Workiva Announces Second Quarter 2020 Financial Results

08/04/20

Q2 Subscription and Support Revenue of $70.7 Million, up 16.9% from Q2 2019

Q2 Total Revenue of $83.9 Million, up 14.1% from Q2 2019

AMES, Iowa--(BUSINESS WIRE)-- Workiva Inc. (NYSE:WK), provider of the world’s leading connected reporting and compliance platform, today announced financial results for its second quarter ended June 30, 2020.

"Despite challenges from the COVID-19 pandemic, we are pleased with our second quarter 2020 financial results, which exceeded guidance for revenue and operating results," said Marty Vanderploeg, Chief Executive Officer.

"We are reinstating guidance for full year 2020 because we believe visibility on closing new business has substantially improved," said Stuart Miller, Chief Financial Officer.

"Our sales and marketing teams are succeeding in a virtual environment," said Vanderploeg. "In the second quarter, demand for our platform improved across all of our growth vectors, which include EMEA, Wdata and our platform solutions for Integrated Risk, Global Statutory Reporting and the U.S. Government."

"Our new platform increases flexibility and speed when developing new solutions, enabling us to enter more markets faster than before," said Vanderploeg. "Developing and delivering new solutions on our platform will continue to be key drivers to our success."

Second Quarter 2020 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2020 reached$83.9 million, an increase of 14.1% from $73.5 million in the second quarter of 2019. Subscription and support revenue contributed $70.7 million, up 16.9% versus the second quarter of 2019. Professional services revenue was $13.2 million, an increase of 1.2% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the second quarter of 2020 was $61.6 million compared with $52.8 million in the same quarter of 2019. GAAP gross margin was 73.5% versus 71.8% in the second quarter of 2019. Non-GAAP gross profit for the second quarter of 2020 was $62.4 million, an increase of 16.4% compared with the prior year's second quarter, and non-GAAP gross margin was 74.4% compared to 73.0% in the second quarter of 2019.
  • Results from Operations: GAAP loss from operations for the second quarter of 2020 was $16.8 million compared with a loss of $8.4 million in the prior year's second quarter. Non-GAAP loss from operations was $1.9 million, compared with non-GAAP income from operations of $0.1 million in the second quarter of 2019.
  • GAAP Net Loss: GAAP net loss for the second quarter of 2020 was $19.8 million compared with a net loss of $8.3 million for the prior year's second quarter. GAAP net loss per basic and diluted share was $0.41 compared with a net loss per basic and diluted share of $0.18 in the second quarter of 2019.
  • Non-GAAP Net Loss: Non-GAAP net loss for the second quarter of 2020 was $2.7 million compared with a net income of $0.2 million in the prior year's second quarter. Non-GAAP net loss per basic and diluted share was $0.06, compared with a net income per basic and diluted share of $0.00, in the second quarter of 2019.
  • Liquidity: As of June 30, 2020, Workiva had cash, cash equivalents and marketable securities totaling $508.6 million, compared with $488.0 million as of December 31, 2019. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 and other financing obligations totaled $16.6 million outstanding as of June 30, 2020.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 3,512 customers as of June 30, 2020, a net increase of 91 customers from June 30, 2019.
  • Revenue Retention Rate: As of June 30, 2020, Workiva's revenue retention rate (excluding add-on revenue) was 94.5%, and the revenue retention rate including add-on revenue was 107.9%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of June 30, 2020, Workiva had 716 customers with an annual contract value (ACV) of more than $100,000, up 28% from 558 customers at June 30, 2019. Workiva had 342 customers with an ACV of more than $150,000, up 44% from 238 customers in the second quarter of 2019.

Financial Outlook
As of August 4, 2020, Workiva is providing guidance as follows:

Third Quarter 2020 Guidance:

  • Total revenue is expected to be in the range of $84.3 million to $84.8 million.
  • GAAP loss from operations is expected to be in the range of $16.4 million to $16.9 million.
  • Non-GAAP loss from operations is expected to be in the range of $5.2 million to $5.7 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.39 to $0.40.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.12 to $0.13.
  • Net loss per basic and diluted share is based on 48.9 million weighted-average shares outstanding.

Full Year 2020 Guidance:

  • Total revenue is expected to be in the range of $341.5 million to $342.5 million.
  • GAAP loss from operations is expected to be in the range of $56.5 million to $58.0 million.
  • Non-GAAP loss from operation is expected to be in the range of $10.0 million to $11.5 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $1.37 to $1.40.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.23 to $0.26.
  • Net loss per basic and diluted share is based on 48.5 million weighted-average shares outstanding.

We are reinstating our 2020 full year guidance based on increased visibility into deal closings. In our third quarter and full year 2020 guidance, we factor in the expected impacts of COVID-19 on our business and results of operations based on information available to us today. Significant variation from these assumptions could cause us to change our guidance, and we undertake no obligation to update our assumptions, expectations or our guidance. These statements are forward-looking, and actual results may differ materially, as further discussed below under the heading “Safe Harbor Statement.”

Quarterly Conference Call
Workiva will host a conference call today at 5:00 p.m. ET to review the Company’s financial results for the second quarter, in addition to discussing the Company’s outlook for the third quarter and full year 2020. To access this call, dial 833-968-1977 (U.S. domestic) or 647-689-6649 (international). The conference ID is 1216459. A live webcast of the conference call will be accessible in the "Investor Relations" section of Workiva’s website at www.workiva.com. A replay of this conference call can also be accessed through August 11, 2020 at 800-585-8367 (U.S. domestic) or 416-621-4642 (international). The replay pass code is 1216459. An archived webcast of this conference call 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, provider of the world's leading connected reporting and compliance platform, is used by thousands of enterprises across 180 countries, including over 75 percent of Fortune 500® companies, and by government agencies. Our customers have linked over five billion data elements to trust their data, reduce risk and save time. For more information about Workiva (NYSE:WK), please visit workiva.com.

Read the Workiva blog: www.workiva.com/blog
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Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and non-cash interest expense. 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 loss from operations, non-GAAP net loss and non-GAAP net 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 loss from operations is calculated by excluding stock-based compensation expense from loss from operations. Non-GAAP net loss is calculated by excluding stock-based compensation expense, net of tax, and non-cash interest expense related to our convertible senior notes from net loss. Non-GAAP net loss per share is calculated by dividing non-GAAP net 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. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be accounted for as separate liability and equity components in a manner that reflects our non-convertible debt borrowing rate. This results in the debt component being treated as though it was issued at a discount, with the debt discount being accreted as additional non-cash interest expense over the term of the notes using the effective interest method. As a result, we believe that excluding this non-cash interest expense attributable to the debt discount in calculating our non-GAAP measures is useful because this interest expense does not represent a cash outflow and is not indicative of our ongoing operational performance. 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.

Safe Harbor Statement
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,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

(unaudited)

Revenue

 

 

 

 

 

 

 

Subscription and support

$

70,696

 

 

 

$

60,472

 

 

 

$

139,057

 

 

 

$

116,595

 

 

Professional services

13,164

 

 

 

13,012

 

 

 

30,604

 

 

 

26,852

 

 

Total revenue

83,860

 

 

 

73,484

 

 

 

169,661

 

 

 

143,447

 

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support (1)

12,098

 

 

 

10,202

 

 

 

24,251

 

 

 

20,011

 

 

Professional services (1)

10,146

 

 

 

10,475

 

 

 

20,389

 

 

 

20,202

 

 

Total cost of revenue

22,244

 

 

 

20,677

 

 

 

44,640

 

 

 

40,213

 

 

Gross profit

61,616

 

 

 

52,807

 

 

 

125,021

 

 

 

103,234

 

 

Operating expenses

 

 

 

 

 

 

 

Research and development (1)

23,508

 

 

 

21,795

 

 

 

46,502

 

 

 

43,806

 

 

Sales and marketing (1)

35,270

 

 

 

28,213

 

 

 

71,387

 

 

 

53,578

 

 

General and administrative (1)

19,632

 

 

 

11,226

 

 

 

33,080

 

 

 

21,609

 

 

Total operating expenses

78,410

 

 

 

61,234

 

 

 

150,969

 

 

 

118,993

 

 

Loss from operations

(16,794

)

 

 

(8,427

)

 

 

(25,948

)

 

 

(15,759

)

 

Interest income

655

 

 

 

641

 

 

 

2,361

 

 

 

1,133

 

 

Interest expense

(3,563

)

 

 

(433

)

 

 

(7,117

)

 

 

(873

)

 

Other (expense) and income, net

(68

)

 

 

(111

)

 

 

650

 

 

 

(283

)

 

Loss before (benefit) provision for income taxes

(19,770

)

 

 

(8,330

)

 

 

(30,054

)

 

 

(15,782

)

 

(Benefit) provision for income taxes

(5

)

 

 

(8

)

 

 

284

 

 

 

3

 

 

Net loss

$

(19,765

)

 

 

$

(8,322

)

 

 

$

(30,338

)

 

 

$

(15,785

)

 

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.41

)

 

 

$

(0.18

)

 

 

$

(0.63

)

 

 

$

(0.35

)

 

Weighted-average common shares outstanding - basic and diluted

48,171,552

 

 

 

46,166,660

 

 

 

47,858,628

 

 

 

45,700,559

 

 

(1) Includes stock-based compensation expense as follows:

 

Three months ended June 30,

 

Six months ended June 30,

 

2020

 

2019

 

2020

 

2019

 

(unaudited)

Cost of revenue

 

 

 

 

 

 

 

Subscription and support

$

436

 

 

$

399

 

 

$

867

 

 

$

756

 

Professional services

365

 

 

431

 

 

790

 

 

840

 

Operating expenses

 

 

 

 

 

 

 

Research and development

2,040

 

 

1,851

 

 

3,623

 

 

3,751

 

Sales and marketing

2,944

 

 

2,032

 

 

5,680

 

 

3,996

 

General and administrative

9,109

 

 

3,800

 

 

13,870

 

 

7,363

 

WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)

 

June 30, 2020

 

December 31, 2019

 

(unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

402,121

 

 

 

$

381,742

 

 

Marketable securities

106,451

 

 

 

106,214

 

 

Accounts receivable, net

41,470

 

 

 

60,228

 

 

Deferred commissions

15,650

 

 

 

14,108

 

 

Other receivables

2,630

 

 

 

2,432

 

 

Prepaid expenses and other

9,349

 

 

 

6,508

 

 

Total current assets

577,671

 

 

 

571,232

 

 

Property and equipment, net

38,913

 

 

 

39,745

 

 

Operating lease right-of-use assets

17,534

 

 

 

15,352

 

 

Deferred commissions, non-current

14,867

 

 

 

14,977

 

 

Intangible assets, net

1,622

 

 

 

1,651

 

 

Other assets

4,120

 

 

 

3,439

 

 

Total assets

$

654,727

 

 

 

$

646,396

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

3,813

 

 

 

$

7,057

 

 

Accrued expenses and other current liabilities

56,387

 

 

 

49,930

 

 

Deferred revenue

171,378

 

 

 

173,617

 

 

Current portion of financing obligations

1,395

 

 

 

1,328

 

 

Total current liabilities

232,973

 

 

 

231,932

 

 

Convertible senior notes, net

285,011

 

 

 

280,601

 

 

Deferred revenue, non-current

29,294

 

 

 

32,569

 

 

Other long-term liabilities

1,778

 

 

 

1,498

 

 

Operating lease liabilities, non-current

19,274

 

 

 

18,564

 

 

Financing obligations, non-current

15,174

 

 

 

15,889

 

 

Total liabilities

583,504

 

 

 

581,053

 

 

Stockholders’ equity

 

 

 

Common stock

47

 

 

 

47

 

 

Additional paid-in-capital

456,007

 

 

 

420,170

 

 

Accumulated deficit

(385,499

)

 

 

(355,161

)

 

Accumulated other comprehensive income

668

 

 

 

287

 

 

Total stockholders’ equity

71,223

 

 

 

65,343

 

 

Total liabilities and stockholders’ equity

$

654,727

 

 

 

$

646,396

 

 

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Three months ended June 30,

 

Six months ended June 30,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

(unaudited)

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(19,765

)

 

 

$

(8,322

)

 

 

$

(30,338

)

 

 

$

(15,785

)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

1,131

 

 

 

971

 

 

 

2,273

 

 

 

1,874

 

 

Stock-based compensation expense

14,894

 

 

 

8,513

 

 

 

24,830

 

 

 

16,706

 

 

Provision for doubtful accounts

319

 

 

 

233

 

 

 

359

 

 

 

46

 

 

Amortization (accretion) of premiums and discounts on marketable securities, net

112

 

 

 

(23

)

 

 

213

 

 

 

(104

)

 

Amortization of debt discount and issuance costs

2,213

 

 

 

 

 

 

4,410

 

 

 

 

 

Deferred income tax

(131

)

 

 

(28

)

 

 

(131

)

 

 

(46

)

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

3,847

 

 

 

3,133

 

 

 

18,112

 

 

 

17,951

 

 

Deferred commissions

(2,166

)

 

 

(3,833

)

 

 

(1,563

)

 

 

(5,862

)

 

Operating lease right-of-use asset

875

 

 

 

556

 

 

 

1,973

 

 

 

1,224

 

 

Other receivables

58

 

 

 

161

 

 

 

(195

)

 

 

(53

)

 

Prepaid expenses

(890

)

 

 

(310

)

 

 

(2,845

)

 

 

(3,546

)

 

Other assets

(609

)

 

 

58

 

 

 

(683

)

 

 

(1,406

)

 

Accounts payable

(1,692

)

 

 

1,206

 

 

 

(3,074

)

 

 

(356

)

 

Deferred revenue

(3,640

)

 

 

8,295

 

 

 

(4,868

)

 

 

10,282

 

 

Operating lease liability

(1,178

)

 

 

(813

)

 

 

(2,323

)

 

 

(1,468

)

 

Accrued expenses and other liabilities

13,735

 

 

 

8,966

 

 

 

5,712

 

 

 

4,425

 

 

Net cash provided by operating activities

7,113

 

 

 

18,763

 

 

 

11,862

 

 

 

23,882

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

(696

)

 

 

(454

)

 

 

(1,384

)

 

 

(2,197

)

 

Purchase of marketable securities

(16,457

)

 

 

(18,562

)

 

 

(37,289

)

 

 

(40,717

)

 

Sale of marketable securities

 

 

 

 

 

 

11,423

 

 

 

 

 

Maturities of marketable securities

13,062

 

 

 

11,500

 

 

 

26,037

 

 

 

18,890

 

 

Purchase of intangible assets

(74

)

 

 

(577

)

 

 

(151

)

 

 

(661

)

 

Net cash used in investing activities

(4,165

)

 

 

(8,093

)

 

 

(1,364

)

 

 

(24,685

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

6,664

 

 

 

5,498

 

 

 

9,458

 

 

 

16,553

 

 

Taxes paid related to net share settlements of stock-based compensation awards

(732

)

 

 

 

 

 

(2,111

)

 

 

(390

)

 

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

 

 

 

3,660

 

 

 

2,149

 

 

Principal payments on capital lease and financing obligations

(328

)

 

 

(301

)

 

 

(648

)

 

 

(595

)

 

Net cash provided by financing activities

5,604

 

 

 

5,197

 

 

 

10,359

 

 

 

17,717

 

 

Effect of foreign exchange rates on cash

135

 

 

 

110

 

 

 

(478

)

 

 

215

 

 

Net increase in cash and cash equivalents

8,687

 

 

 

15,977

 

 

 

20,379

 

 

 

17,129

 

 

Cash and cash equivalents at beginning of period

393,434

 

 

 

78,736

 

 

 

381,742

 

 

 

77,584

 

 

Cash and cash equivalents at end of period

$

402,121

 

 

 

$

94,713

 

 

 

$

402,121

 

 

 

$

94,713

 

 

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,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Gross profit, subscription and support

$

58,598

 

 

 

$

50,270

 

 

 

$

114,806

 

 

 

$

96,584

 

 

Add back: Stock-based compensation

436

 

 

 

399

 

 

 

867

 

 

 

756

 

 

Gross profit, subscription and support, non-GAAP

$

59,034

 

 

 

$

50,669

 

 

 

$

115,673

 

 

 

$

97,340

 

 

As a percentage of subscription and support revenue, non-GAAP

83.5

 

%

 

83.8

 

%

 

83.2

 

%

 

83.5

 

%

 

 

 

 

 

 

 

 

Gross profit, professional services

$

3,018

 

 

 

$

2,537

 

 

 

$

10,215

 

 

 

$

6,650

 

 

Add back: Stock-based compensation

365

 

 

 

431

 

 

 

790

 

 

 

840

 

 

Gross profit, professional services, non-GAAP

$

3,383

 

 

 

$

2,968

 

 

 

$

11,005

 

 

 

$

7,490

 

 

As a percentage of professional services revenue, non-GAAP

25.7

 

%

 

22.8

 

%

 

36.0

 

%

 

27.9

 

%

 

 

 

 

 

 

 

 

Gross profit

$

61,616

 

 

 

$

52,807

 

 

 

$

125,021

 

 

 

$

103,234

 

 

Add back: Stock-based compensation

801

 

 

 

830

 

 

 

1,657

 

 

 

1,596

 

 

Gross profit, non-GAAP

$

62,417

 

 

 

$

53,637

 

 

 

$

126,678

 

 

 

$

104,830

 

 

As percentage of revenue, non-GAAP

74.4

 

%

 

73.0

 

%

 

74.7

 

%

 

73.1

 

%

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

12,098

 

 

 

$

10,202

 

 

 

$

24,251

 

 

 

$

20,011

 

 

Less: Stock-based compensation

436

 

 

 

399

 

 

 

867

 

 

 

756

 

 

Cost of revenue, subscription and support, non-GAAP

$

11,662

 

 

 

$

9,803

 

 

 

$

23,384

 

 

 

$

19,255

 

 

As percentage of revenue, non-GAAP

13.9

 

%

 

13.3

 

%

 

13.8

 

%

 

13.4

 

%

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

10,146

 

 

 

$

10,475

 

 

 

$

20,389

 

 

 

$

20,202

 

 

Less: Stock-based compensation

365

 

 

 

431

 

 

 

790

 

 

 

840

 

 

Cost of revenue, professional services, non-GAAP

$

9,781

 

 

 

$

10,044

 

 

 

$

19,599

 

 

 

$

19,362

 

 

As percentage of revenue, non-GAAP

11.7

 

%

 

13.7

 

%

 

11.6

 

%

 

13.5

 

%

 

 

 

 

 

 

 

 

Research and development

$

23,508

 

 

 

$

21,795

 

 

 

$

46,502

 

 

 

$

43,806

 

 

Less: Stock-based compensation

2,040

 

 

 

1,851

 

 

 

3,623

 

 

 

3,751

 

 

Research and development, non-GAAP

$

21,468

 

 

 

$

19,944

 

 

 

$

42,879

 

 

 

$

40,055

 

 

As percentage of revenue, non-GAAP

25.6

 

%

 

27.1

 

%

 

25.3

 

%

 

27.9

 

%

 

 

 

 

 

 

 

 

Sales and marketing

$

35,270

 

 

 

$

28,213

 

 

 

$

71,387

 

 

 

$

53,578

 

 

Less: Stock-based compensation

2,944

 

 

 

2,032

 

 

 

5,680

 

 

 

3,996

 

 

Sales and marketing, non-GAAP

$

32,326

 

 

 

$

26,181

 

 

 

$

65,707

 

 

 

$

49,582

 

 

As percentage of revenue, non-GAAP

38.5

 

%

 

35.6

 

%

 

38.7

 

%

 

34.6

 

%

 

 

 

 

 

 

 

 

General and administrative

$

19,632

 

 

 

$

11,226

 

 

 

$

33,080

 

 

 

$

21,609

 

 

Less: Stock-based compensation

9,109

 

 

 

3,800

 

 

 

13,870

 

 

 

7,363

 

 

General and administrative, non-GAAP

$

10,523

 

 

 

$

7,426

 

 

 

$

19,210

 

 

 

$

14,246

 

 

As percentage of revenue, non-GAAP

12.5

 

%

 

10.1

 

%

 

11.3

 

%

 

9.9

 

%

 

 

 

 

 

 

 

 

Loss from operations

$

(16,794

)

 

 

$

(8,427

)

 

 

$

(25,948

)

 

 

$

(15,759

)

 

Add back: Stock-based compensation

14,894

 

 

 

8,513

 

 

 

24,830

 

 

 

16,706

 

 

(Loss) income from operations, non-GAAP

$

(1,900

)

 

 

$

86

 

 

 

$

(1,118

)

 

 

$

947

 

 

As percentage of revenue, non-GAAP

(2.3

)

%

 

0.1

 

%

 

(0.7

)

%

 

0.7

 

%

 

 

 

 

 

 

 

 

Net loss

$

(19,765

)

 

 

$

(8,322

)

 

 

$

(30,338

)

 

 

$

(15,785

)

 

Add back: Stock-based compensation

14,894

 

 

 

8,513

 

 

 

24,830

 

 

 

16,706

 

 

Add back: Non-cash interest expense related to convertible senior notes

2,213

 

 

 

 

 

 

4,410

 

 

 

 

 

Net (loss) income, non-GAAP

$

(2,658

)

 

 

$

191

 

 

 

$

(1,098

)

 

 

$

921

 

 

As percentage of revenue, non-GAAP

(3.2

)

%

 

0.3

 

%

 

(0.6

)

%

 

0.6

 

%

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.41

)

 

 

$

(0.18

)

 

 

$

(0.63

)

 

 

$

(0.35

)

 

Add back: Stock-based compensation

0.30

 

 

 

0.18

 

 

 

0.52

 

 

 

0.37

 

 

Add back: Non-cash interest expense related to convertible senior notes

0.05

 

 

 

 

 

 

0.09

 

 

 

 

 

Net (loss) income per basic share, non-GAAP

$

(0.06

)

 

 

$

 

 

 

$

(0.02

)

 

 

$

0.02

 

 

Net (loss) income per diluted share, non-GAAP

$

(0.06

)

 

 

$

 

 

 

$

(0.02

)

 

 

$

0.02

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic, non-GAAP

48,171,552

 

 

 

46,166,660

 

 

 

47,858,628

 

 

 

45,700,559

 

 

Weighted-average common shares outstanding - diluted, non-GAAP

48,171,552

 

 

 

51,540,253

 

 

 

47,858,628

 

 

 

51,061,575

 

 

TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
(in thousands, except share and per share data)

 

Three months ending September 30, 2020

 

Year ending December 31, 2020

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(16,400

)

 

-

$

(16,900

)

 

 

$

(56,500

)

 

-

$

(58,000

)

 

Add back: Stock-based compensation

11,200

 

 

 

11,200

 

 

 

46,500

 

 

 

46,500

 

 

Loss from operations, non-GAAP range

$

(5,200

)

 

-

$

(5,700

)

 

 

$

(10,000

)

 

-

$

(11,500

)

 

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.39

)

 

-

$

(0.40

)

 

 

$

(1.37

)

 

-

$

(1.40

)

 

Add back: Stock-based compensation

0.23

 

 

 

0.23

 

 

 

0.96

 

 

 

0.96

 

 

Add back: Non-cash interest expense related to convertible senior notes

0.04

 

 

 

0.04

 

 

 

0.18

 

 

 

0.18

 

 

Net loss per share, non-GAAP range

$

(0.12

)

 

-

$

(0.13

)

 

 

$

(0.23

)

 

-

$

(0.26

)

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic and diluted

48,900,000

 

 

 

48,900,000

 

 

 

48,500,000

 

 

 

48,500,000

 

 

 

Investor Contact:
Adam Terese
Workiva Inc.
investor@workiva.com
(515) 663-4493

Media Contact:
Kevin McCarthy
Workiva Inc.
press@workiva.com
(515) 663-4471

Source: Workiva Inc.

NYSE: WK

55.76 -1.87 -3.25% Volume: 73,885 September 22, 2020

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