Workiva (WK) FY Conference Transcript

Summary of Workiva (WK) FY Conference Call - June 04, 2025 Company Overview - Company: Workiva (WK) - Industry: Integrated reporting and compliance solutions - Market Focus: Financial reporting, sustainability management, governance, risk, and compliance (GRC) Key Points Company and Platform Description - Workiva provides a platform for assured integrated reporting, enabling customers to manage both financial and non-financial reporting with audit capabilities [4][5] - The platform allows for consistent data reporting across various work products, enhancing efficiency and auditability [5][12] Total Addressable Market (TAM) - Workiva's TAM is estimated at $35 billion, with a breakdown as follows: - 50% from financial reporting - 20% from sustainability management - 20% from GRC - 10% from industry verticals [5][6] Growth Strategy - The company aims to increase revenue from Europe to 25-30% of total revenues over time [6] - Workiva is focused on expanding its customer base and increasing the number of customers spending over $300,000 and $500,000 annually, both of which grew by 32% in Q1 [19] Financial Guidance - Workiva expects a 20% growth in subscription revenue for 2025 and aims for an operating margin of 16% by 2027 [7][8][25] Macro Environment Impact - The company noted macroeconomic uncertainties affecting deal cycles, leading to cautious spending by customers [21][22] - Despite these challenges, Workiva maintained its revenue and operating margin guidance for the year [22][23] Sustainability Reporting Demand - Demand for sustainability reporting is driven by regulatory requirements and self-regulation initiatives, such as the Science Based Targets Initiative (SPTI) [30][31] - The Corporate Sustainability Reporting Directive (CSRD) in Europe is a significant regulatory driver, with large companies required to report by 2025 [33][36] ERP Migration Opportunities - Workiva is increasingly involved in ERP migrations, providing solutions during transitions from on-premise to cloud systems [43][44] - The company collaborates with partners to integrate its platform into larger ERP transformation projects [47] Capital Markets Activity - Workiva has shifted focus to serve large private companies, providing them with reporting solutions regardless of IPO plans [50] Go-to-Market Strategy - The company is evolving its sales strategy to enhance efficiency and effectiveness in selling its full platform [51][52] - Workiva is focusing on hiring sales representatives capable of closing larger deals, which require different skill sets compared to smaller contracts [55] Additional Insights - The company has seen strong growth in its sustainability management solutions, aligning them with financial reporting standards [17][18] - Workiva's platform is designed to streamline reporting processes, making it easier for auditors to verify data integrity [12][13] This summary encapsulates the key insights and strategic directions discussed during the Workiva FY Conference Call, highlighting the company's growth potential and market dynamics.