Workiva Inc. Announces Third Quarter 2022 Financial Results

11/02/22
  • Increased Q3 2022 Subscription & Support Revenue by 19.9% over Q3 2021
  • Generated Total Q3 2022 Revenue of $132.8 Million, up 17.9% over Q3 2021
  • Achieved 25.0% 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 third quarter ended September 30, 2022.

"We are pleased with our third quarter 2022 results, delivering revenue growth near the high end of our quarterly guidance," said Marty Vanderploeg, chief executive officer. "The strategic investments we've made in our platform and solutions over the past year are paying off. For the quarter, we showed continued bookings growth in multiple solution areas led by ESG."

"Third quarter Subscription & Support revenue grew 19.9%," said Jill Klindt, chief financial officer. "Total revenue grew 17.9% even after a 1.9% negative impact from foreign currency. For the full year, we're targeting a total revenue growth rate of 20%."

"Our continued focus on driving multi-solution adoption has propelled Workiva's growth," added Vanderploeg. "As organizations face increased macro uncertainty and cost challenges, we still believe they will continue to invest in the Workiva platform to drive efficiency, enhance productivity, and deliver on their financial, regulatory, and ESG requirements."

Third Quarter 2022 Financial Highlights

  • Revenue: Total revenue for the third quarter of 2022 reached$132.8 million, an increase of 17.9% from $112.7 million in the third quarter of 2021. Subscription and support revenue contributed $118.6 million, up 19.9% versus the third quarter of 2021. Professional services revenue was $14.3 million, an increase of 3.5% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the third quarter of 2022 was $100.4 million compared with $86.3 million in the same quarter of 2021. GAAP gross margin was 75.6% versus 76.6% in the third quarter of 2021. Non-GAAP gross profit for the third quarter of 2022 was $101.8 million, an increase of 16.5% compared with the prior year's third quarter, and non-GAAP gross margin was 76.6% compared to 77.6% in the third quarter of 2021.
  • Results from Operations: GAAP loss from operations for the third quarter of 2022 was $30.1 million compared with a loss of $8.0 million in the prior year's third quarter. Non-GAAP loss from operations was $8.4 million, compared with non-GAAP income from operations of $5.0 million in the third quarter of 2021.
  • GAAP Net Loss: GAAP net loss for the third quarter of 2022 was $29.7 million compared with a net loss of $6.6 million for the prior year's third quarter. GAAP net loss per basic and diluted share was $0.56 compared with a net loss per basic and diluted share of $0.13 in the third quarter of 2021.
  • Non-GAAP Net Loss/Income: Non-GAAP net loss for the third quarter of 2022 was $7.9 million compared with net income of $8.7 million in the prior year's third quarter. Non-GAAP net loss per basic and diluted share was $0.15, compared with net income per basic share and diluted share of $0.17 and $0.15, respectively, in the third quarter of 2021.
  • Liquidity: As of September 30, 2022, Workiva had cash, cash equivalents, and marketable securities totaling $433.0 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 $15.3 million of finance lease obligations outstanding as of September 30, 2022.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 5,541 customers as of September 30, 2022, including approximately 895 ParsePort ESEF customers, a net increase of 1,395 customers from September 30, 2021.
  • Revenue Retention Rate: As of September 30, 2022, Workiva's revenue retention rate (excluding add-on revenue) was 98.1%, and the revenue retention rate including add-on revenue was 107.0%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of September 30, 2022, Workiva had 1,257 customers with an annual contract value (“ACV”) of more than $100,000, up 21% from 1,043 customers at September 30, 2021. Workiva had 676 customers with an ACV of more than $150,000, up 25% from 541 customers in the third quarter of 2021. Workiva had 214 customers with an ACV of more than $300,000, up 21% from 177 customers in the third quarter of 2021.

Financial Outlook

As of November 2, 2022, Workiva is providing updated guidance as follows:

Fourth Quarter 2022 Guidance:

  • Total revenue is expected to be in the range of $138.9 million to $139.9 million.
  • GAAP loss from operations is expected to be in the range of $24.9 million to $23.9 million.
  • Non-GAAP loss from operations is expected to be in the range of $5.7 million to $4.7 million.
  • GAAP net loss per basic share is expected to be in the range of $0.47 to $0.45.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.10 to $0.08.
  • Net loss per basic share is based on 53.3 million weighted-average shares outstanding.

Full Year 2022 Guidance:

  • Total revenue is expected to be in the range of $533.0 million to $534.0 million.
  • GAAP loss from operations is expected to be in the range of $100.4 million to $99.4 million.
  • Non-GAAP loss from operations is expected to be in the range of $23.5 million to $22.5 million.
  • GAAP net loss per basic share is expected to be in the range of $1.92 to $1.90.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.47 to $0.45.
  • 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 third quarter 2022, in addition to discussing the Company’s outlook for the fourth 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 November 9, 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, 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,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

Revenue

 

 

 

 

 

 

 

Subscription and support

$

118,591

 

 

$

98,912

 

 

$

339,064

 

 

$

275,053

 

Professional services

 

14,258

 

 

 

13,781

 

 

 

55,008

 

 

 

47,449

 

Total revenue

 

132,849

 

 

 

112,693

 

 

 

394,072

 

 

 

322,502

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support (1)

 

19,235

 

 

 

15,606

 

 

 

56,683

 

 

 

42,906

 

Professional services (1)

 

13,184

 

 

 

10,799

 

 

 

38,846

 

 

 

31,766

 

Total cost of revenue

 

32,419

 

 

 

26,405

 

 

 

95,529

 

 

 

74,672

 

Gross profit

 

100,430

 

 

 

86,288

 

 

 

298,543

 

 

 

247,830

 

Operating expenses

 

 

 

 

 

 

 

Research and development (1)

 

38,583

 

 

 

29,841

 

 

 

113,644

 

 

 

84,305

 

Sales and marketing (1)

 

64,560

 

 

 

46,026

 

 

 

184,879

 

 

 

128,586

 

General and administrative (1)

 

27,405

 

 

 

18,390

 

 

 

75,507

 

 

 

52,795

 

Total operating expenses

 

130,548

 

 

 

94,257

 

 

 

374,030

 

 

 

265,686

 

Loss from operations

 

(30,118

)

 

 

(7,969

)

 

 

(75,487

)

 

 

(17,856

)

Interest income

 

1,440

 

 

 

219

 

 

 

2,325

 

 

 

834

 

Interest expense

 

(1,510

)

 

 

(3,508

)

 

 

(4,540

)

 

 

(10,495

)

Other income, net

 

964

 

 

 

3,805

 

 

 

1,467

 

 

 

3,265

 

Loss before provision (benefit) for income taxes

 

(29,224

)

 

 

(7,453

)

 

 

(76,235

)

 

 

(24,252

)

Provision (benefit) for income taxes

 

467

 

 

 

(885

)

 

 

810

 

 

 

(846

)

Net loss

$

(29,691

)

 

$

(6,568

)

 

$

(77,045

)

 

$

(23,406

)

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.56

)

 

$

(0.13

)

 

$

(1.46

)

 

$

(0.46

)

Weighted-average common shares outstanding - basic and diluted

 

53,081,564

 

 

 

51,441,688

 

 

 

52,844,532

 

 

 

50,921,612

 

 

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

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

2022

 

2021

 

2022

 

2021

 

(unaudited)

Cost of revenue

 

 

 

 

 

 

 

Subscription and support

$

855

 

$

731

 

$

2,557

 

$

1,824

Professional services

 

533

 

 

407

 

 

1,578

 

 

1,183

Operating expenses

 

 

 

 

 

 

 

Research and development

 

3,399

 

 

2,347

 

 

9,272

 

 

7,195

Sales and marketing

 

4,657

 

 

4,095

 

 

14,388

 

 

10,481

General and administrative

 

10,853

 

 

5,107

 

 

26,258

 

 

14,679

 

WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)

 

September 30, 2022

 

December 31, 2021

 

(unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

229,497

 

 

$

300,386

 

Marketable securities

 

203,511

 

 

 

230,060

 

Accounts receivable, net

 

82,278

 

 

 

76,848

 

Deferred costs

 

35,043

 

 

 

31,152

 

Other receivables

 

3,449

 

 

 

3,538

 

Prepaid expenses and other

 

14,098

 

 

 

15,108

 

Total current assets

 

567,876

 

 

 

657,092

 

Property and equipment, net

 

27,133

 

 

 

28,821

 

Operating lease right-of-use assets

 

14,414

 

 

 

17,760

 

Deferred costs, non-current

 

30,258

 

 

 

33,091

 

Goodwill

 

103,091

 

 

 

34,556

 

Intangible assets, net

 

27,828

 

 

 

10,434

 

Other assets

 

6,037

 

 

 

5,005

 

Total assets

$

776,637

 

 

$

786,759

 

Liabilities and Stockholders’ (Deficit) Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

9,674

 

 

$

4,114

 

Accrued expenses and other current liabilities

 

84,890

 

 

 

84,126

 

Deferred revenue

 

280,594

 

 

 

258,023

 

Convertible senior notes, current

 

 

 

 

298,661

 

Finance lease obligations

 

609

 

 

 

1,575

 

Total current liabilities

 

375,767

 

 

 

646,499

 

Convertible senior notes, non-current

 

339,932

 

 

 

 

Deferred revenue, non-current

 

37,498

 

 

 

34,181

 

Other long-term liabilities

 

1,353

 

 

 

1,605

 

Operating lease liabilities, non-current

 

12,866

 

 

 

16,408

 

Finance lease obligations, non-current

 

14,711

 

 

 

15,087

 

Total liabilities

 

782,127

 

 

 

713,780

 

Stockholders’ (deficit) equity

 

 

 

Common stock

 

53

 

 

 

51

 

Additional paid-in-capital

 

522,336

 

 

 

525,646

 

Accumulated deficit

 

(511,214

)

 

 

(452,430

)

Accumulated other comprehensive loss

 

(16,665

)

 

 

(288

)

Total stockholders’ (deficit) equity

 

(5,490

)

 

 

72,979

 

Total liabilities and stockholders’ (deficit) equity

$

776,637

 

 

$

786,759

 

 

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(29,691

)

 

$

(6,568

)

 

$

(77,045

)

 

$

(23,406

)

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

 

 

 

 

 

 

 

Depreciation and amortization

 

2,681

 

 

 

1,429

 

 

 

7,365

 

 

 

3,580

 

Stock-based compensation expense

 

20,297

 

 

 

12,687

 

 

 

54,053

 

 

 

35,362

 

Provision for (recovery of) doubtful accounts

 

91

 

 

 

(61

)

 

 

82

 

 

 

(162

)

Amortization of premiums and discounts on marketable securities, net

 

129

 

 

 

811

 

 

 

1,242

 

 

 

2,199

 

Gain on settlement of equity securities

 

 

 

 

(3,698

)

 

 

 

 

 

(3,698

)

Amortization of issuance costs and debt discount

 

325

 

 

 

2,301

 

 

 

973

 

 

 

6,851

 

Deferred income tax

 

57

 

 

 

(930

)

 

 

(91

)

 

 

(914

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(7,927

)

 

 

2,074

 

 

 

(6,190

)

 

 

5,233

 

Deferred costs

 

(1,372

)

 

 

(2,027

)

 

 

(2,662

)

 

 

(12,104

)

Operating lease right-of-use asset

 

1,269

 

 

 

985

 

 

 

3,877

 

 

 

2,906

 

Other receivables

 

(527

)

 

 

(628

)

 

 

38

 

 

 

(204

)

Prepaid expenses

 

3,593

 

 

 

(1,024

)

 

 

870

 

 

 

(4,049

)

Other assets

 

(1,140

)

 

 

(514

)

 

 

(1,105

)

 

 

(1,197

)

Accounts payable

 

3,931

 

 

 

478

 

 

 

5,995

 

 

 

1,214

 

Deferred revenue

 

14,775

 

 

 

9,949

 

 

 

28,573

 

 

 

22,028

 

Operating lease liability

 

(1,113

)

 

 

(1,112

)

 

 

(3,757

)

 

 

(3,390

)

Accrued expenses and other liabilities

 

(523

)

 

 

2,161

 

 

 

384

 

 

 

10,327

 

Net cash provided by operating activities

 

4,855

 

 

 

16,313

 

 

 

12,602

 

 

 

40,576

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(1,023

)

 

 

(771

)

 

 

(2,226

)

 

 

(2,431

)

Purchase of marketable securities

 

(41,618

)

 

 

(48,213

)

 

 

(99,564

)

 

 

(143,085

)

Sale of marketable securities

 

 

 

 

 

 

 

14,981

 

 

 

250

 

Maturities of marketable securities

 

40,071

 

 

 

45,579

 

 

 

106,857

 

 

 

116,371

 

Acquisitions, net of cash acquired

 

 

 

 

(35,067

)

 

 

(99,186

)

 

 

(35,067

)

Purchase of intangible assets

 

(62

)

 

 

(64

)

 

 

(108

)

 

 

(187

)

Other investments

 

 

 

 

 

 

 

 

 

 

(750

)

Net cash used in investing activities

 

(2,632

)

 

 

(38,536

)

 

 

(79,246

)

 

 

(64,899

)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

 

625

 

 

 

3,174

 

 

 

2,595

 

 

 

8,792

 

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

 

(738

)

 

 

(15,809

)

 

 

(10,652

)

 

 

(23,686

)

Proceeds from shares issued in connection with employee stock purchase plan

 

4,038

 

 

 

4,624

 

 

 

9,256

 

 

 

8,861

 

Principal payments on finance lease obligations

 

(454

)

 

 

(430

)

 

 

(1,342

)

 

 

(1,271

)

Net cash provided by (used in) financing activities

 

3,471

 

 

 

(8,441

)

 

 

(143

)

 

 

(7,304

)

Effect of foreign exchange rates on cash

 

(2,450

)

 

 

(405

)

 

 

(4,102

)

 

 

(79

)

Net increase (decrease) in cash and cash equivalents

 

3,244

 

 

 

(31,069

)

 

 

(70,889

)

 

 

(31,706

)

Cash and cash equivalents at beginning of period

 

226,253

 

 

 

322,194

 

 

 

300,386

 

 

 

322,831

 

Cash and cash equivalents at end of period

$

229,497

 

 

$

291,125

 

 

$

229,497

 

 

$

291,125

 

 

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,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Gross profit, subscription and support

$

99,356

 

 

$

83,306

 

 

$

282,381

 

 

$

232,147

 

Add back: Stock-based compensation

 

855

 

 

 

731

 

 

 

2,557

 

 

 

1,824

 

Gross profit, subscription and support, non-GAAP

$

100,211

 

 

$

84,037

 

 

$

284,938

 

 

$

233,971

 

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

 

84.5

%

 

 

85.0

%

 

 

84.0

%

 

 

85.1

%

 

 

 

 

 

 

 

 

Gross profit, professional services

$

1,074

 

 

$

2,982

 

 

$

16,162

 

 

$

15,683

 

Add back: Stock-based compensation

 

533

 

 

 

407

 

 

 

1,578

 

 

 

1,183

 

Gross profit, professional services, non-GAAP

$

1,607

 

 

$

3,389

 

 

$

17,740

 

 

$

16,866

 

As a percentage of professional services revenue, non-GAAP

 

11.3

%

 

 

24.6

%

 

 

32.2

%

 

 

35.5

%

 

 

 

 

 

 

 

 

Gross profit

$

100,430

 

 

$

86,288

 

 

$

298,543

 

 

$

247,830

 

Add back: Stock-based compensation

 

1,388

 

 

 

1,138

 

 

 

4,135

 

 

 

3,007

 

Gross profit, non-GAAP

$

101,818

 

 

$

87,426

 

 

$

302,678

 

 

$

250,837

 

As percentage of revenue, non-GAAP

 

76.6

%

 

 

77.6

%

 

 

76.8

%

 

 

77.8

%

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

19,235

 

 

$

15,606

 

 

$

56,683

 

 

$

42,906

 

Less: Stock-based compensation

 

855

 

 

 

731

 

 

 

2,557

 

 

 

1,824

 

Cost of revenue, subscription and support, non-GAAP

$

18,380

 

 

$

14,875

 

 

$

54,126

 

 

$

41,082

 

As percentage of revenue, non-GAAP

 

13.8

%

 

 

13.2

%

 

 

13.7

%

 

 

12.7

%

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

13,184

 

 

$

10,799

 

 

$

38,846

 

 

$

31,766

 

Less: Stock-based compensation

 

533

 

 

 

407

 

 

 

1,578

 

 

 

1,183

 

Cost of revenue, professional services, non-GAAP

$

12,651

 

 

$

10,392

 

 

$

37,268

 

 

$

30,583

 

As percentage of revenue, non-GAAP

 

9.5

%

 

 

9.2

%

 

 

9.5

%

 

 

9.5

%

 

 

 

 

 

 

 

 

Research and development

$

38,583

 

 

$

29,841

 

 

$

113,644

 

 

$

84,305

 

Less: Stock-based compensation

 

3,399

 

 

 

2,347

 

 

 

9,272

 

 

 

7,195

 

Less: Amortization of acquisition-related intangibles

 

876

 

 

 

275

 

 

 

2,240

 

 

 

275

 

Research and development, non-GAAP

$

34,308

 

 

$

27,219

 

 

$

102,132

 

 

$

76,835

 

As percentage of revenue, non-GAAP

 

25.8

%

 

 

24.2

%

 

 

25.9

%

 

 

23.8

%

 

 

 

 

 

 

 

 

Sales and marketing

$

64,560

 

 

$

46,026

 

 

$

184,879

 

 

$

128,586

 

Less: Stock-based compensation

 

4,657

 

 

 

4,095

 

 

 

14,388

 

 

 

10,481

 

Less: Amortization of acquisition-related intangibles

 

587

 

 

 

13

 

 

 

1,373

 

 

 

13

 

Sales and marketing, non-GAAP

$

59,316

 

 

$

41,918

 

 

$

169,118

 

 

$

118,092

 

As percentage of revenue, non-GAAP

 

44.6

%

 

 

37.2

%

 

 

42.9

%

 

 

36.6

%

 

 

 

 

 

 

 

 

General and administrative

$

27,405

 

 

$

18,390

 

 

$

75,507

 

 

$

52,795

 

Less: Stock-based compensation

 

10,853

 

 

 

5,107

 

 

 

26,258

 

 

 

14,679

 

General and administrative, non-GAAP

$

16,552

 

 

$

13,283

 

 

$

49,249

 

 

$

38,116

 

As percentage of revenue, non-GAAP

 

12.5

%

 

 

11.8

%

 

 

12.5

%

 

 

11.8

%

 

 

 

 

 

 

 

 

Loss from operations

$

(30,118

)

 

$

(7,969

)

 

$

(75,487

)

 

$

(17,856

)

Add back: Stock-based compensation

 

20,297

 

 

 

12,687

 

 

 

54,053

 

 

 

35,362

 

Add back: Amortization of acquisition-related intangibles

 

1,463

 

 

 

288

 

 

 

3,613

 

 

 

288

 

(Loss) income from operations, non-GAAP

$

(8,358

)

 

$

5,006

 

 

$

(17,821

)

 

$

17,794

 

As percentage of revenue, non-GAAP

 

(6.3

) %

 

 

4.4

%

 

 

(4.5

) %

 

 

5.5

%

 

 

 

 

 

 

 

 

Net loss

$

(29,691

)

 

$

(6,568

)

 

$

(77,045

)

 

$

(23,406

)

Add back: Stock-based compensation

 

20,297

 

 

 

12,687

 

 

 

54,053

 

 

 

35,362

 

Add back: Amortization of acquisition-related intangibles

 

1,463

 

 

 

288

 

 

 

3,613

 

 

 

288

 

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

 

 

 

 

2,301

 

 

 

 

 

 

6,851

 

Net (loss) income, non-GAAP

$

(7,931

)

 

$

8,708

 

 

$

(19,379

)

 

$

19,095

 

As percentage of revenue, non-GAAP

 

(6.0

) %

 

 

7.7

%

 

 

(4.9

) %

 

 

5.9

%

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.56

)

 

$

(0.13

)

 

$

(1.46

)

 

$

(0.46

)

Add back: Stock-based compensation

 

0.38

 

 

 

0.25

 

 

 

1.02

 

 

 

0.69

 

Add back: Amortization of acquisition-related intangibles

 

0.03

 

 

 

0.01

 

 

 

0.07

 

 

 

0.01

 

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

 

 

 

 

0.04

 

 

 

 

 

 

0.13

 

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

$

(0.15

)

 

$

0.17

 

 

$

(0.37

)

 

$

0.37

 

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

$

(0.15

)

 

$

0.15

 

 

$

(0.37

)

 

$

0.34

 

 

 

 

 

 

 

 

 

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

 

53,081,564

 

 

 

51,441,688

 

 

 

52,844,532

 

 

 

50,921,612

 

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

 

53,081,564

 

 

 

56,563,730

 

 

 

52,844,532

 

 

 

55,687,528

 

 

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

 

Three months ending
December 31, 2022

 

Year ending
December 31, 2022

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(24,869

)

-

$

(23,869

)

 

$

(100,356

)

-

$

(99,356

)

Add back: Stock-based compensation

 

17,788

 

 

 

17,788

 

 

 

71,841

 

 

 

71,841

 

Add back: Amortization of acquisition-related intangibles

 

1,402

 

 

 

1,402

 

 

 

5,015

 

 

 

5,015

 

Net loss from operations, non-GAAP range

$

(5,679

)

-

$

(4,679

)

 

$

(23,500

)

-

$

(22,500

)

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.47

)

-

$

(0.45

)

 

$

(1.92

)

-

$

(1.90

)

Add back: Stock-based compensation

 

0.33

 

 

 

0.33

 

 

 

1.36

 

 

 

1.36

 

Add back: Amortization of acquisition-related intangibles

 

0.03

 

 

 

0.03

 

 

 

0.09

 

 

 

0.09

 

Net loss per share, non-GAAP range

$

(0.10

)

-

$

(0.08

)

 

$

(0.47

)

-

$

(0.45

)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

53,300,000

 

 

 

53,300,000

 

 

 

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

77.51 +0.28 +0.36% Volume: 81,732 November 25, 2022

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