Workiva(US:WK)2025-11-05 21:12Revenue Performance - Revenue for the three months ended September 30, 2025, was $224.166 million, a 20.7% increase from $185.621 million in the same period of 2024[71]. - The company recognized $186.2 million of revenue from deferred revenue during the three months ended September 30, 2025[72]. - Subscription and support revenue from the Americas for the three months ended September 30, 2025, was $164,847,000, compared to $138,833,000 in 2024, indicating a growth of about 18.7%[81]. - Approximately 91% of total Americas revenue attributed to the U.S. during the three months ended September 30, 2025[81]. Financial Position - As of September 30, 2025, total accrued expenses and other current liabilities amounted to $120.159 million, compared to $126.508 million as of December 31, 2024, reflecting a decrease of approximately 5.3%[42]. - Cash equivalents and marketable securities totaled $732.987 million as of September 30, 2025, with $192.110 million included in cash and cash equivalents and $540.877 million in marketable securities[43]. - The fair value of convertible senior notes due in 2026 and 2028 was $85.1 million and $689.4 million, respectively, as of September 30, 2025[52]. - As of September 30, 2025, the total net carrying amount of intangible assets was $23,533,000, an increase from $27,389,000 as of December 31, 2024[74]. - The balance of goodwill increased from $196,844,000 at December 31, 2024, to $205,955,000 as of September 30, 2025, reflecting a foreign currency translation adjustment of $9,111,000[76]. Expenses and Losses - Stock-based compensation expense for the three months ended September 30, 2025, totaled $30.246 million, compared to $27.470 million for the same period in 2024[66]. - The net loss for the nine months ended September 30, 2025, was $(35,419,000), compared to a net loss of $(43,008,000) for the same period in 2024[78]. - The diluted net income per share for the three months ended September 30, 2025, was $0.05 for both Class A and Class B shares, compared to a loss of $(0.31) per share in 2024[78]. Accounting and Regulatory Impact - The enactment of the One Big Beautiful Bill Act of 2025 had an immaterial favorable impact on the company's income tax expense and tax receivable[38]. - The company anticipates no material impact on its financial statements from the new accounting standards issued by the FASB, effective after December 15, 2024, and December 15, 2026[39][40]. - The company is assessing the impact of new accounting pronouncements on its consolidated financial statements and related disclosures[40]. Cash Flow and Financing Activities - The company’s operating cash flow may be affected by the timing of employee cash bonus payments and commission payouts, particularly in the first and fourth quarters[33]. - The company issued $345.0 million of 1.125% convertible senior notes due 2026, with proceeds totaling $335.9 million after discounts and costs[53]. - In August 2023, the company issued $702.0 million of 1.250% convertible senior notes due 2028, with proceeds totaling $691.1 million after discounts and costs[54]. - For the three months ended September 30, 2025, total interest expense related to the Notes was $3.005 million, compared to $3.003 million for the same period in 2024[63]. Employee Compensation - Accrued bonuses increased significantly from $7.891 million as of December 31, 2024, to $26.834 million as of September 30, 2025[42]. - During the nine months ended September 30, 2025, 227,124 shares were purchased under the Employee Stock Purchase Plan (ESPP), generating cash proceeds of $13.7 million[69]. Amortization and Intangible Assets - Amortization expense for intangible assets was $1.7 million for the three months ended September 30, 2025, compared to $2.0 million for the same period in 2024[75]. - The expected total amortization expense for intangible assets is projected to be $23,533,000 over the remaining fiscal years[76].