Revenue Growth - Subscription revenue grew by 22% in Q4 2024, contributing to total revenue of $200 million, a 20% year-over-year increase from $167 million in Q4 2023[5] - Total revenue for the full year 2024 reached $739 million, a 17% increase from $630 million in 2023[11] - Total revenue for Q4 2024 reached $199.889 million, a 19.9% increase from $166.653 million in Q4 2023[21] - Subscription and support revenue increased to $180.897 million, up 21.5% from $148.788 million year-over-year[21] - Guidance for full year 2025 projects total revenue in the range of $864 million to $868 million[11] Customer Metrics - Customers with annual contract value over $500,000 increased by 32% year-over-year, reaching 181 customers[7] - Workiva's gross retention rate was 97% and net retention rate was 112% as of December 31, 2024[6] Profitability and Loss - GAAP net loss for Q4 2024 was $9 million, compared to a net loss of $4 million in Q4 2023, resulting in a net loss per share of $0.16[6] - Non-GAAP net income for Q4 2024 was $19 million, up from $18 million in the prior year's fourth quarter, with non-GAAP net income per diluted share of $0.33[6] - GAAP net loss for 2024 was $55 million, significantly improved from a net loss of $128 million in 2023[11] - Net loss for Q4 2024 was $8.815 million, compared to a net loss of $4.196 million in Q4 2023, reflecting a 110.5% increase[21] - The company experienced a net loss of $8.815 million in Q4 2024, compared to a net loss of $4.196 million in Q4 2023[32] Cash Flow and Liquidity - Free cash flow for 2024 was $86 million, compared to $69 million in 2023, with a free cash flow margin of 11.7%[11] - Net cash provided by operating activities for Q4 2024 was $43.970 million, compared to $24.342 million in Q4 2023, a 80.7% increase[25] - Free cash flow for Q4 2024 was $43.161 million, up from $23.950 million in Q4 2023, marking an increase of 80.5%[32] - Cash and cash equivalents as of December 31, 2024, were $301.835 million, up from $256.100 million in 2023[23] - Cash, cash equivalents, and restricted cash at the end of the period increased to $302.350 million in Q4 2024 from $256.721 million in Q4 2023, a rise of 17.7%[30] - Workiva had cash, cash equivalents, and marketable securities totaling $816 million as of December 31, 2024[6] Operating Expenses - Operating expenses for Q4 2024 totaled $167.520 million, a 21.1% increase from $138.281 million in Q4 2023[21] - Research and development expenses for Q4 2024 were $50.607 million, up from $42.555 million in Q4 2023, reflecting an increase of 18.4%[30] Deferred Revenue and Assets - Deferred revenue increased to $457.608 million in 2024, up 20.2% from $380.843 million in 2023[23] - Total assets increased to $1.368 billion in 2024, compared to $1.218 billion in 2023, marking a 12.3% growth[23] Margins - The GAAP operating margin for Q4 2024 was reported at (6.6)%, an improvement from (5.6)% in Q4 2023[32] - Non-GAAP operating margin for Q4 2024 was 7.4%, slightly down from 7.6% in Q4 2023[32] - The company provided guidance for a GAAP operating margin of (14.3)% for the year ending December 31, 2025[34] Stock-Based Compensation - The company reported stock-based compensation expense of $26.271 million for Q4 2024, an increase from $20.736 million in Q4 2023[25] Gross Profit - Gross profit for the year ended December 31, 2024, was $566.625 million, representing a 19.1% increase compared to $475.817 million in 2023[21] - Gross profit for subscription and support increased to $148.693 million in Q4 2024, up from $123.675 million in Q4 2023, representing a growth of 20.2%[30] - Non-GAAP gross profit for subscription and support reached $151.880 million in Q4 2024, compared to $124.973 million in Q4 2023, reflecting a 21.5% increase[30]

Stock Performance - Workiva stock experienced a significant sell-off, dropping 13 3% in Wednesday's trading, while the S&P 500 gained 0 6% and the Nasdaq Composite climbed 1 2% [1] EU Policy Impact - Germany and France are considering changes to the EU's sustainability reporting standards, which could impact Workiva's growth outlook as this category has been a significant part of its business [2] - The EU's Corporate Sustainability Reporting Directive (CSRD), effective since January 2023, requires companies to report on non-financial metrics, and Workiva provides a platform for this purpose [3] - Potential shifts in EU reporting requirements could lead to a significant sales shortfall for Workiva, as investors are concerned about the softening of one of its anticipated growth drivers [4] Future Outlook - Workiva will release its fourth-quarter earnings and host a conference call on February 25, where it may provide updates on its performance outlook in the EU and potential changes to CSRD reporting requirements [5] - The market may be overreacting to reports of possible policy shifts, as the extent of EU policy changes and Workiva's exposure to them remain unclear [6]

Investment Recommendation - The recommendation for Workiva (NYSE: WK) is a buy rating due to its potential to benefit from multiple secular tailwinds that support high-teens revenue growth in the next few years [1] Investment Approach - The investment approach focuses on long-term investments while incorporating short-term strategies to uncover alpha opportunities [1] - The analysis is bottom-up, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1] Analyst's Position - The analyst has no stock, option, or derivative positions in any of the mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not influenced by compensation or business relationships with the mentioned companies [2]

Market Overview - The year-end rally in November and early December has been nearly unprecedented, driving the S&P 500 to new heights almost daily [1] Analyst Insights - Gary Alexander has extensive experience covering technology companies and has been involved with seed-round startups, providing insights into current industry themes [1]

Core Insights - Deloitte and Workiva have launched four new sustainability-focused accelerators aimed at helping organizations comply with the EU's Corporate Sustainability Reporting Directive (CSRD) [1][2] - The accelerators enhance governance, risk, and compliance (GRC) controls and automation within the Workiva platform, facilitating compliance with CSRD and other EU regulations [2][3] Group 1: New Accelerators - The new accelerators include the CSRD Double Materiality Accelerator, Financed Emissions Calculator, ESRS Mapping Accelerator, and Activity Log Analyzer [3] - The CSRD Double Materiality Accelerator is designed to streamline the implementation of double materiality assessments [3] - The Financed Emissions Calculator helps organizations calculate Scope 3 financed emissions using the PCAF framework [3] - The ESRS Mapping Accelerator enables faster gap assessments by mapping existing GRI disclosures to ESRS requirements [3] - The Activity Log Analyzer tracks user activities on the Workiva platform, aiding in monitoring ESG activities [3] Group 2: Market Demand and Trends - There is a growing demand for comprehensive platforms to manage ESG reporting and regulatory compliance due to an expanding global regulatory environment [3] - 88% of institutional investors prioritize companies that effectively integrate financial and ESG data, indicating a shift towards transparency in sustainability practices [3] Group 3: Company Background - Workiva is a leading cloud platform provider for integrated reporting, combining financial, GRC, and ESG data in a secure environment [4][5] - Deloitte offers a wide range of audit, consulting, tax, and advisory services, serving nearly 90% of the Fortune 500 and over 8,500 U.S.-based private companies [6]

Few analysts cover Workiva, but those who do have reached a very bullish consensus.The technology sector is having a fantastic year, with the Nasdaq Composite (NASDAQINDEX: ^IXIC) up by 30% so far. Many of the largest stocks in the tech sector are doing even better, like Nvidia, which has soared by 209%.But not every tech stock is participating in the rally. Workiva (WK 3.56%), for example, offers a unique portfolio of software products to help companies streamline data aggregation and reporting, which are ...

Core Viewpoint - Workiva reported quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.23 per share, but showing improvement from a loss of $0.65 per share a year ago, indicating a significant recovery in earnings despite the miss [1][2] Financial Performance - Workiva's revenues for the quarter ended September 2024 were $185.62 million, exceeding the Zacks Consensus Estimate by 1.71% and up from $158.18 million year-over-year, demonstrating consistent revenue growth [2] - Over the last four quarters, the company has surpassed consensus revenue estimates four times, indicating strong performance in revenue generation [2] Stock Performance - Workiva shares have declined approximately 18.8% since the beginning of the year, contrasting with the S&P 500's gain of 21.2%, highlighting underperformance relative to the broader market [3] - The current Zacks Rank for Workiva is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $192.22 million, and for the current fiscal year, it is $0.95 on revenues of $727.91 million, indicating positive expectations for future performance [7] - The trend of estimate revisions for Workiva is mixed, which could change following the recent earnings report [6] Industry Context - The Internet - Software industry, to which Workiva belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook that could positively impact stock performance [8]

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, 2024 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. ( ...

orkiva Workiva Inc. Announces Third Quarter 2024 Financial Results • Increased Q3 2024 Subscription & Support Revenue by 19% over Q3 2023 • Total revenue of $186 million in Q3 2024, representing 17% year-over-year growth • Achieved 28% YOY Growth of Customers with Annual Contract Value Over $500K NEW YORK - November 6, 2024 – Workiva Inc. (NYSE:WK), the world's leading cloud platform for assured integrated reporting, today announced financial results for its third quarter ended September 30, 2024. "Workiva ...

Wall Street analysts forecast that Workiva (WK) will report quarterly earnings of $0.23 per share in its upcoming release, pointing to a year-over-year increase of 135.4%. It is anticipated that revenues will amount to $182.5 million, exhibiting an increase of 15.4% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projec ...