Workiva(WK) - 2024 Q4 - Annual Results

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]