Workiva(US:WK)2026-02-19 23:02Financial Data and Key Metrics Changes - In Q4 2025, total revenue reached $239 million, a 20% year-over-year increase, exceeding guidance by $3 million [28] - Subscription revenue for Q4 was $219 million, up 21% year-over-year [28] - For the full year 2025, total revenue was $885 million, also a 20% increase compared to the previous year [31] - Non-GAAP operating margin for Q4 was 19.1%, beating guidance by 160 basis points [28] - Full-year non-GAAP operating margin was 9.9%, exceeding guidance by 50 basis points [32] Business Line Data and Key Metrics Changes - Subscription revenue growth for the full year 2025 was 22%, driven by both new customers and account expansions [31] - Professional services revenue for Q4 was $20 million, showing slight growth year-over-year [29] - The number of contracts valued over $100K per year increased by 22% year-over-year, indicating strong demand [30] Market Data and Key Metrics Changes - International revenue accounted for 27% of total revenue, up 300 basis points from the previous year [32] - The gross retention rate was 97%, exceeding the target of 96%, while the net retention rate was 113% for Q4 [30] Company Strategy and Development Direction - The company aims to leverage AI capabilities to enhance its platform, focusing on trust and data integrity in an AI-driven environment [8][9] - Workiva is positioning itself as a trusted platform for CFOs, emphasizing the importance of data accuracy and traceability [9] - The company is expanding its leadership team to strengthen its go-to-market strategy and operational efficiency [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the IPO market in 2026, despite a moderation in Q4 activity [64] - The company anticipates total revenue for Q1 2026 to range from $244 million to $246 million, with a full-year expectation of $1.036 billion to $1.04 billion [35][36] - Management highlighted the importance of operational rigor and efficiency in achieving long-term financial targets [67] Other Important Information - The company has made significant progress towards its 2027 operating margin targets, with a focus on operational efficiency [33] - A new share repurchase program was authorized, reflecting confidence in the company's intrinsic value [34] Q&A Session Summary Question: Role of AI in New Wins - Management noted that AI is a strong topic of conversation in customer discussions, contributing to multi-solution account expansions [40][41] Question: Operational Rigor and Margin Opportunities - Management indicated that there are opportunities for continued progress in operational efficiency across the business, particularly in sales and marketing [44] Question: Insights from New CRO - The new CRO is focusing on building a strong global team, refining sales strategies, and enhancing the partner ecosystem [48][49] Question: NRR and New Customer Contribution - For 2026, the company is modeling a net retention rate of 110%, with a typical split of 40% new customers and 60% from expansions [52] Question: AI Usage and Roadmap - Approximately 30% of customers have enabled AI on the platform, with increasing adoption and positive feedback on new features [56][57] Question: Capital Markets Guidance - Management is optimistic about IPO activity in 2026, incorporating growth expectations into their guidance while acknowledging macroeconomic factors [64][65]