Workiva Inc. (NYSE:WK) Q1 2021 Earnings Conference Call May 4, 2021 5:00 PM ET Company Participants Mike Rost - Vice President, Corporate Development & Investor Relations Marty Vanderploeg - Chief Executive Officer Jill Klindt - Chief Financial Officer Conference Call Participants Matt Stotler - William Blair Tom Roderick - Stifel Alex Sklar - Raymond James Andrew DeGasperi - Berenberg Operator Good afternoon ladies and gentlemen. My name is Kavita and I'll be your host operator on this call. After the pre ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 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 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) WORKIVA INC. (Exact name of registrant as specified in ...

Workiva Inc. (NYSE:WK) Q4 2020 Earnings Conference Call February 17, 2021 5:00 PM ET Company Participants Adam Terese – Director of Corporate Development and Investor Relations Marty Vanderploeg – President and Chief Executive Officer Stuart Miller – Executive Vice President and Chief Financial Officer Julie Iskow – Executive Vice President and Chief Operating Officer Conference Call Participants Rob Oliver – Baird Matt Stotler – William Blair Terry Tillman – Truist Securities Stan Zlotsky – Morgan Stanley ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Workiva provides a cloud-based compliance and reporting platform, serving **3,723 organizations** including **75% of Fortune 500 companies** - Workiva is a leading provider of cloud-based compliance and regulatory reporting solutions, serving **3,723 organizations** as of December 31, 2020, including **75% of Fortune 500 companies**[16](index=16&type=chunk)[17](index=17&type=chunk) Financial Performance (2018-2020) | Metric | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | **Revenue** | $244.3M | - | $351.6M | | **Net Loss** | $50.1M | $47.5M | $48.4M | - The company's sales and marketing efforts are organized into four main solution groups: Regulatory Reporting, Non-Regulatory Reporting, Financial Services, and Integrated Risk[19](index=19&type=chunk) - Key growth vectors include expanding into international markets (EMEA and APAC), accelerating investments in global statutory reporting, broadening integrated risk solutions, targeting the U.S. government with FedRAMP authorization, and deepening partnerships with consulting and technology firms[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - As of December 31, 2020, the company had **1,718 full-time employees**, an **8.7% increase** from 2019. Women represented **37% of the global workforce** and **29% of leadership roles**[87](index=87&type=chunk)[89](index=89&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from revenue concentration, intense competition, growth management, and technological vulnerabilities - A majority of revenue is derived from customers using the platform for SEC filings. While non-SEC solutions generated **77% of new bookings in 2020**, their market acceptance is not guaranteed[103](index=103&type=chunk) - The business is subject to intense competition from diversified enterprise software providers, professional services firms, GRC software providers, and business intelligence software providers[112](index=112&type=chunk)[113](index=113&type=chunk) - The COVID-19 pandemic has impacted the business by shifting operations to a remote model and may heighten other risks, with the ultimate financial impact remaining uncertain[122](index=122&type=chunk)[123](index=123&type=chunk) - The dual-class stock structure concentrates voting control with certain executives. As of December 31, 2020, Class B common stock (10 votes per share) represented approximately **66% of the total voting power**[181](index=181&type=chunk) - The company faces risks related to data privacy and protection laws, such as the GDPR in Europe. Changes in these regulations, like the invalidation of the EU-U.S. Privacy Shield, could affect service delivery and financial results[158](index=158&type=chunk)[159](index=159&type=chunk) [Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[190](index=190&type=chunk) [Properties](index=40&type=section&id=Item%202.%20Properties) Corporate headquarters are in Ames, Iowa, with additional leased offices in nine U.S. cities and internationally - Corporate headquarters are located in Ames, Iowa, in a leased space of approximately **120,000 square feet**[191](index=191&type=chunk) - The company leases additional offices in nine U.S. cities and internationally in Canada, the Netherlands, the UK, Germany, France, Hong Kong, Australia, and Singapore[191](index=191&type=chunk) [Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) The company is not a party to any legal proceedings expected to have a material adverse effect on its business - The company is not presently a party to any legal proceedings that management believes would have a material adverse effect on the business[192](index=192&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[193](index=193&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=41&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 NYSE; no cash dividends paid, **179,948 shares** repurchased in Q4 2020 for tax withholding - Class A common stock is traded on the NYSE under the symbol "WK". Class B common stock is not listed on any exchange[196](index=196&type=chunk) - The company has never declared or paid cash dividends and does not expect to in the foreseeable future[198](index=198&type=chunk) Issuer Purchases of Equity Securities (Q4 2020) | Month | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | October 2020 | 29,062 | $56.65 | | November 2020 | 72,578 | $55.31 | | December 2020 | 78,308 | $75.15 | | **Total** | **179,948** | **$64.16** | [Selected Consolidated Financial Data](index=43&type=section&id=Item%206.%20Selected%20Consolidated%20Financial%20Data) This section is not applicable - Not applicable[207](index=207&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Workiva's 2020 revenue grew **18.0% to $351.6 million**, with a **$48.4 million** net loss, maintaining strong liquidity and customer retention Key Financial Metrics (2019 vs 2020) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $351.6M | $297.9M | 18.0% | | Subscription & Support Revenue | $295.9M | $245.8M | 20.4% | | Professional Services Revenue | $55.7M | $52.1M | 6.9% | | **Gross Profit** | $261.4M | $212.9M | 22.8% | | **Loss from Operations** | ($37.8M) | ($45.4M) | (16.7%) | | **Net Loss** | ($48.4M) | ($47.5M) | 1.9% | Key Operating Metrics (as of Dec 31) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Number of customers | 3,723 | 3,510 | | Subscription and support revenue retention rate | 95.0% | 94.7% | | Subscription and support revenue retention rate including add-ons | 109.5% | 113.0% | | Customers with ACV > $100k | 847 | 652 | | Customers with ACV > $150k | 419 | 285 | - The COVID-19 pandemic resulted in an expense reduction of approximately **$16.7 million** in 2020 due to travel restrictions and the conversion of marketing events to virtual formats[219](index=219&type=chunk) - Cash provided by operating activities was **$33.2 million** in 2020, an increase from **$30.9 million** in 2019. The company's principal sources of liquidity as of December 31, 2020, were cash, cash equivalents, and marketable securities totaling **$530.0 million**[257](index=257&type=chunk)[259](index=259&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risks include foreign currency, inflation, and interest rate sensitivity, with a **$1.6 million** impact from a 100-basis point rate increase - Primary market risks include foreign currency fluctuations, inflation, and interest rate changes[279](index=279&type=chunk) - Foreign currency transaction losses were **$(329 thousand)** in 2020, compared to **$(609 thousand)** in 2019. The company does not currently use derivatives for hedging[280](index=280&type=chunk) - As of December 31, 2020, an immediate **100-basis point increase** in interest rates would cause a **$1.6 million market value reduction** in the company's investment portfolio[285](index=285&type=chunk) - The **$345.0 million** in convertible senior notes have a fixed annual interest rate of **1.125%**, so there is no direct financial exposure to interest rate changes on this debt, though its fair value fluctuates with market rates[286](index=286&type=chunk) [Financial Statements and Supplementary Data](index=62&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited consolidated financial statements for 2020 are presented, with an unqualified opinion from Ernst & Young LLP on financial statements and internal controls Consolidated Balance Sheet Highlights (As of Dec 31, 2020) | Category | Amount (in thousands) | | :--- | :--- | | **Total Assets** | **$707,006** | | Cash and cash equivalents | $322,831 | | Marketable securities | $207,207 | | **Total Liabilities** | **$642,729** | | Deferred revenue (current & non-current) | $244,884 | | Convertible senior notes, net | $289,490 | | **Total Stockholders' Equity** | **$64,277** | Consolidated Statement of Operations (Year Ended Dec 31, 2020) | Metric | Amount (in thousands) | | :--- | :--- | | **Total Revenue** | **$351,594** | | Gross Profit | $261,417 | | Loss from Operations | $(37,802) | | **Net Loss** | **$(48,398)** | | Net Loss per Share (Basic & Diluted) | $(1.00) | - The independent auditor, Ernst & Young LLP, issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of the company's internal control over financial reporting as of December 31, 2020[292](index=292&type=chunk)[304](index=304&type=chunk) - The company identified and corrected immaterial misstatements in previously issued financial statements related to lease accounting under Topic 842, with revisions reflected in this report[334](index=334&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=101&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[449](index=449&type=chunk) [Controls and Procedures](index=101&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2020 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[452](index=452&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2020, based on the COSO 2013 framework[453](index=453&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of 2020 that materially affected, or are reasonably likely to materially affect, these controls[454](index=454&type=chunk) [Other Information](index=102&type=section&id=Item%209B.%20Other%20Information) The Compensation Committee approved the 2021 Short-Term Incentive Plan for executive officers, linking bonuses to performance metrics - The Compensation Committee approved the 2021 Short-Term Incentive Plan for executive officers on February 15, 2021[455](index=455&type=chunk) - The plan allows for cash bonuses based on performance metrics like revenue growth, operating cash flow, or operating loss, with target awards set as a percentage of base salary[455](index=455&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Principal Accountant Fees](index=103&type=section&id=Items%2010-14) Information on directors, executive officers, governance, compensation, and accountant fees is incorporated by reference from the 2021 Proxy Statement - Information required for Items 10, 11, 12, 13, and 14 is incorporated by reference from the Registrant's Proxy Statement for the 2021 Annual Meeting of Stockholders[9](index=9&type=chunk) - Biographical information for key executive officers, including CEO Martin J. Vanderploeg, COO Julie Iskow, and CFO J. Stuart Miller, is provided[459](index=459&type=chunk)[460](index=460&type=chunk)[462](index=462&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=106&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including corporate governance documents and certifications - This section lists all exhibits filed with the Form 10-K, including corporate governance documents, material contracts, and SEC-required certifications[475](index=475&type=chunk) - Financial statement schedules have been omitted because they are either not required or the relevant information is already included in the consolidated financial statements or notes[475](index=475&type=chunk)

Workiva Inc. (NYSE:WK) Q3 2020 Results Earnings Conference Call November 4, 2020 5:00 PM ET Company Participants Adam Terese - Director, Corporate Development and IR Marty Vanderploeg - Chief Executive Officer Stuart Miller - Chief Financial Officer Jill Klindt - Chief Accounting Officer Conference Call Participants Terry Tillman - Truist Chris Merwin - Goldman Sachs Stan Zlotsky - Morgan Stanley Tom Roderick - Stifel Brian Peterson - Raymond James Rob Oliver - Baird Michael Pochucha - Northland Securities ...

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)