Workiva Inc. Announces Second Quarter 2022 Financial Results

08/09/22
  • Increased Q2 2022 Subscription & Support Revenue by 24.3% over Q2 2021
  • Generated Total Q2 2022 Revenue of $131.5 Million, up 24.6% over Q2 2021
  • Achieved 28.4% YOY Growth of Customers with Annual Contract Value Over $150K

AMES, Iowa--(BUSINESS WIRE)-- Workiva Inc. (NYSE:WK), the company powering transparent reporting for a better world, today announced financial results for its second quarter ended June 30, 2022.

"Our second quarter subscription & support and total revenue exceeded market expectations and we once again beat the high end of our guidance in revenue and operating results," said Marty Vanderploeg, Chief Executive Officer. "We added 123 net new logos for the Workiva platform, saw a 28% YOY increase in the number of customers with contract values over $150k, and achieved our highest revenue retention rate of 97.9%."

"We believe that the demand for regulatory software is consistent and durable. For the back half of 2022, we are maintaining our investment in our platform, purpose-built solutions, and talent in order to accelerate our growth and capture more of our large and relatively unaddressed TAM. However, we intend to balance this investment with a more prudent approach to our second half outlook," Vanderploeg added.

"We have increased our focus on operating leverage and have slowed the hiring plans for parts of our core business for the remainder of 2022. The balance between growth and operating leverage should lead to future margin improvement and we believe it will return Workiva to a quarterly operating profit on a Non-GAAP basis in the latter half of 2023," said Jill Klindt, Chief Financial Officer. "It is still early days in Workiva's growth story as we continue to capture more of the large and expanding business reporting market. We remain committed to strong, durable growth as we build Workiva into a billion dollar revenue company."

Second Quarter 2022 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2022 reached$131.5 million, an increase of 24.6% from $105.6 million in the second quarter of 2021. Subscription and support revenue contributed $113.4 million, up 24.3% versus the second quarter of 2021. Professional services revenue was $18.2 million, an increase of 26.5% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the second quarter of 2022 was $99.3 million compared with $81.0 million in the same quarter of 2021. GAAP gross margin was 75.5% versus 76.7% in the second quarter of 2021. Non-GAAP gross profit for the second quarter of 2022 was $100.8 million, an increase of 22.9% compared with the prior year's second quarter, and non-GAAP gross margin was 76.6% compared to 77.7% in the second quarter of 2021.
  • Results from Operations: GAAP loss from operations for the second quarter of 2022 was $28.2 million compared with a loss of $5.7 million in the prior year's second quarter. Non-GAAP loss from operations was $8.3 million, compared with non-GAAP income from operations of $5.3 million in the second quarter of 2021.
  • GAAP Net Loss: GAAP net loss for the second quarter of 2022 was $28.9 million compared with a net loss of $9.5 million for the prior year's second quarter. GAAP net loss per basic and diluted share was $0.55 compared with a net loss per basic and diluted share of $0.19 in the second quarter of 2021.
  • Non-GAAP Net Loss/Income: Non-GAAP net loss for the second quarter of 2022 was $9.0 million compared with net income of $3.8 million in the prior year's second quarter. Non-GAAP net loss per basic and diluted share was $0.17, compared with net income per basic and diluted share of $0.07 in the second quarter of 2021.
  • Liquidity: As of June 30, 2022, Workiva had cash, cash equivalents, and marketable securities totaling $429.0 million, compared with $530.4 million as of December 31, 2021. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due in 2026 and $15.8 million of finance lease obligations outstanding as of June 30, 2022.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 5,381 customers as of June 30, 2022, including approximately 850 ParsePort ESEF customers, a net increase of 1,432 customers from June 30, 2021.
  • Revenue Retention Rate: As of June 30, 2022, Workiva's revenue retention rate (excluding add-on revenue) was 97.9%, and the revenue retention rate including add-on revenue was 108.0%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of June 30, 2022, Workiva had 1,186 customers with an annual contract value (“ACV”) of more than $100,000, up 25% from 952 customers at June 30, 2021. Workiva had 642 customers with an ACV of more than $150,000, up 28% from 500 customers in the second quarter of 2021. Workiva had 194 customers with an ACV of more than $300,000, up 22% from 159 customers in the second quarter of 2021.
  • On April 1, 2022, Workiva acquired all of the issued and outstanding equity interests in Denmark-based ParsePort ApS (“ParsePort”), a leading solution provider for the European Single Electronic Format (“ESEF”) financial reporting mandate, which complements Workiva's cloud platform.

Financial Outlook

As of August 9, 2022, Workiva is providing updated guidance as follows:

Third Quarter 2022 Guidance:

  • Total revenue is expected to be in the range of $132.0 million to $133.0 million.
  • GAAP loss from operations is expected to be in the range of $33.5 million to $32.5 million.
  • Non-GAAP loss from operations is expected to be in the range of $13.0 million to $12.0 million.
  • GAAP net loss per basic share is expected to be in the range of $0.66 to $0.64.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.27 to $0.25.
  • Net loss per basic share is based on 53.1 million weighted-average shares outstanding.

Full Year 2022 Guidance:

  • Total revenue is expected to be in the range of $534.0 million to $536.0 million.
  • GAAP loss from operations is expected to be in the range of $103.5 million to $101.5 million.
  • Non-GAAP loss from operations is expected to be in the range of $27.0 million to $25.0 million.
  • GAAP net loss per basic share is expected to be in the range of $2.02 to $1.98.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.57 to $0.53.
  • Net loss per basic share is based on 53.0 million weighted-average shares outstanding.

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 2022, in addition to discussing the Company’s outlook for the third quarter and full year 2022. To access this call, dial 888-330-2469 (U.S. domestic) or 240-789-2740 (international). The conference ID is 8736384. 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 16, 2022, at 800-770-2030 (U.S. domestic) or 647-362-9199 (international). The replay pass code is 8736384. 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) is on a mission to power transparent reporting for a better world. We build and deliver the world’s leading regulatory, financial, and ESG reporting solutions to meet stakeholder demands for action, transparency, and disclosure of financial and non-financial data. Our cloud-based platform simplifies the most complex reporting and disclosure challenges by streamlining processes, connecting data and teams, and ensuring consistency. Learn more at workiva.com.

Follow Workiva on LinkedIn: www.linkedin.com/company/workiva
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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. 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.

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,

 

2022

2021

2022

2021

 

(unaudited)

Revenue

 

 

 

 

Subscription and support

$

113,353

 

$

91,205

 

$

220,473

 

$

176,141

 

Professional services

 

18,196

 

 

14,382

 

 

40,750

 

 

33,668

 

Total revenue

 

131,549

 

 

105,587

 

 

261,223

 

 

209,809

 

Cost of revenue

 

 

 

 

Subscription and support (1)

 

18,915

 

 

14,098

 

 

37,448

 

 

27,300

 

Professional services (1)

 

13,322

 

 

10,493

 

 

25,662

 

 

20,967

 

Total cost of revenue

 

32,237

 

 

24,591

 

 

63,110

 

 

48,267

 

Gross profit

 

99,312

 

 

80,996

 

 

198,113

 

 

161,542

 

Operating expenses

 

 

 

 

Research and development (1)

 

39,177

 

 

27,830

 

 

75,061

 

 

54,464

 

Sales and marketing (1)

 

64,219

 

 

41,525

 

 

120,319

 

 

82,560

 

General and administrative (1)

 

24,108

 

 

17,384

 

 

48,102

 

 

34,405

 

Total operating expenses

 

127,504

 

 

86,739

 

 

243,482

 

 

171,429

 

Loss from operations

 

(28,192

)

 

(5,743

)

 

(45,369

)

 

(9,887

)

Interest income

 

605

 

 

255

 

 

885

 

 

615

 

Interest expense

 

(1,512

)

 

(3,502

)

 

(3,030

)

 

(6,987

)

Other income (expense), net

 

668

 

 

(156

)

 

503

 

 

(540

)

Loss before provision for income taxes

 

(28,431

)

 

(9,146

)

 

(47,011

)

 

(16,799

)

Provision for income taxes

 

430

 

 

368

 

 

343

 

 

39

 

Net loss

$

(28,861

)

$

(9,514

)

$

(47,354

)

$

(16,838

)

Net loss per common share:

 

 

 

 

Basic and diluted

$

(0.55

)

$

(0.19

)

$

(0.90

)

$

(0.33

)

Weighted-average common shares outstanding - basic and diluted

 

52,850,470

 

 

51,065,867

 

 

52,724,051

 

 

50,657,264

 

 

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

 

Three months ended June 30,

Six months ended June 30,

 

2022

2021

2022

2021

 

(unaudited)

Cost of revenue

Subscription and support

$

912

 

$

597

 

$

1,702

 

$

1,093

 

Professional services

 

593

 

 

409

 

 

1,045

 

 

776

 

Operating expenses

Research and development

 

3,148

 

 

2,417

 

 

5,873

 

 

4,848

 

Sales and marketing

 

5,646

 

 

2,837

 

 

9,731

 

 

6,386

 

General and administrative

 

8,148

 

 

4,792

 

 

15,405

 

 

9,572

 

 

WORKIVA INC.

 

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

June 30, 2022

 

December 31, 2021

 

(unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

226,253

 

 

$

300,386

 

Marketable securities

 

202,712

 

 

 

230,060

 

Accounts receivable, net

 

75,607

 

 

 

76,848

 

Deferred costs

 

29,992

 

 

 

31,152

 

Other receivables

 

2,949

 

 

 

3,538

 

Prepaid expenses and other

 

17,776

 

 

 

15,108

 

Total current assets

 

555,289

 

 

 

657,092

 

Property and equipment, net

 

27,331

 

 

 

28,821

 

Operating lease right-of-use assets

 

15,049

 

 

 

17,760

 

Deferred costs, non-current

 

34,826

 

 

 

33,091

 

Goodwill

 

109,040

 

 

 

34,556

 

Intangible assets, net

 

30,162

 

 

 

10,434

 

Other assets

 

5,061

 

 

 

5,005

 

Total assets

$

776,758

 

 

$

786,759

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

5,797

 

 

$

4,114

 

Accrued expenses and other current liabilities

 

85,863

 

 

 

84,126

 

Deferred revenue

 

272,731

 

 

 

258,023

 

Convertible senior notes, current

 

 

 

 

298,661

 

Finance lease obligations

 

936

 

 

 

1,575

 

Total current liabilities

 

365,327

 

 

 

646,499

 

Convertible senior notes, non-current

 

339,608

 

 

 

 

Deferred revenue, non-current

 

34,063

 

 

 

34,181

 

Other long-term liabilities

 

1,380

 

 

 

1,605

 

Operating lease liabilities, non-current

 

13,688

 

 

 

16,408

 

Finance lease obligations, non-current

 

14,838

 

 

 

15,087

 

Total liabilities

 

768,904

 

 

 

713,780

 

Stockholders’ equity

 

 

 

Common stock

 

52

 

 

 

51

 

Additional paid-in-capital

 

498,115

 

 

 

525,646

 

Accumulated deficit

 

(481,523

)

 

 

(452,430

)

Accumulated other comprehensive (loss) income

 

(8,790

)

 

 

(288

)

Total stockholders’ equity

 

7,854

 

 

 

72,979

 

Total liabilities and stockholders’ equity

$

776,758

 

 

$

786,759

 

 

WORKIVA INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three months ended June 30,

 

Six months ended June 30,

 

2022

 

2021

 

2022

 

2021

 

(unaudited)

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(28,861

)

 

$

(9,514

)

 

$

(47,354

)

 

$

(16,838

)

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

 

 

 

 

 

 

 

Depreciation and amortization

 

2,725

 

 

 

1,097

 

 

 

4,684

 

 

 

2,151

 

Stock-based compensation expense

 

18,447

 

 

 

11,052

 

 

 

33,756

 

 

 

22,675

 

Provision for (recovery of) doubtful accounts

 

20

 

 

 

17

 

 

 

(9

)

 

 

(101

)

Amortization of premiums and discounts on marketable securities, net

 

453

 

 

 

763

 

 

 

1,113

 

 

 

1,388

 

Amortization of issuance costs and debt discount

 

324

 

 

 

2,284

 

 

 

648

 

 

 

4,550

 

Deferred income tax

 

63

 

 

 

362

 

 

 

(148

)

 

 

16

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(4,844

)

 

 

(12,106

)

 

 

1,737

 

 

 

3,159

 

Deferred costs

 

(2,734

)

 

 

(9,018

)

 

 

(1,290

)

 

 

(10,077

)

Operating lease right-of-use asset

 

1,307

 

 

 

977

 

 

 

2,608

 

 

 

1,921

 

Other receivables

 

385

 

 

 

585

 

 

 

565

 

 

 

424

 

Prepaid expenses

 

(1,591

)

 

 

722

 

 

 

(2,723

)

 

 

(3,025

)

Other assets

 

12

 

 

 

(110

)

 

 

35

 

 

 

(683

)

Accounts payable

 

(2,300

)

 

 

(1,172

)

 

 

2,064

 

 

 

736

 

Deferred revenue

 

13,192

 

 

 

11,900

 

 

 

13,798

 

 

 

12,079

 

Operating lease liability

 

(1,302

)

 

 

(1,202

)

 

 

(2,644

)

 

 

(2,278

)

Accrued expenses and other liabilities

 

13,388

 

 

 

16,123

 

 

 

907

 

 

 

8,166

 

Net cash provided by operating activities

 

8,684

 

 

 

12,760

 

 

 

7,747

 

 

 

24,263

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(671

)

 

 

(811

)

 

 

(1,203

)

 

 

(1,660

)

Purchase of marketable securities

 

(23,798

)

 

 

(51,217

)

 

 

(57,946

)

 

 

(94,872

)

Sale of marketable securities

 

 

 

 

250

 

 

 

14,981

 

 

 

250

 

Maturities of marketable securities

 

40,536

 

 

 

30,206

 

 

 

66,786

 

 

 

70,792

 

Acquisitions, net of cash acquired

 

(99,186

)

 

 

 

 

 

(99,186

)

 

 

 

Purchase of intangible assets

 

(6

)

 

 

(52

)

 

 

(46

)

 

 

(123

)

Other investments

 

 

 

 

(750

)

 

 

 

 

 

(750

)

Net cash used in investing activities

 

(83,125

)

 

 

(22,374

)

 

 

(76,614

)

 

 

(26,363

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

 

1,145

 

 

 

1,480

 

 

 

1,970

 

 

 

5,618

 

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

 

(1,344

)

 

 

(731

)

 

 

(9,914

)

 

 

(7,877

)

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

 

 

 

 

5,218

 

 

 

4,237

 

Principal payments on finance lease obligations

 

(446

)

 

 

(424

)

 

 

(888

)

 

 

(841

)

Net cash (used in) provided by financing activities

 

(645

)

 

 

325

 

 

 

(3,614

)

 

 

1,137

 

Effect of foreign exchange rates on cash

 

(1,737

)

 

 

310

 

 

 

(1,652

)

 

 

326

 

Net decrease in cash and cash equivalents

 

(76,823

)

 

 

(8,979

)

 

 

(74,133

)

 

 

(637

)

Cash and cash equivalents at beginning of period

 

303,076

 

 

 

331,173

 

 

 

300,386

 

 

 

322,831

 

Cash and cash equivalents at end of period

$

226,253

 

 

$

322,194

 

 

$

226,253

 

 

$

322,194

 

 

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,

 

2022

 

2021

 

2022

 

2021

Gross profit, subscription and support

$

94,438

 

 

$

77,107

 

 

$

183,025

 

 

$

148,841

 

Add back: Stock-based compensation

 

912

 

 

 

597

 

 

 

1,702

 

 

 

1,093

 

Gross profit, subscription and support, non-GAAP

$

95,350

 

 

$

77,704

 

 

$

184,727

 

 

$

149,934

 

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

 

84.1

%

 

 

85.2

%

 

 

83.8

%

 

 

85.1

%

 

 

 

 

 

 

 

 

Gross profit, professional services

$

4,874

 

 

$

3,889

 

 

$

15,088

 

 

$

12,701

 

Add back: Stock-based compensation

 

593

 

 

 

409

 

 

 

1,045

 

 

 

776

 

Gross profit, professional services, non-GAAP

$

5,467

 

 

$

4,298

 

 

$

16,133

 

 

$

13,477

 

As a percentage of professional services revenue, non-GAAP

 

30.0

%

 

 

29.9

%

 

 

39.6

%

 

 

40.0

%

 

 

 

 

 

 

 

 

Gross profit

$

99,312

 

 

$

80,996

 

 

$

198,113

 

 

$

161,542

 

Add back: Stock-based compensation

 

1,505

 

 

 

1,006

 

 

 

2,747

 

 

 

1,869

 

Gross profit, non-GAAP

$

100,817

 

 

$

82,002

 

 

$

200,860

 

 

$

163,411

 

As percentage of revenue, non-GAAP

 

76.6

%

 

 

77.7

%

 

 

76.9

%

 

 

77.9

%

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

18,915

 

 

$

14,098

 

 

$

37,448

 

 

$

27,300

 

Less: Stock-based compensation

 

912

 

 

 

597

 

 

 

1,702

 

 

 

1,093

 

Cost of revenue, subscription and support, non-GAAP

$

18,003

 

 

$

13,501

 

 

$

35,746

 

 

$

26,207

 

As percentage of revenue, non-GAAP

 

13.7

%

 

 

12.8

%

 

 

13.7

%

 

 

12.5

%

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

13,322

 

 

$

10,493

 

 

$

25,662

 

 

$

20,967

 

Less: Stock-based compensation

 

593

 

 

 

409

 

 

 

1,045

 

 

 

776

 

Cost of revenue, professional services, non-GAAP

$

12,729

 

 

$

10,084

 

 

$

24,617

 

 

$

20,191

 

As percentage of revenue, non-GAAP

 

9.7

%

 

 

9.6

%

 

 

9.4

%

 

 

9.6

%

 

 

 

 

 

 

 

 

Research and development

$

39,177

 

 

$

27,830

 

 

$

75,061

 

 

$

54,464

 

Less: Stock-based compensation

 

3,148

 

 

 

2,417

 

 

 

5,873

 

 

 

4,848

 

Less: Amortization of acquisition-related intangibles

 

869

 

 

 

 

 

 

1,364

 

 

 

 

Research and development, non-GAAP

$

35,160

 

 

$

25,413

 

 

$

67,824

 

 

$

49,616

 

As percentage of revenue, non-GAAP

 

26.7

%

 

 

24.1

%

 

 

26.0

%

 

 

23.6

%

 

 

 

 

 

 

 

 

Sales and marketing

$

64,219

 

 

$

41,525

 

 

$

120,319

 

 

$

82,560

 

Less: Stock-based compensation

 

5,646

 

 

 

2,837

 

 

 

9,731

 

 

 

6,386

 

Less: Amortization of acquisition-related intangibles

 

586

 

 

 

 

 

 

786

 

 

 

 

Sales and marketing, non-GAAP

$

57,987

 

 

$

38,688

 

 

$

109,802

 

 

$

76,174

 

As percentage of revenue, non-GAAP

 

44.1

%

 

 

36.6

%

 

 

42.0

%

 

 

36.3

%

 

 

 

 

 

 

 

 

General and administrative

$

24,108

 

 

$

17,384

 

 

$

48,102

 

 

$

34,405

 

Less: Stock-based compensation

 

8,148

 

 

 

4,792

 

 

 

15,405

 

 

 

9,572

 

General and administrative, non-GAAP

$

15,960

 

 

$

12,592

 

 

$

32,697

 

 

$

24,833

 

As percentage of revenue, non-GAAP

 

12.1

%

 

 

11.9

%

 

 

12.5

%

 

 

11.8

%

 

 

 

 

 

 

 

 

Loss from operations

$

(28,192

)

 

$

(5,743

)

 

$

(45,369

)

 

$

(9,887

)

Add back: Stock-based compensation

 

18,447

 

 

 

11,052

 

 

 

33,756

 

 

 

22,675

 

Add back: Amortization of acquisition-related intangibles

 

1,455

 

 

 

 

 

 

2,150

 

 

 

 

(Loss) income from operations, non-GAAP

$

(8,290

)

 

$

5,309

 

 

$

(9,463

)

 

$

12,788

 

As percentage of revenue, non-GAAP

 

(6.3

)%

 

 

5.0

%

 

 

(3.6

)%

 

 

6.1

%

 

 

 

 

 

 

 

 

Net loss

$

(28,861

)

 

$

(9,514

)

 

$

(47,354

)

 

$

(16,838

)

Add back: Stock-based compensation

 

18,447

 

 

 

11,052

 

 

 

33,756

 

 

 

22,675

 

Add back: Amortization of acquisition-related intangibles

 

1,455

 

 

 

 

 

 

2,150

 

 

 

 

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

 

 

 

 

2,284

 

 

 

 

 

 

4,550

 

Net (loss) income, non-GAAP

$

(8,959

)

 

$

3,822

 

 

$

(11,448

)

 

$

10,387

 

As percentage of revenue, non-GAAP

 

(6.8

)%

 

 

3.6

%

 

 

(4.4

)%

 

 

5.0

%

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.55

)

 

$

(0.19

)

 

$

(0.90

)

 

$

(0.33

)

Add back: Stock-based compensation

 

0.35

 

 

 

0.22

 

 

 

0.64

 

 

 

0.45

 

Add back: Amortization of acquisition-related intangibles

 

0.03

 

 

 

 

 

 

0.04

 

 

 

 

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

 

 

 

 

0.04

 

 

 

 

 

 

0.09

 

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

$

(0.17

)

 

$

0.07

 

 

$

(0.22

)

 

$

0.21

 

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

$

(0.17

)

 

$

0.07

 

 

$

(0.22

)

 

$

0.19

 

 

 

 

 

 

 

 

 

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

 

52,850,470

 

 

 

51,065,867

 

 

 

52,724,051

 

 

 

50,657,264

 

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

 

52,850,470

 

 

 

55,064,895

 

 

 

52,724,051

 

 

 

55,081,027

 

 

TABLE II

WORKIVA INC.

RECONCILIATION OF NON-GAAP GUIDANCE

(in thousands, except share and per share data)

 

Three months ending September 30, 2022

 

Year ending December 31, 2022

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(33,500

)

-

$

(32,500

)

 

$

(103,500

)

-

$

(101,500

)

Add back: Stock-based compensation

 

19,045

 

 

 

19,045

 

 

 

71,431

 

 

 

71,431

 

Add back: Amortization of acquisition-related intangibles

 

1,455

 

 

 

1,455

 

 

 

5,069

 

 

 

5,069

 

Net loss from operations, non-GAAP range

$

(13,000

)

-

$

(12,000

)

 

$

(27,000

)

-

$

(25,000

)

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.66

)

-

$

(0.64

)

 

$

(2.02

)

-

$

(1.98

)

Add back: Stock-based compensation

 

0.36

 

 

 

0.36

 

 

 

1.35

 

 

 

1.35

 

Add back: Amortization of acquisition-related intangibles

 

0.03

 

 

 

0.03

 

 

 

0.10

 

 

 

0.10

 

Net loss per share, non-GAAP range

$

(0.27

)

-

$

(0.25

)

 

$

(0.57

)

-

$

(0.53

)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

53,100,000

 

 

 

53,100,000

 

 

 

53,000,000

 

 

 

53,000,000

 

 

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

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

Source: Workiva Inc.

NYSE: WK

62.61 -0.85 -1.34% Volume: 369,550 September 26, 2022

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