Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-36773 WORKIVA INC. (Exact name of registrant as specified in ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Workiva achieved strong Q1 results with **20%** subscription revenue growth, driven by new logos and multi-solution deals - Subscription revenue grew **20%** in Q1 2024, attributed to the strength of Workiva's integrated platform for Financial Reporting, ESG, and GRC[2](index=2&type=chunk) - The company's focus on multi-solution deals is yielding results, with **66%** of subscription revenue in Q1 coming from customers with multiple solutions[2](index=2&type=chunk) - The number of customers with an annual contract value (ACV) over **$300,000** increased by **34%** compared to Q1 2023, reaching a total of **332** customers[2](index=2&type=chunk) [First Quarter 2024 Financial Performance](index=1&type=section&id=First%20Quarter%202024%20Financial%20Performance) Workiva reported Q1 2024 total revenue of **$176 million**, a **17%** increase, significantly improving profitability [Detailed Financial Results (GAAP & Non-GAAP)](index=1&type=section&id=Detailed%20Financial%20Results%20%28GAAP%20%26%20Non-GAAP%29) Q1 2024 total revenue reached **$176 million**, with GAAP gross margin at **76.4%** and Non-GAAP income from operations at **$6 million** Q1 2024 Key Financial Results vs. Q1 2023 (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $176 | $150 | 17% | | Subscription & Support Revenue | $155 | $130 | 20% | | **GAAP Gross Profit** | $134 | $112 | 20% | | GAAP Gross Margin | 76.4% | 74.3% | +2.1 p.p. | | **GAAP Loss from Operations** | $(18) | $(47) | 64% improvement | | **Non-GAAP Income (Loss) from Operations** | $6 | $(7) | N/A | | **GAAP Net Loss** | $(12) | $(46) | 74% improvement | | **Non-GAAP Net Income (Loss)** | $13 | $(7) | N/A | | **GAAP Net Loss per Share** | $(0.21) | $(0.86) | 76% improvement | | **Non-GAAP Net Income (Loss) per Share** | $0.22 | $(0.12) | N/A | - As of March 31, 2024, Workiva maintained a strong liquidity position with cash, cash equivalents, and marketable securities totaling **$838 million**[6](index=6&type=chunk) [Key Metrics and Business Highlights](index=1&type=section&id=Key%20Metrics%20and%20Business%20Highlights) Workiva's customer base grew to **6,074**, maintaining high revenue retention rates and robust growth in large contracts Customer and Retention Metrics as of March 31, 2024 | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Customers | 6,074 | +320 | | Revenue Retention Rate (excl. add-on) | 98% | - | | Revenue Retention Rate (incl. add-on) | 111% | - | Growth in Large Customer Contracts (YoY) | ACV Threshold | Customer Count | % Growth | | :--- | :--- | :--- | | > $100,000 | 1,696 | 24% | | > $150,000 | 961 | 29% | | > $300,000 | 332 | 34% | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Workiva provided Q2 and full-year 2024 guidance, projecting total revenue of **$719-723 million** and Non-GAAP income from operations Second Quarter 2024 Guidance | Metric | GAAP Range | Non-GAAP Range | | :--- | :--- | :--- | | Total Revenue | $174M - $176M | N/A | | Loss from Operations | $(24.0)M - $(22.0)M | N/A | | Income from Operations | N/A | $2M - $4M | | Net Loss per Basic Share | $(0.32) - $(0.29) | N/A | | Net Income per Basic Share | N/A | $0.16 - $0.19 | Full Year 2024 Guidance | Metric | GAAP Range | Non-GAAP Range | | :--- | :--- | :--- | | Total Revenue | $719M - $723M | N/A | | Loss from Operations | $(76)M - $(72)M | N/A | | Income from Operations | N/A | $27M - $31M | | Net Loss per Basic Share | $(0.90) - $(0.83) | N/A | | Net Income per Basic Share | N/A | $0.96 - $1.03 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents Workiva Inc.'s unaudited consolidated financial statements for Q1 2024, including key statements [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2024, total revenues reached **$175.7 million**, with gross profit of **$134.1 million**, reducing net loss to **$11.7 million** Q1 2024 Consolidated Statement of Operations Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $175,667 | $150,189 | | Gross Profit | $134,144 | $111,671 | | Total Operating Expenses | $152,427 | $158,512 | | Loss from Operations | $(18,283) | $(46,841) | | Net Loss | $(11,687) | $(46,150) | | Net Loss per Share (Basic & Diluted) | $(0.21) | $(0.86) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, Workiva's total assets were **$1.20 billion**, with cash and marketable securities totaling **$838.3 million** Balance Sheet Summary as of March 31, 2024 (in thousands) | Category | Amount | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $296,066 | | Marketable securities | $542,281 | | Total Current Assets | $997,000 | | **Total Assets** | **$1,201,904** | | **Liabilities & Stockholders' Deficit** | | | Deferred Revenue (Current) | $367,060 | | Total Current Liabilities | $466,948 | | Convertible senior notes, non-current | $763,063 | | **Total Liabilities** | **$1,285,060** | | Total Stockholders' Deficit | $(83,156) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, Workiva generated **$24.8 million** in net cash from operating activities, increasing cash by **$39.9 million** Q1 2024 Statement of Cash Flows Summary (in thousands) | Cash Flow Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $24,844 | $5,563 | | Net Cash from Investing Activities | $17,448 | $(50,474) | | Net Cash from Financing Activities | $(1,325) | $(349) | | **Net Increase (Decrease) in Cash** | **$39,860** | **$(44,712)** | [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to Non-GAAP financial measures, adjusting for stock-based compensation and amortization [Historical Reconciliation (Table I)](index=8&type=section&id=Historical%20Reconciliation%20%28Table%20I%29) For Q1 2024, GAAP loss from operations of **$18.3 million** is reconciled to Non-GAAP income of **$6.0 million** Q1 2024 Reconciliation of GAAP Loss from Operations to Non-GAAP Income from Operations (in thousands) | Description | Amount | | :--- | :--- | | Loss from operations (GAAP) | $(18,283) | | Add back: Stock-based compensation | $23,007 | | Add back: Amortization of acquisition-related intangibles | $1,302 | | **Income from operations (Non-GAAP)** | **$6,026** | Q1 2024 Reconciliation of GAAP Net Loss to Non-GAAP Net Income (in thousands) | Description | Amount | | :--- | :--- | | Net loss (GAAP) | $(11,687) | | Add back: Stock-based compensation | $23,007 | | Add back: Amortization of acquisition-related intangibles | $1,302 | | **Net income (Non-GAAP)** | **$12,622** | [Guidance Reconciliation (Table II)](index=10&type=section&id=Guidance%20Reconciliation%20%28Table%20II%29) This table reconciles full-year 2024 GAAP loss from operations to Non-GAAP income from operations of **$27-31 million** Full Year 2024 Guidance Reconciliation (in thousands) | Description | Low End | High End | | :--- | :--- | :--- | | Loss from operations, GAAP range | $(76,000) | $(72,000) | | Add back: Stock-based compensation | $98,000 | $98,000 | | Add back: Amortization of acquisition-related intangibles | $5,000 | $5,000 | | **Income from operations, non-GAAP range** | **$27,000** | **$31,000** |

The S&P 500 (^GSPC 0.86%) index gained 24% in 2023, which is more than twice its annual average return since its inception in 1957. The momentum has carried into 2024, with the index up another 10% so far.But some individual stocks are currently taking a breather after delivering positive gains last year. Zscaler (ZS -1.10%) stock is down 8% in 2024, and Workiva (WK 2.06%) has fallen 14%. Both companies are packed with long-term potential, so here's why the recent weakness might be a great buying opportunit ...

The stock market has been dominated by excitement over artificial intelligence (AI) during the past 12 months. Investors have rushed to buy some of the largest technology stocks in the world because they are at the forefront of the AI revolution, backing up the hype with strong financial results.But great opportunities still exist in other areas of the technology sector. According to The Wall Street Journal, 10 analysts cover innovative cloud data company Workiva (WK 5.06%), and they are overwhelmingly bull ...

Financial Data and Key Metrics Changes - In Q4 2023, the company reported total revenue of $166.7 million, reflecting a 16% increase from Q4 2022, and subscription revenue of $148.8 million, which was up 18% year-over-year [72][74] - The operating profit for Q4 2023 was $12.7 million, a significant improvement from $4.8 million in Q4 2022, driven by revenue outperformance and disciplined expense management [99] - The gross margin improved to 78% in Q4 2023, up 130 basis points from the prior year, attributed to better leverage on compensation and cloud computing costs [73] Business Line Data and Key Metrics Changes - Subscription revenue for Q4 2023 was driven by strong account expansion, with 64% of subscription revenue coming from customers using multiple solutions, up from 62% in Q4 2022 [5] - Professional Services revenue decreased to $17.9 million in Q4 2023, down 37 basis points compared to the same quarter last year, primarily due to a decline in setup and consulting revenue [46] - The number of contracts valued over $100,000 increased by 21%, while contracts over $150,000 and $300,000 rose by 27% and 32%, respectively, compared to Q4 2022 [55] Market Data and Key Metrics Changes - Revenue from outside the Americas accounted for 15% of total revenue in 2023, up from 11.5% in 2022, with subscription revenue in international markets growing by 50% [15][126] - The company added 89 net new customers in Q4, bringing the total customer count to 6,034, a growth of 370 customers from Q4 2022 [98] - The net revenue retention rate increased to 110% in Q4 2023, compared to 109% in Q4 2022, indicating strong customer retention [98] Company Strategy and Development Direction - The company is focused on subscription revenue growth and plans to balance this with productivity improvements while pursuing a large and untapped total addressable market (TAM) [40][81] - The partner-first strategy is driving results, particularly in the ESG sector, where demand remains strong despite regulatory uncertainties [22][86] - The company aims to continue investing in growth areas while maintaining margin expansion and operational efficiency [13][126] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth opportunities despite a cautious macroeconomic environment and ongoing uncertainties in customer buying behavior [10][95] - The company anticipates a subscription revenue growth of 16% for 2024, reflecting a conservative approach due to softer bookings in 2023 [101][145] - Management highlighted the importance of the upcoming ESG regulations, such as the European CSRD, in influencing customer purchasing decisions [115][140] Other Important Information - The company generated $630 million in total revenue for the full year 2023, exceeding guidance and achieving a 20% year-over-year growth in subscription revenue [74] - The company is implementing new designed reporting capabilities to enhance customer workflows and improve user experience [94][121] - The company expects total revenue for Q1 2024 to range from $173 million to $175 million, with services revenue anticipated to remain flat compared to Q1 2023 [41][127] Q&A Session All Questions and Answers Question: Can you provide insights on the 2024 guidance and factors considered? - Management noted that the guidance reflects a cautious outlook due to macroeconomic conditions and the ongoing softness in the IPO market, while also addressing the balance between subscription growth and declining services revenue [9][10] Question: What is the company's hiring plan for 2024? - The company plans to continue hiring where growth opportunities are identified, with a focus on strengthening its partner ecosystem and enhancing sales capabilities [26][118] Question: How is the company addressing the urgency of ESG regulations? - Management indicated that ESG remains a top solution in bookings performance, with increasing urgency from clients as regulatory deadlines approach, particularly in Europe [116][140]

Workiva (WK) reported $166.65 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 15.9%. EPS of $0.30 for the same period compares to $0.08 a year ago.The reported revenue represents a surprise of +1.35% over the Zacks Consensus Estimate of $164.44 million. With the consensus EPS estimate being $0.22, the EPS surprise was +36.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Workiva (WK) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 36.36%. A quarter ago, it was expected that this maker of software for managing regulatory filings would post earnings of $0.04 per share when it actually produced a loss of $0.65, delivering a surprise of -1,725%.Over the l ...

Financial Performance & Targets - Subscription revenue showed strong growth, with Q4 2023 seeing an 18% increase [73] - The company targets a non-GAAP operating margin of approximately 22% in 2027 [6] - The company's Q1 2024 non-GAAP income from operations is guided at $5 million, with full-year 2024 guidance at $19 million [79, 107] Revenue & Customer Retention - Gross dollar retention was 98% in Q4 2023, and net dollar retention with add-ons reached 110% [89] - There is growth in large ACV (Annual Contract Value) customers, specifically those with >$100k, >$150k, and >$300k ACV [101] - The company has over 6,000 organizations using the Workiva platform globally [45, 61] Strategic Focus & Market Opportunity - The company is focused on providing solutions for regulatory, financial, and ESG reporting [13] - The company estimates a large, untapped global Total Addressable Market (TAM) of $25 billion [25] - The company aims to unify processes for assured integrated reporting [19] Operational Efficiency - The company is aiming to increase its consolidated gross margin to approximately 82% [6] - The company is aiming to reduce Research & Development expenses as a percentage of revenue to approximately 19% [6] - The company is aiming to reduce Sales & Marketing expenses as a percentage of revenue to approximately 32% [6]

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Workiva Inc. is a leading cloud platform provider for assured integrated reporting, offering SaaS solutions for financial reporting, ESG, and GRC, achieving **$630.0 million revenue in 2023** with **19% CAGR** since 2021 - Workiva's mission is to power transparent reporting for a better world through its cloud platform for assured integrated reporting, covering financial, ESG, and GRC needs[16](index=16&type=chunk) Revenue Growth (2021-2023) | Metric | 2021 (Millions) | 2022 (Millions) | 2023 (Millions) | CAGR (2021-2023) | | :----------------------- | :-------------- | :-------------- | :-------------- | :--------------- | | Total Revenue | $443.3 | $537.9 | $630.0 | 19% | | Net Loss | $(37.7) | $(90.9) | $(127.5) | - | | Subscription & Support % | - | - | 89% | - | - In April 2023, Julie Iskow succeeded Marty Vanderploeg as CEO, with Vanderploeg transitioning to Non-Executive Chair of the Board[22](index=22&type=chunk) - Workiva launched enhancements to its ESG solution, including expanded data collection, integration with CDP, and support for ESRS[22](index=22&type=chunk) - In August 2023, Generative AI (Gen-AI) capabilities were released on the Workiva platform, allowing customers to choose industry-leading large language models like Google Cloud and Microsoft Azure[22](index=22&type=chunk) - Workiva issued **$702 million** of 1.250% convertible senior notes due 2028, using **$396.9 million** of net proceeds to repurchase **$273.8 million** of 1.125% convertible senior notes due 2026[22](index=22&type=chunk) - The company added **8 new innovation patents** in 2023, bringing its total to **76**[22](index=22&type=chunk) [Item 1A. Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) Workiva faces diverse risks including reliance on SEC filings, market competition, technological changes, cybersecurity threats, and financial challenges like unprofitability and stock price volatility - Over **40% of Workiva's total revenue** is derived from customers using its platform for SEC filings, making the company susceptible to factors affecting this market[111](index=111&type=chunk) Subscription and Support Revenue Retention Rate | Metric | 2023 | 2022 | 2021 | | :------------------------------------------ | :------ | :------ | :------ | | Subscription and support revenue retention rate | 97.9% | 97.8% | 97.0% | - The company has historically incurred net losses, with **$127.5 million in fiscal 2023**, and may not achieve or maintain profitability in the future due to continued investments in infrastructure, solutions, R&D, and sales and marketing[117](index=117&type=chunk) - Workiva faces continually evolving cybersecurity risks, including data loss, theft, misuse, unauthorized disclosure, and disruption of solutions, which could damage its brand, reputation, and customer relationships[150](index=150&type=chunk) - Issues related to the development and use of AI, machine learning, and other technological capabilities in its solutions may result in reputational harm, liability, and adverse financial results, especially concerning data privacy and security[158](index=158&type=chunk)[159](index=159&type=chunk) - The dual-class common stock structure concentrates voting control with certain executives (approximately **43% as of December 31, 2023**), potentially limiting the influence of Class A common stockholders[191](index=191&type=chunk) [Item 1B. Unresolved Staff Comments](index=45&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) Workiva Inc. reported no unresolved staff comments from the SEC - There are no unresolved staff comments[198](index=198&type=chunk) [Item 1C. Cybersecurity](index=45&type=section&id=Item%201C.%20Cybersecurity) Workiva maintains a comprehensive cybersecurity program aligned with industry standards, overseen by the Board, and has not experienced material incidents to date - Workiva's information security program incorporates data encryption, access control, multi-factor authentication, vulnerability management, and malware protection, aligning with FedRAMP Moderate authorization, ISO 27001, and SOC 1 and 2 Type 2 reports[199](index=199&type=chunk) - The company engages external cybersecurity experts for regular audits, threat assessments, and security enhancements, and conducts risk-based security assessments for all third-party vendors with access to sensitive information[200](index=200&type=chunk)[201](index=201&type=chunk) - To date, Workiva has not experienced any cybersecurity incidents that have materially affected its business strategy, results of operations, or financial condition[202](index=202&type=chunk) - The Board of Directors, with diverse expertise, oversees cybersecurity risks, receiving regular briefings (minimum three times annually to Audit Committee, once annually to full Board) from the CISO on threats, initiatives, incidents, and compliance[204](index=204&type=chunk)[205](index=205&type=chunk) [Item 2. Properties](index=46&type=section&id=Item%202.%20Properties) Workiva's corporate headquarters is in Ames, Iowa, occupying approximately 120,000 square feet, with additional leased offices globally - Workiva's corporate headquarters is in Ames, Iowa (**120,000 sq ft**), with additional leased offices in six U.S. cities and internationally across Canada, Europe (Netherlands, UK, Germany, France, Denmark, Sweden), and Asia-Pacific (Hong Kong, Australia, Japan, Singapore)[208](index=208&type=chunk) [Item 3. Legal Proceedings](index=47&type=section&id=Item%203.%20Legal%20Proceedings) Workiva is not currently a party to any legal proceedings expected to have a material adverse effect on its business or financial condition - Workiva is not currently involved in any legal proceedings that are expected to have a material adverse effect on its business, financial condition, operating results, or cash flows[209](index=209&type=chunk) [Item 4. Mine Safety Disclosure](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to Workiva Inc Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Workiva's Class A common stock trades on the NYSE, while Class B is not publicly traded, and the company has never paid cash dividends, prioritizing reinvestment - Workiva's Class A common stock trades on the NYSE under 'WK'; Class B common stock is not listed[212](index=212&type=chunk) - As of December 31, 2023, there were approximately **63 stockholders of record for Class A common stock** and **10 for Class B common stock**[213](index=213&type=chunk) - Workiva has never declared or paid cash dividends and plans to retain future earnings for business operations and expansion[214](index=214&type=chunk) Cumulative Total Stockholder Return (2018-2023) | Company/Index | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | 12/31/2023 | | :-------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Workiva Inc. | $100.00 | $108.57 | $232.63 | $282.29 | $206.52 | $222.51 | | S&P 500 Index | $100.00 | $131.54 | $155.85 | $200.68 | $164.39 | $207.63 | | NASDAQ Computer Index | $100.00 | $151.95 | $229.98 | $318.81 | $206.17 | $345.27 | - There were no issuer purchases of equity securities during the period[220](index=220&type=chunk) [Item 6. [Reserved]](index=49&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Workiva's 2023 revenue grew **17.1% to $630.0 million**, driven by subscription services, yet incurred a **$127.5 million net loss** due to investments and a significant loss on convertible note conversion Key Financial Metrics (2021-2023) | Metric | 2023 (Thousands) | 2022 (Thousands) | 2021 (Thousands) | | :------------------------------------------ | :--------------- | :--------------- | :--------------- | | Total revenue | $630,039 | $537,875 | $443,285 | | Year-over-year % increase in total revenue | 17.1% | 21.3% | 26.1% | | Subscription and support revenue | $558,645 | $464,935 | $379,340 | | Year-over-year % increase in subscription and support revenue | 20.2% | 22.6% | 28.2% | | Subscription and support as a % of total revenue | 88.7% | 86.4% | 85.6% | | Net loss | $(127,525) | $(90,947) | $(37,730) | Operating Metrics (as of December 31) | Metric | 2023 | 2022 | 2021 | | :------------------------------------------ | :------ | :------ | :------ | | Number of customers | 6,034 | 5,664 | 4,315 | | Subscription and support revenue retention rate | 97.9% | 97.8% | 97.0% | | Subscription and support revenue retention rate including add-ons | 110.3% | 108.5% | 110.0% | | Number of customers with ACV $100k+ | 1,631 | 1,345 | 1,121 | | Number of customers with ACV $150k+ | 915 | 718 | 578 | | Number of customers with ACV $300k+ | 311 | 236 | 183 | - Total operating expenses increased by **$73.6 million (14.8%)** in 2023 compared to 2022, primarily due to higher cash-based and stock-based compensation across R&D, sales & marketing, and G&A[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - Interest expense significantly increased in 2023 due to a **$45.1 million loss on induced conversion** from the partial repurchase of 2026 convertible senior notes[264](index=264&type=chunk) Cash Flow Summary (2021-2023) | Cash Flow Activity | 2023 (Thousands) | 2022 (Thousands) | 2021 (Thousands) | | :-------------------------------------- | :--------------- | :--------------- | :--------------- | | Cash flow provided by operating activities | $70,875 | $11,334 | $49,844 | | Cash flow used in investing activities | $(357,253) | $(68,012) | $(68,631) | | Cash flow provided by (used in) financing activities | $301,265 | $(1,587) | $(3,388) | | Net increase (decrease) in cash and cash equivalents | $16,524 | $(60,189) | $(22,445) | - As of December 31, 2023, Workiva had **$813.7 million in cash, cash equivalents, and marketable securities**, which are expected to be sufficient to fund operations for at least the next twelve months[266](index=266&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=61&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Workiva's market risks primarily involve foreign currency, inflation, and interest rate fluctuations, with limited direct interest rate exposure due to fixed-rate convertible notes - Workiva's primary market risk exposures are foreign currency rates, inflation, and interest rates[292](index=292&type=chunk) Foreign Currency Transaction Gains (Losses) | Year Ended December 31 | Amount (Thousands) | | :--------------------- | :----------------- | | 2023 | $1,154 | | 2022 | $835 | | 2021 | $(503) | - An immediate **100-basis point increase** in interest rates would result in a **$4.0 million market value reduction** in Workiva's investment portfolio as of December 31, 2023[298](index=298&type=chunk) - The 2026 and 2028 convertible senior notes have fixed annual interest rates (**1.125% and 1.250% respectively**), meaning no direct financial exposure to changes in interest rates, though fair value can fluctuate[299](index=299&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=67&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Workiva's audited consolidated financial statements for 2021-2023, prepared under U.S. GAAP, highlighting a **$127.5 million net loss in 2023** and significant debt issuance - The consolidated financial statements for Workiva Inc. and its subsidiaries are prepared in accordance with U.S. GAAP[305](index=305&type=chunk)[346](index=346&type=chunk) Consolidated Balance Sheet Highlights (as of December 31, 2023 and 2022) | Metric | 2023 (Thousands) | 2022 (Thousands) | | :---------------------- | :--------------- | :--------------- | | Total Assets | $1,218,860 | $819,620 | | Total Liabilities | $1,308,250 | $813,637 | | Total Stockholders' (Deficit) Equity | $(89,390) | $5,983 | | Cash and cash equivalents | $256,100 | $240,197 | | Marketable securities | $557,622 | $190,595 | | Convertible senior notes, non-current | $762,455 | $340,257 | Consolidated Statements of Operations Highlights (Years Ended December 31) | Metric | 2023 (Thousands) | 2022 (Thousands) | 2021 (Thousands) | | :---------------------- | :--------------- | :--------------- | :--------------- | | Total revenue | $630,039 | $537,875 | $443,285 | | Gross profit | $475,817 | $407,990 | $339,452 | | Total operating expenses | $570,344 | $496,754 | $368,807 | | Loss from operations | $(94,527) | $(88,764) | $(29,355) | | Net loss | $(127,525) | $(90,947) | $(37,730) | | Basic and diluted net loss per common share | $(2.36) | $(1.72) | $(0.74) | Consolidated Statements of Cash Flows Highlights (Years Ended December 31) | Cash Flow Activity | 2023 (Thousands) | 2022 (Thousands) | 2021 (Thousands) | | :-------------------------------------- | :--------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $70,875 | $11,334 | $49,844 | | Net cash used in investing activities | $(357,253) | $(68,012) | $(68,631) | | Net cash provided by (used in) financing activities | $301,265 | $(1,587) | $(3,388) | - Workiva issued **$702.0 million in 1.250% convertible senior notes due 2028** in August 2023, using **$396.9 million of proceeds** to repurchase **$273.8 million of 1.125% convertible senior notes due 2026**[267](index=267&type=chunk)[416](index=416&type=chunk)[425](index=425&type=chunk) - Total stock-based compensation expense was **$98.8 million in 2023**, up from **$70.7 million in 2022** and **$48.6 million in 2021**[256](index=256&type=chunk)[431](index=431&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=110&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) Workiva Inc. reported no changes in or disagreements with its accountants on accounting and financial disclosure matters - There were no changes in or disagreements with accountants on accounting and financial disclosure[482](index=482&type=chunk) [Item 9A. Controls and Procedures](index=110&type=section&id=Item%209A.%20Controls%20and%20Procedures) Workiva's management concluded its disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes identified - Management concluded that Workiva's disclosure controls and procedures were effective as of December 31, 2023, providing reasonable assurance for timely and accurate reporting[485](index=485&type=chunk) - Workiva maintained effective internal control over financial reporting as of December 31, 2023, based on the COSO 2013 framework, with an unqualified audit opinion from Ernst & Young LLP[486](index=486&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended December 31, 2023[487](index=487&type=chunk) [Item 9B. Other Information](index=111&type=section&id=Item%209B.%20Other%20Information) Workiva approved its 2024 Short-Term Incentive Plan for executives, updated the CFO's employment agreement with a **$412,000 base salary** and **75% target bonus**, and reported no Rule 10b5-1 trading arrangement changes - The 2024 Short-Term Incentive Plan for executive officers was approved, with cash bonuses tied to performance metrics such as revenue growth, operating cash flow, or operating loss (excluding stock compensation and amortization of acquisition-related intangible assets)[488](index=488&type=chunk) - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended December 31, 2023[489](index=489&type=chunk) - CFO Jill E. Klindt's new employment agreement sets her 2024 annual base salary at **$412,000** and target bonus opportunity at **75%**[491](index=491&type=chunk) - The CFO's agreement includes non-competition and non-solicitation restrictions for 12 months post-termination and specifies severance payments and accelerated equity vesting under various termination scenarios, including death, disability, or termination without cause/for good reason (especially around a change in control)[492](index=492&type=chunk)[493](index=493&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=112&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to Workiva Inc Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=113&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on Workiva's directors, executive officers, corporate governance, and Section 16(a) reports is incorporated by reference from the 2024 Proxy Statement - Information on directors, executive officers, corporate governance, and Section 16(a) reports is incorporated by reference from the 2024 Proxy Statement[498](index=498&type=chunk)[499](index=499&type=chunk) [Item 11. Executive Compensation](index=114&type=section&id=Item%2011.%20Executive%20Compensation) Details on executive and director compensation are incorporated by reference from Workiva's definitive proxy statement for the 2024 Annual Meeting of Stockholders - Executive and director compensation information is incorporated by reference from the 2024 Proxy Statement[500](index=500&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=114&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership and equity compensation plans is incorporated by reference from Workiva's definitive proxy statement for the 2024 Annual Meeting of Stockholders - Security ownership and equity compensation plan information is incorporated by reference from the 2024 Proxy Statement[501](index=501&type=chunk) [Item 13. Certain Relationships and Related Transactions and Director Independence](index=114&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information concerning certain relationships, related-party transactions, and director independence is incorporated by reference from Workiva's definitive proxy statement for the 2024 Annual Meeting of Stockholders - Information on certain relationships, related-party transactions, and director independence is incorporated by reference from the 2024 Proxy Statement[502](index=502&type=chunk) [Item 14. Principal Accounting Fees and Services](index=114&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Ernst & Young LLP serves as Workiva's independent registered public accounting firm, with details on accounting fees and services incorporated by reference from the 2024 Proxy Statement - Ernst & Young LLP is Workiva's independent registered public accounting firm[503](index=503&type=chunk) - Information on principal accounting fees and services is incorporated by reference from the 2024 Proxy Statement[503](index=503&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=115&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K, including financial statements, corporate documents, debt instruments, compensatory plans, CEO/CFO certifications, and the Clawback Policy - The section includes all financial statements, corporate governance documents, debt instruments, and compensatory plans[505](index=505&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer, pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, are furnished as exhibits[508](index=508&type=chunk)[509](index=509&type=chunk) - Workiva Inc.'s Clawback Policy is included as Exhibit 97.1[508](index=508&type=chunk) [SIGNATURES](index=118&type=section&id=SIGNATURES) The Form 10-K report is duly signed on behalf of Workiva Inc. by its President and Chief Executive Officer, Julie Iskow, and other officers and directors, including the Principal Financial Officer, Jill Klindt, as of February 20, 2024 - The report is signed by Julie Iskow (President and CEO) and Jill Klindt (Executive Vice President, CFO and Treasurer), along with other directors, on February 20, 2024[513](index=513&type=chunk)[517](index=517&type=chunk)

NEW YORK--(BUSINESS WIRE)--Workiva Inc. (NYSE:WK), the world’s leading cloud platform for assured integrated reporting, today announced its planned participation at two investor conferences. Workiva's management team will present at the following events: Raymond James, Annual Institutional Investors Conference: CFO Jill Klindt will present on March 4, 2024, at 2:15 p.m. ET. Morgan Stanley, Technology Media and Telecom Conference: CEO Julie Iskow will present on March 4, 2024, at 3:40 p.m. ET. The events ...