wk-20230502
FALSE000144530500014453052023-05-022023-05-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

May 2, 2023
Date of Report (date of earliest event reported)
___________________________________
WORKIVA INC.
(Exact name of registrant as specified in its charter)
___________________________________
Delaware
(State or other jurisdiction of incorporation or organization)
001-36773
(Commission File Number)
47-2509828
(I.R.S. Employer Identification Number)
2900 University Blvd
Ames, IA 50010
(888) 275-3125
(Address of principal executive offices and zip code)
(888) 275-3125
(Registrant's telephone number, including area code)
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A common stock, par value $.001WKNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨




Section 2 - Financial Information
Item 2.02 - Results of Operations and Financial Condition
On May 2, 2023, Workiva Inc. (the "Company") issued a press release announcing its results for the quarter ended March 31, 2023. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information in this current report on Form 8-K and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.




Section 9 - Financial Statements and Exhibits
Item 9.01 - Financial Statements and Exhibits
(d): The following exhibits are being filed herewith:
Exhibit
Number
Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 2nd day of May, 2023.

WORKIVA INC.
By:
/s/ Jill Klindt
Name:
Jill Klindt
Title:
Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer


Document

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Workiva Inc. Announces First Quarter 2023 Financial Results
Increased Q1 2023 Subscription & Support Revenue by 21% over Q1 2022
Generated Total Q1 2023 Revenue of $150.2 Million, up 16% over Q1 2022
Achieved 24% YOY Growth of Customers with Annual Contract Value Over $150K

NEW YORK - May 2, 2023 – Workiva Inc. (NYSE:WK), the world’s leading cloud platform for assured integrated reporting, today announced financial results for its first quarter ended March 31, 2023.
"The Workiva team delivered a solid quarter and continued to execute at a high level, resulting in subscription revenue growth of 21%," said Julie Iskow, President & Chief Executive Officer. "Accelerating subscription growth drove revenue above the high end of our first quarter guidance and contributed to our beat at the high end of our operating results guidance by $3.7 million."
"Our focus on multi-solution deals and account expansions led to the increase in the number of larger subscription contracts. In the first quarter, contracts valued at over $100K, $150K, and $300K per year were up 21%, 24%, and 33%, respectively from the first quarter of 2022," said Jill Klindt, Chief Financial Officer. "Additionally, our subscription and support revenue retention rate remained best-in-class at 98% for the first quarter of 2023."
"We continued to see healthy market demand for our platform and best-of-breed solutions, even in an uncertain macro environment," said Iskow. "We believe this is a result of the rapidly evolving market trend of increased stakeholder scrutiny of both financial data and non-financial data, which has made our product offerings more relevant than ever."
First Quarter 2023 Financial Highlights
Revenue: Total revenue for the first quarter of 2023 reached $150.2 million, an increase of 16% from $129.7 million in the first quarter of 2022. Subscription and support revenue contributed $129.7 million, up 21% versus the first quarter of 2022. Professional services revenue was $20.5 million, a decrease of 9% compared to the same quarter in the prior year.
Gross Profit: GAAP gross profit for the first quarter of 2023 was $111.7 million compared with $98.8 million in the same quarter of 2022. GAAP gross margin was 74.3% versus 76.2% in the first quarter of 2022. Non-GAAP gross profit for the first quarter of 2023 was $113.4 million, an increase of 13.3% compared with the prior year's first quarter, and non-GAAP gross margin was 75.5% compared to 77.1% in the first quarter of 2022.
Loss from Operations: GAAP loss from operations for the first quarter of 2023 was $46.8 million compared with a loss of $17.2 million in the prior year's first quarter. Non-GAAP loss from operations was $7.3 million compared with a loss of $1.2 million in the first quarter of 2022.
GAAP Net Loss: GAAP net loss for the first quarter of 2023 was $46.2 million compared with a net loss of $18.5 million for the prior year's first quarter. GAAP net loss per basic and diluted share was $0.86 compared with a net loss per basic and diluted share of $0.35 in the first quarter of 2022.
Non-GAAP Net Loss: Non-GAAP net loss for the first quarter of 2023 was $6.6 million compared with a loss of $2.5 million in the prior year's first quarter. Non-GAAP net loss per basic and diluted share was $0.12 compared with a net loss per basic and diluted share of $0.05 in the first quarter of 2022.
Liquidity: As of March 31, 2023, Workiva had cash, cash equivalents, and marketable securities totaling $439.8 million, compared with $430.8 million as of December 31, 2022. Workiva had $345.0 million
aggregate principal amount of 1.125% convertible senior notes due in 2026 and $15.0 million of finance lease obligations outstanding as of March 31, 2023.
Key Metrics and Recent Business Highlights
Customers: Workiva had 5,754 customers as of March 31, 2023, including 919 ParsePort ESEF customers, a net increase of 1,346 customers from March 31, 2022.
Revenue Retention Rate: As of March 31, 2023, Workiva's revenue retention rate (excluding add-on revenue) was 98%, and the revenue retention rate including add-on revenue was 109%. Add-on revenue includes changes in both solutions and pricing for existing customers.
Large Contracts: As of March 31, 2023, Workiva had 1,363 customers with an annual contract value (“ACV”) of more than $100,000, up 21% from 1,124 customers at March 31, 2022. Workiva had 746 customers with an ACV of more than $150,000, up 24% from 603 customers in the first quarter of 2022. Workiva had 247 customers with an ACV of more than $300,000, up 33% from 186 customers in the first quarter of 2022.
Financial Outlook
As of May 2, 2023, Workiva is providing guidance as follows:
Second Quarter 2023 Guidance:
Total revenue is expected to be in the range of $153.0 million to $154.0 million.
GAAP loss from operations is expected to be in the range of $27.0 million to $26.0 million.
Non-GAAP loss from operations is expected to be in the range of $5.0 million to $4.0 million.
GAAP net loss per basic share is expected to be in the range of $0.50 to $0.48.
Non-GAAP net loss per basic share is expected to be in the range of $0.09 to $0.07.
Net loss per basic share is based on 53.8 million weighted-average shares outstanding.
Full Year 2023 Guidance:
Total revenue is expected to be in the range of $626.0 million to $628.0 million.
GAAP loss from operations is expected to be in the range of $113.0 million to $111.0 million.
Non-GAAP loss from operations is expected to be in the range of $7.0 million to $5.0 million.
GAAP net loss per basic share is expected to be in the range of $2.09 to $2.05.
Non-GAAP net loss per basic share is expected to be in the range of $0.13 to $0.09.
Net loss per basic share is based on 54.0 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 first quarter 2023, in addition to discussing the Company’s outlook for the second quarter and full year 2023. 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 May 9, 2023, 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 cloud platform for assured integrated reporting to meet stakeholder demands for action, transparency, and disclosure of financial and non-financial data. Workiva offers the only unified SaaS platform that brings customers’ financial reporting, Environmental, Social, and Governance (ESG), and Governance, Risk, and Compliance (GRC) together in a controlled, secure, audit-ready platform. Our platform simplifies the most complex
reporting and disclosure challenges by streamlining processes, connecting data and teams, and ensuring consistency. Learn more at workiva.com.

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 amortization of acquisition-related intangible assets. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.
Workiva believes that the use of non-GAAP gross profit and gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (loss) per share is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Non-GAAP gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP income (loss) from operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from operations. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, net of tax and amortization expense for acquisition-related intangible assets from net loss. Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (loss) by the weighted- average shares outstanding as presented in the calculation of GAAP net loss per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe it is reflective of ongoing operations. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.

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.
###
Investor Contact:
Media Contact:
Mike RostDarcie Brossart
Workiva Inc.
Workiva Inc.
investor@workiva.com
press@workiva.com

1


WORKIVA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three months ended March 31,
20232022
(unaudited)
Revenue
Subscription and support$129,664 $107,120 
Professional services20,525 22,554 
Total revenue150,189 129,674 
Cost of revenue
Subscription and support (1)
24,133 18,533 
Professional services (1)
14,385 12,340 
Total cost of revenue38,518 30,873 
Gross profit111,671 98,801 
Operating expenses
Research and development (1)
45,791 35,884 
Sales and marketing (1)
70,710 56,100 
General and administrative (1)
42,011 23,994 
Total operating expenses158,512 115,978 
Loss from operations(46,841)(17,177)
Interest income3,717 280 
Interest expense(1,501)(1,518)
Other expense, net(940)(165)
Loss before provision (benefit) for income taxes(45,565)(18,580)
Provision (benefit) for income taxes585 (87)
Net loss$(46,150)$(18,493)
Net loss per common share:
Basic and diluted$(0.86)$(0.35)
Weighted-average common shares outstanding - basic and diluted53,690,242 52,596,228 

(1) Includes stock-based compensation expense as follows:
Three months ended March 31,
20232022
(unaudited)
Cost of revenue
Subscription and support$1,072 $790 
Professional services633 452 
Operating expenses
Research and development4,697 2,725 
Sales and marketing6,958 4,085 
General and administrative24,682 7,257 

2


WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, 2023December 31, 2022
(unaudited)
Assets
Current assets
Cash and cash equivalents$195,485 $240,197 
Marketable securities244,338 190,595 
Accounts receivable, net77,151 106,316 
Deferred costs39,668 38,350 
Other receivables5,086 6,674 
Prepaid expenses and other23,713 17,957 
Total current assets585,441 600,089 
Property and equipment, net26,049 27,096 
Operating lease right-of-use assets12,714 13,932 
Deferred costs, non-current30,819 33,682 
Goodwill110,997 109,740 
Intangible assets, net27,111 28,234 
Other assets6,943 6,847 
Total assets$800,074 $819,620 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$6,394 $6,174 
Accrued expenses and other current liabilities79,342 83,999 
Deferred revenue309,781 316,263 
Finance lease obligations511 504 
Total current liabilities396,028 406,940 
Convertible senior notes, non-current340,582 340,257 
Deferred revenue, non-current35,601 38,237 
Other long-term liabilities1,533 1,518 
Operating lease liabilities, non-current10,948 12,102 
Finance lease obligations, non-current14,452 14,583 
Total liabilities799,144 813,637 
Stockholders’ equity
Common stock53 53 
Additional paid-in-capital575,549 537,732 
Accumulated deficit(571,266)(525,116)
Accumulated other comprehensive loss(3,406)(6,686)
Total stockholders’ equity930 5,983 
Total liabilities and stockholders’ equity$800,074 $819,620 

3


WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended March 31,
20232022
(unaudited)
Cash flows from operating activities
Net loss$(46,150)$(18,493)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization2,800 1,959 
Stock-based compensation expense38,042 15,309 
Provision for (recovery of) doubtful accounts106 (29)
Realized loss on sale of available-for-sale securities, net561 — 
(Accretion) amortization of premiums and discounts on marketable securities, net(1,028)660 
Amortization of issuance costs and debt discount325 324 
Deferred income tax(10)(211)
Changes in assets and liabilities:
Accounts receivable29,363 6,581 
Deferred costs1,770 1,444 
Operating lease right-of-use asset1,295 1,301 
Other receivables95 180 
Prepaid expenses(5,732)(1,132)
Other assets(74)23 
Accounts payable207 4,364 
Deferred revenue(9,955)606 
Operating lease liability(1,172)(1,342)
Accrued expenses and other liabilities(4,880)(12,481)
Net cash provided by (used in) operating activities5,563 (937)
Cash flows from investing activities
Purchase of property and equipment(198)(532)
Purchase of marketable securities(125,815)(34,148)
Sale of marketable securities43,713 14,981 
Maturities of marketable securities31,905 26,250 
Purchase of intangible assets(79)(40)
Net cash (used in) provided by investing activities(50,474)6,511 
Cash flows from financing activities
Proceeds from option exercises1,457 825 
Taxes paid related to net share settlements of stock-based compensation awards(7,228)(8,570)
Proceeds from shares issued in connection with employee stock purchase plan5,546 5,218 
Principal payments on finance lease obligations(124)(442)
Net cash used in financing activities(349)(2,969)
Effect of foreign exchange rates on cash548 85 
Net (decrease) increase in cash and cash equivalents(44,712)2,690 
Cash and cash equivalents at beginning of period240,197 300,386 
Cash and cash equivalents at end of period$195,485 $303,076 
4


TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)
Three months ended March 31,
20232022
Gross profit, subscription and support$105,531 $88,587 
Add back: Stock-based compensation1,072 790 
Gross profit, subscription and support, non-GAAP$106,603 $89,377 
Gross profit, professional services$6,140 $10,214 
Add back: Stock-based compensation633 452 
Gross profit, professional services, non-GAAP$6,773 $10,666 
Gross profit$111,671 $98,801 
Add back: Stock-based compensation1,705 1,242 
Gross profit, non-GAAP$113,376 $100,043 
Cost of revenue, subscription and support$24,133 $18,533 
Less: Stock-based compensation1,072 790 
Cost of revenue, subscription and support, non-GAAP$23,061 $17,743 
Cost of revenue, professional services$14,385 $12,340 
Less: Stock-based compensation633 452 
Cost of revenue, professional services, non-GAAP$13,752 $11,888 
Research and development$45,791 $35,884 
Less: Stock-based compensation4,697 2,725 
Less: Amortization of acquisition-related intangibles886 495 
Research and development, non-GAAP$40,208 $32,664 
Sales and marketing$70,710 $56,100 
Less: Stock-based compensation6,958 4,085 
Less: Amortization of acquisition-related intangibles601 200 
Sales and marketing, non-GAAP$63,151 $51,815 
General and administrative$42,011 $23,994 
Less: Stock-based compensation24,682 7,257 
General and administrative, non-GAAP$17,329 $16,737 
Loss from operations$(46,841)$(17,177)
Add back: Stock-based compensation38,042 15,309 
Add back: Amortization of acquisition-related intangibles1,487 695 
Loss from operations, non-GAAP$(7,312)$(1,173)
5


TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)
Three months ended March 31,
20232022
Net loss$(46,150)$(18,493)
Add back: Stock-based compensation38,042 15,309 
Add back: Amortization of acquisition-related intangibles1,487 695 
Net loss, non-GAAP$(6,621)$(2,489)
Net loss per basic and diluted share:$(0.86)$(0.35)
Add back: Stock-based compensation0.71 0.29 
Add back: Amortization of acquisition-related intangibles0.03 0.01 
Net loss per basic share, non-GAAP$(0.12)$(0.05)
Net loss per diluted share, non-GAAP$(0.12)$(0.05)
Weighted-average common shares outstanding - basic, non-GAAP53,690,242 52,596,228 
Weighted-average common shares outstanding - diluted, non-GAAP53,690,242 52,596,228 



6


TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
(in thousands, except share and per share data)
Three months ending June 30, 2023Year ending December 31, 2023
Loss from operations, GAAP range$(27,000)-$(26,000)$(113,000)-$(111,000)
Add back: Stock-based compensation
20,500 20,500 100,200 100,200 
Add back: Amortization of acquisition-related intangibles1,500 1,500 5,800 5,800 
Net loss from operations, non-GAAP range$(5,000)-$(4,000)$(7,000)-$(5,000)
Net loss per share, GAAP range$(0.50)-$(0.48)$(2.09)-$(2.05)
Add back: Stock-based compensation
0.38 0.38 1.85 1.85 
Add back: Amortization of acquisition-related intangibles0.03 0.03 0.11 0.11 
Net loss per share, non-GAAP range$(0.09)-$(0.07)$(0.13)-$(0.09)
Weighted-average common shares outstanding - basic53,800,000 53,800,000 54,000,000 54,000,000 

7