Workiva Conference Call Summary Company Overview - **Company**: Workiva (NYSE: WK) - **Industry**: Application Software - **Core Offerings**: Cloud-native AI-powered platform focusing on financial reporting, governance, risk and compliance (GRC), and sustainability solutions - **Client Base**: Serves 6,500 companies, including 85% of the Fortune 1,000 [2][3] Key Points and Arguments Demand Environment - **Strong Year-to-Date Bookings**: Despite a challenging software market, Workiva has experienced strong demand across its diverse solutions [3][4] - **Sustainability Solutions**: While there has been moderation in demand for sustainability solutions, they remain a strategic part of the business with a long-term positive outlook [5][6] - **Financial Services Growth**: Specific solutions for investment firms, insurance companies, and banks have driven significant sales growth [7] - **Multi-Entity Reporting**: Increased demand from multinational companies needing to report to various tax authorities [7] - **Private Companies**: Growth in sales to private companies, expanding beyond just public company solutions [8] Go-to-Market Strategy - **Leadership Changes**: Introduction of a new Chief Revenue Officer and ongoing adjustments to the sales and marketing strategy to improve efficiency [9][10] - **Sales Efficiency Metrics**: Focus on increasing the number of quota-carrying sellers while improving overall sales efficiency [12][14] - **Customer Expansion**: 55% of customers currently use only one solution, indicating significant potential for account expansion [14] Financial Performance - **Revenue Targets**: Workiva is tracking above its medium-term revenue targets of $1.1 billion to $1.2 billion by year-end 2027 [16] - **Operating Margin Improvement**: Increased operating margin target by 400 basis points, reflecting a deliberate focus on efficiency across all departments [17][18] AI Integration - **AI as a Disruption**: Workiva views AI as a significant market disruptor, focusing on delivering practical AI capabilities that enhance customer productivity [22][23] - **New AI Features**: Introduction of SEC Intelligence to provide curated data sets for SEC filings, enhancing customer workflows [24][25] Product Development - **SEC Solutions**: Over 40% of revenue comes from SEC solutions, with a new "good, better, best" packaging strategy driving higher-tier adoption [29][30] - **GRC Growth**: GRC solutions have seen a 30% annual recurring revenue (ARR) growth, driven by market demand for modernized software [34] Sustainability Focus - **Sustainability Revenue**: Contributes 10%-15% of total revenue, with continued growth driven by regulatory demands and corporate risk management [39][40] - **Regulatory Developments**: Recent proposals in Europe regarding sustainability reporting may provide clarity and drive demand [41][42] International Expansion - **Focus on Europe**: Workiva has been building out teams and improving execution in European markets, leading to increased multi-solution sales [45] Capital Allocation - **Cash Generation**: As profitability increases, Workiva is considering M&A opportunities and share repurchase strategies [46][47] Underappreciated Aspects - **Diverse Solution Portfolio**: The broad range of solutions offered by Workiva is a key driver of resilience and growth, which may not be fully appreciated by new investors [48][49] Conclusion - Workiva is positioned for durable growth with a strong focus on efficiency, AI integration, and expanding its diverse solution offerings. The company is optimistic about its future performance, particularly in the context of evolving market demands and regulatory landscapes.

Market Opportunity & Solutions - Workiva estimates a total addressable market (TAM) of $35 billion[7,9] - Sustainability Management represents 20% of Workiva's total TAM[11,12] - Financial Reporting also represents 50% of Workiva's total TAM[11] - Industry Vertical represents 20% of Workiva's total TAM[11] - Governance, Risk, and Compliance (GRC) represents 10% of Workiva's total TAM[11] Financial Performance & Growth - Q2 2025 subscription revenue grew by 23% year-over-year[57] - Q2 2025 gross retention rate was 97%[57] - Q2 2025 net retention rate was 114%, with a 1% positive impact from foreign exchange rate fluctuations[59,64] - Remaining Performance Obligation (RPO) grew by 24% to $1.237 billion in Q2 2025[61] - Customer logos increased by 5% to 6,467 in Q2 2025[61] Customer Base & Adoption - The number of customers with ACV (Annual Contract Value) greater than $100k grew by 27%[66] - The number of customers with ACV greater than $300k grew by 35%[66] - The number of customers with ACV greater than $500k grew by 37%[66] - Subscription revenue from multi-solution customers increased to 71%[69] Financial Guidance - Q3 2025 total revenue is projected to be between $218 million and $220 million, representing a 174%-185% year-over-year growth[71] - Full-year 2025 total revenue is projected to be between $870 million and $873 million, representing a 178%-182% year-over-year growth[71]

Market Opportunity & Platform Capabilities - Workiva estimates its total addressable market (TAM) to be $35 billion[7,9] - The TAM is broken down into Sustainability Management ($16.4 billion), Financial Reporting ($7.7 billion), Industry Vertical ($10.9 billion), and GRC (Governance, Risk, and Compliance)[7] - Sustainability Management represents 50% of the total TAM[11] - Financial Reporting represents 20% of the total TAM[11] - Industry Vertical represents 20% of the total TAM[11] - GRC represents 10% of the total TAM[11] Financial Performance & Growth Metrics - Q1 2025 subscription revenue reached $186 million, representing 20% year-over-year growth[52,54] - The company's Q1 2025 gross retention rate was 97%, and the net retention rate was 110%[54] - Total Remaining Performance Obligation (RPO) grew to $1.173 billion in Q1 2025, a 26% increase year-over-year[57] - The number of customer logos increased to 6,385 in Q1 2025[59] - The number of large Annual Contract Value (ACV) customers is growing, with 2,079 customers having >$100k ACV, 439 customers having >$300k ACV and 191 customers having >$500k ACV in Q1 2025[64] Guidance - The company projects total revenue of $864 million - $868 million for full year 2025, representing 17.0% - 17.5% year-over-year growth[70]