Key Points Workiva helps organizations unify their data from across the dozens of digital applications they use each day. Workiva recently increased its revenue forecast for 2025, but it still represents a fraction of the company's addressable market. Workiva stock is trading at an attractive valuation, which could pave the way for upside from here. 10 stocks we like better than Workiva › Operating a large organization can be challenging, especially for managers tasked with overseeing hybrid work ...

Business: Workiva is a provider of cloud-based reporting solutions that are designed to solve financial and non-financial business challenges at the intersection of data, process and people. The company offers its unified software-as-a-service, or SaaS, platform that brings customers' financial reporting; environmental, social and governance (ESG); and governance, risk and compliance (GRC) together in a controlled, secure, audit-ready platform. The Workiva platform is multi-tenant cloud software deployed in ...

Financial Data and Key Metrics Changes - Subscription revenue grew 20% year over year, while total revenue increased by 17% year over year, exceeding the high end of guidance [6][37] - Operating margin for Q1 was 2.4%, slightly ahead of guidance, with gross margin improving by 100 basis points to 79% [38][39] - The number of customers reached 6,385, an increase of 311 from the previous year, with a gross retention rate of 97% and a net retention rate of 110% [40] Business Line Data and Key Metrics Changes - The number of contracts valued over $100,000 increased by 23%, contracts over $300,000 rose by 32%, and those over $500,000 also increased by 32% compared to Q1 2024 [8][41] - Professional services revenue remained flat at $21 million, with higher XBRL services offset by a decline in setup and consulting services [37] Market Data and Key Metrics Changes - The company noted a more cautious buying environment towards the end of Q1, influenced by regulatory uncertainties and macroeconomic conditions [9][34] - Demand for sustainability solutions remained strong, with significant multi-six figure deals in Europe despite the cautious environment [50][52] Company Strategy and Development Direction - The company remains focused on long-term growth strategy and productivity initiatives, emphasizing the importance of its platform for customer outcomes [9][34] - The company is committed to product innovation, having launched new capabilities for SEC reporting and a fund reporting solution for public funds [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity despite a cautious buying environment, reaffirming the full-year revenue guidance [34][72] - The company highlighted the importance of sustainability reporting as a growing market, driven by both regulatory requirements and corporate performance needs [27][50] Other Important Information - The company has a cash position of $767 million as of March 31, 2025, with a share repurchase program in place [42] - The guidance for Q2 2025 expects total revenue between $208 million and $210 million, with subscription revenue growth projected at approximately 20% [43][44] Q&A Session Summary Question: Guidance and cautious buying environment - Management maintained the full-year revenue guidance despite a cautious buying environment, citing strong Q1 performance and confidence in long-term market opportunities [47][48] Question: Demand for ESG and sustainability solutions - Demand for sustainability solutions has continued to grow, with clarity from recent EU legislation expected to drive further opportunities [49][51] Question: Impact of market volatility on capital markets - The outlook for capital markets remains consistent, with no changes expected in contributions from this segment [85] Question: Changes in customer spending behavior - Management noted that while there is a cautious environment, demand across all solutions remains strong, with no specific verticals or regions showing significant weakness [79][80] Question: Pricing philosophy - The company focuses on providing value and expanding accounts rather than solely increasing prices, maintaining a customer-centric approach [81][82]