Workiva(US:WK) The Motley Foolยท2025-11-09 09:28Core Insights - Workiva has reported strong quarterly operating results, with a significant increase in demand for its platform from large organizations, leading to an upward revision of its full-year revenue forecast [2][8]. Financial Performance - Workiva generated $224 million in total revenue during Q3 2025, representing a 21% year-over-year increase, surpassing management's forecast of $218 million to $220 million [7]. - The company increased its full-year revenue guidance from $871.5 million to $881 million [8]. - Workiva's net revenue retention rate was 114%, indicating existing customers spent 14% more compared to the same period last year [10]. Customer Growth - A record 2,372 of Workiva's 6,541 customers had contract values of at least $100,000 by the end of Q3, showcasing the platform's importance to large organizations [8]. - The number of customers with annual contract values of at least $300,000 and $500,000 increased by 41% and 42% year-over-year, respectively [10]. Market Position and Valuation - Workiva's stock is currently trading 48% below its 2021 record high, with analysts suggesting it may be a good time to buy [3][13]. - The average price target from analysts is $97.60, with a potential upside of 11%, while the highest target suggests a 25% return [11]. - The company's price-to-sales (P/S) ratio has decreased to 5.6, down from 20 at its peak in 2021, indicating a more attractive valuation [13]. Technology and Innovation - Workiva is enhancing its platform with AI capabilities, including the introduction of Workiva AI, which assists managers in customizing reports and disclosures [4][6]. - The AI assistant is designed to understand the context of documents stored on the platform, streamlining workflows for users [6]. Market Opportunity - Workiva estimates its total addressable market at $35 billion, suggesting significant growth potential as it has only begun to tap into this opportunity [12].