Workiva(US:WK)2025-11-05 21:08Revenue Growth - Subscription and support revenue increased by 23% year-over-year in Q3 2025, contributing to total revenue of $224 million, which represents a 21% growth compared to $186 million in Q3 2024[6] - Total 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[24] - Subscription and support revenue increased to $209.560 million, up 22.5% from $171.035 million year-over-year[24] Profitability - GAAP net income for Q3 2025 was $3 million, a significant improvement from a net loss of $(17) million in Q3 2024, resulting in a GAAP net income per share of $0.05 compared to a net loss per share of $(0.31) in the prior year[7] - Workiva's non-GAAP net income for Q3 2025 was $35 million, compared to $12 million in Q3 2024, with non-GAAP net income per diluted share of $0.55[7] - The net loss for the three months ended September 30, 2025, was $2.786 million, a significant improvement compared to a net loss of $16.992 million in the same quarter of 2024[24] Operating Margin - Non-GAAP operating margin for Q3 2025 was 12.7%, up from 4.1% in Q3 2024, reflecting a 400 basis point increase in the operating margin target for FY 2025[3] - Non-GAAP operating margin improved to 12.7% in Q3 2025, up from 4.1% in Q3 2024[35] - The company expects a GAAP operating margin range of 0.0% to 0.8% for Q4 2025[36] Customer Metrics - Workiva had 6,541 customers as of September 30, 2025, with a net increase of 304 customers from the previous year, and a gross retention rate of 97%[7] - Customers with an annual contract value (ACV) over $500,000 grew by 42% year-over-year, reaching 236 customers[8] Cash and Investments - Workiva's cash, cash equivalents, and marketable securities totaled $857 million as of September 30, 2025, an increase from $816 million at the end of 2024[7] - Cash and cash equivalents as of September 30, 2025, were $315.914 million, an increase from $301.835 million at the end of 2024[26] - The total cash, cash equivalents, and restricted cash at the end of the period was $316.626 million, compared to $248.754 million at the end of Q3 2024, an increase of 27%[30] Expenses - Operating expenses for the three months ended September 30, 2025, totaled $181.193 million, a 10.6% increase from $163.732 million in the prior year[24] - Research and development expenses for Q3 2025 were $51.403 million, up from $48.425 million in Q3 2024, reflecting a growth of 4%[33] - The company reported stock-based compensation expense of $30.246 million for the three months ended September 30, 2025, compared to $27.470 million in the prior year[28] Future Outlook - For Q4 2025, total revenue is expected to be in the range of $234 million to $236 million, with a GAAP operating margin forecasted between 0.0% and 0.8%[15] - Non-GAAP net income per diluted share is projected to be between $0.67 and $0.70 for the year ending December 31, 2025[36] Share Repurchase - The company repurchased $10 million of Class A common stock during Q3 2025, with approximately $40 million remaining under the share repurchase plan[6] Deferred Revenue - Deferred revenue increased to $489.694 million as of September 30, 2025, up from $457.608 million at the end of 2024, indicating strong future revenue recognition[26] Cash Flow - Net cash provided by operating activities for the three months ended September 30, 2025, was $46.155 million, compared to $18.906 million in the same period of 2024[28] - Free cash flow for Q3 2025 was $46.064 million, compared to $18.663 million in Q3 2024, indicating a growth of 147%[35]