- Increased Q3 2024 Subscription & Support Revenue by 19%
over Q3 2023
- Total revenue of $186 million in Q3 2024, representing 17%
year-over-year growth
- Achieved 28% YOY Growth of Customers with Annual Contract Value
Over $500K
Workiva Inc. (NYSE:WK), the world’s leading cloud platform for
assured integrated reporting, today announced financial results for
its third quarter ended September 30, 2024.
"Workiva is once again in a beat and raise position. Our results
highlight an acceleration of our growth and improved operating
leverage," said Julie Iskow, President & Chief Executive
Officer. "We delivered another record bookings quarter with broad
based demand across the entire solution portfolio and a high volume
of account expansion deals and platform wins across North America
and Europe."
"Subscription and support revenue growth of 19% drove our total
revenue beat to $2.6 million over the high end of our guidance
range," said Jill Klindt, Chief Financial Officer. "Due to our
solid performance, we are raising our total revenue guidance by $6
million to a range of $733 million to $735 million."
Third Quarter 2024 Financial
Results
- Revenue: Total revenue for the third quarter of 2024
reached $186 million, an increase of 17% from $158 million in the
third quarter of 2023. Subscription and support revenue contributed
$171 million, up 19% versus the third quarter of 2023. Professional
services revenue was $15 million, relatively flat compared to the
same quarter in the prior year.
- Gross Profit: GAAP gross profit for the third quarter of
2024 was $142 million compared with $120 million in the same
quarter of 2023. GAAP gross margin was 76.5% versus 75.8% in the
third quarter of 2023. Non-GAAP gross profit for the third quarter
of 2024 was $146 million, an increase of 20% compared with the
prior year's third quarter, and non-GAAP gross margin was 78.6%
compared to 76.9% in the third quarter of 2023.
- Results from Operations: GAAP loss from operations for
the third quarter of 2024 was $22 million compared with a loss of
$16 million in the prior year's third quarter. Non-GAAP income from
operations was $8 million compared with non-GAAP income from
operations of $5 million in the third quarter of 2023.
- GAAP Net Loss: GAAP net loss for the third quarter of
2024 was $17 million compared with a net loss of $56 million for
the prior year's third quarter. GAAP net loss per basic and diluted
share was $0.31 compared with a net loss per basic and diluted
share of $1.04 in the third quarter of 2023.
- Non-GAAP Net Income/Loss: Non-GAAP net income for the
third quarter of 2024 was $12 million compared with a net loss of
$35 million in the prior year's third quarter. Non-GAAP net income
per basic share and diluted share was $0.22 and $0.21,
respectively, compared with a net loss per basic share and diluted
share of $0.65 in the third quarter of 2023.
- Liquidity: As of September 30, 2024, Workiva had cash,
cash equivalents, and marketable securities totaling $776 million,
compared with $814 million as of December 31, 2023. Workiva had $71
million aggregate principal amount of 1.125% convertible senior
notes due in 2026, $702 million aggregate principal amount of
1.250% convertible senior notes due in 2028, and $14 million of
finance lease obligations outstanding as of September 30,
2024.
Key Metrics and Recent Business
Highlights
- Customers: Workiva had 6,237 customers as of September
30, 2024, a net increase of 292 customers from September 30,
2023.
- Revenue Retention Rate: As of September 30, 2024,
Workiva's revenue retention rate (excluding add-on revenue) was
98%, and the revenue retention rate including add-on revenue was
111%. Add-on revenue includes changes in both solutions and pricing
for existing customers.
- Large Contracts: As of September 30, 2024, Workiva had
1,926 customers with an annual contract value (“ACV”) of more than
$100,000, up 23% from 1,561 customers at September 30, 2023.
Workiva had 383 customers with an ACV of more than $300,000, up 29%
from 296 customers in the third quarter of 2023. Workiva had 166
customers with an ACV of more than $500,000, up 28% from 130
customers in the third quarter of 2023.
Financial Outlook
As of November 6, 2024, Workiva is providing guidance as
follows:
Fourth Quarter 2024 Guidance:
- Total revenue is expected to be in the range of $194 million to
$196 million.
- GAAP loss from operations is expected to be in the range of $16
million to $14 million.
- Non-GAAP income from operations is expected to be in the range
of $13 million to $15 million.
- GAAP net loss per basic share is expected to be in the range of
$0.21 to $0.18.
- Non-GAAP net income per basic share is expected to be in the
range of $0.31 to $0.34.
- Net income (loss) per basic share is based on 55.8 million
weighted-average shares outstanding.
Full Year 2024 Guidance:
- Total revenue is expected to be in the range of $733 million to
$735 million.
- GAAP loss from operations is expected to be in the range of $79
million to $77 million.
- Non-GAAP income from operations is expected to be in the range
of $30 million to $32 million.
- GAAP net loss per basic share is expected to be in the range of
$1.05 to $1.02.
- Non-GAAP net income per basic share is expected to be in the
range of $0.93 to $0.96.
- Net income (loss) per basic share is based on 55.4 million
weighted-average shares outstanding.
Quarterly Conference
Call
Workiva will host a webcast today at 5:00 p.m. ET to review the
Company’s financial results for the third quarter 2024, in addition
to discussing the Company’s outlook for the fourth quarter and full
year 2024. The webcast will be available on
https://investor.workiva.com/news-events/events. An archived
webcast will also be available an hour after the completion of the
call in the "Investor Relations" section of the Company’s website
at www.workiva.com.
About Workiva
Workiva Inc. (NYSE:WK) is on a mission to power transparent
reporting for a better world. We build and deliver the world’s
leading cloud platform for assured integrated reporting to meet
stakeholder demands for action, transparency, and disclosure of
financial and non-financial data. Workiva offers the only unified
SaaS platform that brings customers’ financial reporting,
Governance, Risk, and Compliance (GRC), and Environmental, Social,
and Governance (ESG) data together in a controlled, secure,
audit-ready platform. Our platform simplifies the most complex
reporting and disclosure challenges by streamlining processes,
connecting data and teams, and ensuring consistency. Learn more at
workiva.com.
Non-GAAP Financial
Measures
The non-GAAP adjustments referenced herein relate to the
exclusion of stock-based compensation and amortization of
acquisition-related intangible assets. A reconciliation of GAAP to
non-GAAP historical financial measures has been provided in Table I
at the end of this press release. A reconciliation of GAAP to
non-GAAP guidance has been provided in Table II at the end of this
press release.
Workiva believes that the use of non-GAAP gross profit and gross
margin, non-GAAP income (loss) from operations, non-GAAP net income
(loss) and non-GAAP net income (loss) per share is helpful to its
investors. These measures, which are referred to as non-GAAP
financial measures, are not prepared in accordance with generally
accepted accounting principles in the United States, or GAAP.
Non-GAAP gross profit is calculated by excluding stock-based
compensation expense attributable to cost of revenues from gross
profit. Non-GAAP gross margin is the ratio calculated by dividing
non-GAAP gross profit by revenues. Non-GAAP income (loss) from
operations is calculated by excluding stock-based compensation
expense and amortization expense for acquisition-related intangible
assets from loss from operations. Non-GAAP net income (loss) is
calculated by excluding stock-based compensation expense, net of
tax and amortization expense for acquisition-related intangible
assets from net loss. Non-GAAP net income (loss) per share is
calculated by dividing non-GAAP net income (loss) by the weighted-
average shares outstanding as presented in the calculation of GAAP
net loss per share. Because of varying available valuation
methodologies, subjective assumptions and the variety of equity
instruments that can impact a company’s non-cash expenses, Workiva
believes that providing non-GAAP financial measures that exclude
stock-based compensation expense allows for more meaningful
comparisons between its operating results from period to period.
For business combinations, we generally allocate a portion of the
purchase price to intangible assets. The amount of the allocation
is based on estimates and assumptions made by management and is
subject to amortization. The amount of purchase price allocated to
intangible assets and the term of its related amortization can vary
significantly and are unique to each acquisition and thus we do not
believe it is reflective of ongoing operations. Workiva’s
management uses these non-GAAP financial measures as tools for
financial and operational decision making and for evaluating
Workiva’s own operating results over different periods of time.
Non-GAAP financial measures may not provide information that is
directly comparable to that provided by other companies in
Workiva’s industry, as other companies in the industry may
calculate non-GAAP financial results differently. In addition,
there are limitations in using non-GAAP financial measures because
the non-GAAP financial measures are not prepared in accordance with
GAAP, may be different from non-GAAP financial measures used by
other companies and exclude expenses that may have a material
impact on Workiva’s reported financial results. Further,
stock-based compensation expense has been and will continue to be
for the foreseeable future a significant recurring expense in
Workiva’s business and an important part of the compensation
provided to its employees. The presentation of non-GAAP financial
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with GAAP. Investors should review the reconciliation
of non-GAAP financial measures to the comparable GAAP financial
measures included below, and not rely on any single financial
measure to evaluate Workiva’s business.
Forward-Looking
Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to the safe
harbor created thereby. These statements relate to future events or
the Company’s future financial performance and involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the Company or its industry to be materially different from those
expressed or implied by any forward-looking statements. In
particular, statements about the Company’s expectations, beliefs,
plans, objectives, assumptions, future events or future performance
contained in this press release are forward-looking statements. In
some cases, forward-looking statements can be identified by
terminology such as "may," "will," "could," "would," "should,"
"expect," "plan," "anticipate," "intend," "believe," "estimate,"
"predict," "potential," "outlook," "guidance" or the negative of
those terms or other comparable terminology.
Please see the Company’s documents filed or to be filed with the
Securities and Exchange Commission, including the Company’s annual
reports filed on Form 10-K and quarterly reports on Form 10-Q, and
any amendments thereto for a discussion of certain important risk
factors that relate to forward-looking statements contained in this
report. The Company has based these forward-looking statements on
its current expectations, assumptions, estimates and projections.
While the Company believes these expectations, assumptions,
estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which are beyond the Company’s control.
These and other important factors may cause actual results,
performance or achievements to differ materially from those
expressed or implied by these forward-looking statements. Any
forward-looking statements are made only as of the date hereof, and
unless otherwise required by applicable securities laws, the
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
WORKIVA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except share and per share amounts)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
(unaudited)
Revenue
Subscription and support
$
171,035
$
143,421
$
486,749
$
409,857
Professional services
14,586
14,754
52,042
53,529
Total revenue
185,621
158,175
538,791
463,386
Cost of revenue
Subscription and support (1)
30,621
24,864
86,493
74,080
Professional services (1)
13,050
13,491
39,873
42,297
Total cost of revenue
43,671
38,355
126,366
116,377
Gross profit
141,950
119,820
412,425
347,009
Operating expenses
Research and development (1)
48,425
41,747
142,328
130,235
Sales and marketing (1)
89,756
72,576
257,086
215,168
General and administrative (1)
25,551
21,022
76,225
86,660
Total operating expenses
163,732
135,345
475,639
432,063
Loss from operations
(21,782
)
(15,525
)
(63,214
)
(85,054
)
Interest income
9,298
7,294
30,089
15,546
Interest expense
(3,199
)
(47,437
)
(9,668
)
(50,437
)
Other expense, net
(350
)
(71
)
(309
)
(1,450
)
Loss before provision for income taxes
(16,033
)
(55,739
)
(43,102
)
(121,395
)
Provision for income taxes
959
530
3,125
1,934
Net loss
$
(16,992
)
$
(56,269
)
$
(46,227
)
$
(123,329
)
Net loss per common share:
Basic and diluted
$
(0.31
)
$
(1.04
)
$
(0.84
)
$
(2.28
)
Weighted-average common shares outstanding
- basic and diluted
55,581,841
54,256,941
55,226,254
53,987,791
(1) Includes stock-based compensation
expense as follows:
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
(unaudited)
Cost of revenue
Subscription and support
$
2,164
$
1,247
$
5,708
$
3,732
Professional services
858
623
2,348
1,923
Operating expenses
Research and development
5,681
4,155
15,474
13,677
Sales and marketing
9,942
7,108
26,470
20,769
General and administrative
8,825
6,244
25,879
37,928
WORKIVA INC.
CONSOLIDATED BALANCE SHEETS (in thousands)
September 30, 2024
December 31, 2023
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
248,239
$
256,100
Marketable securities
528,115
557,622
Accounts receivable, net
137,921
125,193
Deferred costs
44,726
39,023
Other receivables
8,646
7,367
Prepaid expenses and other
21,055
23,631
Total current assets
988,702
1,008,936
Property and equipment, net
21,757
24,282
Operating lease right-of-use assets
9,485
12,642
Deferred costs, non-current
43,557
33,346
Goodwill
202,133
112,097
Intangible assets, net
30,278
22,892
Other assets
6,174
4,665
Total assets
$
1,302,086
$
1,218,860
Liabilities and Stockholders’
Deficit
Current liabilities
Accounts payable
$
13,346
$
5,204
Accrued expenses and other current
liabilities
111,029
97,921
Deferred revenue
414,229
380,843
Finance lease obligations
555
532
Total current liabilities
539,159
484,500
Convertible senior notes, non-current
764,281
762,455
Deferred revenue, non-current
27,527
36,177
Other long-term liabilities
236
178
Operating lease liabilities,
non-current
8,062
10,890
Finance lease obligations, non-current
13,631
14,050
Total liabilities
1,352,896
1,308,250
Stockholders’ deficit
Common stock
56
54
Additional paid-in-capital
645,083
562,942
Accumulated deficit
(698,868
)
(652,641
)
Accumulated other comprehensive income
2,919
255
Total stockholders’ deficit
(50,810
)
(89,390
)
Total liabilities and stockholders’
deficit
$
1,302,086
$
1,218,860
WORKIVA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (in
thousands)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
(unaudited)
Cash flows from operating
activities
Net loss
$
(16,992
)
$
(56,269
)
$
(46,227
)
$
(123,329
)
Adjustments to reconcile net loss to net
cash provided by operating activities
Depreciation and amortization
3,006
2,686
8,092
8,353
Stock-based compensation expense
27,470
19,377
75,879
78,029
Provision for (recovery of) doubtful
accounts
57
8
(46
)
57
Accretion of premiums and discounts on
marketable securities, net
(2,638
)
(1,930
)
(9,543
)
(4,530
)
Amortization of debt discount and issuance
costs
609
472
1,826
1,122
Induced conversion expense
—
45,144
—
45,144
Realized loss on sale of
available-for-sale securities, net
—
—
—
708
Deferred income tax
(1
)
(14
)
(292
)
(17
)
Changes in assets and liabilities:
Accounts receivable
(15,187
)
(15,234
)
(11,507
)
7,243
Deferred costs
(4,946
)
3,116
(15,140
)
6,248
Operating lease right-of-use asset
1,210
1,244
3,808
3,807
Other receivables
(1,745
)
(1,556
)
2,796
(1,842
)
Prepaid expenses and other
344
3,452
2,764
(3,985
)
Other assets
464
1,043
(1,191
)
1,479
Accounts payable
4,788
(386
)
7,630
(1,267
)
Deferred revenue
26,606
11,120
22,159
22,225
Operating lease liability
(878
)
(750
)
(2,831
)
(3,129
)
Accrued expenses and other liabilities
(3,261
)
3,468
5,559
10,217
Net cash provided by operating
activities
18,906
14,991
43,736
46,533
Cash flows from investing
activities
Purchase of property and equipment
(243
)
(895
)
(554
)
(1,732
)
Purchase of marketable securities
(158,522
)
(144,989
)
(310,075
)
(322,008
)
Maturities of marketable securities
108,993
36,906
345,733
76,811
Sale of marketable securities
—
—
4,609
65,052
Acquisitions, net of cash acquired
187
—
(98,093
)
—
Purchase of intangible assets
(44
)
(48
)
(116
)
(167
)
Net cash used in investing activities
(49,629
)
(109,026
)
(58,496
)
(182,044
)
Cash flows from financing
activities
Proceeds from option exercises
3,273
1,120
3,865
3,324
Taxes paid related to net share
settlements of stock-based compensation awards
(1,173
)
(984
)
(11,424
)
(9,424
)
Proceeds from shares issued in connection
with employee stock purchase plan
6,709
6,967
13,822
12,513
Proceeds from the issuance of convertible
senior notes, net of issuance costs
—
691,113
—
691,113
Payments for repurchase of convertible
senior notes
—
(396,869
)
—
(396,869
)
Principal payments on finance lease
obligations
(134
)
(127
)
(395
)
(376
)
Net cash provided by financing
activities
8,675
301,220
5,868
300,281
Effect of foreign exchange rates on
cash
2,390
(1,239
)
925
(82
)
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(19,658
)
205,946
(7,967
)
164,688
Cash, cash equivalents, and restricted
cash at beginning of period
268,412
198,939
256,721
240,197
Cash, cash equivalents, and restricted
cash at end of period
$
248,754
$
404,885
$
248,754
$
404,885
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Reconciliation of cash, cash
equivalents, and restricted cash to the consolidated balance
sheets
Cash and cash equivalents at end of
period
$
248,239
$
404,885
$
248,239
$
404,885
Restricted cash included within prepaid
expenses and other at end of period
515
—
515
—
Total cash, cash equivalents, and
restricted cash at end of period shown in the consolidated
statements of cash flows
$
248,754
$
404,885
$
248,754
$
404,885
TABLE I WORKIVA
INC. RECONCILIATION OF NON-GAAP INFORMATION (in
thousands, except share and per share)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Gross profit, subscription and support
$
140,414
$
118,557
$
400,256
$
335,777
Add back: Stock-based compensation
2,164
1,247
5,708
3,732
Add back: Amortization of
acquisition-related intangibles
$
1,007
$
—
$
1,007
$
—
Gross profit, subscription and support,
non-GAAP
$
143,585
$
119,804
$
406,971
$
339,509
Gross profit, professional services
$
1,536
$
1,263
$
12,169
$
11,232
Add back: Stock-based compensation
858
623
2,348
1,923
Gross profit, professional services,
non-GAAP
$
2,394
$
1,886
$
14,517
$
13,155
Gross profit
$
141,950
$
119,820
$
412,425
$
347,009
Add back: Stock-based compensation
3,022
1,870
8,056
5,655
Add back: Amortization of
acquisition-related intangibles
$
1,007
$
—
$
1,007
$
—
Gross profit, non-GAAP
$
145,979
$
121,690
$
421,488
$
352,664
Cost of revenue, subscription and
support
$
30,621
$
24,864
$
86,493
$
74,080
Less: Stock-based compensation
2,164
1,247
5,708
3,732
Less: Amortization of acquisition-related
intangibles
$
1,007
$
—
$
1,007
$
—
Cost of revenue, subscription and support,
non-GAAP
$
27,450
$
23,617
$
79,778
$
70,348
Cost of revenue, professional services
$
13,050
$
13,491
$
39,873
$
42,297
Less: Stock-based compensation
858
623
2,348
1,923
Cost of revenue, professional services,
non-GAAP
$
12,192
$
12,868
$
37,525
$
40,374
Research and development
$
48,425
$
41,747
$
142,328
$
130,235
Less: Stock-based compensation
5,681
4,155
15,474
13,677
Less: Amortization of acquisition-related
intangibles
414
891
2,267
2,668
Research and development, non-GAAP
$
42,330
$
36,701
$
124,587
$
113,890
Sales and marketing
$
89,756
$
72,576
$
257,086
$
215,168
Less: Stock-based compensation
9,942
7,108
26,470
20,769
Less: Amortization of acquisition-related
intangibles
467
598
1,292
1,805
Sales and marketing, non-GAAP
$
79,347
$
64,870
$
229,324
$
192,594
General and administrative
$
25,551
$
21,022
$
76,225
$
86,660
Less: Stock-based compensation
8,825
6,244
25,879
37,928
General and administrative, non-GAAP
$
16,726
$
14,778
$
50,346
$
48,732
Loss from operations
$
(21,782
)
$
(15,525
)
$
(63,214
)
$
(85,054
)
Add back: Stock-based compensation
27,470
19,377
75,879
78,029
Add back: Amortization of
acquisition-related intangibles
1,889
1,489
4,566
4,473
Income (loss) from operations,
non-GAAP
$
7,577
$
5,341
$
17,231
$
(2,552
)
Net loss
$
(16,992
)
$
(56,269
)
$
(46,227
)
$
(123,329
)
Add back: Stock-based compensation
27,470
19,377
75,879
78,029
Add back: Amortization of
acquisition-related intangibles
1,889
1,489
4,566
4,473
Net income (loss), non-GAAP
$
12,367
$
(35,403
)
$
34,218
$
(40,827
)
Net loss per basic and diluted share:
$
(0.31
)
$
(1.04
)
$
(0.84
)
$
(2.28
)
Add back: Stock-based compensation
0.50
0.36
1.38
1.44
Add back: Amortization of
acquisition-related intangibles
0.03
0.03
0.08
0.08
Net income (loss) per basic share,
non-GAAP
$
0.22
$
(0.65
)
$
0.62
$
(0.76
)
Net income (loss) per diluted share,
non-GAAP
$
0.21
$
(0.65
)
$
0.60
$
(0.76
)
Weighted-average common shares outstanding
- basic, non-GAAP
55,581,841
54,256,941
55,226,254
53,987,791
Weighted-average common shares outstanding
- diluted, non-GAAP
57,557,373
54,256,941
57,361,707
53,987,791
TABLE II WORKIVA
INC. RECONCILIATION OF NON-GAAP GUIDANCE (in
thousands, except share and per share data)
Three months ending December
31, 2024
Year ending December 31,
2024
Loss from operations, GAAP range
$
(16,186
)
-
$
(14,186
)
$
(79,400
)
-
$
(77,400
)
Add back: Stock-based compensation
27,121
27,121
103,000
103,000
Add back: Amortization of
acquisition-related intangibles
1,834
1,834
6,400
6,400
Income from operations, non-GAAP range
$
12,769
-
$
14,769
$
30,000
-
$
32,000
Net loss per share, GAAP range
$
(0.21
)
-
$
(0.18
)
$
(1.05
)
-
$
(1.02
)
Add back: Stock-based compensation
0.49
0.49
1.86
1.86
Add back: Amortization of
acquisition-related intangibles
0.03
0.03
0.12
0.12
Net income per share, non-GAAP range
$
0.31
-
$
0.34
$
0.93
-
$
0.96
Weighted-average common shares outstanding
- basic
55,800,000
55,800,000
55,400,000
55,400,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106940239/en/
Investor Contact: Mike Rost Workiva Inc.
investor@workiva.com
Media Contact: Mandi McReynolds Workiva Inc.
press@workiva.com
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