NEW YORK--(BUSINESS WIRE)--Workiva Inc. (NYSE:WK), the world’s leading cloud platform for assured integrated reporting, today announced financial results for its second quarter ended June 30, 2024.
"In Q2, we saw a healthy improvement in the buying environment marked by broad-based demand across our entire solution portfolio," said Julie Iskow, President & Chief Executive Officer. "This demand was driven by a number of multi-solution and large contract platform deals. Whether from new logos or account expansions, we’re encouraged by our win rates, our deal sizes, and our platform wins."
"Q2 was a good quarter with 18% growth in subscription revenue and a 150 basis point year over year improvement in GAAP operating margin, which equated to a 240 basis point improvement on a Non-GAAP basis," said Jill Klindt, Chief Financial Officer. "Our strong first half performance along with improved sales momentum gives us the confidence to raise our full year total revenue guidance range to $727 million to $729 million."
Second Quarter 2024 Financial Results
- Revenue: Total revenue for the second quarter of 2024 reached $178 million, an increase of 15% from $155 million in the second quarter of 2023. Subscription and support revenue contributed $161 million, up 18% versus the second quarter of 2023. Professional services revenue was $17 million, down 8% from the second quarter of 2023.
- Gross Profit: GAAP gross profit for the second quarter of 2024 was $136 million compared with $116 million in the same quarter of 2023. GAAP gross margin was 76.8% versus 74.5% in the second quarter of 2023. Non-GAAP gross profit for the second quarter of 2024 was $139 million, an increase of 18% compared with the prior year's second quarter, and non-GAAP gross margin was 78.3% compared to 75.9% in the second quarter of 2023.
- Results from Operations: GAAP loss from operations for the second quarter of 2024 was $23 million, relatively flat compared to the same quarter in the prior year. Non-GAAP income from operations was $4 million compared with a non-GAAP loss from operations of $1 million in the second quarter of 2023.
- GAAP Net Loss: GAAP net loss for the second quarter of 2024 was $18 million compared with a net loss of $21 million for the prior year's second quarter. GAAP net loss per basic and diluted share was $0.32 compared with a net loss per basic and diluted share of $0.39 in the second quarter of 2023.
- Non-GAAP Net Income: Non-GAAP net income for the second quarter of 2024 was $9 million compared with net income of $1 million in the prior year's second quarter. Non-GAAP net income per basic share and diluted share was $0.17 and $0.16, respectively, compared with net income per basic share and diluted share of $0.02 in the second quarter of 2023.
- Liquidity: As of June 30, 2024, Workiva had cash, cash equivalents, and marketable securities totaling $741 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 June 30, 2024.
Key Metrics and Recent Business Highlights
- Workiva Announces Share Repurchase Program: Workiva announced that its Board of Directors has authorized the repurchase of up to $100 million of its Class A common stock.
- Customers: Workiva had 6,147 customers as of June 30, 2024, a net increase of 287 customers from June 30, 2023.
- Revenue Retention Rate: As of June 30, 2024, Workiva's revenue retention rate (excluding add-on revenue) was 98%, and the revenue retention rate including add-on revenue was 109%. Add-on revenue includes changes in both solutions and pricing for existing customers.
- Large Contracts: As of June 30, 2024, Workiva had 1,768 customers with an annual contract value (“ACV”) of more than $100,000, up 20% from 1,470 customers at June 30, 2023. Workiva had 1,015 customers with an ACV of more than $150,000, up 23% from 823 customers in the second quarter of 2023. Workiva had 356 customers with an ACV of more than $300,000, up 31% from 272 customers in the second quarter of 2023.
Financial Outlook
As of August 1, 2024, Workiva is providing guidance as follows:
Third Quarter 2024 Guidance:
- Total revenue is expected to be in the range of $182 million to $183 million.
- GAAP loss from operations is expected to be in the range of $22 million to $21 million.
- Non-GAAP income from operations is expected to be in the range of $6.5 million to $7.5 million.
- GAAP net loss per basic share is expected to be in the range of $0.29 to $0.27.
- Non-GAAP net income per basic share is expected to be in the range of $0.22 to $0.24.
- Net income (loss) per basic share is based on 55.4 million weighted-average shares outstanding.
Full Year 2024 Guidance:
- Total revenue is expected to be in the range of $727 million to $729 million.
- GAAP loss from operations is expected to be in the range of $81 million to $79 million.
- Non-GAAP income from operations is expected to be in the range of $29 million to $31 million.
- GAAP net loss per basic share is expected to be in the range of $1.05 to $1.01.
- Non-GAAP net income per basic share is expected to be in the range of $0.94 to $0.98.
- Net income (loss) per basic share is based on 55.3 million weighted-average shares outstanding.
Share Repurchase Authorization
Workiva's Board of Directors has authorized a stock repurchase program of up to $100 million of Workiva's outstanding Class A common stock. The program has no minimum purchase commitment and no mandated end date. The repurchase is expected to be executed, subject to general business and market conditions and other investment opportunities, through open market purchases, block trades, and/or privately negotiated trades pursuant to 10b5-1 plans and other transactions in accordance with applicable securities laws. The timing and the amount of any repurchased common stock will be determined by Workiva's management based on its evaluation of market conditions and other factors. The repurchase program does not obligate Workiva to acquire any particular amount of Class A common stock and the repurchase program may be suspended or discontinued at any time at Workiva's discretion without prior notice. When shares are repurchased, they will be immediately retired by the Company.
Quarterly Conference Call
Workiva will host a webcast today at 5:00 p.m. ET to review the Company’s financial results for the second quarter 2024, in addition to discussing the Company’s outlook for the third quarter and full year 2024, and an update to the Company's long term financial model. 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, Environmental, Social, and Governance (ESG), and Governance, Risk, and Compliance (GRC) 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 June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
||||||||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Subscription and support |
$ |
160,735 |
|
|
$ |
136,772 |
|
|
$ |
315,714 |
|
|
$ |
266,436 |
|
Professional services |
|
16,768 |
|
|
|
18,250 |
|
|
|
37,456 |
|
|
|
38,775 |
|
Total revenue |
|
177,503 |
|
|
|
155,022 |
|
|
|
353,170 |
|
|
|
305,211 |
|
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription and support (1) |
|
27,945 |
|
|
|
25,083 |
|
|
|
55,872 |
|
|
|
49,216 |
|
Professional services (1) |
|
13,227 |
|
|
|
14,421 |
|
|
|
26,823 |
|
|
|
28,806 |
|
Total cost of revenue |
|
41,172 |
|
|
|
39,504 |
|
|
|
82,695 |
|
|
|
78,022 |
|
Gross profit |
|
136,331 |
|
|
|
115,518 |
|
|
|
270,475 |
|
|
|
227,189 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development (1) |
|
48,408 |
|
|
|
42,697 |
|
|
|
93,903 |
|
|
|
88,488 |
|
Sales and marketing (1) |
|
84,697 |
|
|
|
71,882 |
|
|
|
167,330 |
|
|
|
142,592 |
|
General and administrative (1) |
|
26,375 |
|
|
|
23,627 |
|
|
|
50,674 |
|
|
|
65,638 |
|
Total operating expenses |
|
159,480 |
|
|
|
138,206 |
|
|
|
311,907 |
|
|
|
296,718 |
|
Loss from operations |
|
(23,149 |
) |
|
|
(22,688 |
) |
|
|
(41,432 |
) |
|
|
(69,529 |
) |
Interest income |
|
10,336 |
|
|
|
4,535 |
|
|
|
20,791 |
|
|
|
8,252 |
|
Interest expense |
|
(3,237 |
) |
|
|
(1,499 |
) |
|
|
(6,469 |
) |
|
|
(3,000 |
) |
Other (expense) and income, net |
|
(45 |
) |
|
|
(439 |
) |
|
|
41 |
|
|
|
(1,379 |
) |
Loss before provision for income taxes |
|
(16,095 |
) |
|
|
(20,091 |
) |
|
|
(27,069 |
) |
|
|
(65,656 |
) |
Provision for income taxes |
|
1,453 |
|
|
|
819 |
|
|
|
2,166 |
|
|
|
1,404 |
|
Net loss |
$ |
(17,548 |
) |
|
$ |
(20,910 |
) |
|
$ |
(29,235 |
) |
|
$ |
(67,060 |
) |
Net loss per common share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.32 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.53 |
) |
|
$ |
(1.25 |
) |
Weighted-average common shares outstanding - basic and diluted |
|
55,177,162 |
|
|
|
54,009,963 |
|
|
|
55,046,507 |
|
|
|
53,850,986 |
|
(1) Includes stock-based compensation expense as follows:
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(unaudited) |
||||||||||
Cost of revenue |
|
|
|
|
|
|
|
||||
Subscription and support |
$ |
1,943 |
|
$ |
1,413 |
|
$ |
3,544 |
|
$ |
2,485 |
Professional services |
|
763 |
|
|
667 |
|
|
1,490 |
|
|
1,300 |
Operating expenses |
|
|
|
|
|
|
|
||||
Research and development |
|
5,152 |
|
|
4,825 |
|
|
9,793 |
|
|
9,522 |
Sales and marketing |
|
8,490 |
|
|
6,703 |
|
|
16,528 |
|
|
13,661 |
General and administrative |
|
9,054 |
|
|
7,002 |
|
|
17,054 |
|
|
31,684 |
WORKIVA INC. |
|||||||
|
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
267,897 |
|
|
$ |
256,100 |
|
Marketable securities |
|
472,956 |
|
|
|
557,622 |
|
Accounts receivable, net |
|
121,359 |
|
|
|
125,193 |
|
Deferred costs |
|
41,994 |
|
|
|
39,023 |
|
Other receivables |
|
6,877 |
|
|
|
7,367 |
|
Prepaid expenses and other |
|
21,307 |
|
|
|
23,631 |
|
Total current assets |
|
932,390 |
|
|
|
1,008,936 |
|
Property and equipment, net |
|
22,268 |
|
|
|
24,282 |
|
Operating lease right-of-use assets |
|
10,535 |
|
|
|
12,642 |
|
Deferred costs, non-current |
|
40,169 |
|
|
|
33,346 |
|
Goodwill |
|
199,202 |
|
|
|
112,097 |
|
Intangible assets, net |
|
31,533 |
|
|
|
22,892 |
|
Other assets |
|
6,592 |
|
|
|
4,665 |
|
Total assets |
$ |
1,242,689 |
|
|
$ |
1,218,860 |
|
Liabilities and Stockholders’ Deficit |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
8,229 |
|
|
$ |
5,204 |
|
Accrued expenses and other current liabilities |
|
113,339 |
|
|
|
97,921 |
|
Deferred revenue |
|
384,105 |
|
|
|
380,843 |
|
Finance lease obligations |
|
547 |
|
|
|
532 |
|
Total current liabilities |
|
506,220 |
|
|
|
484,500 |
|
Convertible senior notes, non-current |
|
763,672 |
|
|
|
762,455 |
|
Deferred revenue, non-current |
|
27,694 |
|
|
|
36,177 |
|
Other long-term liabilities |
|
221 |
|
|
|
178 |
|
Operating lease liabilities, non-current |
|
8,856 |
|
|
|
10,890 |
|
Finance lease obligations, non-current |
|
13,773 |
|
|
|
14,050 |
|
Total liabilities |
|
1,320,436 |
|
|
|
1,308,250 |
|
Stockholders’ deficit |
|
|
|
||||
Common stock |
|
55 |
|
|
|
54 |
|
Additional paid-in-capital |
|
608,804 |
|
|
|
562,942 |
|
Accumulated deficit |
|
(681,876 |
) |
|
|
(652,641 |
) |
Accumulated other comprehensive (loss) income |
|
(4,730 |
) |
|
|
255 |
|
Total stockholders’ deficit |
|
(77,747 |
) |
|
|
(89,390 |
) |
Total liabilities and stockholders’ deficit |
$ |
1,242,689 |
|
|
$ |
1,218,860 |
|
WORKIVA INC. |
|||||||||||||||
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
||||||||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(17,548 |
) |
|
$ |
(20,910 |
) |
|
$ |
(29,235 |
) |
|
$ |
(67,060 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
2,564 |
|
|
|
2,867 |
|
|
|
5,086 |
|
|
|
5,667 |
|
Stock-based compensation expense |
|
25,402 |
|
|
|
20,610 |
|
|
|
48,409 |
|
|
|
58,652 |
|
Provision for (recovery of) doubtful accounts |
|
20 |
|
|
|
(57 |
) |
|
|
(103 |
) |
|
|
49 |
|
Realized loss on sale of available-for-sale securities, net |
|
— |
|
|
|
147 |
|
|
|
— |
|
|
|
708 |
|
Amortization of premiums and discounts on marketable securities, net |
|
(3,156 |
) |
|
|
(1,572 |
) |
|
|
(6,905 |
) |
|
|
(2,600 |
) |
Amortization of issuance costs and debt discount |
|
609 |
|
|
|
325 |
|
|
|
1,217 |
|
|
|
650 |
|
Deferred income tax |
|
4 |
|
|
|
7 |
|
|
|
(291 |
) |
|
|
(3 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(33,267 |
) |
|
|
(6,886 |
) |
|
|
3,680 |
|
|
|
22,477 |
|
Deferred costs |
|
(11,599 |
) |
|
|
1,362 |
|
|
|
(10,194 |
) |
|
|
3,132 |
|
Operating lease right-of-use asset |
|
1,172 |
|
|
|
1,268 |
|
|
|
2,598 |
|
|
|
2,563 |
|
Other receivables |
|
4,347 |
|
|
|
(381 |
) |
|
|
4,541 |
|
|
|
(286 |
) |
Prepaid expenses |
|
4,693 |
|
|
|
(1,705 |
) |
|
|
2,420 |
|
|
|
(7,437 |
) |
Other assets |
|
(565 |
) |
|
|
510 |
|
|
|
(1,655 |
) |
|
|
436 |
|
Accounts payable |
|
(1,884 |
) |
|
|
(1,088 |
) |
|
|
2,842 |
|
|
|
(881 |
) |
Deferred revenue |
|
13,079 |
|
|
|
21,060 |
|
|
|
(4,447 |
) |
|
|
11,105 |
|
Operating lease liability |
|
(966 |
) |
|
|
(1,207 |
) |
|
|
(1,953 |
) |
|
|
(2,379 |
) |
Accrued expenses and other liabilities |
|
17,081 |
|
|
|
11,629 |
|
|
|
8,820 |
|
|
|
6,749 |
|
Net cash (used in) provided by operating activities |
|
(14 |
) |
|
|
25,979 |
|
|
|
24,830 |
|
|
|
31,542 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(108 |
) |
|
|
(639 |
) |
|
|
(311 |
) |
|
|
(837 |
) |
Purchase of marketable securities |
|
(34,986 |
) |
|
|
(51,204 |
) |
|
|
(151,553 |
) |
|
|
(177,019 |
) |
Sale of marketable securities |
|
— |
|
|
|
21,339 |
|
|
|
4,609 |
|
|
|
65,052 |
|
Maturities of marketable securities |
|
107,100 |
|
|
|
8,000 |
|
|
|
236,740 |
|
|
|
39,905 |
|
Acquisitions, net of cash acquired |
|
(98,280 |
) |
|
|
— |
|
|
|
(98,280 |
) |
|
|
— |
|
Purchase of intangible assets |
|
(41 |
) |
|
|
(40 |
) |
|
|
(72 |
) |
|
|
(119 |
) |
Net cash used in investing activities |
|
(26,315 |
) |
|
|
(22,544 |
) |
|
|
(8,867 |
) |
|
|
(73,018 |
) |
|
|
|
|
|
|
|
|
||||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from option exercises |
|
290 |
|
|
|
747 |
|
|
|
592 |
|
|
|
2,204 |
|
Taxes paid related to net share settlements of stock-based compensation awards |
|
(1,640 |
) |
|
|
(1,212 |
) |
|
|
(10,251 |
) |
|
|
(8,440 |
) |
Proceeds from shares issued in connection with employee stock purchase plan |
|
— |
|
|
|
— |
|
|
|
7,113 |
|
|
|
5,546 |
|
Principal payments on finance lease obligations |
|
(132 |
) |
|
|
(125 |
) |
|
|
(261 |
) |
|
|
(249 |
) |
Net cash used in financing activities |
|
(1,482 |
) |
|
|
(590 |
) |
|
|
(2,807 |
) |
|
|
(939 |
) |
Effect of foreign exchange rates on cash |
|
(358 |
) |
|
|
609 |
|
|
|
(1,465 |
) |
|
|
1,157 |
|
Net (decrease) increase in cash and cash equivalents |
|
(28,169 |
) |
|
|
3,454 |
|
|
|
11,691 |
|
|
|
(41,258 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
296,581 |
|
|
|
195,485 |
|
|
|
256,721 |
|
|
|
240,197 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
268,412 |
|
|
$ |
198,939 |
|
|
$ |
268,412 |
|
|
$ |
198,939 |
|
|
Three months ended June 30, |
|
Six months ended June 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 |
$ |
267,897 |
|
$ |
198,939 |
|
$ |
267,897 |
|
$ |
198,939 |
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 |
$ |
268,412 |
|
$ |
198,939 |
|
$ |
268,412 |
|
$ |
198,939 |
TABLE I |
|||||||||||||||
WORKIVA INC. |
|||||||||||||||
RECONCILIATION OF NON-GAAP INFORMATION |
|||||||||||||||
(in thousands, except share and per share) |
|||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Gross profit, subscription and support |
$ |
132,790 |
|
|
$ |
111,689 |
|
|
$ |
259,842 |
|
|
$ |
217,220 |
|
Add back: Stock-based compensation |
|
1,943 |
|
|
|
1,413 |
|
|
|
3,544 |
|
|
|
2,485 |
|
Gross profit, subscription and support, non-GAAP |
$ |
134,733 |
|
|
$ |
113,102 |
|
|
$ |
263,386 |
|
|
$ |
219,705 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit, professional services |
$ |
3,541 |
|
|
$ |
3,829 |
|
|
$ |
10,633 |
|
|
$ |
9,969 |
|
Add back: Stock-based compensation |
|
763 |
|
|
|
667 |
|
|
|
1,490 |
|
|
|
1,300 |
|
Gross profit, professional services, non-GAAP |
$ |
4,304 |
|
|
$ |
4,496 |
|
|
$ |
12,123 |
|
|
$ |
11,269 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
136,331 |
|
|
$ |
115,518 |
|
|
$ |
270,475 |
|
|
$ |
227,189 |
|
Add back: Stock-based compensation |
|
2,706 |
|
|
|
2,080 |
|
|
|
5,034 |
|
|
|
3,785 |
|
Gross profit, non-GAAP |
$ |
139,037 |
|
|
$ |
117,598 |
|
|
$ |
275,509 |
|
|
$ |
230,974 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue, subscription and support |
$ |
27,945 |
|
|
$ |
25,083 |
|
|
$ |
55,872 |
|
|
$ |
49,216 |
|
Less: Stock-based compensation |
|
1,943 |
|
|
|
1,413 |
|
|
|
3,544 |
|
|
|
2,485 |
|
Cost of revenue, subscription and support, non-GAAP |
$ |
26,002 |
|
|
$ |
23,670 |
|
|
$ |
52,328 |
|
|
$ |
46,731 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue, professional services |
$ |
13,227 |
|
|
$ |
14,421 |
|
|
$ |
26,823 |
|
|
$ |
28,806 |
|
Less: Stock-based compensation |
|
763 |
|
|
|
667 |
|
|
|
1,490 |
|
|
|
1,300 |
|
Cost of revenue, professional services, non-GAAP |
$ |
12,464 |
|
|
$ |
13,754 |
|
|
$ |
25,333 |
|
|
$ |
27,506 |
|
|
|
|
|
|
|
|
|
||||||||
Research and development |
$ |
48,408 |
|
|
$ |
42,697 |
|
|
$ |
93,903 |
|
|
$ |
88,488 |
|
Less: Stock-based compensation |
|
5,152 |
|
|
|
4,825 |
|
|
|
9,793 |
|
|
|
9,522 |
|
Less: Amortization of acquisition-related intangibles |
|
962 |
|
|
|
891 |
|
|
|
1,852 |
|
|
|
1,777 |
|
Research and development, non-GAAP |
$ |
42,294 |
|
|
$ |
36,981 |
|
|
$ |
82,258 |
|
|
$ |
77,189 |
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing |
$ |
84,697 |
|
|
$ |
71,882 |
|
|
$ |
167,330 |
|
|
$ |
142,592 |
|
Less: Stock-based compensation |
|
8,490 |
|
|
|
6,703 |
|
|
|
16,528 |
|
|
|
13,661 |
|
Less: Amortization of acquisition-related intangibles |
|
413 |
|
|
|
606 |
|
|
|
825 |
|
|
|
1,207 |
|
Sales and marketing, non-GAAP |
$ |
75,794 |
|
|
$ |
64,573 |
|
|
$ |
149,977 |
|
|
$ |
127,724 |
|
|
|
|
|
|
|
|
|
||||||||
General and administrative |
$ |
26,375 |
|
|
$ |
23,627 |
|
|
$ |
50,674 |
|
|
$ |
65,638 |
|
Less: Stock-based compensation |
|
9,054 |
|
|
|
7,002 |
|
|
|
17,054 |
|
|
|
31,684 |
|
General and administrative, non-GAAP |
$ |
17,321 |
|
|
$ |
16,625 |
|
|
$ |
33,620 |
|
|
$ |
33,954 |
|
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
$ |
(23,149 |
) |
|
$ |
(22,688 |
) |
|
$ |
(41,432 |
) |
|
$ |
(69,529 |
) |
Add back: Stock-based compensation |
|
25,402 |
|
|
|
20,610 |
|
|
|
48,409 |
|
|
|
58,652 |
|
Add back: Amortization of acquisition-related intangibles |
|
1,375 |
|
|
|
1,497 |
|
|
|
2,677 |
|
|
|
2,984 |
|
Income (loss) from operations, non-GAAP |
$ |
3,628 |
|
|
$ |
(581 |
) |
|
$ |
9,654 |
|
|
$ |
(7,893 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(17,548 |
) |
|
$ |
(20,910 |
) |
|
$ |
(29,235 |
) |
|
$ |
(67,060 |
) |
Add back: Stock-based compensation |
|
25,402 |
|
|
|
20,610 |
|
|
|
48,409 |
|
|
|
58,652 |
|
Add back: Amortization of acquisition-related intangibles |
|
1,375 |
|
|
|
1,497 |
|
|
|
2,677 |
|
|
|
2,984 |
|
Net income (loss), non-GAAP |
$ |
9,229 |
|
|
$ |
1,197 |
|
|
$ |
21,851 |
|
|
$ |
(5,424 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per basic and diluted share: |
$ |
(0.32 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.53 |
) |
|
$ |
(1.25 |
) |
Add back: Stock-based compensation |
|
0.47 |
|
|
|
0.38 |
|
|
|
0.88 |
|
|
|
1.09 |
|
Add back: Amortization of acquisition-related intangibles |
|
0.02 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.06 |
|
Net income (loss) per basic share, non-GAAP |
$ |
0.17 |
|
|
$ |
0.02 |
|
|
$ |
0.40 |
|
|
$ |
(0.10 |
) |
Net income (loss) per diluted share, non-GAAP |
$ |
0.16 |
|
|
$ |
0.02 |
|
|
$ |
0.38 |
|
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding - basic, non-GAAP |
|
55,177,162 |
|
|
|
54,009,963 |
|
|
|
55,046,507 |
|
|
|
53,850,986 |
|
Weighted-average common shares outstanding - diluted, non-GAAP |
|
56,418,031 |
|
|
|
55,793,636 |
|
|
|
57,260,662 |
|
|
|
53,850,986 |
|
TABLE II |
|||||||||||||||
WORKIVA INC. |
|||||||||||||||
RECONCILIATION OF NON-GAAP GUIDANCE |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
|
Three months ending September 30, 2024 |
|
Year ending December 31, 2024 |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Loss from operations, GAAP range |
$ |
(22,000 |
) |
- |
$ |
(21,000 |
) |
|
$ |
(81,000 |
) |
- |
$ |
(79,000 |
) |
Add back: Stock-based compensation |
|
26,600 |
|
|
|
26,600 |
|
|
|
103,500 |
|
|
|
103,500 |
|
Add back: Amortization of acquisition-related intangibles |
|
1,900 |
|
|
|
1,900 |
|
|
|
6,500 |
|
|
|
6,500 |
|
Income from operations, non-GAAP range |
$ |
6,500 |
|
- |
$ |
7,500 |
|
|
$ |
29,000 |
|
- |
$ |
31,000 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share, GAAP range |
$ |
(0.29 |
) |
- |
$ |
(0.27 |
) |
|
$ |
(1.05 |
) |
- |
$ |
(1.01 |
) |
Add back: Stock-based compensation |
|
0.48 |
|
|
|
0.48 |
|
|
|
1.87 |
|
|
|
1.87 |
|
Add back: Amortization of acquisition-related intangibles |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.12 |
|
|
|
0.12 |
|
Net income per share, non-GAAP range |
$ |
0.22 |
|
- |
$ |
0.24 |
|
|
$ |
0.94 |
|
- |
$ |
0.98 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding - basic |
|
55,400,000 |
|
|
|
55,400,000 |
|
|
|
55,300,000 |
|
|
|
55,300,000 |
|
