Workflow
1 Glorious Growth Stock Down 47% You'll Wish You'd Bought on the Dip, According to Wall Street
WKWorkiva(WK) The Motley Fool·2025-03-02 09:45

Core Viewpoint - Workiva has reported strong financial results for Q4 2024, showcasing accelerating revenue growth and a positive outlook from analysts, despite its stock being significantly below its all-time high [2][3][14] Financial Performance - Workiva generated 199.9millionintotalrevenueduringQ42024,representinga20199.9 million in total revenue during Q4 2024, representing a 20% increase year-over-year, marking the second consecutive quarter of accelerating growth [9] - The company's net revenue retention rate increased by 2 percentage points to 112%, with 70% of customers now using at least two products, up from 64% a year ago [10] - Workiva ended Q4 with 6,305 total customers, a 4.3% year-over-year increase, with significant growth in customers with higher annual contract values [11] - The company reported a net loss of 55 million for 2024, a 56% reduction from the 127.5millionlossin2023,indicatingimprovedexpensemanagement[11]−Onanon−GAAPbasis,Workivawasprofitablein2024,withaprofitof127.5 million loss in 2023, indicating improved expense management [11] - On a non-GAAP basis, Workiva was profitable in 2024, with a profit of 53.5 million, a positive shift from a 22.8millionlossin2023[12]MarketOpportunity−WorkivaisaddressingasignificantopportunityintheESGreportingspace,whichcouldbeworthnearly22.8 million loss in 2023 [12] Market Opportunity - Workiva is addressing a significant opportunity in the ESG reporting space, which could be worth nearly 15 billion annually according to PwC [7] - The company values its total addressable market at 35billionacrossvariousreportingandcomplianceareas,whileitscurrentmarketcapitalizationislessthan35 billion across various reporting and compliance areas, while its current market capitalization is less than 5 billion, indicating substantial growth potential [14] Analyst Sentiment - The Wall Street Journal reports that 11 analysts cover Workiva stock, with 8 assigning the highest buy rating and an average price target of 119.78,suggestingapotential39119.78, suggesting a potential 39% increase over the next 12 to 18 months [13] - The highest target of 132 implies a possible 52% increase, reflecting strong bullish sentiment among analysts [13]