Workiva (WK 5.41%) stock is posting big gains in Wednesday's trading. The company's share price was up 5.5% as of 3:25 p.m. ET and had been up as much as 9.3% earlier in the day's trading.Workiva's valuation is climbing higher following the company's recent fourth-quarter report. The software specialist published its Q4 results before the market opened this morning, posting sales that came in ahead of the market's expectations.Workiva stock jumps on strong Q4 reportFor the fourth quarter, Workiva posted non ...

Workiva (WK) Q4 2024 Earnings Call February 26, 2025 01:00 AM ET Company Participants Katie White - Senior Director - IRJulie Iskow - CEO, President & DirectorJill Klindt - Executive VP & CFOAlexander Sklar - Vice PresidentDominique Manansala - Equity Research Associate Conference Call Participants Rob Oliver - Senior Research AnalystAdam Hotchkiss - AnalystDaniel Jester - Director & Equity Research AnalystGeorge Kurosawa - Equity Research AnalystJake Roberge - Equity Research Analyst Operator afternoon, la ...

Workiva (WK) reported $199.89 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 20%. EPS of $0.33 for the same period compares to $0.30 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $195.27 million, representing a surprise of +2.37%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.33.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

Workiva (WK) came out with quarterly earnings of $0.33 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of software for managing regulatory filings would post earnings of $0.23 per share when it actually produced earnings of $0.21, delivering a surprise of -8.70%.Over the last four quarters, the company has surpassed consensus EPS estimates just once ...

Workiva Inc. (NYSE:WK) Q4 2024 Earnings Conference Call February 25, 2025 5:00 PM ET Company Participants Katie White - Senior Director, Investor Relations Julie Iskow - Chief Executive Officer Jill Klindt - Chief Financial Officer Conference Call Participants Rob Oliver - Baird Alex Sklar - Raymond James Dominique Manansala - Truist Adam Hotchkiss - Goldman Sachs Daniel Jester - BMO George Kurosawa - Citi Jake Roberge - William Blair Operator Good afternoon, ladies and gentlemen. My name is Nick, and I wil ...

Workiva Inc. Investor Presentation February 25, 2025 Safe Harbor This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including any statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "may," "will," "could," "would," "should," "expect," "plan," "assume," "anticipate," "intend," ...

Revenue Growth - Workiva's total revenue increased to $738.7 million in 2024, up 17.2% from $630.0 million in 2023[236] - Subscription and support revenue reached $667.6 million in 2024, reflecting a year-over-year increase of 19.5%[249] - Total revenue for 2024 increased by $108.6 million, or 17.2%, to $738.7 million compared to 2023, driven primarily by a $109.0 million increase in subscription and support revenue[268] - Subscription and support revenue accounted for 90.4% of total revenue in 2024, up from 88.7% in 2023[267] - Total revenue for the year ended December 31, 2024, was $738.68 million, a 17.2% increase from $630.04 million in 2023[338] - Subscription and support revenue increased to $667.65 million in 2024, up 19.5% from $558.65 million in 2023[338] Customer Metrics - The number of customers grew to 6,305 in 2024, compared to 6,034 in 2023, indicating a steady increase in customer base[249] - The total number of customers increased by 4.5% from December 31, 2023, to December 31, 2024, indicating continued demand for the company's services[268] Retention Rates - The gross retention rate was 97.4% as of December 31, 2024, down from 97.9% in 2023, while the net retention rate improved to 111.9% from 110.3%[251][253] - Workiva's annual contract value (ACV) metrics showed that 71.2% of subscription and support revenue came from customers with an annual contract value of $100k+, up from 66.3% in 2023[255] Employee Growth - The company expanded its full-time employee headcount to 2,828 in 2024, a 12.0% increase from 2,526 in 2023[236] Financial Performance - The net loss for 2024 was $55.0 million, an improvement from a net loss of $127.5 million in 2023[266] - Gross profit margin improved to 76.7% in 2024 from 75.6% in 2023, reflecting better cost management[267] - Operating expenses rose to $643.16 million in 2024, up 12.7% from $570.34 million in 2023, driven by increased research and development and sales and marketing costs[338] Investment and Expenses - Research and development expenses rose by $20.1 million, or 11.7%, to $192.9 million in 2024, mainly due to increased compensation and professional service fees[271] - Sales and marketing expenses increased by $60.2 million, or 21.0%, to $347.2 million in 2024, driven by higher compensation and marketing costs[272] - General and administrative expenses decreased by $7.5 million, or 6.8%, to $103.0 million in 2024, primarily due to lower stock-based compensation[273] Cash Flow and Liquidity - Cash flow from operating activities for the year ended December 31, 2024 was $87.7 million, an increase from $70.9 million in 2023[280][282] - As of December 31, 2024, the company's liquidity sources included cash, cash equivalents, and marketable securities totaling $816.4 million[276] - The company's cash and cash equivalents increased from $256.1 million in 2023 to $301.8 million in 2024, representing an increase of approximately 17.8%[334] Debt and Financing - The company issued $702.0 million of 1.250% convertible senior notes due 2028, with net proceeds of $691.1 million, and used $396.9 million to repurchase $273.8 million of 1.125% convertible senior notes due 2026[277] - The board authorized a share repurchase program for up to $100.0 million of Class A common stock, but no repurchases had been made as of December 31, 2024[278] - Total contractual obligations as of December 31, 2024, amounted to $1,004.4 million, with $809.9 million related to convertible senior notes[288] Market and Economic Conditions - The company faces potential impacts on sales of sustainability solutions due to domestic and global policy uncertainties[238] Asset and Liability Management - The company's total assets increased from $1,218.9 million in 2023 to $1,368.5 million in 2024, marking a growth of approximately 12.3%[334] - The total liabilities increased from $1,308.3 million in 2023 to $1,410.2 million in 2024, which is an increase of about 7.8%[335] - The accumulated deficit grew from $652.6 million in 2023 to $707.7 million in 2024, indicating an increase of approximately 8.4%[335] Deferred Revenue - Deferred revenue increased from $380.8 million in 2023 to $457.6 million in 2024, reflecting a growth of about 20.2%[335] - Deferred revenue increased to $73.84 million in 2024, up from $60.11 million in 2023, indicating strong future revenue potential[348] Other Financial Metrics - Interest income increased by $13.5 million to $39.4 million in 2024, attributed to a higher investment balance and interest rates[274] - The company recognized foreign currency transaction losses of $551,000 in 2024, compared to losses of $1,154,000 in 2023[302]

Revenue Growth - Subscription revenue grew by 22% in Q4 2024, contributing to total revenue of $200 million, a 20% year-over-year increase from $167 million in Q4 2023[5] - Total revenue for the full year 2024 reached $739 million, a 17% increase from $630 million in 2023[11] - Total revenue for Q4 2024 reached $199.889 million, a 19.9% increase from $166.653 million in Q4 2023[21] - Subscription and support revenue increased to $180.897 million, up 21.5% from $148.788 million year-over-year[21] - Guidance for full year 2025 projects total revenue in the range of $864 million to $868 million[11] Customer Metrics - Customers with annual contract value over $500,000 increased by 32% year-over-year, reaching 181 customers[7] - Workiva's gross retention rate was 97% and net retention rate was 112% as of December 31, 2024[6] Profitability and Loss - GAAP net loss for Q4 2024 was $9 million, compared to a net loss of $4 million in Q4 2023, resulting in a net loss per share of $0.16[6] - Non-GAAP net income for Q4 2024 was $19 million, up from $18 million in the prior year's fourth quarter, with non-GAAP net income per diluted share of $0.33[6] - GAAP net loss for 2024 was $55 million, significantly improved from a net loss of $128 million in 2023[11] - Net loss for Q4 2024 was $8.815 million, compared to a net loss of $4.196 million in Q4 2023, reflecting a 110.5% increase[21] - The company experienced a net loss of $8.815 million in Q4 2024, compared to a net loss of $4.196 million in Q4 2023[32] Cash Flow and Liquidity - Free cash flow for 2024 was $86 million, compared to $69 million in 2023, with a free cash flow margin of 11.7%[11] - Net cash provided by operating activities for Q4 2024 was $43.970 million, compared to $24.342 million in Q4 2023, a 80.7% increase[25] - Free cash flow for Q4 2024 was $43.161 million, up from $23.950 million in Q4 2023, marking an increase of 80.5%[32] - Cash and cash equivalents as of December 31, 2024, were $301.835 million, up from $256.100 million in 2023[23] - Cash, cash equivalents, and restricted cash at the end of the period increased to $302.350 million in Q4 2024 from $256.721 million in Q4 2023, a rise of 17.7%[30] - Workiva had cash, cash equivalents, and marketable securities totaling $816 million as of December 31, 2024[6] Operating Expenses - Operating expenses for Q4 2024 totaled $167.520 million, a 21.1% increase from $138.281 million in Q4 2023[21] - Research and development expenses for Q4 2024 were $50.607 million, up from $42.555 million in Q4 2023, reflecting an increase of 18.4%[30] Deferred Revenue and Assets - Deferred revenue increased to $457.608 million in 2024, up 20.2% from $380.843 million in 2023[23] - Total assets increased to $1.368 billion in 2024, compared to $1.218 billion in 2023, marking a 12.3% growth[23] Margins - The GAAP operating margin for Q4 2024 was reported at (6.6)%, an improvement from (5.6)% in Q4 2023[32] - Non-GAAP operating margin for Q4 2024 was 7.4%, slightly down from 7.6% in Q4 2023[32] - The company provided guidance for a GAAP operating margin of (14.3)% for the year ending December 31, 2025[34] Stock-Based Compensation - The company reported stock-based compensation expense of $26.271 million for Q4 2024, an increase from $20.736 million in Q4 2023[25] Gross Profit - Gross profit for the year ended December 31, 2024, was $566.625 million, representing a 19.1% increase compared to $475.817 million in 2023[21] - Gross profit for subscription and support increased to $148.693 million in Q4 2024, up from $123.675 million in Q4 2023, representing a growth of 20.2%[30] - Non-GAAP gross profit for subscription and support reached $151.880 million in Q4 2024, compared to $124.973 million in Q4 2023, reflecting a 21.5% increase[30]

Stock Performance - Workiva stock experienced a significant sell-off, dropping 13 3% in Wednesday's trading, while the S&P 500 gained 0 6% and the Nasdaq Composite climbed 1 2% [1] EU Policy Impact - Germany and France are considering changes to the EU's sustainability reporting standards, which could impact Workiva's growth outlook as this category has been a significant part of its business [2] - The EU's Corporate Sustainability Reporting Directive (CSRD), effective since January 2023, requires companies to report on non-financial metrics, and Workiva provides a platform for this purpose [3] - Potential shifts in EU reporting requirements could lead to a significant sales shortfall for Workiva, as investors are concerned about the softening of one of its anticipated growth drivers [4] Future Outlook - Workiva will release its fourth-quarter earnings and host a conference call on February 25, where it may provide updates on its performance outlook in the EU and potential changes to CSRD reporting requirements [5] - The market may be overreacting to reports of possible policy shifts, as the extent of EU policy changes and Workiva's exposure to them remain unclear [6]

Investment Recommendation - The recommendation for Workiva (NYSE: WK) is a buy rating due to its potential to benefit from multiple secular tailwinds that support high-teens revenue growth in the next few years [1] Investment Approach - The investment approach focuses on long-term investments while incorporating short-term strategies to uncover alpha opportunities [1] - The analysis is bottom-up, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1] Analyst's Position - The analyst has no stock, option, or derivative positions in any of the mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not influenced by compensation or business relationships with the mentioned companies [2]