Financial Data and Key Metrics Changes - In Q4 2024, total revenue reached $200 million, representing a 20% increase compared to Q4 2023, while subscription revenue grew by 22% to $181 million [10][64] - For the full year 2024, total revenue was $739 million, up 17% from 2023, with subscription revenue at $668 million, a 20% increase [70] - Non-GAAP operating margin improved to 4.3% for the full year, up from 1.6% in 2023, and Q4 operating margin was 7.4% [11][72] - Free cash flow margin for 2024 was 11.7%, exceeding guidance by 170 basis points [11][73] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by both new customers and account expansions, with new customers contributing 42% to the Q4 subscription revenue increase [65] - The number of contracts valued over $100,000 increased by 26% year-over-year, with contracts over $300,000 and $500,000 growing by 34% and 32%, respectively [69] - Professional services revenue for Q4 was $19 million, slightly up from Q4 2023, driven by higher XBRL services [65] Market Data and Key Metrics Changes - 17.5% of total worldwide revenue in 2024 came from outside the Americas, an increase of 280 basis points from 2023 [15] - The sustainability market is expected to grow, with companies increasingly investing in sustainability reporting to meet regulatory demands [22][41] Company Strategy and Development Direction - The company is focused on broad-based demand across its platform, emphasizing multi-solution deals and vendor consolidation [14][88] - Workiva aims to leverage its Assured Integrated Reporting platform, which integrates financial reporting, sustainability, and governance risk and compliance [16][62] - The company is prioritizing AI capabilities to enhance customer workflows and streamline processes [55][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic uncertainties, including policy and geopolitical risks [61][84] - The guidance for 2025 includes a 20% growth in subscription revenue, reflecting a balanced approach to market conditions [61][92] Other Important Information - The company has seen a significant increase in demand for its sustainability solutions, with a notable rise in companies committing to science-based targets [33][41] - Workiva's platform is recognized for its ability to address both financial and non-financial reporting needs, which is becoming increasingly important in the current regulatory environment [30][41] Q&A Session Summary Question: What are the main policy uncertainties affecting guidance? - Management indicated that general uncertainty, including tariffs and exchange rates, is influencing the guidance, rather than any single factor [82][84] Question: How does the multiproduct strategy impact the pipeline? - The multiproduct strategy is seen as a significant differentiator, with broad-based demand across the platform and opportunities for cross-selling and upselling [86][88] Question: What is the outlook for sustainability revenue? - Sustainability revenue continues to be a top booking solution, expected to play a balanced role in 2025, although specific revenue splits are not provided [94][95] Question: How is the shift to partner-led services impacting deployment speed? - The company is seeing improved deployment speed and customer satisfaction as partners develop tools and capabilities around the platform [101][102] Question: Is there a risk of deferring sustainability projects? - Management has not observed any trends indicating that customers are deferring sustainability-related projects [108][109] Question: How is back-office digitization impacting demand? - There is strong demand for the platform driven by new ERP systems and upgrades, with significant opportunities arising from finance transformations [118][120] Question: What is the contribution of CSRD to growth in Europe? - Growth in Europe is attributed to broad-based demand across the portfolio, not solely driven by CSRD-related activities [123][124]

Workiva (WK) reported $199.89 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 20%. EPS of $0.33 for the same period compares to $0.30 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $195.27 million, representing a surprise of +2.37%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.33.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

Workiva (WK) came out with quarterly earnings of $0.33 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of software for managing regulatory filings would post earnings of $0.23 per share when it actually produced earnings of $0.21, delivering a surprise of -8.70%.Over the last four quarters, the company has surpassed consensus EPS estimates just once ...

Financial Data and Key Metrics Changes - In Q4 2024, total revenue reached $200 million, reflecting a 20% increase compared to Q4 2023, while subscription revenue grew by 22% to $181 million [10][64] - For the full year 2024, total revenue was $739 million, up 17% from 2023, with subscription revenue at $668 million, a 20% increase [70] - Non-GAAP operating margin improved to 4.3% for the full year 2024, up from 1.6% in 2023, with a free cash flow margin of 11.7% [11][72] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by both new customers and account expansions, with new customers contributing 42% to the Q4 subscription revenue increase [65] - The number of contracts valued over $100,000 increased by 26% year-over-year, with contracts over $300,000 and $500,000 rising by 34% and 32%, respectively [69] Market Data and Key Metrics Changes - 17.5% of total worldwide revenue in 2024 came from outside the Americas, an increase of 280 basis points from 2023 [15] - The sustainability market is expected to grow, with companies increasingly investing in sustainability reporting to meet regulatory demands [22][41] Company Strategy and Development Direction - The company is focused on broad-based demand across its platform, emphasizing multi-solution deals and vendor consolidation [14][87] - Workiva aims to leverage its Assured Integrated Reporting platform to integrate financial reporting, sustainability, and governance risk and compliance [16][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic uncertainties, including policy and geopolitical risks [61][84] - The guidance for 2025 includes a 20% growth in subscription revenue, reflecting a balanced approach to market conditions [61][76] Other Important Information - The company has seen a significant increase in demand for its sustainability solutions, with a notable rise in companies committing to science-based targets [33][41] - AI has been prioritized as a key innovation area, with customers increasingly adopting AI capabilities to enhance productivity [55][56] Q&A Session Summary Question: What are the main policy uncertainties affecting the company? - Management indicated that general uncertainty, including tariffs and exchange rates, is impacting guidance, but not any specific policy [82][84] Question: How does the multiproduct strategy affect the pipeline? - The multiproduct strategy is seen as a significant differentiator, with broad-based demand across the platform and opportunities for cross-selling [86][87] Question: What is the outlook for sustainability revenue? - Sustainability revenue continues to be a top booking solution, expected to play a balanced role in 2025, although specific revenue splits are not provided [94][95] Question: How is the transition to partner-led services impacting deployment? - The transition to partners has improved deployment speed and customer satisfaction, with partners developing tools to enhance value [101][102] Question: Is there a risk of deferring sustainability projects? - Management has not observed any trends indicating deferrals in sustainability projects, despite the typical Q1 filing season [108][109] Question: How is the company addressing back-office digitization? - New ERP systems and upgrades are driving demand for the platform, with strong partnerships facilitating these opportunities [118][120] Question: What is the impact of CSRD on European revenue? - The company has seen broad-based demand in Europe, with significant growth not solely attributed to CSRD but also to overall platform execution [123][125]

Workiva Inc. Investor Presentation February 25, 2025 Safe Harbor This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including any statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "may," "will," "could," "would," "should," "expect," "plan," "assume," "anticipate," "intend," ...

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]