Part I Part I provides a comprehensive overview of Workiva's business, strategic initiatives, product solutions, customer base, human capital, and associated risks and cybersecurity practices [Business Overview](index=5&type=section&id=Item%201.%20Business) Workiva provides a unified SaaS platform for financial reporting, sustainability, and GRC, achieving $738.7 million in 2024 revenue, primarily from subscriptions, while expanding globally | Financial Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $537.9M | $630.0M | $738.7M | | **Net Loss** | $90.9M | $127.5M | $55.0M | - The company serves over 6,300 organizations, with a focus on the offices of the CFO, CSO, and CAE[18](index=18&type=chunk) - Approximately **90% of 2024 revenue** was from subscription and support fees, with the remainder from professional services[19](index=19&type=chunk) - In 2024, revenue from EMEA and APAC constituted about **18% of consolidated revenue**, with expectations for this to increase[34](index=34&type=chunk) [2024 Company Highlights and Milestones](index=6&type=section&id=2024%20Company%20Highlights%20and%20Milestones) Workiva achieved key milestones in 2024, including new product launches, a share repurchase authorization, platform enhancements, and patent additions - Launched Workiva Carbon in June 2024 to support global climate regulations like CSRD[22](index=22&type=chunk) - Authorized a share repurchase program for up to **$100 million of Class A common stock** in July 2024[22](index=22&type=chunk) - Enhanced the core platform with features like linking entire tables, sharable content libraries, and generative AI prompt libraries[22](index=22&type=chunk) - Added **10 new innovation patents** in 2024, bringing the total to 86[22](index=22&type=chunk) [Growth Vectors](index=7&type=section&id=Growth%20Vectors) The company's growth strategy focuses on platform expansion, multi-solution adoption, global reach, and leveraging its partner ecosystem, with sustainability identified as a key opportunity - The company's growth strategy is focused on four key areas: expanding the Workiva Platform, selling fit-for-purpose solutions (Financial Reporting, Sustainability, GRC), global expansion, and leveraging its partner ecosystem[30](index=30&type=chunk) - Sustainability is identified as a 'generational opportunity for growth,' with plans for accelerated investment in this area[35](index=35&type=chunk) - The partner ecosystem includes over **200 advisory, technology, and service partners** that extend geographic reach and accelerate platform adoption[36](index=36&type=chunk) [Fit-for-Purpose Solutions](index=10&type=section&id=Fit-for-Purpose%20Solutions) Workiva offers over 30 solutions across financial reporting, sustainability management, GRC, and industry verticals, including new carbon accounting capabilities - Workiva markets over **30 solutions** categorized into four groups: financial reporting, sustainability management, GRC, and industry verticals[47](index=47&type=chunk) - Financial Reporting solutions include SEC/SEDAR reporting, Global Statutory Reporting, Capital Markets (IPO), Annual & Interim Reporting, and ESEF compliance for over **4,000 European issuers**[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk) - Sustainability Management solutions help organizations with disclosures for regulations like CSRD and California's climate acts, and support frameworks like GRI, SASB, and TCFD; Workiva Carbon was launched in 2024 for carbon accounting[56](index=56&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) - GRC solutions cover Controls Management (SOX), Internal Audit, Enterprise Risk Management (ERM), and Policy and Procedure Management[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - Industry-specific solutions are tailored for Financial Services (banking, insurance, investment), Public Sector (government agencies), and the Energy & Utility Sector (FERC compliance)[67](index=67&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [Customers](index=15&type=section&id=Customers) Workiva serves over 6,300 customers globally, including a significant portion of top companies, maintaining strong gross and net retention rates | Metric | As of Dec 31, 2024 | | :--- | :--- | | **Total Customers** | > 6,300 | | **Gross Retention Rate** | 97.4% | | **Net Retention Rate** | 111.9% | - Customer base includes over **85% of the top 500 companies** and over **80% of the top 1,000 companies**[73](index=73&type=chunk) [Human Capital](index=19&type=section&id=Human%20Capital) As of December 31, 2024, Workiva employed 2,828 full-time people globally, with specific representation targets for women and underrepresented groups in its workforce and leadership - As of December 31, 2024, Workiva employed approximately **2,828 full-time people worldwide**, a **12.0% increase** from 2,526 at the end of 2023[101](index=101&type=chunk) - As of December 31, 2024, women represented approximately **43% of the global workforce** and **38% of leadership**, while underrepresented racial/ethnic groups comprised **22% of the U.S. workforce** and **16% of U.S. leadership**[102](index=102&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, technological, and securities ownership risks, including customer concentration, profitability challenges, cybersecurity threats, and dual-class stock structure [Business and Industry Risks](index=22&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Key business risks include reliance on SEC filing customers, historical net losses, intense competition, and regulatory uncertainties impacting revenue growth - Over **40% of total revenue** is derived from customers using the platform for SEC filings, creating a concentration risk[114](index=114&type=chunk) - The company has a history of net losses, including **$55.0 million in 2024**, and may not achieve or maintain profitability in the future[120](index=120&type=chunk) - Intense competition exists from diversified enterprise software providers, niche solution providers, and legacy manual processes[128](index=128&type=chunk)[130](index=130&type=chunk) - Uncertainty in regulatory environments, such as the EU's Corporate Sustainability Reporting Directive (CSRD), could affect buying decisions and negatively impact revenue growth[127](index=127&type=chunk) [Technology and Intellectual Property Risks](index=32&type=section&id=Risks%20Related%20to%20Technology%20and%20Intellectual%20Property) Technology risks encompass evolving cybersecurity threats, challenges with AI and machine learning adoption, reliance on third-party infrastructure, and complex data privacy compliance - The business faces continually evolving cybersecurity risks, which could lead to data loss, service disruption, and reputational damage[155](index=155&type=chunk) - The development and use of AI and machine learning technologies present risks related to performance, public acceptance, regulatory compliance, and data privacy[163](index=163&type=chunk)[164](index=164&type=chunk) - The business relies on third-party infrastructure, primarily Amazon Web Services (AWS), and any interruptions could negatively impact service delivery[165](index=165&type=chunk)[170](index=170&type=chunk) - Compliance with complex and evolving data privacy laws, such as GDPR in the E.U., imposes substantial burdens and costs[173](index=173&type=chunk)[174](index=174&type=chunk) [Securities Ownership Risks](index=41&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Securities) Risks related to securities ownership include concentrated voting power due to the dual-class stock structure and the company's policy of not paying dividends - The dual-class stock structure concentrates approximately **43% of voting power** with holders of Class B common stock, potentially limiting the influence of Class A stockholders[196](index=196&type=chunk) - The company does not intend to pay dividends in the foreseeable future, meaning investors must rely on stock price appreciation for returns[202](index=202&type=chunk) [Cybersecurity](index=45&type=section&id=Item%201C.%20Cybersecurity) Workiva maintains a comprehensive cybersecurity program aligned with industry standards, overseen by the CISO and Board, with no material incidents reported to date - The cybersecurity program aligns with frameworks including FedRAMP Moderate authorization, ISO 27001, and SOC 1 and 2 Type 2 reports[208](index=208&type=chunk) - The Board of Directors, through its Audit Committee, oversees cybersecurity risks; the CISO provides briefings to the Audit Committee at least three times per year and to the full Board at least once per year[214](index=214&type=chunk) - The company has not encountered any cybersecurity threats to date that have materially affected its business strategy, results of operations, or financial condition[211](index=211&type=chunk) Part II Part II details Workiva's financial performance, including key operating metrics, results of operations, liquidity, capital resources, audited financial statements, and internal controls [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=50&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Workiva's 2024 revenue grew 17.2% to $738.7 million, driven by subscription growth, with a narrowed net loss and strong liquidity, reflecting increased operating expenses for growth [Key Performance Indicators](index=53&type=section&id=Key%20Performance%20Indicators) Key performance indicators show customer growth, strong gross and net retention rates, and an increasing number of customers with high annual contract values | Operating Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Number of customers** | 5,664 | 6,034 | 6,305 | | **Gross retention rate** | 97.8% | 97.9% | 97.4% | | **Net retention rate** | 108.5% | 110.3% | 111.9% | | **Customers with ACV >$100k** | 1,345 | 1,631 | 2,055 | | **Customers with ACV >$300k** | 236 | 311 | 416 | [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Workiva's 2024 results show significant revenue growth, particularly in subscriptions, and a reduced net loss, despite increased sales and marketing expenses | (in thousands) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Subscription & Support Revenue** | $667,646 | $558,645 | 19.5% | | **Professional Services Revenue** | $71,034 | $71,394 | (0.5)% | | **Total Revenue** | **$738,680** | **$630,039** | **17.2%** | | **Gross Profit** | $566,625 | $475,817 | 19.1% | | **Loss from Operations** | $(76,534) | $(94,527) | (19.0)% | | **Net Loss** | **$(55,042)** | **$(127,525)** | **(56.8)%** | - Sales and marketing expenses increased by **$60.2 million (21.0%)** in 2024, driven by higher compensation, travel, and marketing costs to support go-to-market activities[272](index=272&type=chunk) - General and administrative expenses decreased by **$7.5 million (6.8%)** in 2024, primarily due to a **$10.5 million decrease** in stock-based compensation, as certain one-time executive transition costs from 2023 did not recur[273](index=273&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2024, Workiva maintained strong liquidity with $816.4 million in cash and marketable securities, supported by operating cash flow and convertible notes - As of December 31, 2024, principal sources of liquidity were cash, cash equivalents, and marketable securities totaling **$816.4 million**[276](index=276&type=chunk) | Cash Flow (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash from operating activities** | $87,706 | $70,875 | | **Net cash used in investing activities** | $(45,249) | $(357,253) | | **Net cash from financing activities** | $6,741 | $301,265 | - In August 2023, the company issued **$702.0 million of 1.250% convertible senior notes due 2028** and used a portion of the proceeds to repurchase **$273.8 million of its 2026 notes**[277](index=277&type=chunk) - A share repurchase program for up to **$100.0 million** was authorized in July 2024, but no repurchases were made as of December 31, 2024[278](index=278&type=chunk) [Financial Statements and Supplementary Data](index=67&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements detail Workiva's financial position, operations, and cash flows, highlighting the Sustain.Life acquisition, convertible notes, stock-based compensation, and deferred tax assets Consolidated Balance Sheet Highlights (in thousands) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | $1,368,469 | $1,218,860 | | **Total Liabilities** | $1,410,153 | $1,308,250 | | **Total Stockholders' Deficit** | $(41,684) | $(89,390) | - On June 17, 2024, the company acquired Sustain.Life, Inc. for **$98.1 million net of cash acquired**, resulting in the recognition of **$89.1 million in goodwill** and **$11.9 million in intangible assets**[448](index=448&type=chunk)[449](index=449&type=chunk)[450](index=450&type=chunk) - As of December 31, 2024, the company had outstanding convertible senior notes with a net carrying amount of **$70.8 million (due 2026)** and **$694.1 million (due 2028)**[432](index=432&type=chunk) - Total stock-based compensation expense was **$102.2 million in 2024**, up from **$98.8 million in 2023**; as of year-end, there was **$173.9 million of unrecognized compensation expense** related to unvested restricted stock units[437](index=437&type=chunk)[443](index=443&type=chunk) - A full valuation allowance of **$267.0 million** was recorded against net U.S. deferred tax assets as of December 31, 2024, as management believes it is more likely than not that these benefits will not be realized[470](index=470&type=chunk)[471](index=471&type=chunk) [Controls and Procedures](index=110&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with an unqualified audit opinion - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2024[480](index=480&type=chunk) - Management's assessment concluded that internal control over financial reporting was effective as of December 31, 2024, and this assessment was audited by Ernst & Young LLP, who issued an unqualified opinion[481](index=481&type=chunk) Part III Part III incorporates by reference information on directors, executive officers, corporate governance, executive compensation, security ownership, and principal accounting fees - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Stockholders[9](index=9&type=chunk)[490](index=490&type=chunk)[493](index=493&type=chunk)

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]

Core Viewpoint - Workiva is experiencing a significant disconnect between its stock performance and the overall bullish sentiment from analysts, with a strong focus on its growth potential in the software sector, particularly in ESG reporting [1][3][14]. Company Overview - Workiva offers a unique portfolio of software products designed to streamline data aggregation and reporting, which are increasingly critical for businesses [2][4]. - The company's stock has declined by 4% this year and is down 42% from its all-time high in 2021 [2][16]. Business Growth and Financial Performance - Workiva reported a record revenue of $186 million for Q3 2024, marking a 17% increase year-over-year and an acceleration from 15% growth in Q2 [9]. - The company raised its full-year revenue forecast for 2024 by $6 million, now projecting between $733 million and $735 million [9]. - The number of businesses served increased by 4.9% year-over-year, with a notable rise in high-spending customers [10][11]. - Operating expenses increased by only 10% in the first nine months of 2024, leading to a reduced net loss of $46.2 million compared to $123.3 million in the previous year [12]. Market Position and Analyst Sentiment - The majority of analysts covering Workiva have assigned it the highest buy rating, with no sell recommendations [3][14]. - The average price target for Workiva's stock over the next 12 months is $104.3, indicating a potential upside of 14.3% from its current trading price of $91.49 [15]. - The stock's price-to-sales ratio has decreased to a more reasonable 7.1 from around 20 during its peak, reflecting improved valuation amidst consistent revenue growth [16]. Future Growth Potential - Workiva is focusing on ESG reporting, which is a rapidly growing area due to increasing regulatory requirements globally [7][8]. - The company estimates a financial opportunity of $35 billion across various reporting sectors, while its current market capitalization stands at $5.1 billion, indicating substantial growth potential [17].

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]

Revenue and Growth - Total revenues for the three months ended September 30, 2024, were $185.621 million, an increase from $158.175 million in the same period of 2023, representing a growth of 17.4%[70]. - Subscription and support revenue for the three months ended September 30, 2024, was $171.035 million, up from $143.421 million in the same period of 2023, reflecting a growth of 19.3%[70]. - The company reported revenue of $185.6 million and $538.8 million for the three and nine months ended September 30, 2024, respectively, compared to $158.2 million and $463.4 million for the same periods in 2023, representing growth of 17.3% and 16.3%[93]. - Total revenue for the three months ended September 30, 2024, increased by $27.4 million, primarily due to a $27.6 million increase in subscription and support revenue, reflecting a growth rate of 19.3% year-over-year[130]. - Total revenue for the nine months ended September 30, 2024, increased by $75.4 million, primarily due to a $76.9 million increase in subscription and support revenue[131]. - The company expects the revenue growth rate from subscription and support to continue to outpace revenue growth from professional services on an annual basis[130]. Expenses and Costs - Total interest expense for the three months ended September 30, 2024, was $3.003 million, compared to $2.090 million for the same period in 2023[59]. - Stock-based compensation expense for the three months ended September 30, 2024, totaled $27.470 million, compared to $19.377 million for the same period in 2023[64]. - Operating expenses for the three months ended September 30, 2024, totaled $163,732 thousand, representing a 21.0% increase compared to $135,345 thousand in the same period of 2023[135]. - Research and development expenses increased by 16.0% to $48,425 thousand for the three months ended September 30, 2024[135]. - Sales and marketing expenses rose by 23.7% to $89,756 thousand for the three months ended September 30, 2024[135]. - General and administrative expenses increased by $4.5 million (approximately 8.0%) for the three months ended September 30, 2024, mainly due to higher stock-based compensation[140]. Cash and Securities - As of September 30, 2024, total cash equivalents and marketable securities amounted to $637.8 million, with $109.7 million included in cash and cash equivalents[35]. - As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $776.4 million[147]. - Cash flow provided by operating activities was $18.9 million for the three months ended September 30, 2024, compared to $15.0 million for the same period in 2023[151]. - Cash used in investing activities was $49.6 million for the three months ended September 30, 2024, primarily for marketable securities purchases and the acquisition of Sustain.Life[158]. Customer Metrics - The number of customers increased to 6,237 as of September 30, 2024, up from 5,945 in 2023[107]. - Subscription and support revenue retention rate was 97.5% as of September 30, 2024, slightly down from 97.7% in the previous year[109]. - Subscription and support revenue from customers with annual contract value of $100k+ represented 71.8% of total subscription and support revenue for the three months ended September 30, 2024, up from 67.1% in 2023[113]. - Subscription and support revenue retention rate including add-ons was 110.5% as of September 30, 2024, down from 112.0% in the previous year[112]. Acquisitions and Investments - The company acquired Sustain.Life, Inc. for $98.1 million, enhancing its carbon accounting solutions and integrating it with its existing ESG reporting platform[81]. - The company incurred acquisition-related costs of approximately $1.1 million during the nine months ended September 30, 2024, which were expensed as incurred[83]. - The company plans to continue investing in platform development and expanding its sales and marketing efforts in EMEA and APAC regions[103]. Financial Position and Liabilities - Accrued expenses and other current liabilities totaled $111.0 million as of September 30, 2024, compared to $97.9 million as of December 31, 2023[34]. - Estimated health insurance claims decreased from $3.5 million as of December 31, 2023, to $2.4 million as of September 30, 2024[34]. - Customer deposits increased from $24.8 million as of December 31, 2023, to $25.7 million as of September 30, 2024[34]. - The fair value of convertible senior notes due in 2026 and 2028 was $82.4 million and $659.7 million, respectively, classified as Level 2 in the fair value hierarchy[47]. Market and Economic Conditions - The company expects continued volatility in the IPO and SPAC markets to negatively impact new sales of SEC and capital markets solutions in fiscal year 2024[96]. - Market risk exposures have not changed materially since December 31, 2023[169].

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 ...