASC 606 is a critical accounting policy, involving identifying performance obligations, determining transaction prices, and recognizing subscription revenue ratably over the contract term - Revenue recognition is a critical accounting policy, following the five-step model under ASC 606[340](index=340&type=chunk)[342](index=342&type=chunk) - Subscription and support revenue is recognized ratably over the contract term[340](index=340&type=chunk) - Agreements for professional services are typically treated as customer options to purchase services, with revenue recognized upon exercise of the option and completion of the service[341](index=341&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=75&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) Workiva's primary market risks are foreign currency fluctuations and interest rate sensitivity, with a 100-basis point interest rate increase estimated to reduce its investment portfolio market value by **$0.8 million** - The company's primary market risks are foreign currency exchange rates and interest rate sensitivity[348](index=348&type=chunk) - Foreign currency risk stems from sales and expenses denominated in Canadian dollars, Euros, and British Pounds, among others. Foreign currency transaction losses were **$609,000** in 2019[349](index=349&type=chunk) - As of December 31, 2019, an immediate **100-basis point increase** in interest rates would have caused an estimated **$0.8 million reduction** in the market value of the company's investment portfolio[354](index=354&type=chunk) [Financial Statements and Supplementary Data](index=77&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Workiva's audited consolidated financial statements for 2017-2019, including an unqualified opinion from Ernst & Young LLP and detailed notes on critical audit matters like Convertible Senior Notes and Revenue Recognition - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[361](index=361&type=chunk)[362](index=362&type=chunk) - Critical Audit Matters identified by the auditor were the accounting for Convertible Senior Notes, specifically the bifurcation and valuation of liability and equity components, and Revenue Recognition, focusing on the identification of distinct performance obligations in customer contracts[366](index=366&type=chunk)[368](index=368&type=chunk)[371](index=371&type=chunk) Consolidated Balance Sheet Highlights (As of Dec 31, 2019) (in thousands) | Account | Amount (in thousands) | | :--- | :--- | | **Total Assets** | **$646,396** | | Cash and cash equivalents | $381,742 | | Marketable securities | $106,214 | | **Total Liabilities** | **$581,053** | | Deferred revenue (current & non-current) | $206,186 | | Convertible senior notes, net | $280,601 | | **Total Stockholders' Equity** | **$65,343** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=119&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[528](index=528&type=chunk) [Controls and Procedures](index=119&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that Workiva's disclosure controls and procedures, as well as internal control over financial reporting, were effective as of December 31, 2019, with no material changes during the fourth quarter - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2019[531](index=531&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2019[532](index=532&type=chunk) - No material changes to internal control over financial reporting occurred during the fourth quarter of 2019[533](index=533&type=chunk) [Other Information](index=120&type=section&id=Item%209B.%20Other%20Information) On February 13, 2020, the Compensation Committee approved the 2020 Short-Term Incentive Plan for executive officers, linking cash bonuses to performance metrics like revenue growth and operating cash flow - The Compensation Committee approved the 2020 Short-Term Incentive Plan for executive officers on February 13, 2020, with cash bonuses tied to performance metrics like revenue growth and operating cash flow[534](index=534&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=121&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section details Workiva's executive officers, including President and CEO Martin J. Vanderploeg, and incorporates information on directors, code of ethics, and board committees by reference from the 2020 proxy statement - Martin J. Vanderploeg, Ph.D., is the President and Chief Executive Officer[538](index=538&type=chunk) - Julie Iskow joined as Executive Vice President and Chief Operating Officer in October 2019[539](index=539&type=chunk) - Information concerning directors, the code of ethics, and board committees is incorporated by reference from the 2020 Annual Meeting of Stockholders proxy statement[537](index=537&type=chunk)[546](index=546&type=chunk)[547](index=547&type=chunk) [Executive Compensation](index=123&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's definitive proxy statement for the 2020 Annual Meeting of Stockholders - This information is incorporated by reference from the 2020 proxy statement[549](index=549&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=123&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management, as well as details on equity compensation plans, is incorporated by reference from the company's definitive proxy statement for the 2020 Annual Meeting of Stockholders - This information is incorporated by reference from the 2020 proxy statement[550](index=550&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=123&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information regarding certain relationships, related-party transactions, and director independence is incorporated by reference from the company's definitive proxy statement for the 2020 Annual Meeting of Stockholders - This information is incorporated by reference from the 2020 proxy statement[551](index=551&type=chunk) [Principal Accounting Fees and Services](index=123&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the company's definitive proxy statement for the 2020 Annual Meeting of Stockholders - This information is incorporated by reference from the 2020 proxy statement[552](index=552&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=124&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed with the Form 10-K, including consolidated financial statements, corporate governance documents, debt indentures, equity compensation plans, and executive certifications - This section contains the list of all financial statements and exhibits filed with the Form 10-K[555](index=555&type=chunk) - Key exhibits filed include corporate governance documents, debt indentures, equity compensation plans, and executive certifications[555](index=555&type=chunk)[556](index=556&type=chunk)[557](index=557&type=chunk)

Workiva Inc. (NYSE:WK) Q3 2019 Results Earnings Conference Call November 6, 2019 4:30 PM ET Company Participants Adam Terese - Director, IR Martin Vanderploeg - President, CEO & Director Stuart Miller - EVP & CFO Jill Klindt - Chief Accounting Officer Conference Call Participants Terry Tillman - SunTrust Robinson Tom Roderick - Stifel Mike Grondahl - Northland Securities Operator Good afternoon, my name is Dtamara and I will be your conference operator today. At this time, I would like to welcome everyone t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-36773 ___________________________________ WORKIVA INC. ( ...

Workiva, Inc. (NYSE:WK) Q2 2019 Earnings Conference Call August 6, 2019 5:00 PM ET Company Participants Adam Rogers - Director, IR Martin Vanderploeg - President, CEO & Director Stuart Miller - EVP & CFO Conference Call Participants Eric Lemus - SunTrust Robinson Humphrey Matthew Van Vliet - Stifel, Nicolaus & Company Matthew Lemenager - Robert W. Baird & Co. Alexander Sklar - Raymond James & Associates Michael Pochucha - Northland Capital Markets Stan Zlotsky - Morgan Stanley Operator Good afternoon. My na ...