Group 1 - Workiva reported revenue of $215.19 million for the quarter ended June 2025, reflecting a year-over-year increase of 21.2% [1] - The company's EPS for the quarter was $0.19, up from $0.16 in the same period last year, indicating a significant improvement [1] - Workiva's revenue exceeded the Zacks Consensus Estimate of $208.98 million by 2.97%, and the EPS surpassed the consensus estimate of $0.05 by 280% [1] Group 2 - Subscription and support revenue was $198.22 million, exceeding the average estimate of $192.8 million by analysts, with a year-over-year growth of 23.3% [4] - Professional services revenue reached $16.96 million, slightly above the estimated $16.31 million, marking a 1.2% increase compared to the previous year [4] - Gross profit from subscription and support was $166.4 million, surpassing the average estimate of $161.62 million, while gross profit from professional services was $3.8 million, below the estimated $4.25 million [4] Group 3 - Workiva's stock has returned -2% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Workiva (WK) reported quarterly earnings of $0.19 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, marking an earnings surprise of +280.00% [1] - The company also posted revenues of $215.19 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.97% and showing a year-over-year increase from $177.5 million [2] Financial Performance - Workiva's earnings of $0.19 per share represent an increase from $0.16 per share a year ago, indicating growth in profitability [1] - The company has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] Stock Performance - Workiva shares have declined approximately 39.3% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Workiva is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $218.31 million, while the estimate for the current fiscal year is $1.04 on revenues of $865.7 million [7] - The outlook for the Internet - Software industry, where Workiva operates, is currently in the top 30% of Zacks industries, indicating a favorable environment for potential stock performance [8]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated total revenue of $215 million, representing a 21% increase compared to Q2 2024, exceeding the high end of revenue guidance by $5 million [34] - Subscription revenue reached $198 million, up 23% year-over-year, with new customers accounting for 41% of the increase [34] - Non-GAAP operating margin for the quarter was 38%, outperforming guidance by 380 basis points [6][34] - The company had 6,467 customers at the end of Q2 2025, an increase of 320 customers from the previous year [35] - Gross retention rate was 97%, exceeding the internal target of 96%, while net retention rate improved to 114% from 109% in Q2 2024 [35] Business Line Data and Key Metrics Changes - Financial reporting solutions remained the primary revenue driver, with strong demand across SEC reporting, multi-entity reporting, and fund reporting [15] - The number of contracts valued over $100,000 increased by 27%, contracts over $300,000 rose by 37%, and contracts over $500,000 grew by 35% compared to Q2 2024 [8][36] - Professional services revenue was flat at $17 million, with a decline in setup and consulting services offset by higher XBRL services [34] Market Data and Key Metrics Changes - Demand for sustainability solutions moderated in the corporate account segment in both the U.S. and Europe, although it still contributed to new logo wins and account expansions [23][66] - Sustainability solutions accounted for less than 15% of total revenue, indicating a limited impact on overall financial performance [24][66] Company Strategy and Development Direction - The company is focused on profitable growth, raising its operating margin outlook for Q3 and Q4 2025 [8][40] - The strategy includes expanding the partner ecosystem and enhancing the breadth of the solution portfolio to drive innovation and reduce total cost of ownership [7][10] - The company aims to achieve its 2027 and 2030 operating margin targets, emphasizing disciplined margin expansion [9][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects despite macroeconomic uncertainties, citing strong customer demand and a resilient solution portfolio [9][10] - CFO Jill Clint noted that the company is closely monitoring capital markets activity, which could provide upside potential in the second half of the year [45][46] - The management acknowledged the elongation of deal cycles due to market uncertainty but highlighted continued strong performance in signature deals [86] Other Important Information - CFO Jill Clint announced her departure after 17 years with the company, with plans to remain until December 2025 to ensure a smooth transition [29][30] - The company repurchased 132,000 shares for $10 million under its share repurchase program, with $50 million remaining from the original authorization [37][38] Q&A Session Summary Question: Revenue outlook and capital markets contribution - Management indicated steady revenue from capital markets in Q2 and noted potential upside if activity increases in the second half [45][46] Question: Financial reporting success and SEC reporting bundles - The company is adopting a "good, better, best" model to drive upsell within existing customers, contributing to strong net retention rates [48][50] Question: Concerns about generative AI and solutions-based model - Management emphasized the attractiveness of their solutions-based model, which allows customers to use the platform without seat constraints, positioning them well against generative AI technologies [55][58] Question: Sustainability portfolio and market demand - Management acknowledged a moderation in demand for sustainability solutions but remains optimistic about long-term market demand, particularly driven by regulatory requirements [66][68] Question: Free cash flow guidance and margin improvements - The company explained that free cash flow is influenced by various factors, including timing of cash inflows and outflows, and reiterated its commitment to improving margins [68][69] Question: RFP activity from CFO Act agencies - Management reported good discussions with agencies looking to modernize financial systems, indicating potential opportunities in the government sector [72][73] Question: Investment plans and headcount expectations - The company will focus on productivity and leverage existing resources while making investment decisions based on potential outcomes [107][108]

Market Opportunity & Solutions - Workiva estimates a total addressable market (TAM) of $35 billion[7,9] - Sustainability Management represents 20% of Workiva's total TAM[11,12] - Financial Reporting also represents 50% of Workiva's total TAM[11] - Industry Vertical represents 20% of Workiva's total TAM[11] - Governance, Risk, and Compliance (GRC) represents 10% of Workiva's total TAM[11] Financial Performance & Growth - Q2 2025 subscription revenue grew by 23% year-over-year[57] - Q2 2025 gross retention rate was 97%[57] - Q2 2025 net retention rate was 114%, with a 1% positive impact from foreign exchange rate fluctuations[59,64] - Remaining Performance Obligation (RPO) grew by 24% to $1.237 billion in Q2 2025[61] - Customer logos increased by 5% to 6,467 in Q2 2025[61] Customer Base & Adoption - The number of customers with ACV (Annual Contract Value) greater than $100k grew by 27%[66] - The number of customers with ACV greater than $300k grew by 35%[66] - The number of customers with ACV greater than $500k grew by 37%[66] - Subscription revenue from multi-solution customers increased to 71%[69] Financial Guidance - Q3 2025 total revenue is projected to be between $218 million and $220 million, representing a 174%-185% year-over-year growth[71] - Full-year 2025 total revenue is projected to be between $870 million and $873 million, representing a 178%-182% year-over-year growth[71]

Part I. Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Workiva Inc.'s unaudited consolidated financial statements for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, comprehensive loss, changes in stockholders' deficit, and cash flows, along with detailed notes explaining significant accounting policies, financial instrument details, and other relevant disclosures [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Presents Workiva Inc.'s financial position, detailing assets, liabilities, and stockholders' deficit as of specific dates **Consolidated Balance Sheet Highlights (in thousands):** | Metric | June 30, 2025 | December 31, 2024 | Change (2025 vs 2024) | | :-------------------------------- | :------------ | :---------------- | :-------------------- | | Total Assets | $1,345,742 | $1,368,469 | $(22,727) | | Total Liabilities | $1,412,270 | $1,410,153 | $2,117 | | Total Stockholders' Deficit | $(66,528) | $(41,684) | $(24,844) | | Cash and cash equivalents | $284,253 | $301,835 | $(17,582) | | Marketable securities | $529,456 | $514,585 | $14,871 | | Accounts receivable, net | $121,564 | $148,433 | $(26,869) | | Convertible senior notes, current | $70,937 | $— | $70,937 | | Convertible senior notes, non-current | $695,175 | $764,891 | $(69,716) | - Total assets decreased by **$22.7 million**, primarily due to a decrease in cash and cash equivalents and accounts receivable, partially offset by an increase in marketable securities[15](index=15&type=chunk) - Total liabilities increased by **$2.1 million**, driven by the reclassification of **$70.9 million** of 2026 convertible senior notes to current liabilities, partially offset by a decrease in non-current convertible senior notes[17](index=17&type=chunk) - Total stockholders' deficit increased by **$24.8 million**, primarily due to accumulated deficit and share repurchases[17](index=17&type=chunk) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Details Workiva Inc.'s revenues, expenses, and net loss for the specified reporting periods **Consolidated Statements of Operations Highlights (in thousands, except per share amounts):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------- | :------------------------------ | :------------------------------ | :------------- | | Total Revenue | $215,187 | $177,503 | 21.2% | $421,467 | $353,170 | 19.3% | | Subscription and support revenue | $198,223 | $160,735 | 23.3% | $383,735 | $315,714 | 21.5% | | Professional services revenue | $16,964 | $16,768 | 1.2% | $37,732 | $37,456 | 0.7% | | Gross Profit | $165,644 | $136,331 | 21.5% | $323,582 | $270,475 | 19.6% | | Loss from operations | $(22,146) | $(23,149) | (4.3%) | $(46,896) | $(41,432) | 13.2% | | Net loss | $(19,400) | $(17,548) | 10.6% | $(40,771) | $(29,235) | 39.5% | | Basic and diluted net loss per share | $(0.35) | $(0.32) | 9.4% | $(0.73) | $(0.53) | 37.7% | - Total revenue increased by **21.2%** for the three months and **19.3%** for the six months ended June 30, 2025, primarily driven by strong growth in subscription and support revenue[19](index=19&type=chunk) - Net loss increased by **10.6%** for the three months and **39.5%** for the six months ended June 30, 2025, compared to the prior year, leading to higher basic and diluted net loss per share[19](index=19&type=chunk) [Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Reports Workiva Inc.'s net loss and other comprehensive income (loss) components for the periods presented **Consolidated Statements of Comprehensive Loss Highlights (in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(19,400) | $(17,548) | $(40,771) | $(29,235) | | Other comprehensive income (loss) | $8,908 | $(1,095) | $13,214 | $(4,985) | | Comprehensive loss | $(10,492) | $(18,643) | $(27,557) | $(34,220) | - The company reported a significant increase in other comprehensive income for both the three and six months ended June 30, 2025, primarily due to foreign currency translation adjustments, which helped reduce the comprehensive loss compared to the net loss[23](index=23&type=chunk) [Consolidated Statements of Changes in Stockholders' Deficit](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Deficit) Outlines the changes in Workiva Inc.'s equity components, including net loss, stock-based compensation, and share repurchases **Changes in Stockholders' Deficit (Six Months Ended June 30, 2025, in thousands):** | Item | Amount | | :------------------------------------------ | :------- | | Balances at December 31, 2024 | $(41,684) | | Stock-based compensation expense | $56,355 | | Issuance of common stock (options & ESPP) | $2,434 | | Tax withholding related to net share settlements | $(13,491) | | Repurchases of Class A common stock | $(50,120) | | Net loss | $(40,771) | | Other comprehensive income | $13,214 | | Balances at June 30, 2025 | $(66,528) | - The total stockholders' deficit increased from **$(41.7) million** at December 31, 2024, to **$(66.5) million** at June 30, 2025, primarily due to net loss and repurchases of Class A common stock, partially offset by stock-based compensation expense and other comprehensive income[26](index=26&type=chunk)[29](index=29&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes Workiva Inc.'s cash inflows and outflows from operating, investing, and financing activities **Consolidated Statements of Cash Flows Highlights (in thousands):** | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by (used in) operating activities | $50,311 | $(14) | $42,953 | $24,830 | | Net cash used in investing activities | $(4,283) | $(26,315) | $(13,416) | $(8,867) | | Net cash used in financing activities | $(8,907) | $(1,482) | $(53,919) | $(2,807) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $42,229 | $(28,169) | $(17,385) | $11,691 | | Cash, cash equivalents, and restricted cash at end of period | $284,965 | $268,412 | $284,965 | $268,412 | - Operating cash flow significantly improved, moving from a slight outflow of **$(14) thousand** in Q2 2024 to an inflow of **$50.3 million** in Q2 2025, and increasing from **$24.8 million** to **$43.0 million** for the six-month period[32](index=32&type=chunk) - Cash used in investing activities decreased for the three-month period but increased for the six-month period, with significant purchases of marketable securities and the prior year's acquisition of Sustain.Life impacting the figures[32](index=32&type=chunk) - Cash used in financing activities increased substantially, primarily due to repurchases of Class A common stock under the 2024 Repurchase Plan[32](index=32&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements [1. Organization and Significant Accounting Policies](index=13&type=section&id=1.%20Organization%20and%20Significant%20Accounting%20Policies) Describes Workiva Inc.'s business, significant accounting principles, and recent accounting pronouncements - Workiva Inc. provides a platform for transparency, accountability, and trust, serving finance, accounting, sustainability, risk, and audit teams globally with its AI-powered collaborative SaaS platform[36](index=36&type=chunk) - The company's financial results are subject to seasonality, with professional services revenue typically higher in Q1 due to Form 10-K filings, and sales and marketing expenses higher in Q3 due to the annual user conference[38](index=38&type=chunk) - The One Big Beautiful Bill Act of 2025, enacted on July 4, 2025, includes significant changes to federal corporate tax provisions, and the company is currently assessing its potential impact on future tax assets and liabilities[42](index=42&type=chunk)[43](index=43&type=chunk) - New accounting pronouncements, ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation), are effective for annual periods beginning after December 15, 2024, and December 15, 2026, respectively, and ASU 2024-04 (Convertible Debt) is effective after December 15, 2025. The company is assessing their effects[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [2. Supplemental Consolidated Balance Sheet Information](index=15&type=section&id=2.%20Supplemental%20Consolidated%20Balance%20Sheet%20Information) Offers additional detail on specific balance sheet accounts, such as accrued expenses and other current liabilities **Accrued Expenses and Other Current Liabilities (in thousands):** | Item | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Customer deposits | $23,520 | $24,500 | | Accrued vacation | $22,218 | $18,698 | | Accrued bonuses | $18,279 | $7,891 | | Accrued commissions | $9,876 | $23,336 | | ESPP employee contributions | $8,450 | $7,710 | | Accrued payroll | $8,114 | $9,638 | | Operating lease liabilities | $4,932 | $4,896 | | Accrued interest | $3,591 | $3,591 | | Estimated health insurance claims | $2,603 | $3,986 | | Accrued other liabilities | $17,005 | $22,262 | | **Total** | **$118,588** | **$126,508** | - Total accrued expenses and other current liabilities decreased from **$126.5 million** at December 31, 2024, to **$118.6 million** at June 30, 2025, primarily due to decreases in accrued commissions and other accrued liabilities, partially offset by increases in accrued bonuses and vacation[47](index=47&type=chunk) [3. Cash Equivalents and Marketable Securities](index=15&type=section&id=3.%20Cash%20Equivalents%20and%20Marketable%20Securities) Details the composition and fair value of Workiva Inc.'s cash equivalents and investment portfolio **Cash Equivalents and Marketable Securities (as of June 30, 2025, in thousands):** | Type | Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | | :------------------------------ | :------------- | :--------------- | :---------------- | :------------------- | | Money market funds | $165,852 | $— | $— | $165,852 | | Commercial paper | $6,508 | $— | $— | $6,508 | | U.S. treasury debt securities | $276,869 | $481 | $(108) | $277,242 | | U.S. government agency debt securities | $75,315 | $51 | $(43) | $75,323 | | Corporate debt securities | $180,021 | $386 | $(51) | $180,356 | | **Total** | **$704,565** | **$918** | **$(202)** | **$705,281** | **Included in:** | Category | Amount | | :------------------------ | :------- | | Cash and cash equivalents | $175,825 | | Marketable securities | $529,456 | - The total fair value of cash equivalents and marketable securities increased to **$705.3 million** as of June 30, 2025, from **$662.4 million** at December 31, 2024, with a net unrealized gain of **$716 thousand**[48](index=48&type=chunk)[49](index=49&type=chunk) - The majority of marketable securities mature within one to two years, with **$327.1 million** due within one year and **$202.4 million** due in one to two years[50](index=50&type=chunk) [4. Fair Value Measurements](index=16&type=section&id=4.%20Fair%20Value%20Measurements) Explains the valuation methodologies and hierarchy used for Workiva Inc.'s financial instruments - The company classifies its financial instruments using a three-level fair value hierarchy, maximizing observable inputs[51](index=51&type=chunk)[52](index=52&type=chunk) - Cash equivalents (money market funds) are classified as Level 1, while marketable securities (commercial paper, U.S. treasury, U.S. government agency, and corporate debt securities) are classified as Level 2, based on quoted prices for comparable instruments in active markets[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - The fair value of convertible senior notes is classified as Level 2, determined by quoted prices in an over-the-counter market[56](index=56&type=chunk) [5. Convertible Senior Notes](index=18&type=section&id=5.%20Convertible%20Senior%20Notes) Provides information on Workiva Inc.'s outstanding convertible debt, including carrying amounts and interest expense - Workiva has two series of convertible senior notes: **1.125%** notes due August 15, 2026 (2026 Notes) and **1.250%** notes due August 15, 2028 (2028 Notes)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - As of June 30, 2025, the 2026 Notes are classified as current liabilities due to their Free Convertibility Date being less than one year away, while the 2028 Notes remain non-current[63](index=63&type=chunk) **Convertible Senior Notes Carrying Amount (in thousands):** | Note Series | June 30, 2025 | December 31, 2024 | | :---------- | :------------ | :---------------- | | 2026 Notes | $70,937 | $70,801 | | 2028 Notes | $695,175 | $694,090 | **Interest Expense (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Contractual interest expense | $2,394 | $2,394 | $4,788 | $4,788 | | Amortization of issuance costs | $610 | $609 | $1,220 | $1,217 | | **Total** | **$3,004** | **$3,003** | **$6,008** | **$6,005** | [6. Commitments and Contingencies](index=20&type=section&id=6.%20Commitments%20and%20Contingencies) Discloses Workiva Inc.'s contractual obligations and potential liabilities from legal matters - The company is involved in legal proceedings in the ordinary course of business but does not believe any currently pending matters will have a material adverse effect on its financial condition or operations[66](index=66&type=chunk) [7. Stock-Based Compensation](index=20&type=section&id=7.%20Stock-Based%20Compensation) Details Workiva Inc.'s stock-based compensation plans and associated expenses - Stock-based compensation is granted to attract and retain employees, directors, and consultants, primarily through restricted stock units, performance restricted stock units, stock options, and an Employee Stock Purchase Plan (ESPP)[67](index=67&type=chunk) **Stock-Based Compensation Expense (in thousands):** | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Cost of revenue | $3,617 | $2,706 | $7,046 | $5,034 | | Research and development | $6,556 | $5,152 | $12,606 | $9,793 | | Sales and marketing | $9,890 | $8,490 | $19,641 | $16,528 | | General and administrative | $8,404 | $9,054 | $17,062 | $17,054 | | **Total** | **$28,467** | **$25,402** | **$56,355** | **$48,409** | - Total stock-based compensation expense increased by **12.1%** for the three months and **16.4%** for the six months ended June 30, 2025, compared to the prior year, with significant increases in R&D and Sales & Marketing[68](index=68&type=chunk) - As of June 30, 2025, **3,180,310** unvested restricted stock units and performance restricted stock units were outstanding, with a weighted average grant date fair value of **$91.04**[71](index=71&type=chunk) [8. Revenue Recognition](index=22&type=section&id=8.%20Revenue%20Recognition) Explains Workiva Inc.'s policies for recognizing revenue from subscription and professional services **Disaggregation of Revenue (in thousands):** | Type of Service | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Subscription and support | $198,223 | $160,735 | $383,735 | $315,714 | | XBRL professional services | $14,502 | $14,027 | $32,442 | $31,620 | | Other services | $2,462 | $2,741 | $5,290 | $5,836 | | **Total** | **$215,187** | **$177,503** | **$421,467** | **$353,170** | - Subscription and support revenue continues to be the primary driver of total revenue, showing strong growth of **23.3%** and **21.5%** for the three and six months ended June 30, 2025, respectively[75](index=75&type=chunk) - The company expects to recognize approximately **$1.2 billion** in revenue from remaining performance obligations for subscription contracts, with **$668.3 million** expected within the next 12 months[77](index=77&type=chunk) [9. Intangible Assets and Goodwill](index=22&type=section&id=9.%20Intangible%20Assets%20and%20Goodwill) Presents the carrying amounts and amortization of Workiva Inc.'s intangible assets and goodwill **Net Intangible Assets (in thousands):** | Component | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Acquired technology | $11,635 | $14,106 | | Acquired customer related | $12,120 | $11,738 | | Acquired trade names | $258 | $295 | | Patents | $1,202 | $1,250 | | **Total** | **$25,215** | **$27,389** | - Total net intangible assets decreased to **$25.2 million** as of June 30, 2025, from **$27.4 million** at December 31, 2024, primarily due to amortization[78](index=78&type=chunk) - Amortization expense for intangible assets was **$2.0 million** for the three months and **$3.9 million** for the six months ended June 30, 2025, an increase from the prior year[79](index=79&type=chunk) - Goodwill increased to **$206.0 million** as of June 30, 2025, from **$196.8 million** at December 31, 2024, primarily due to foreign currency translation adjustments[80](index=80&type=chunk) [10. Net Loss Per Share](index=23&type=section&id=10.%20Net%20Loss%20Per%20Share) Calculates Workiva Inc.'s basic and diluted net loss per common share for the reporting periods **Net Loss Per Common Share (Basic and Diluted):** | Period | Net Loss Per Share | | :------------------------------- | :----------------- | | Three months ended June 30, 2025 | $(0.35) | | Three months ended June 30, 2024 | $(0.32) | | Six months ended June 30, 2025 | $(0.73) | | Six months ended June 30, 2024 | $(0.53) | - The basic and diluted net loss per share increased for both the three-month and six-month periods ended June 30, 2025, reflecting the higher net loss incurred[81](index=81&type=chunk)[82](index=82&type=chunk) - Anti-dilutive securities, including stock options, unvested restricted stock units, ESPP shares, and convertible senior notes, were excluded from the diluted EPS calculation due to the net loss position[82](index=82&type=chunk) [11. Geographic Information](index=24&type=section&id=11.%20Geographic%20Information) Provides a breakdown of Workiva Inc.'s revenue and long-lived assets by geographical region - Workiva operates as one operating and reportable segment, with revenue disaggregated by geographical region[83](index=83&type=chunk) **Revenue by Geographical Region (in thousands):** | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Americas (Subscription & Support) | $156,916 | $132,228 | $306,252 | $260,701 | | Other (Subscription & Support) | $41,307 | $28,507 | $77,483 | $55,013 | | Americas (Professional Services) | $14,946 | $15,076 | $33,325 | $33,303 | | Other (Professional Services) | $2,018 | $1,692 | $4,407 | $4,153 | | **Total** | **$215,187** | **$177,503** | **$421,467** | **$353,170** | - The Americas region continues to be the largest revenue contributor, with the U.S. accounting for approximately **92-93%** of total Americas revenue[85](index=85&type=chunk) **Long-Lived Assets by Geographical Region (in thousands):** | Region | June 30, 2025 | December 31, 2024 | | :------- | :------------ | :---------------- | | Americas | $27,889 | $29,148 | | Other | $4,960 | $4,463 | | **Total** | **$32,849** | **$33,611** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&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 results of operations for the three and six months ended June 30, 2025, compared to the prior year. It covers the company's business overview, key performance drivers, and a detailed analysis of revenue, costs, operating expenses, and liquidity [Overview](index=26&type=section&id=Overview) Presents Workiva Inc.'s business model, market position, and key financial highlights for the reporting period - Workiva's SaaS platform provides solutions for financial reporting, sustainability management, and governance, risk, and compliance (GRC) to over **6,400** organizations, including more than **80%** of FORTUNE® 1,000 companies[88](index=88&type=chunk)[90](index=90&type=chunk) - The company's revenue grew to **$215.2 million** and **$421.5 million** for the three and six months ended June 30, 2025, respectively, but it incurred net losses of **$19.4 million** and **$40.8 million** for the same periods[94](index=94&type=chunk)[95](index=95&type=chunk) - Growth drivers include multi-solution adoption, partner program development, international expansion, and fit-for-purpose solutions, which may lead to increased upfront sales and marketing costs[96](index=96&type=chunk) - Sales of sustainability management solutions are impacted by domestic and global policy uncertainties, such as the EU's CSRD 'stop-the-clock' directive, delaying compliance obligations[97](index=97&type=chunk) - Volatility in the IPO/SPAC markets has adversely affected new sales of SEC and capital markets solutions, with reduced valuation multiples expected to continue impacting IPOs in fiscal year 2025[98](index=98&type=chunk) [Key Factors Affecting Our Performance](index=27&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Identifies the strategic initiatives and external factors influencing Workiva Inc.'s operational and financial results - Workiva aims to generate growth from existing customers through a network effect, encouraging additional users and solutions adoption within enterprises due to its solution-based licensing model[99](index=99&type=chunk) - The company plans to pursue new customers by expanding its sales and marketing organization, targeting professionals in financial and non-financial reporting, sustainability management, and GRC[100](index=100&type=chunk) - Workiva intends to offer more solutions by developing new features and applications based on customer needs and industry research, with a disciplined vetting process involving various internal teams[101](index=101&type=chunk) - Expansion across enterprises is a key strategy, leading to larger, more complex deals and potentially longer sales cycles, but expected to add new users and increase revenue[102](index=102&type=chunk) - The company continues to add and deepen relationships with global and regional partners (consulting firms, system integrators, technology partners) to extend its reach, accelerate platform adoption, and enhance professional service delivery[103](index=103&type=chunk) - Workiva plans to invest in platform development, fit-for-purpose solutions, and its application marketplace, as well as in sales, marketing, professional services, and customer success, particularly in EMEA and APAC regions[104](index=104&type=chunk) [Key Performance Indicators](index=29&type=section&id=Key%20Performance%20Indicators) Highlights Workiva Inc.'s crucial financial and operational metrics used to assess business performance and growth **Key Financial Metrics (in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total revenue | $215,187 | $177,503 | $421,467 | $353,170 | | Percentage increase in total revenue | 21.2% | 14.5% | 19.3% | 15.7% | | Subscription and support revenue | $198,223 | $160,735 | $383,735 | $315,714 | | Percentage increase in subscription and support revenue | 23.3% | 17.5% | 21.5% | 18.5% | | Subscription and support as a percent of total revenue | 92.1% | 90.6% | 91.0% | 89.4% | **Key Operating Metrics:** | Metric | As of June 30, 2025 | As of June 30, 2024 | | :--------------------------------------- | :------------------ | :------------------ | | Number of customers | 6,467 | 6,147 | | Gross retention rate | 97.5% | 97.6% | | Net retention rate | 113.7% | 109.2% | | Number of customers with ACV $100k+ | 2,241 | 1,768 | | Number of customers with ACV $300k+ | 488 | 356 | | Number of customers with ACV $500k+ | 208 | 154 | - The number of customers increased to **6,467** as of June 30, 2025, from **6,147** in the prior year, including customers acquired through the Sustain.Life acquisition[107](index=107&type=chunk) - The net retention rate improved to **113.7%** as of June 30, 2025, from **109.2%** in the prior year, indicating successful up-selling, cross-selling, and pricing changes[111](index=111&type=chunk) - The percentage of subscription and support revenue from customers with annual contract values (ACV) of **$100k+**, **$300k+**, and **$500k+** all increased, demonstrating progress in expanding customer adoption of the platform[113](index=113&type=chunk) [Components of Results of Operations](index=30&type=section&id=Components%20of%20Results%20of%20Operations) Explains the primary drivers and composition of Workiva Inc.'s revenue, cost of revenue, and operating expenses - Revenue is generated from subscription to cloud-based software (recognized ratably) and professional services (recognized upon completion or as performed), with no significant customer concentration[114](index=114&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Cost of revenue includes personnel, third-party vendor costs, hosting fees, and IT costs related to professional services and customer support[119](index=119&type=chunk) - Sales and marketing expenses cover personnel, commissions (deferred and amortized over three years for longer contracts), marketing events, and IT costs[120](index=120&type=chunk) - Research and development expenses primarily consist of personnel costs, hosting fees for developers, and IT costs[121](index=121&type=chunk) - General and administrative expenses include personnel costs for executive, finance, legal, HR, and administrative functions, along with professional service fees and other corporate expenses[122](index=122&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Analyzes Workiva Inc.'s financial performance, detailing changes in revenue, costs, and operating expenses [Revenue](index=33&type=section&id=Revenue) Analyzes Workiva Inc.'s revenue streams, distinguishing between subscription and professional services growth **Revenue Performance (in thousands):** | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------ | :------------------------------- | :------------------------------- | :------- | :------------------------------ | :------------------------------ | :------- | | Subscription and support | $198,223 | $160,735 | 23.3% | $383,735 | $315,714 | 21.5% | | Professional services | $16,964 | $16,768 | 1.2% | $37,732 | $37,456 | 0.7% | | **Total revenue** | **$215,187** | **$177,503** | **21.2%** | **$421,467** | **$353,170** | **19.3%** | - Total revenue increased by **$37.7 million (21.2%)** for the three months and **$68.3 million (19.3%)** for the six months ended June 30, 2025, primarily driven by strong demand and solution expansion in subscription and support[126](index=126&type=chunk)[127](index=127&type=chunk) - Professional services revenue growth was minimal (**1.2%** for three months, **0.7%** for six months) as the company continues to transition consulting services to partners[126](index=126&type=chunk)[127](index=127&type=chunk) [Cost of Revenue](index=34&type=section&id=Cost%20of%20Revenue) Examines the costs directly associated with Workiva Inc.'s revenue generation, including subscription and professional services **Cost of Revenue Performance (in thousands):** | Cost Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------ | :------------------------------- | :------------------------------- | :------- | :------------------------------ | :------------------------------ | :------- | | Subscription and support | $35,277 | $27,945 | 26.2% | $69,339 | $55,872 | 24.1% | | Professional services | $14,266 | $13,227 | 7.9% | $28,546 | $26,823 | 6.4% | | **Total cost of revenue** | **$49,543** | **$41,172** | **20.3%** | **$97,885** | **$82,695** | **18.4%** | - Total cost of revenue increased by **$8.4 million (20.3%)** for the three months and **$15.2 million (18.4%)** for the six months ended June 30, 2025[128](index=128&type=chunk)[129](index=129&type=chunk) - The increase in subscription and support cost of revenue was primarily due to higher cash-based compensation, stock-based compensation, licensed platform content costs, and intangibles amortization related to Sustain.Life[128](index=128&type=chunk)[129](index=129&type=chunk) [Operating Expenses](index=34&type=section&id=Operating%20Expenses) Details Workiva Inc.'s research and development, sales and marketing, and general and administrative expenditures **Operating Expenses Performance (in thousands):** | Expense Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------ | :------------------------------- | :------------------------------- | :------- | :------------------------------ | :------------------------------ | :------- | | Research and development | $54,843 | $48,408 | 13.3% | $108,623 | $93,903 | 15.7% | | Sales and marketing | $104,025 | $84,697 | 22.8% | $205,696 | $167,330 | 22.9% | | General and administrative | $28,922 | $26,375 | 9.7% | $56,159 | $50,674 | 10.8% | | **Total operating expenses** | **$187,790** | **$159,480** | **17.8%** | **$370,478** | **$311,907** | **18.8%** | - Research and development expenses increased by **$6.4 million (13.3%)** for the three months and **$14.7 million (15.7%)** for the six months, driven by higher compensation and professional service fees due to increased headcount and platform investment[132](index=132&type=chunk)[133](index=133&type=chunk) - Sales and marketing expenses rose by **$19.3 million (22.8%)** for the three months and **$38.4 million (22.9%)** for the six months, primarily due to increased compensation, marketing and advertising, and professional service fees to support go-to-market activities[134](index=134&type=chunk)[135](index=135&type=chunk) - General and administrative expenses increased by **$2.5 million (9.7%)** for the three months and **$5.5 million (10.8%)** for the six months, mainly due to higher cash-based compensation and internal event costs[136](index=136&type=chunk)[137](index=137&type=chunk) [Non-Operating Income (Expenses)](index=36&type=section&id=Non-Operating%20Income%20(Expenses)) Reports Workiva Inc.'s interest income, interest expense, and other non-core financial gains or losses **Non-Operating Income (Expenses) (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------ | :------------------------------- | :------------------------------- | :------- | :------------------------------ | :------------------------------ | :------- | | Interest income | $8,344 | $10,336 | (19.3%) | $17,091 | $20,791 | (17.8%) | | Interest expense | $(3,194) | $(3,237) | (1.3%) | $(6,389) | $(6,469) | (1.2%) | | Other (expense) income, net | $(736) | $(45) | * | $(969) | $41 | * | - Interest income decreased by **$2.0 million (19.3%)** for the three months and **$3.7 million (17.8%)** for the six months, primarily due to a decrease in investment balance and lower interest rates[139](index=139&type=chunk)[140](index=140&type=chunk) - Other expense, net, significantly increased due to losses on foreign currency transactions[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses Workiva Inc.'s ability to meet short-term and long-term financial obligations and fund operations [Overview of Sources and Uses of Cash](index=37&type=section&id=Overview%20of%20Sources%20and%20Uses%20of%20Cash) Summarizes Workiva Inc.'s primary sources of funds and how cash is utilized across its operations - As of June 30, 2025, Workiva's principal sources of liquidity were cash, cash equivalents, and marketable securities totaling **$813.7 million**[142](index=142&type=chunk) - Operations have been financed primarily through cash generated from operations and convertible debt issuances, despite incurring significant operating losses[142](index=142&type=chunk) - Management believes current liquidity and operating cash flows will be sufficient to fund operations for at least the next twelve months[142](index=142&type=chunk) [Convertible Debt](index=37&type=section&id=Convertible%20Debt) Details Workiva Inc.'s outstanding convertible senior notes, including their terms and impact on liquidity - In August 2023, Workiva issued **$702.0 million** of **1.250%** 2028 Notes, using **$396.9 million** of the proceeds to repurchase **$273.8 million** of 2026 Notes[143](index=143&type=chunk) - As of June 30, 2025, outstanding debt included **$70.9 million** for 2026 Notes (maturing August 2026) and **$695.2 million** for 2028 Notes (maturing August 2028)[143](index=143&type=chunk) [Share Repurchase Plan](index=37&type=section&id=Share%20Repurchase%20Plan) Describes Workiva Inc.'s program for repurchasing its Class A common stock and related activity - On July 30, 2024, the board authorized a **$100.0 million** share repurchase plan for Class A common stock[144](index=144&type=chunk) - As of June 30, 2025, **$50.1 million** of Class A common stock had been repurchased under the 2024 Repurchase Plan[144](index=144&type=chunk) [Cash Flows](index=37&type=section&id=Cash%20Flows) Analyzes Workiva Inc.'s cash generation and usage across operating, investing, and financing activities **Cash Flow Summary (in thousands):** | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating activities | $50,311 | $(14) | $42,953 | $24,830 | | Investing activities | $(4,283) | $(26,315) | $(13,416) | $(8,867) | | Financing activities | $(8,907) | $(1,482) | $(53,919) | $(2,807) | | Net increase (decrease) in cash | $42,229 | $(28,169) | $(17,385) | $11,691 | - Operating cash flow significantly improved, with **$50.3 million** provided in Q2 2025 compared to a nominal outflow in Q2 2024, driven by changes in operating assets and liabilities, including increased deferred revenue and accrued expenses[147](index=147&type=chunk) - Cash used in investing activities decreased for the three-month period due to lower purchases of marketable securities and the absence of a large acquisition like Sustain.Life in the prior year[151](index=151&type=chunk)[152](index=152&type=chunk) - Cash used in financing activities increased substantially due to **$10.0 million** in Class A common stock repurchases for the three months and **$50.1 million** for the six months ended June 30, 2025[155](index=155&type=chunk)[157](index=157&type=chunk) [Contractual Obligations and Commitments](index=39&type=section&id=Contractual%20Obligations%20and%20Commitments) Outlines Workiva Inc.'s future payment obligations and other binding agreements - There were no material changes to contractual obligations and commitments from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[159](index=159&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Identifies Workiva Inc.'s accounting policies requiring significant judgment and estimation - The preparation of financial statements requires estimates and assumptions, but no significant changes to critical accounting policies and estimates occurred during the six months ended June 30, 2025[160](index=160&type=chunk)[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) This section refers to the Annual Report on Form 10-K for detailed quantitative and qualitative disclosures about market risk, stating that there have been no material changes since December 31, 2024 - The company's exposures to market risk have not materially changed since December 31, 2024, as detailed in the Annual Report on Form 10-K[162](index=162&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details management's evaluation of the effectiveness of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting - Management, including the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance for timely and accurate reporting[163](index=163&type=chunk)[164](index=164&type=chunk) - No changes in internal control over financial reporting occurred during the period that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[165](index=165&type=chunk) - Management acknowledges that controls and procedures, regardless of design, can only provide reasonable assurance and are subject to resource constraints and judgment[166](index=166&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section addresses the company's involvement in legal proceedings, stating that no current litigation is expected to have a material adverse effect on its business - Workiva is not currently a party to any legal proceedings that management believes would have a material adverse effect on its business, financial condition, operating results, or cash flows[168](index=168&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the Annual Report on Form 10-K for a comprehensive discussion of risk factors, noting no material changes in fiscal year 2025 - There have been no material changes during fiscal year 2025 to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's share repurchase activity for Class A common stock under its authorized plan - The board of directors authorized a share repurchase plan for up to **$100.0 million** of Class A common stock on July 30, 2024[171](index=171&type=chunk) **Share Repurchase Activity (Three Months Ended June 30, 2025, in thousands, except share and per share data):** | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value that May Yet Be Purchased Under the Plans or Programs | | :------------------------------ | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | | April 1, 2025 to April 30, 2025 | 131,810 | $75.86 | $49,892 | | May 1, 2025 to May 31, 2025 | — | $— | $49,892 | | June 1, 2025 to June 30, 2025 | — | $— | $49,892 | | **Total** | **131,810** | | | - During April 2025, **131,810** shares of Class A common stock were repurchased at an average price of **$75.86** per share, leaving approximately **$49.9 million** remaining under the repurchase plan[171](index=171&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section provides updates on director and officer trading arrangements and the planned departure of the Chief Financial Officer [Director and Officer Trading Arrangements](index=41&type=section&id=Director%20and%20Officer%20Trading%20Arrangements) Reports on trading plans adopted or modified by Workiva Inc.'s directors and officers - On May 8, 2025, The Robert H. Herz Irrevocable Trust adopted a Rule 10b5-1 trading arrangement for the sale of up to **5,000** shares of Class A common stock, effective from August 7, 2025, until February 16, 2026[172](index=172&type=chunk)[173](index=173&type=chunk) - No other director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[173](index=173&type=chunk) [Departure of Chief Financial Officer](index=42&type=section&id=Departure%20of%20Chief%20Financial%20Officer) Announces the planned transition and departure of Workiva Inc.'s Chief Financial Officer - Jill E. Klindt, Executive Vice President, CFO, and Treasurer, will be stepping down in 2025 after a transition period, remaining in an advisory capacity through mid-December 2025[174](index=174&type=chunk)[175](index=175&type=chunk) - Her departure is considered a termination without Cause, and the company has initiated a search for a successor[175](index=175&type=chunk)[177](index=177&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents, certifications, and financial information in Inline XBRL format - Exhibits include the Certificate of Incorporation, Form of Restricted Stock Unit Agreement, CEO and CFO certifications (pursuant to Sarbanes-Oxley Act Sections 302 and 906), and financial information formatted in Inline XBRL[178](index=178&type=chunk) [Signatures](index=44&type=section&id=Signatures) Contains the official certifications and signatures of Workiva Inc.'s authorized officers for the report - The report is duly signed by Julie Iskow, President and Chief Executive Officer, and Jill Klindt, Executive Vice President, Chief Financial Officer and Treasurer, on July 31, 2025[180](index=180&type=chunk)[181](index=181&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Workiva Inc. exceeded Q2 2025 revenue and operating margin guidance, demonstrating solid performance from strong demand - Workiva delivered a quarter of solid financial performance, powered by continued demand for its broad portfolio of solutions and unified platform[3](index=3&type=chunk) - The company beat the high end of guidance for both revenue and operating margin, demonstrating business durability[3](index=3&type=chunk) Key Q2 2025 Performance Highlights | Metric | Q2 2025 | YoY Change | | :-------------------------------- | :------ | :--------- | | Total Revenue | $215 million | 21% | | Subscription & Support Revenue | $198 million | 23% | | Customers with ACV > $500,000 | 208 | 35% | | Non-GAAP Operating Margin | 3.8% | 1.8 pp (from 2.0%) | [Second Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operational%20Highlights) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) Workiva reported strong Q2 2025 revenue growth, improved GAAP/non-GAAP margins, and increased non-GAAP net income Q2 2025 Revenue Performance | Revenue Type | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Growth | | :--------------------- | :----------------- | :----------------- | :--------- | | Total Revenue | $215 | $178 | 21% | | Subscription and Support | $198 | $161 | 23% | | Professional Services | $17 | $17 | Flat | Q2 2025 Margin Performance | Metric | Q2 2025 | Q2 2024 | Change (pp) | | :-------------------- | :------ | :------ | :---------- | | GAAP Gross Margin | 77.0% | 76.8% | +0.2 | | Non-GAAP Gross Margin | 79.1% | 78.3% | +0.8 | | GAAP Operating Margin | (10.2)% | (13.1)% | +2.9 | | Non-GAAP Operating Margin | 3.8% | 2.0% | +1.8 | Q2 2025 Net Income/Loss and EPS | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :-------- | :-------- | :--------- | | GAAP Net Loss | $(19) million | $(18) million | $(1) million | | GAAP Net Loss per Basic/Diluted Share | $(0.35) | $(0.32) | $(0.03) | | Non-GAAP Net Income | $11 million | $9 million | $2 million | | Non-GAAP Net Income per Basic Share | $0.20 | $0.17 | $0.03 | | Non-GAAP Net Income per Diluted Share | $0.19 | $0.16 | $0.03 | [Operational Metrics](index=1&type=section&id=Operational%20Metrics) Workiva demonstrated healthy customer acquisition, strong retention, and significant growth in large contract value customers Customer and Retention Metrics (as of June 30, 2025) | Metric | Value | YoY Change | | :-------------------------------- | :------ | :--------- | | Total Customers | 6,467 | +320 | | Gross Retention Rate | 97% | - | | Net Retention Rate | 114% | - | Large Contract Customer Growth (as of June 30, 2025) | ACV Threshold | Q2 2025 Customers | Q2 2024 Customers | YoY Growth | | :-------------------- | :------------------ | :------------------ | :--------- | | > $100,000 | 2,241 | 1,768 | 27% | | > $300,000 | 488 | 356 | 37% | | > $500,000 | 208 | 154 | 35% | [Liquidity and Share Repurchase Program](index=1&type=section&id=Liquidity%20and%20Share%20Repurchase%20Program) Workiva maintained strong liquidity with over $800 million in cash and marketable securities, actively repurchasing shares Liquidity Position | Metric | As of June 30, 2025 (Millions) | As of Dec 31, 2024 (Millions) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash, Cash Equivalents, Marketable Securities | $814 | $816 | - Workiva repurchased approximately **132,000 shares** for **$10 million** in Q2 2025 under its **$100 million** share repurchase plan authorized on July 30, 2024[8](index=8&type=chunk) - **$49.9 million** remains available under the share repurchase plan as of June 30, 2025[8](index=8&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) [Third Quarter 2025 Guidance](index=2&type=section&id=Third%20Quarter%202025%20Guidance) Workiva projects Q3 2025 total revenue between $218 million and $220 million, with non-GAAP operating margin of 7.0% to 8.0% Q3 2025 Financial Guidance | Metric | Guidance Range | | :-------------------------------- | :------------- | | Total Revenue | $218 million to $220 million | | GAAP Operating Margin | (7.4)% to (6.4)% | | Non-GAAP Operating Margin | 7.0% to 8.0% | | GAAP Net Loss per Basic Share | $(0.18) to $(0.14) | | Non-GAAP Net Income per Diluted Share | $0.37 to $0.41 | [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Workiva anticipates full year 2025 revenue of $870-873 million, non-GAAP operating margin of 7.0-7.5%, and 10.5% free cash flow margin Full Year 2025 Financial Guidance | Metric | Guidance Range | | :-------------------------------- | :------------- | | Total Revenue | $870 million to $873 million | | GAAP Operating Margin | (7.1)% to (6.6)% | | Non-GAAP Operating Margin | 7.0% to 7.5% | | GAAP Net Loss per Basic Share | $(0.79) to $(0.72) | | Non-GAAP Net Income per Diluted Share | $1.31 to $1.38 | | Free Cash Flow Margin | Approximately 10.5% | [Corporate Information](index=2&type=section&id=Corporate%20Information) [CFO Transition](index=2&type=section&id=CFO%20Transition) Jill Klindt, Workiva's CFO and Treasurer, is stepping down, with departure by December 2025 or upon successor appointment - Jill Klindt is stepping down as Executive Vice President, Chief Financial Officer and Treasurer[9](index=9&type=chunk) - She is expected to remain as CFO through **December 2025** or until a successor is appointed[9](index=9&type=chunk) [Quarterly Conference Call](index=2&type=section&id=Quarterly%20Conference%20Call) Workiva hosted a webcast on July 31, 2025, to discuss Q2 2025 financial results and the Q3 and full year 2025 outlook - Workiva hosted a webcast on **July 31, 2025**, at **5:00 p.m. Eastern Time** to review Q2 2025 financial results and discuss the Q3 and full year 2025 outlook[10](index=10&type=chunk) - Access to the call was available via dialing **1-833-630-1956** (U.S. domestic) or **1-412-317-1837** (international), with a live webcast and replay at **https://investor.workiva.com/news-events/events**[10](index=10&type=chunk) [About Workiva](index=2&type=section&id=About%20Workiva) Workiva Inc. provides a platform for finance, accounting, sustainability, risk, and audit teams, serving over 6,400 organizations globally - Workiva Inc. (NYSE: WK) powers transparency, accountability, and trust[11](index=11&type=chunk) - Over **6,400 organizations** worldwide, including over **80% of FORTUNE® 1,000 companies**, rely on Workiva for mission-critical work[11](index=11&type=chunk) - The platform transforms how customers connect data, unify processes, and empower teams in a secure, audit-ready, AI-powered, collaborative environment[11](index=11&type=chunk) [Non-GAAP Financial Measures Explanation and Reconciliation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation%20and%20Reconciliation) [Definition and Rationale](index=2&type=section&id=Definition%20and%20Rationale) Workiva uses non-GAAP measures, excluding stock-based compensation and acquisition intangibles, for clearer core operating results and comparisons, acknowledging GAAP limitations - Non-GAAP adjustments exclude **stock-based compensation** and **amortization of acquisition-related intangible assets**[12](index=12&type=chunk) - Workiva's management uses non-GAAP measures for financial and operational decision-making and evaluating operating results over time, believing they are helpful to investors for more meaningful comparisons[13](index=13&type=chunk)[16](index=16&type=chunk) - Non-GAAP financial measures are not prepared in accordance with GAAP, may differ from those used by other companies, and exclude significant recurring expenses like stock-based compensation[18](index=18&type=chunk) [Historical Non-GAAP Reconciliation (Table I)](index=8&type=section&id=Historical%20Non-GAAP%20Reconciliation%20(Table%20I)) Table I reconciles Workiva's GAAP to non-GAAP results for Q2 and H1 2025/2024, highlighting the impact of stock-based compensation and acquisition intangibles Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross profit, GAAP | $165,644 | $136,331 | $323,582 | $270,475 | | Add back: Stock-based compensation | $3,617 | $2,706 | $7,046 | $5,034 | | Add back: Amortization of acquisition-related intangibles | $939 | — | $1,849 | — | | Gross profit, non-GAAP | $170,200 | $139,037 | $332,477 | $275,509 | Non-GAAP Operating Income and Margin Reconciliation (in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Loss from operations, GAAP | $(22,146) | $(23,149) | $(46,896) | $(41,432) | | Add back: Stock-based compensation | $28,467 | $25,402 | $56,355 | $48,409 | | Add back: Amortization of acquisition-related intangibles | $1,912 | $1,375 | $3,764 | $2,677 | | Income from operations, non-GAAP | $8,233 | $3,628 | $13,223 | $9,654 | | GAAP operating margin | (10.2)% | (13.1)% | (11.2)% | (11.7)% | | Non-GAAP operating margin | 3.8% | 2.0% | 3.1% | 2.7% | Non-GAAP Net Income and Free Cash Flow Reconciliation (in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss, GAAP | $(19,400) | $(17,548) | $(40,771) | $(29,235) | | Net income, non-GAAP | $10,979 | $9,229 | $19,348 | $21,851 | | Net loss per basic and diluted share, GAAP | $(0.35) | $(0.32) | $(0.73) | $(0.53) | | Net income per basic share, non-GAAP | $0.20 | $0.17 | $0.34 | $0.40 | | Net income per diluted share, non-GAAP | $0.19 | $0.16 | $0.33 | $0.38 | | Net cash provided by (used in) operating activities | $50,311 | $(14) | $42,953 | $24,830 | | Free cash flow | $49,316 | $(122) | $41,195 | $24,519 | | Free cash flow margin | 22.9% | (0.1)% | 9.8% | 6.9% | [Non-GAAP Guidance Reconciliation (Table II)](index=10&type=section&id=Non-GAAP%20Guidance%20Reconciliation%20(Table%20II)) Table II reconciles Workiva's GAAP to non-GAAP guidance for Q3 and full year 2025, focusing on operating margin and net income per diluted share Non-GAAP Guidance Reconciliation | Metric | Three months ending Sep 30, 2025 | Year ending Dec 31, 2025 | | :--------------------------------------- | :------------------------------- | :----------------------------- | | GAAP operating margin | (7.4)% - (6.4)% | (7.1)% - (6.6)% | | Add back: Stock-based compensation | 13.6% | 13.3% | | Add back: Amortization of acquisition-related intangibles | 0.8% | 0.8% | | Non-GAAP operating margin | 7.0% - 8.0% | 7.0% - 7.5% | | Net loss per basic share, GAAP range | $(0.18) - $(0.14) | $(0.79) - $(0.72) | | Net income per diluted share, non-GAAP range | $0.37 to $0.41 | $1.31 to $1.38 | [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) [Disclaimer and Risk Factors](index=3&type=section&id=Disclaimer%20and%20Risk%20Factors) This disclaimer identifies 'forward-looking statements' subject to risks and uncertainties, with no obligation to update unless required by law - Certain statements in the press release are 'forward-looking statements' subject to risks, uncertainties, and other factors that may cause actual results to differ materially[19](index=19&type=chunk) - Forward-looking statements are identified by terminology such as 'may,' 'will,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'guidance,' or similar terms[19](index=19&type=chunk) - The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws[20](index=20&type=chunk) [Consolidated Financial Statements (GAAP)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations present Workiva's GAAP financial performance for Q2 and H1 2025/2024, detailing revenue, costs, expenses, and net loss Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $215,187 | $177,503 | $421,467 | $353,170 | | Gross profit | $165,644 | $136,331 | $323,582 | $270,475 | | Total operating expenses | $187,790 | $159,480 | $370,478 | $311,907 | | Loss from operations | $(22,146) | $(23,149) | $(46,896) | $(41,432) | | Net loss | $(19,400) | $(17,548) | $(40,771) | $(29,235) | | Net loss per common share: Basic and diluted | $(0.35) | $(0.32) | $(0.73) | $(0.53) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets provide Workiva's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' deficit Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Total current assets | $1,023,148 | $1,048,242 | | Total assets | $1,345,742 | $1,368,469 | | Total current liabilities | $662,275 | $592,425 | | Total liabilities | $1,412,270 | $1,410,153 | | Total stockholders' deficit | $(66,528) | $(41,684) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows outline Workiva's cash generation and usage from operating, investing, and financing activities for Q2 and H1 2025/2024 Consolidated Statements of Cash Flows (in thousands) | Activity | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $50,311 | $(14) | $42,953 | $24,830 | | Net cash used in investing activities | $(4,283) | $(26,315) | $(13,416) | $(8,867) | | Net cash used in financing activities | $(8,907) | $(1,482) | $(53,919) | $(2,807) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $42,229 | $(28,169) | $(17,385) | $11,691 | | Cash, cash equivalents, and restricted cash at end of period | $284,965 | $268,412 | $284,965 | $268,412 |

Group 1 - Workiva Inc. is a SaaS company that provides a cloud platform for financial reporting, sustainability management, and governance, risk, compliance (GRC) solutions [1] - The company has seen strong growth in large contract customers in recent quarters [1]

Core Insights - The S&P 500 has nearly recovered from a 19% drop due to tariffs, but many enterprise software stocks, including Datadog and Workiva, have not returned to their 2021 highs [1][2] Datadog - Datadog offers an observability platform that monitors cloud infrastructure, with over 30,500 businesses using its services across various industries [4] - The company has expanded into AI observability, with customer usage of its new AI tool more than doubling in the first quarter of 2025 compared to six months prior [5] - Datadog reported that 4,000 customers were using at least one of its AI products in Q1 2025, also doubling year over year [6] - Following strong Q1 results, Datadog raised its full-year revenue forecast for 2025 to $3.235 billion, representing a 21% growth from 2024 [7] - The price-to-sales (P/S) ratio for Datadog has decreased from around 70 in 2021 to 15.5, making it more attractive compared to its historical valuation [8] - Analysts are optimistic, with 31 out of 46 assigning a buy rating, and an average price target of $140.72 indicating a potential upside of 15% over the next 12 to 18 months [10] Workiva - Workiva provides a platform that integrates various digital applications, allowing managers to streamline workflows and reduce human error [11][12] - The company is becoming significant in the ESG reporting space, helping businesses track their impact on stakeholders [13] - Workiva had 6,385 customers at the end of Q1 2025, a 5% increase year-over-year, with higher-spending customer segments growing even faster [14] - The company expects to generate up to $868 million in revenue for 2025, a 17.5% increase compared to 2024 [15] - Workiva's P/S ratio is currently at 4.8, near its lowest level since going public [15] - Analysts are bullish on Workiva, with 11 out of 13 giving it a buy rating and an average price target of $97.64, suggesting a potential upside of 44% over the next 12 to 18 months [17][18]

Summary of Workiva (WK) 2025 Conference Call Company Overview - **Company**: Workiva (WK) - **Industry**: Software, specifically focusing on integrated reporting, financial reporting, governance, risk, and compliance (GRC), and sustainability reporting Key Points and Arguments Demand Environment - Workiva experienced strong growth momentum in the previous year but noted a shift to a more cautious buying environment in Q1 2025 due to market uncertainty [7][8][12] - The cautious environment is broad-based across the software portfolio, with buyers reassessing their needs and business cases [8][9] - Despite the cautious environment, Workiva did not change its revenue guidance for the year, indicating confidence in its bookings from 2024 [11] Margin Improvement - Workiva aims to improve its margins significantly, targeting a thousand basis points increase by 2027 [16][20] - The improvement will primarily come from R&D and gross margin enhancements, leveraging automation and AI [17][18] - The company is also focusing on outsourcing low-margin services to partners to improve overall margins [18][19] Platform Expansion - Workiva has transitioned from a single product to a platform with multiple solutions, now serving 91 customers paying over $500,000 annually, a 32% year-over-year growth [22] - The platform includes financial reporting, GRC, and sustainability reporting, with a strong emphasis on account expansion and building trusted relationships with partners [25][26] Partner Ecosystem - Workiva has developed a robust partner ecosystem, including collaborations with major consulting firms, which enhances its market reach and sales efficiency [30][31] - The company is focused on ensuring partner success, which in turn drives sales of Workiva's software [29] ERP Relationships - Workiva sees significant opportunities in ERP migrations, particularly with S4HANA, as companies look to upgrade their financial systems [37][39] - The company collaborates with system integrators to facilitate these migrations, enhancing its market presence [41] ESG and Sustainability Reporting - The demand for ESG reporting remains, particularly in Europe, where regulatory requirements are stringent [46][48] - In the U.S., while the regulatory environment has changed, there are still state-level mandates, such as California's carbon emissions reporting for large companies [49][50] - Workiva's revenue is primarily driven by financial reporting, followed by GRC, with sustainability reporting being a smaller but growing segment [55] Pricing Strategy - Workiva employs a value-based pricing model rather than a seat-based model, allowing flexibility in how solutions are consumed [64][65] - This model positions Workiva advantageously as it integrates generative AI into its offerings, avoiding the pitfalls of user-based pricing [63] Additional Important Insights - The company acknowledges the current challenges in the ESG landscape but emphasizes ongoing sustainability initiatives as essential for risk management and business performance [50][51] - Workiva's platform resilience is attributed to its diverse capabilities, which provide a buffer against market fluctuations [55] This summary encapsulates the critical insights from the Workiva conference call, highlighting the company's strategic direction, market challenges, and growth opportunities.

Summary of Workiva (WK) FY Conference Call - June 04, 2025 Company Overview - **Company**: Workiva (WK) - **Industry**: Integrated reporting and compliance solutions - **Market Focus**: Financial reporting, sustainability management, governance, risk, and compliance (GRC) Key Points Company and Platform Description - Workiva provides a platform for assured integrated reporting, enabling customers to manage both financial and non-financial reporting with audit capabilities [4][5] - The platform allows for consistent data reporting across various work products, enhancing efficiency and auditability [5][12] Total Addressable Market (TAM) - Workiva's TAM is estimated at **$35 billion**, with a breakdown as follows: - 50% from financial reporting - 20% from sustainability management - 20% from GRC - 10% from industry verticals [5][6] Growth Strategy - The company aims to increase revenue from Europe to **25-30%** of total revenues over time [6] - Workiva is focused on expanding its customer base and increasing the number of customers spending over **$300,000** and **$500,000** annually, both of which grew by **32%** in Q1 [19] Financial Guidance - Workiva expects a **20%** growth in subscription revenue for 2025 and aims for an operating margin of **16%** by 2027 [7][8][25] Macro Environment Impact - The company noted macroeconomic uncertainties affecting deal cycles, leading to cautious spending by customers [21][22] - Despite these challenges, Workiva maintained its revenue and operating margin guidance for the year [22][23] Sustainability Reporting Demand - Demand for sustainability reporting is driven by regulatory requirements and self-regulation initiatives, such as the Science Based Targets Initiative (SPTI) [30][31] - The Corporate Sustainability Reporting Directive (CSRD) in Europe is a significant regulatory driver, with large companies required to report by 2025 [33][36] ERP Migration Opportunities - Workiva is increasingly involved in ERP migrations, providing solutions during transitions from on-premise to cloud systems [43][44] - The company collaborates with partners to integrate its platform into larger ERP transformation projects [47] Capital Markets Activity - Workiva has shifted focus to serve large private companies, providing them with reporting solutions regardless of IPO plans [50] Go-to-Market Strategy - The company is evolving its sales strategy to enhance efficiency and effectiveness in selling its full platform [51][52] - Workiva is focusing on hiring sales representatives capable of closing larger deals, which require different skill sets compared to smaller contracts [55] Additional Insights - The company has seen strong growth in its sustainability management solutions, aligning them with financial reporting standards [17][18] - Workiva's platform is designed to streamline reporting processes, making it easier for auditors to verify data integrity [12][13] This summary encapsulates the key insights and strategic directions discussed during the Workiva FY Conference Call, highlighting the company's growth potential and market dynamics.