Workiva Inc. Announces Third Quarter 2021 Financial Results

11/03/21
  • Increased Q3 2021 Subscription & Support Revenue by 30.4% over Q3 2020
  • Generated Total Q3 2021 Revenue of $112.7 Million, up 27.9% over Q3 2020
  • Achieved 41.3% YOY Growth of Customers with Annual Contract Value Over $150K
  • Raises Full-Year 2021 Revenue Guidance

AMES, Iowa--(BUSINESS WIRE)-- Workiva Inc. (NYSE:WK), the company that simplifies complex work, today announced financial results for its third quarter ended September 30, 2021.

"Workiva delivered another strong quarter, beating third quarter guidance for revenue and operating results," said Marty Vanderploeg, Chief Executive Officer. "We achieved 30.4% organic growth in subscription & support revenue, and 27.9% in total revenue."

"We continue to build on our market leadership and the increased demand for financial and ESG reporting solutions that drive digital transformations," Vanderploeg added.

"Due to our continued outperformance, we are raising our full-year guidance," said Jill Klindt, Chief Financial Officer. "We now expect total revenue to range from $439 million to $440 million, and non-GAAP operating income to range from $15 million to $16 million."

Third Quarter 2021 Financial Highlights

  • Revenue: Total revenue for the third quarter of 2021 reached$112.7 million, an increase of 27.9% from $88.1 million in the third quarter of 2020. Subscription and support revenue contributed $98.9 million, up 30.4% versus the third quarter of 2020. Professional services revenue was $13.8 million, an increase of 12.5% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the third quarter of 2021 was $86.3 million compared with $66.2 million in the same quarter of 2020. GAAP gross margin was 76.6% versus 75.2% in the third quarter of 2020. Non-GAAP gross profit for the third quarter of 2021 was $87.4 million, an increase of 30.7% compared with the prior year's third quarter, and non-GAAP gross margin was 77.6% compared to 75.9% in the third quarter of 2020.
  • Results from Operations: GAAP loss from operations for the third quarter of 2021 was $8.0 million compared with a loss of $6.9 million in the prior year's third quarter. Non-GAAP income from operations was $5.0 million, compared with non-GAAP income from operations of $3.7 million in the third quarter of 2020.
  • GAAP Net Loss: GAAP net loss for the third quarter of 2021 was $6.6 million compared with a net loss of $10.4 million for the prior year's third quarter. GAAP net loss per basic and diluted share was $0.13 compared with a net loss per basic and diluted share of $0.21 in the third quarter of 2020.
  • Non-GAAP Net Income: Non-GAAP net income for the third quarter of 2021 was $8.7 million compared with net income of $2.5 million in the prior year's third quarter. Non-GAAP net income per basic share and diluted share was $0.17 and $0.15, respectively, compared with net income per basic and diluted share of $0.05 in the third quarter of 2020.
  • Liquidity: As of September 30, 2021, Workiva had cash, cash equivalents and marketable securities totaling $522.3 million, compared with $530.0 million as of December 31, 2020. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due in 2026 and $17.1 million of finance lease obligations outstanding as of September 30, 2021.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 4,146 customers as of September 30, 2021, a net increase of 563 customers from September 30, 2020.
  • Revenue Retention Rate: As of September 30, 2021, Workiva's revenue retention rate (excluding add-on revenue) was 96.5%, and the revenue retention rate including add-on revenue was 111.1%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of September 30, 2021, Workiva had 1,043 customers with an annual contract value (ACV) of more than $100,000, up 33% from 785 customers at September 30, 2020. Workiva had 541 customers with an ACV of more than $150,000, up 41% from 383 customers in the third quarter of 2020.
  • On July 30, 2021, we acquired all of the equity interest in OneCloud, Inc., an integration platform as a service (iPaaS) company, in order to extend our integration and data preparation capabilities.

Financial Outlook

As of November 3, 2021, Workiva is providing guidance as follows:

Fourth Quarter 2021 Guidance:

  • Total revenue is expected to be in the range of $116.5 million to $117.5 million.
  • GAAP loss from operations is expected to be in the range of $15.6 million to $14.6 million.
  • Non-GAAP loss from operations is expected to be in the range of $2.8 million to $1.8 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.37 to $0.35.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.07 to $0.05.
  • Net loss per basic share is based on 51.7 million weighted-average shares outstanding.

Full Year 2021 Guidance:

  • Total revenue is expected to be in the range of $439.0 million to $440.0 million.
  • GAAP loss from operations is expected to be in the range of $33.5 million to $32.5 million.
  • Non-GAAP income from operations is expected to be in the range of $15.0 million to $16.0 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.83 to $0.81.
  • Non-GAAP net income per basic and diluted share is expected to be in the range of $0.30 to $0.32.
  • Net income (loss) per basic and diluted share is based on 51.1 million weighted-average shares outstanding.

Workiva has factored into its guidance the expected impacts of COVID-19 on its business and results of operations based on currently available information. Significant variation from these assumptions could cause the company to change its guidance, and it undertakes no obligation to update its assumptions, expectations or 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 third quarter, in addition to discussing the Company’s outlook for the fourth quarter and full year 2021. To access this call, dial 833-968-1977 (U.S. domestic) or 647-689-6649 (international). The conference ID is 8009407. 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 November 10, 2021, at 800-585-8367 (U.S. domestic) or 416-621-4642 (international). The replay pass code is 8009407. 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 Inc. (NYSE: WK) simplifies complex work for thousands of organizations worldwide. Customers trust Workiva’s open, intelligent and intuitive platform to connect data, documents and teams. The results: more efficiency, greater transparency and less risk. Learn more at workiva.com.

Read the Workiva blog: www.workiva.com/blog
Follow Workiva on LinkedIn: www.linkedin.com/company/workiva
Like Workiva on Facebook: www.facebook.com/workiva
Follow Workiva on Twitter: www.twitter.com/workiva

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 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, amortization expense for acquisition-related intangible assets, and non-cash interest expense related to our convertible senior notes 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. 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
September 30,

 

Nine months ended
September 30,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

Revenue

 

 

 

 

 

 

 

Subscription and support

$

98,912

 

 

$

75,850

 

 

$

275,053

 

 

$

214,907

 

Professional services

13,781

 

 

12,249

 

 

47,449

 

 

42,853

 

Total revenue

112,693

 

 

88,099

 

 

322,502

 

 

257,760

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support (1)

15,606

 

 

12,013

 

 

42,906

 

 

36,264

 

Professional services (1)

10,799

 

 

9,873

 

 

31,766

 

 

30,262

 

Total cost of revenue

26,405

 

 

21,886

 

 

74,672

 

 

66,526

 

Gross profit

86,288

 

 

66,213

 

 

247,830

 

 

191,234

 

Operating expenses

 

 

 

 

 

 

 

Research and development (1)

29,841

 

 

23,956

 

 

84,305

 

 

70,458

 

Sales and marketing (1)

46,026

 

 

35,487

 

 

128,586

 

 

106,874

 

General and administrative (1)

18,390

 

 

13,642

 

 

52,795

 

 

46,564

 

Total operating expenses

94,257

 

 

73,085

 

 

265,686

 

 

223,896

 

Loss from operations

(7,969

)

 

(6,872

)

 

(17,856

)

 

(32,662

)

Interest income

219

 

 

471

 

 

834

 

 

2,832

 

Interest expense

(3,508

)

 

(3,500

)

 

(10,495

)

 

(10,467

)

Other income (expense), net

3,805

 

 

(387

)

 

3,265

 

 

263

 

Loss before (benefit) provision for income taxes

(7,453

)

 

(10,288

)

 

(24,252

)

 

(40,034

)

(Benefit) provision for income taxes

(885

)

 

67

 

 

(846

)

 

351

 

Net loss

$

(6,568

)

 

$

(10,355

)

 

$

(23,406

)

 

$

(40,385

)

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.13

)

 

$

(0.21

)

 

$

(0.46

)

 

$

(0.84

)

Weighted-average common shares outstanding - basic and diluted

51,441,688

 

 

48,840,131

 

 

50,921,612

 

 

48,188,183

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

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

Cost of revenue

 

 

 

 

 

 

 

Subscription and support

$

731

 

 

$

426

 

 

$

1,824

 

 

$

1,293

 

Professional services

407

 

 

272

 

 

1,183

 

 

1,062

 

Operating expenses

 

 

 

 

 

 

 

Research and development

2,347

 

 

2,167

 

 

7,195

 

 

5,790

 

Sales and marketing

4,095

 

 

2,687

 

 

10,481

 

 

8,367

 

General and administrative

5,107

 

 

5,049

 

 

14,679

 

 

18,919

 

WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)

 

September 30, 2021

December 31, 2020

 

(unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

291,125

 

 

$

322,831

 

Marketable securities

231,224

 

 

207,207

 

Accounts receivable, net

64,099

 

 

68,922

 

Deferred costs

28,021

 

 

21,923

 

Other receivables

3,354

 

 

3,155

 

Prepaid expenses and other

13,092

 

 

9,047

 

Total current assets

630,915

 

 

633,085

 

Property and equipment, net

28,490

 

 

29,365

 

Operating lease right-of-use assets

14,536

 

 

15,844

 

Deferred costs, non-current

29,234

 

 

23,421

 

Goodwill

34,279

 

 

 

Intangible assets, net

8,193

 

 

1,583

 

Other assets

4,568

 

 

3,708

 

Total assets

$

750,215

 

 

$

707,006

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

4,018

 

 

$

2,843

 

Accrued expenses and other current liabilities

78,799

 

 

68,256

 

Deferred revenue

235,754

 

 

208,990

 

Convertible senior notes, current

296,341

 

 

 

Finance lease obligations

1,776

 

 

1,705

 

Total current liabilities

616,688

 

 

281,794

 

Convertible senior notes, net

 

 

289,490

 

Deferred revenue, non-current

31,463

 

 

35,894

 

Other long-term liabilities

1,335

 

 

1,680

 

Operating lease liabilities, non-current

15,231

 

 

17,209

 

Finance lease obligations, non-current

15,320

 

 

16,662

 

Total liabilities

680,037

 

 

642,729

 

Stockholders’ equity

 

 

 

Common stock

51

 

 

49

 

Additional paid-in-capital

508,025

 

 

478,698

 

Accumulated deficit

(438,106

)

 

(414,700

)

Accumulated other comprehensive income

208

 

 

230

 

Total stockholders’ equity

70,178

 

 

64,277

 

Total liabilities and stockholders’ equity

$

750,215

 

 

$

707,006

 

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(6,568

)

 

$

(10,355

)

 

$

(23,406

)

 

$

(40,385

)

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

 

 

 

 

 

 

 

Depreciation and amortization

1,429

 

 

1,080

 

 

3,580

 

 

3,195

 

Stock-based compensation expense

12,687

 

 

10,601

 

 

35,362

 

 

35,431

 

Recovery of doubtful accounts

(61

)

 

(550

)

 

(162

)

 

(191

)

Amortization of premiums and discounts on marketable securities, net

811

 

 

106

 

 

2,199

 

 

319

 

Gain on settlement of equity securities

(3,698

)

 

 

 

(3,698

)

 

 

Amortization of debt discount and issuance costs

2,301

 

 

2,231

 

 

6,851

 

 

6,641

 

Deferred income tax

(930

)

 

63

 

 

(914

)

 

(68

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

2,074

 

 

(13,307

)

 

5,233

 

 

4,805

 

Deferred costs

(2,027

)

 

(4,818

)

 

(12,104

)

 

(6,381

)

Operating lease right-of-use asset

985

 

 

1,019

 

 

2,906

 

 

2,992

 

Other receivables

(628

)

 

224

 

 

(204

)

 

29

 

Prepaid expenses

(1,024

)

 

(211

)

 

(4,049

)

 

(3,056

)

Other assets

(514

)

 

83

 

 

(1,197

)

 

(600

)

Accounts payable

478

 

 

(181

)

 

1,214

 

 

(3,255

)

Deferred revenue

9,949

 

 

16,182

 

 

22,028

 

 

11,314

 

Operating lease liability

(1,112

)

 

(1,115

)

 

(3,390

)

 

(3,438

)

Accrued expenses and other liabilities

2,161

 

 

6,822

 

 

10,327

 

 

12,538

 

Net cash provided by operating activities

16,313

 

 

7,874

 

 

40,576

 

 

19,890

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

(771

)

 

(379

)

 

(2,431

)

 

(1,763

)

Purchase of marketable securities

(48,213

)

 

(7,980

)

 

(143,085

)

 

(45,269

)

Sale of marketable securities

 

 

 

 

250

 

 

11,423

 

Maturities of marketable securities

45,579

 

 

16,300

 

 

116,371

 

 

42,337

 

Business combinations, net of cash acquired

(35,067

)

 

 

 

(35,067

)

 

 

Purchase of intangible assets

(64

)

 

(102

)

 

(187

)

 

(253

)

Other investments

 

 

 

 

(750

)

 

 

Net cash (used in) provided by investing activities

(38,536

)

 

7,839

 

 

(64,899

)

 

6,475

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

3,174

 

 

4,795

 

 

8,792

 

 

14,253

 

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

(15,809

)

 

 

 

(23,686

)

 

(2,111

)

Proceeds from shares issued in connection with employee stock purchase plan

4,624

 

 

3,567

 

 

8,861

 

 

7,227

 

Principal payments on finance lease obligations

(430

)

 

(410

)

 

(1,271

)

 

(1,212

)

Net cash (used in) provided by financing activities

(8,441

)

 

7,952

 

 

(7,304

)

 

18,157

 

Effect of foreign exchange rates on cash

(405

)

 

346

 

 

(79

)

 

(132

)

Net (decrease) increase in cash and cash equivalents

(31,069

)

 

24,011

 

 

(31,706

)

 

44,390

 

Cash and cash equivalents at beginning of period

322,194

 

 

402,121

 

 

322,831

 

 

381,742

 

Cash and cash equivalents at end of period

$

291,125

 

 

$

426,132

 

 

$

291,125

 

 

$

426,132

 

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,

 

2021

 

2020

 

2021

 

2020

Gross profit, subscription and support

$

83,306

 

 

$

63,837

 

 

$

232,147

 

 

$

178,643

 

Add back: Stock-based compensation

731

 

 

426

 

 

1,824

 

 

1,293

 

Gross profit, subscription and support, non-GAAP

$

84,037

 

 

$

64,263

 

 

$

233,971

 

 

$

179,936

 

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

85.0

%

 

84.7

%

 

85.1

%

 

83.7

%

 

 

 

 

 

 

 

 

Gross profit, professional services

$

2,982

 

 

$

2,376

 

 

$

15,683

 

 

$

12,591

 

Add back: Stock-based compensation

407

 

 

272

 

 

1,183

 

 

1,062

 

Gross profit, professional services, non-GAAP

$

3,389

 

 

$

2,648

 

 

$

16,866

 

 

$

13,653

 

As a percentage of professional services revenue, non-GAAP

24.6

%

 

21.6

%

 

35.5

%

 

31.9

%

 

 

 

 

 

 

 

 

Gross profit

$

86,288

 

 

$

66,213

 

 

$

247,830

 

 

$

191,234

 

Add back: Stock-based compensation

1,138

 

 

698

 

 

3,007

 

 

2,355

 

Gross profit, non-GAAP

$

87,426

 

 

$

66,911

 

 

$

250,837

 

 

$

193,589

 

As percentage of revenue, non-GAAP

77.6

%

 

75.9

%

 

77.8

%

 

75.1

%

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

15,606

 

 

$

12,013

 

 

$

42,906

 

 

$

36,264

 

Less: Stock-based compensation

731

 

 

426

 

 

1,824

 

 

1,293

 

Cost of revenue, subscription and support, non-GAAP

$

14,875

 

 

$

11,587

 

 

$

41,082

 

 

$

34,971

 

As percentage of revenue, non-GAAP

13.2

%

 

13.2

%

 

12.7

%

 

13.6

%

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

10,799

 

 

$

9,873

 

 

$

31,766

 

 

$

30,262

 

Less: Stock-based compensation

407

 

 

272

 

 

1,183

 

 

1,062

 

Cost of revenue, professional services, non-GAAP

$

10,392

 

 

$

9,601

 

 

$

30,583

 

 

$

29,200

 

As percentage of revenue, non-GAAP

9.2

%

 

10.9

%

 

9.5

%

 

11.3

%

 

 

 

 

 

 

 

 

Research and development

$

29,841

 

 

$

23,956

 

 

$

84,305

 

 

$

70,458

 

Less: Stock-based compensation

2,347

 

 

2,167

 

 

7,195

 

 

5,790

 

Less: Amortization of acquisition-related intangibles

275

 

 

 

 

275

 

 

 

Research and development, non-GAAP

$

27,219

 

 

$

21,789

 

 

$

76,835

 

 

$

64,668

 

As percentage of revenue, non-GAAP

24.2

%

 

24.7

%

 

23.8

%

 

25.1

%

 

 

 

 

 

 

 

 

Sales and marketing

$

46,026

 

 

$

35,487

 

 

$

128,586

 

 

$

106,874

 

Less: Stock-based compensation

4,095

 

 

2,687

 

 

10,481

 

 

8,367

 

Less: Amortization of acquisition-related intangibles

13

 

 

 

 

13

 

 

 

Sales and marketing, non-GAAP

$

41,918

 

 

$

32,800

 

 

$

118,092

 

 

$

98,507

 

As percentage of revenue, non-GAAP

37.2

%

 

37.2

%

 

36.6

%

 

38.2

%

 

 

 

 

 

 

 

 

General and administrative

$

18,390

 

 

$

13,642

 

 

$

52,795

 

 

$

46,564

 

Less: Stock-based compensation

5,107

 

 

5,049

 

 

14,679

 

 

18,919

 

General and administrative, non-GAAP

$

13,283

 

 

$

8,593

 

 

$

38,116

 

 

$

27,645

 

As percentage of revenue, non-GAAP

11.8

%

 

9.8

%

 

11.8

%

 

10.7

%

 

 

 

 

 

 

 

 

Loss from operations

$

(7,969

)

 

$

(6,872

)

 

$

(17,856

)

 

$

(32,662

)

Add back: Stock-based compensation

12,687

 

 

10,601

 

 

35,362

 

 

35,431

 

Add back: Amortization of acquisition-related intangibles

288

 

 

 

 

288

 

 

 

Income from operations, non-GAAP

$

5,006

 

 

$

3,729

 

 

$

17,794

 

 

$

2,769

 

As percentage of revenue, non-GAAP

4.4

%

 

4.2

%

 

5.5

%

 

1.1

%

 

 

 

 

 

 

 

 

Net loss

$

(6,568

)

 

$

(10,355

)

 

$

(23,406

)

 

$

(40,385

)

Add back: Stock-based compensation

12,687

 

 

10,601

 

 

35,362

 

 

35,431

 

Add back: Amortization of acquisition-related intangibles

288

 

 

 

 

288

 

 

 

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

2,301

 

 

2,231

 

 

6,851

 

 

6,641

 

Net income, non-GAAP

$

8,708

 

 

$

2,477

 

 

$

19,095

 

 

$

1,687

 

As percentage of revenue, non-GAAP

7.7

%

 

2.8

%

 

5.9

%

 

0.7

%

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.13

)

 

$

(0.21

)

 

$

(0.46

)

 

$

(0.84

)

Add back: Stock-based compensation

0.25

 

 

0.21

 

 

0.69

 

 

0.74

 

Add back: Amortization of acquisition-related intangibles

0.01

 

 

 

 

0.01

 

 

 

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

0.04

 

 

0.05

 

 

0.13

 

 

0.14

 

Net income per basic share, non-GAAP

$

0.17

 

 

$

0.05

 

 

$

0.37

 

 

$

0.04

 

Net income per diluted share, non-GAAP

$

0.15

 

 

$

0.05

 

 

$

0.34

 

 

$

0.03

 

 

 

 

 

 

 

 

 

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

51,441,688

 

 

48,840,131

 

 

50,921,612

 

 

48,188,183

 

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

56,563,730

 

 

53,209,214

 

 

55,687,528

 

 

52,417,046

 

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

 

Three months ending
December 31, 2021

 

Year ending
December 31, 2021

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(15,611

)

-

$

(14,611

)

 

$

(33,467

)

-

$

(32,467

)

Add back: Stock-based compensation

12,384

 

 

12,384

 

 

47,746

 

 

47,746

 

Add back: Amortization of acquisition-related intangibles

433

 

 

433

 

 

721

 

 

721

 

Net (loss) income from operations, non-GAAP range

$

(2,794

)

-

$

(1,794

)

 

$

15,000

 

-

$

16,000

 

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.37

)

-

$

(0.35

)

 

$

(0.83

)

-

$

(0.81

)

Add back: Stock-based compensation

0.24

 

 

0.24

 

 

0.93

 

 

0.93

 

Add back: Amortization of acquisition-related intangibles

0.01

 

 

0.01

 

 

0.01

 

 

0.01

 

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

0.05

 

 

0.05

 

 

0.19

 

 

0.19

 

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

$

(0.07

)

-

$

(0.05

)

 

$

0.30

 

-

$

0.32

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

51,700,000

 

 

51,700,000

 

 

51,100,000

 

 

51,100,000

 

 

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

71.65 -0.70 -0.97% Volume: 268,456 August 5, 2022

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