Group 1: Industry Overview - Many enterprise software companies saw a significant decline in value in early 2026 due to concerns that AI tools will enable businesses to create their own software, reducing reliance on external vendors [1] - As AI enhances productivity, businesses may require fewer employees and subsequently purchase fewer software licenses [1] Group 2: Company Performance - Workiva's stock has decreased by 25% this year, but the decline may not be justified given the company's strong platform that aggregates data for trusted reporting [2] - Analysts from The Wall Street Journal predominantly recommend Workiva stock as a buy, with a consensus price target suggesting a potential upside of 45% over the next 12 months [3] Group 3: Product Features - Workiva's platform integrates with various digital applications, streamlining data collection and minimizing errors, thus providing a reliable source of truth for organizations [4] - The company offers ready-made templates and an AI-powered assistant, Workiva AI, to facilitate the rapid creation of reports and insights from data [5] - Workiva has developed a library of pre-prepared prompts to assist organizations in adopting AI, ensuring the AI understands the context of uploaded documents [6]

All forward-looking statements are made as of February 19, 2026, and reflect our current expectations only. We undertake no obligation to update or revise these statements to conform to actual results or revised expectations, except as required by law. By reviewing this presentation, you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential ...

Core Insights - Workiva's business is experiencing significant growth, with Wall Street optimistic about its stock performance in the near future [1][3] - The company has developed a platform that integrates various digital applications, addressing the challenges faced by managers in data reporting [2][5] - Workiva's recent enhancements include an AI-powered virtual assistant that streamlines the reporting process, making it easier for managers to generate reports [5][6] Financial Performance - Workiva reported $224 million in revenue for Q3 2025, exceeding management's guidance and reflecting a 21% year-over-year growth [7] - The company has raised its full-year revenue guidance for 2025 to $881 million, indicating strong momentum driven by high-spending customers [9] - 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] Customer Metrics - Workiva achieved a net revenue retention rate of 114% in Q3, indicating existing customers are spending 14% more compared to the previous year [11] - The company is seeing a growing demand from large organizations, which is contributing to its revenue growth and customer expansion [2][10] Analyst Ratings and Market Outlook - The majority of analysts covering Workiva stock have a buy rating, with an average price target of $106.90, suggesting a potential 16% upside [12] - The stock is currently trading at a price-to-sales (P/S) ratio of 6.1, below its long-term average of 7.2, indicating potential for further appreciation [13] - Workiva has significant growth potential in its $35 billion addressable market, suggesting long-term upside beyond current expectations [14]

Core 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].

Financial Performance & Growth - Workiva's Q3 2025 subscription revenue reached $210 million, representing a 23% year-over-year growth[71,72] - The company's remaining performance obligation (RPO) grew by 21% year-over-year, reaching $1305 million in Q3 2025[74] - Workiva's Q3 2025 gross retention rate was 97%, and the net retention rate was 114%[72] - The company projects total revenue for Q4 2025 to be between $234 million and $236 million, representing a 172% to 182% year-over-year growth[84] - Workiva anticipates full-year 2025 total revenue to be between $880 million and $882 million, a 191% to 194% increase year-over-year[84] Customer Base & Expansion - Workiva has over 6,500 organizations using its platform globally[8,43,52,64] - The number of large annual contract value (ACV) customers is growing, with 2,372 customers having >$100k ACV, 541 customers having >$300k ACV and 236 customers having >$500k ACV in Q3 2025[79] - Subscription revenue from multi-solution customers is increasing, reaching 73% in Q3 2025[82] Strategic Focus & Market Opportunity - Workiva estimates its total addressable market (TAM) to be $35 billion[14,16] - Sustainability management represents 20% of Workiva's total TAM[18,19] - The company's strategy focuses on a connected AI platform, fit-for-purpose solutions, a partner ecosystem, and global expansion[11]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated total revenue of $215 million, representing a 21% increase compared to Q2 2024, exceeding the high end of revenue guidance by $5 million [34] - Subscription revenue reached $198 million, up 23% year-over-year, with new customers accounting for 41% of the increase [34] - Non-GAAP operating margin for the quarter was 38%, outperforming guidance by 380 basis points [6][34] - The company had 6,467 customers at the end of Q2 2025, an increase of 320 customers from the previous year [35] - Gross retention rate was 97%, exceeding the internal target of 96%, while net retention rate improved to 114% from 109% in Q2 2024 [35] Business Line Data and Key Metrics Changes - Financial reporting solutions remained the primary revenue driver, with strong demand across SEC reporting, multi-entity reporting, and fund reporting [15] - The number of contracts valued over $100,000 increased by 27%, contracts over $300,000 rose by 37%, and contracts over $500,000 grew by 35% compared to Q2 2024 [8][36] - Professional services revenue was flat at $17 million, with a decline in setup and consulting services offset by higher XBRL services [34] Market Data and Key Metrics Changes - Demand for sustainability solutions moderated in the corporate account segment in both the U.S. and Europe, although it still contributed to new logo wins and account expansions [23][66] - Sustainability solutions accounted for less than 15% of total revenue, indicating a limited impact on overall financial performance [24][66] Company Strategy and Development Direction - The company is focused on profitable growth, raising its operating margin outlook for Q3 and Q4 2025 [8][40] - The strategy includes expanding the partner ecosystem and enhancing the breadth of the solution portfolio to drive innovation and reduce total cost of ownership [7][10] - The company aims to achieve its 2027 and 2030 operating margin targets, emphasizing disciplined margin expansion [9][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects despite macroeconomic uncertainties, citing strong customer demand and a resilient solution portfolio [9][10] - CFO Jill Clint noted that the company is closely monitoring capital markets activity, which could provide upside potential in the second half of the year [45][46] - The management acknowledged the elongation of deal cycles due to market uncertainty but highlighted continued strong performance in signature deals [86] Other Important Information - CFO Jill Clint announced her departure after 17 years with the company, with plans to remain until December 2025 to ensure a smooth transition [29][30] - The company repurchased 132,000 shares for $10 million under its share repurchase program, with $50 million remaining from the original authorization [37][38] Q&A Session Summary Question: Revenue outlook and capital markets contribution - Management indicated steady revenue from capital markets in Q2 and noted potential upside if activity increases in the second half [45][46] Question: Financial reporting success and SEC reporting bundles - The company is adopting a "good, better, best" model to drive upsell within existing customers, contributing to strong net retention rates [48][50] Question: Concerns about generative AI and solutions-based model - Management emphasized the attractiveness of their solutions-based model, which allows customers to use the platform without seat constraints, positioning them well against generative AI technologies [55][58] Question: Sustainability portfolio and market demand - Management acknowledged a moderation in demand for sustainability solutions but remains optimistic about long-term market demand, particularly driven by regulatory requirements [66][68] Question: Free cash flow guidance and margin improvements - The company explained that free cash flow is influenced by various factors, including timing of cash inflows and outflows, and reiterated its commitment to improving margins [68][69] Question: RFP activity from CFO Act agencies - Management reported good discussions with agencies looking to modernize financial systems, indicating potential opportunities in the government sector [72][73] Question: Investment plans and headcount expectations - The company will focus on productivity and leverage existing resources while making investment decisions based on potential outcomes [107][108]

Core Insights - The S&P 500 has nearly recovered from a 19% drop due to tariffs, but many enterprise software stocks, including Datadog and Workiva, have not returned to their 2021 highs [1][2] Datadog - Datadog offers an observability platform that monitors cloud infrastructure, with over 30,500 businesses using its services across various industries [4] - The company has expanded into AI observability, with customer usage of its new AI tool more than doubling in the first quarter of 2025 compared to six months prior [5] - Datadog reported that 4,000 customers were using at least one of its AI products in Q1 2025, also doubling year over year [6] - Following strong Q1 results, Datadog raised its full-year revenue forecast for 2025 to $3.235 billion, representing a 21% growth from 2024 [7] - The price-to-sales (P/S) ratio for Datadog has decreased from around 70 in 2021 to 15.5, making it more attractive compared to its historical valuation [8] - Analysts are optimistic, with 31 out of 46 assigning a buy rating, and an average price target of $140.72 indicating a potential upside of 15% over the next 12 to 18 months [10] Workiva - Workiva provides a platform that integrates various digital applications, allowing managers to streamline workflows and reduce human error [11][12] - The company is becoming significant in the ESG reporting space, helping businesses track their impact on stakeholders [13] - Workiva had 6,385 customers at the end of Q1 2025, a 5% increase year-over-year, with higher-spending customer segments growing even faster [14] - The company expects to generate up to $868 million in revenue for 2025, a 17.5% increase compared to 2024 [15] - Workiva's P/S ratio is currently at 4.8, near its lowest level since going public [15] - Analysts are bullish on Workiva, with 11 out of 13 giving it a buy rating and an average price target of $97.64, suggesting a potential upside of 44% over the next 12 to 18 months [17][18]

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 the first quarter guidance [7][38] - Gross margin improved by 100 basis points year over year, reaching 79% [38] 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][40] - Professional services revenue remained flat at $21 million compared to Q1 2024, 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 uncertainties in regulatory changes and the new U.S. Administration's policies [9][8] - Despite the cautious environment, the demand for sustainability solutions remained strong, with sustainability being a top booking solution in Q1 [49][55] Company Strategy and Development Direction - The company continues to focus on long-term growth strategies and productivity initiatives, believing in its competitive differentiation to meet 2025 and longer-term targets [9][33] - The company is committed to product innovation, having launched new capabilities for SEC reporting and a fund reporting solution for public funds [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity and growth strategy, despite the cautious buying environment [33][42] - The company reaffirmed its full-year revenue guidance, expecting subscription revenue growth of approximately 20% at the midpoint [42][43] Other Important Information - The company repurchased approximately 462,000 shares for $40 million as part of its share repurchase program [41] - The company highlighted the importance of sustainability reporting as a valuable asset for enhancing business performance and driving efficiency [24][27] 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 [46][47] Question: Demand for ESG and sustainability solutions - Demand for sustainability solutions remains strong, with clarity brought by recent regulatory changes, particularly in Europe [48][50] Question: Broader market conditions and deal timelines - The cautious buying environment is broad-based, affecting various sectors without specific regional or vertical weaknesses [78] Question: Pricing philosophy and strategy - The company focuses on providing value and expanding accounts rather than solely increasing prices, maintaining a customer-centric approach [81] Question: Capital markets contribution outlook - The outlook for capital markets remains consistent, with no changes expected in pipeline or deal timing [85] Question: Opportunities in fund reporting - The market for public funds presents a significant opportunity, with over 12,000 public funds globally [93]

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% [7][38] - 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% [39] 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][40] - 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 uncertainties in regulatory changes and the new U.S. Administration's policies [9][18] - Demand for sustainability solutions remained strong, with significant multi-six figure deals in Europe, indicating continued growth in this market despite regulatory changes [50][51] Company Strategy and Development Direction - The company remains focused on executing its long-term growth strategy and productivity initiatives, believing it has a competitive differentiation to meet its targets for 2025 and beyond [9][33] - The introduction of new capabilities for SEC reporting and a fund reporting solution for public funds reflects the company's commitment to product innovation and market expansion [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity and growth strategy, despite the cautious buying environment [33][42] - The company reaffirmed its full-year revenue guidance, expecting subscription revenue growth of approximately 20% at the midpoint [42][43] Other Important Information - The company repurchased approximately 462,000 shares for $40 million as part of its share repurchase program [41] - The European Union's proposed changes to the CSRD regulation are expected to create demand for the company's GRC solutions [22][23] 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 [46][47] Question: Demand for ESG and sustainability solutions - Sustainability remained a top booking solution, with clarity from the CSRD bringing opportunities for large companies to report [48][50] Question: Impact of market volatility on capital markets - The outlook for capital markets remains consistent, with no changes expected in contributions for the year [85] Question: Pricing philosophy - The company focuses on providing value and expanding accounts rather than squeezing additional dollars from renewals [80][81] Question: Opportunities in fund reporting - The market for public funds is significant, with over 12,000 public funds globally, presenting a strong opportunity for the company [92]

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]