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 ...

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

Workiva stock might be a great tech opportunity outside of the popular artificial intelligence (AI) space. Software provider Workiva (WK -0.57%) helps organizations aggregate their data for reporting purposes, and it's on the cusp of a major opportunity in the environmental, social, and governance (ESG) space. It's one of the latest technology companies to report its financial results for the quarter ended June 30, and it managed to beat its prior revenue forecast. Workiva stock is trading 54% below its all ...

Workiva Inc. Investor Presentation workiva 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 "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect" and similar expression ...

For the quarter ended June 2024, Workiva (WK) reported revenue of $177.5 million, up 14.5% over the same period last year. EPS came in at $0.16, compared to $0.02 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $175.04 million, representing a surprise of +1.41%. The company delivered an EPS surprise of -11.11%, with the consensus EPS estimate being $0.18. 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 $0.16 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this maker of software for managing regulatory filings would post earnings of $0.17 per share when it actually produced earnings of $0.22, delivering a surprise of 29.41%. Over th ...