Workiva(WK) - 2024 Q4 - Annual Report

Revenue Growth - Workiva's total revenue increased to $738.7 million in 2024, up 17.2$630.0 million in 2023[236] - Subscription and support revenue reached $667.6 million in 2024, reflecting a year-over-year increase of 19.5$108.6 million, or 17.2%, to $738.7 million compared to 2023, driven primarily by a$109.0 million increase in subscription and support revenue[268] - Subscription and support revenue accounted for 90.4% of total revenue in 2024, up from 88.7% in 2023[267] - Total revenue for the year ended December 31, 2024, was $738.68 million, a 17.2$630.04 million in 2023[338] - Subscription and support revenue increased to $667.65 million in 2024, up 19.5$558.65 million in 2023[338] Customer Metrics - The number of customers grew to 6,305 in 2024, compared to 6,034 in 2023, indicating a steady increase in customer base[249] - The total number of customers increased by 4.5% from December 31, 2023, to December 31, 2024, indicating continued demand for the company's services[268] Retention Rates - The gross retention rate was 97.4% as of December 31, 2024, down from 97.9% in 2023, while the net retention rate improved to 111.9% from 110.3%[251][253] - Workiva's annual contract value (ACV) metrics showed that 71.2% of subscription and support revenue came from customers with an annual contract value of $100k+, up from 66.3$55.0 million, an improvement from a net loss of $127.5 million in 2023[266] - Gross profit margin improved to 76.7$643.16 million in 2024, up 12.7% from $570.34 million in 2023, driven by increased research and development and sales and marketing costs[338] Investment and Expenses - Research and development expenses rose by$20.1 million, or 11.7%, to $192.9 million in 2024, mainly due to increased compensation and professional service fees[271] - Sales and marketing expenses increased by$60.2 million, or 21.0%, to $347.2 million in 2024, driven by higher compensation and marketing costs[272] - General and administrative expenses decreased by$7.5 million, or 6.8%, to $103.0 million in 2024, primarily due to lower stock-based compensation[273] Cash Flow and Liquidity - Cash flow from operating activities for the year ended December 31, 2024 was$87.7 million, an increase from $70.9 million in 2023[280][282] - As of December 31, 2024, the company's liquidity sources included cash, cash equivalents, and marketable securities totaling$816.4 million[276] - The company's cash and cash equivalents increased from $256.1 million in 2023 to$301.8 million in 2024, representing an increase of approximately 17.8%[334] Debt and Financing - The company issued $702.0 million of 1.250$691.1 million, and used $396.9 million to repurchase$273.8 million of 1.125% convertible senior notes due 2026[277] - The board authorized a share repurchase program for up to $100.0 million of Class A common stock, but no repurchases had been made as of December 31, 2024[278] - Total contractual obligations as of December 31, 2024, amounted to$1,004.4 million, with $809.9 million related to convertible senior notes[288] Market and Economic Conditions - The company faces potential impacts on sales of sustainability solutions due to domestic and global policy uncertainties[238] Asset and Liability Management - The company's total assets increased from$1,218.9 million in 2023 to $1,368.5 million in 2024, marking a growth of approximately 12.3$1,308.3 million in 2023 to $1,410.2 million in 2024, which is an increase of about 7.8$652.6 million in 2023 to $707.7 million in 2024, indicating an increase of approximately 8.4$380.8 million in 2023 to $457.6 million in 2024, reflecting a growth of about 20.2$73.84 million in 2024, up from $60.11 million in 2023, indicating strong future revenue potential[348] Other Financial Metrics - Interest income increased by$13.5 million to $39.4 million in 2024, attributed to a higher investment balance and interest rates[274] - The company recognized foreign currency transaction losses of$551,000 in 2024, compared to losses of $1,154,000 in 2023[302]