wk-20230331
Q10001445305--12-312023FALSEhttp://fasb.org/us-gaap/2023#AccountingStandardsUpdate202006Member0.012475600014453052023-01-012023-03-310001445305us-gaap:CommonClassAMember2023-04-27xbrli:shares0001445305us-gaap:CommonClassBMember2023-04-2700014453052023-03-31iso4217:USD00014453052022-12-310001445305us-gaap:CommonClassAMember2022-12-31iso4217:USDxbrli:shares0001445305us-gaap:CommonClassAMember2023-03-310001445305us-gaap:CommonClassBMember2023-03-310001445305us-gaap:CommonClassBMember2022-12-310001445305us-gaap:LicenseAndServiceMember2023-01-012023-03-310001445305us-gaap:LicenseAndServiceMember2022-01-012022-03-310001445305wk:ProfessionalServicesMember2023-01-012023-03-310001445305wk:ProfessionalServicesMember2022-01-012022-03-3100014453052022-01-012022-03-310001445305us-gaap:CommonStockMember2022-12-310001445305us-gaap:AdditionalPaidInCapitalMember2022-12-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001445305us-gaap:RetainedEarningsMember2022-12-310001445305us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001445305us-gaap:CommonStockMember2023-01-012023-03-310001445305us-gaap:RetainedEarningsMember2023-01-012023-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001445305us-gaap:CommonStockMember2023-03-310001445305us-gaap:AdditionalPaidInCapitalMember2023-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001445305us-gaap:RetainedEarningsMember2023-03-310001445305us-gaap:CommonStockMember2021-12-310001445305us-gaap:AdditionalPaidInCapitalMember2021-12-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001445305us-gaap:RetainedEarningsMember2021-12-3100014453052021-12-310001445305us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001445305us-gaap:CommonStockMember2022-01-012022-03-3100014453052021-01-012021-12-310001445305srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2021-12-310001445305us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001445305srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001445305us-gaap:RetainedEarningsMember2022-01-012022-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001445305us-gaap:CommonStockMember2022-03-310001445305us-gaap:AdditionalPaidInCapitalMember2022-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001445305us-gaap:RetainedEarningsMember2022-03-3100014453052022-03-310001445305us-gaap:MoneyMarketFundsMember2023-03-310001445305us-gaap:CommercialPaperMember2023-03-310001445305us-gaap:USTreasurySecuritiesMember2023-03-310001445305us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-310001445305us-gaap:CorporateDebtSecuritiesMember2023-03-310001445305us-gaap:ForeignGovernmentDebtSecuritiesMember2023-03-310001445305us-gaap:CashEquivalentsMember2023-03-310001445305us-gaap:MoneyMarketFundsMember2022-12-310001445305us-gaap:USTreasurySecuritiesMember2022-12-310001445305us-gaap:CorporateDebtSecuritiesMember2022-12-310001445305us-gaap:ForeignGovernmentDebtSecuritiesMember2022-12-310001445305us-gaap:CashEquivalentsMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-03-310001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-03-310001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMember2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMember2023-03-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMember2022-12-310001445305us-gaap:FairValueInputsLevel2Member2023-03-310001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-31xbrli:pure0001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026OverAllotmentOptionMember2019-08-310001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-012019-08-310001445305us-gaap:CommonClassAMember2019-08-310001445305us-gaap:ConvertibleDebtMemberwk:DebtConversionTermsOneMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-012019-08-31wk:day0001445305us-gaap:ConvertibleDebtMemberwk:DebtConversionTermsTwoMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-012019-08-310001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2023-03-310001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2023-01-012023-03-310001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2022-12-310001445305us-gaap:CostOfSalesMemberus-gaap:LicenseAndServiceMember2023-01-012023-03-310001445305us-gaap:CostOfSalesMemberus-gaap:LicenseAndServiceMember2022-01-012022-03-310001445305wk:ProfessionalServicesMemberus-gaap:CostOfSalesMember2023-01-012023-03-310001445305wk:ProfessionalServicesMemberus-gaap:CostOfSalesMember2022-01-012022-03-310001445305us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001445305us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-310001445305us-gaap:SellingAndMarketingExpenseMember2023-01-012023-03-310001445305us-gaap:SellingAndMarketingExpenseMember2022-01-012022-03-310001445305us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-03-310001445305us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-03-310001445305wk:FormerExecutiveRetiredMember2023-01-012023-03-3100014453052022-01-012022-12-310001445305wk:RestrictedStockUnitsAndPerformanceSharesMember2022-12-310001445305wk:RestrictedStockUnitsAndPerformanceSharesMember2023-01-012023-03-310001445305wk:RestrictedStockUnitsAndPerformanceSharesMember2023-03-310001445305us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001445305us-gaap:CommonClassAMemberus-gaap:EmployeeStockMember2023-01-012023-03-310001445305us-gaap:EmployeeStockMember2023-03-310001445305us-gaap:EmployeeStockMember2023-01-012023-03-310001445305us-gaap:CommercialAndIndustrialSectorMember2023-01-012023-03-310001445305us-gaap:CommercialAndIndustrialSectorMember2022-01-012022-03-310001445305wk:DiversifiedFinancialsSectorMember2023-01-012023-03-310001445305wk:DiversifiedFinancialsSectorMember2022-01-012022-03-310001445305us-gaap:TechnologySectorMember2023-01-012023-03-310001445305us-gaap:TechnologySectorMember2022-01-012022-03-310001445305us-gaap:FinancialServicesSectorMember2023-01-012023-03-310001445305us-gaap:FinancialServicesSectorMember2022-01-012022-03-310001445305wk:ConsumerDiscretionarySectorMember2023-01-012023-03-310001445305wk:ConsumerDiscretionarySectorMember2022-01-012022-03-310001445305us-gaap:HealthcareSectorMember2023-01-012023-03-310001445305us-gaap:HealthcareSectorMember2022-01-012022-03-310001445305us-gaap:InsuranceSectorMember2023-01-012023-03-310001445305us-gaap:InsuranceSectorMember2022-01-012022-03-310001445305us-gaap:RealEstateSectorMember2023-01-012023-03-310001445305us-gaap:RealEstateSectorMember2022-01-012022-03-310001445305us-gaap:EnergySectorMember2023-01-012023-03-310001445305us-gaap:EnergySectorMember2022-01-012022-03-310001445305wk:MaterialsSectorMember2023-01-012023-03-310001445305wk:MaterialsSectorMember2022-01-012022-03-310001445305wk:UtilitiesSectorMember2023-01-012023-03-310001445305wk:UtilitiesSectorMember2022-01-012022-03-310001445305wk:ConsumerStaplesSectorMember2023-01-012023-03-310001445305wk:ConsumerStaplesSectorMember2022-01-012022-03-310001445305wk:PublicAdministrationSectorMember2023-01-012023-03-310001445305wk:PublicAdministrationSectorMember2022-01-012022-03-310001445305wk:OtherSectorMember2023-01-012023-03-310001445305wk:OtherSectorMember2022-01-012022-03-310001445305wk:XBRLProfessionalServicesMember2023-01-012023-03-310001445305wk:XBRLProfessionalServicesMember2022-01-012022-03-310001445305wk:OtherServicesMember2023-01-012023-03-310001445305wk:OtherServicesMember2022-01-012022-03-3100014453052023-04-012023-03-3100014453052024-04-012023-03-310001445305us-gaap:CommonClassAMember2023-01-012023-03-310001445305us-gaap:CommonClassBMember2023-01-012023-03-310001445305us-gaap:CommonClassAMember2022-01-012022-03-310001445305us-gaap:CommonClassBMember2022-01-012022-03-310001445305us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001445305us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001445305wk:RestrictedStockUnitsAndPerformanceSharesMember2023-01-012023-03-310001445305wk:RestrictedStockUnitsAndPerformanceSharesMember2022-01-012022-03-310001445305us-gaap:EmployeeStockMember2023-01-012023-03-310001445305us-gaap:EmployeeStockMember2022-01-012022-03-310001445305us-gaap:TechnologyBasedIntangibleAssetsMember2023-03-310001445305us-gaap:TechnologyBasedIntangibleAssetsMember2022-12-310001445305us-gaap:CustomerRelationshipsMember2023-03-310001445305us-gaap:CustomerRelationshipsMember2022-12-310001445305us-gaap:TradeNamesMember2023-03-310001445305us-gaap:TradeNamesMember2022-12-310001445305us-gaap:PatentsMember2023-03-310001445305us-gaap:PatentsMember2022-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 10-Q
___________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For transition period from               to
Commission File Number 001-36773
___________________________________
WORKIVA INC.
(Exact name of registrant as specified in its charter)
___________________________________
Delaware
(State or other jurisdiction of incorporation or organization)
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)
___________________________________

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer    ý
Accelerated filer o
Non-accelerated filer    o
Smaller reporting company
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. ☐



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes  No ý
As of April 27, 2023, there were approximately 49,544,653 shares of the registrant's Class A common stock and 3,845,583 shares of the registrant's Class B common stock outstanding.



WORKIVA INC.
TABLE OF CONTENTS
Page
i

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Quarterly Report on Form 10-Q 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. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, in “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q and in any subsequent filing we make with the SEC, as well as in any documents incorporated by reference that describe risks and factors that could cause results to differ materially from those projected in these forward-looking statements.
Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after completion of this Quarterly Report on Form 10-Q to conform these statements to actual results or revised expectations.
ii

Part I. Financial Information
Item 1.     Financial Statements
    
WORKIVA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
As of March 31, 2023As of December 31, 2022
(unaudited)
ASSETS
Current assets
Cash and cash equivalents$195,485 $240,197 
Marketable securities244,338 190,595 
Accounts receivable, net of allowance for doubtful accounts of $852 and $744 at March 31, 2023 and December 31, 2022, respectively
77,151 106,316 
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 
1

WORKIVA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(in thousands, except share and per share amounts)
As of March 31, 2023As of December 31, 2022
(unaudited)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$6,394 $6,174 
Accrued expenses and other current liabilities
79,342 83,999 
Deferred revenue
309,781 316,263 
Finance lease obligations511 504 
Total current liabilities396,028 406,940 
Convertible senior notes, non-current340,582 340,257 
Deferred revenue, non-current
35,601 38,237 
Other long-term liabilities
1,533 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
Class A common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 49,386,777 and 48,761,804 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively
49 49 
Class B common stock, $0.001 par value per share, 500,000,000 shares authorized, 3,845,583 and 3,890,583 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively
4 4 
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding
  
Additional paid-in-capital
575,549 537,732 
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 
See accompanying notes.
2

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three months ended March 31,
20232022
Revenue
Subscription and support$129,664 $107,120 
Professional services20,525 22,554 
Total revenue150,189 129,674 
Cost of revenue
Subscription and support24,133 18,533 
Professional services14,385 12,340 
Total cost of revenue38,518 30,873 
Gross profit111,671 98,801 
Operating expenses
Research and development45,791 35,884 
Sales and marketing70,710 56,100 
General and administrative42,011 23,994 
Total operating expenses158,512 115,978 
Loss from operations(46,841)(17,177)
Interest income3,717 280 
Interest expense(1,501)(1,518)
Other expense, net(940)(165)
Loss before provision (benefit) for income taxes(45,565)(18,580)
Provision (benefit) for income taxes585 (87)
Net loss$(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 

See accompanying notes.

3

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)
Three months ended March 31,
20232022
Net loss$(46,150)$(18,493)
Other comprehensive income (loss)
Foreign currency translation adjustment1,701 84 
Unrealized gain (loss) on available-for-sale securities1,579 (1,860)
Other comprehensive income (loss)3,280 (1,776)
Comprehensive loss$(42,870)$(20,269)

See accompanying notes.

4

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
Three Months Ended March 31, 2023
Common Stock (Class A and B)
SharesAmountAdditional Paid-in-CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders' Equity
Balances at December 31, 202252,652 $53 $537,732 $(6,686)$(525,116)$5,983 
Stock-based compensation expense— — 38,042 — — 38,042 
Issuance of common stock upon exercise of stock options102 — 1,457 — — 1,457 
Issuance of common stock under employee stock purchase plan107 — 5,546 — — 5,546 
Issuance of restricted stock units449 — — — — — 
Tax withholding related to net share settlements of stock-based compensation awards(78)— (7,228)— — (7,228)
Net loss— — — — (46,150)(46,150)
Other comprehensive income— — — 3,280 — 3,280 
Balances at March 31, 202353,232 $53 $575,549 $(3,406)$(571,266)$930 
Three Months Ended March 31, 2022
Common Stock (Class A and B)
SharesAmountAdditional Paid-in-CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders' Equity
Balances at December 31, 202151,444 $51 $525,646 $(288)$(452,430)$72,979 
Stock-based compensation expense— — 15,309 — — 15,309 
Issuance of common stock upon exercise of stock options62 1 824 — — 825 
Issuance of common stock under employee stock purchase plan53 — 5,218 — — 5,218 
Issuance of restricted stock units545 — — — — — 
Tax withholding related to net share settlements of stock-based compensation awards(73)— (8,570)— — (8,570)
Adoption of ASU 2020-06— — (58,560)— 18,261 (40,299)
Net loss— — — — (18,493)(18,493)
Other comprehensive loss— — — (1,776)— (1,776)
Balances at March 31, 202252,031 $52 $479,867 $(2,064)$(452,662)$25,193 

See accompanying notes.
5

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended March 31,
20232022
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 and other(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 
6

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
Three months ended March 31,
20232022
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 
Supplemental cash flow disclosure
Cash paid for interest$2,146 $2,165 
Cash paid for income taxes, net of refunds$323 $190 
Supplemental disclosure of noncash investing and financing activities
Purchases of property and equipment, accrued but not paid$ $262 

See accompanying notes.

7

WORKIVA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies
Organization
Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company” or “we” or “us”) is on a mission to power transparent reporting for a better world. We believe that consumers, employees, shareholders, and other stakeholders today expect more from business – more action, transparency, and disclosure of financial and non-financial information. We build solutions to meet that demand and streamline processes, connect data and teams, and ensure consistency – all within the Workiva platform, the world’s leading cloud platform for assured integrated reporting. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada.
Basis of Presentation and Principles of Consolidation
The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet data as of December 31, 2022 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three months ended March 31, 2023 are not necessarily indicative of the results expected for the full year ending December 31, 2023.
Seasonality affects our revenue, expenses and cash flows from operations. Revenue from professional services has been higher in the first quarter as many of our customers file their 10-K in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. With the exception of September 2020 and September 2021 when we transitioned to a virtual event, sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September. In addition, the timing of the payments of cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on February 21, 2023.
The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
8

Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates.
Recently Adopted Accounting Pronouncements
None.
New Accounting Pronouncements Not Yet Adopted
None.
2. Supplemental Consolidated Balance Sheet Information
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of March 31, 2023As of December 31, 2022
Accrued vacation$15,481 $12,939 
Accrued commissions6,786 10,841 
Accrued bonuses7,405 5,597 
Accrued payroll4,338 5,318 
Estimated health insurance claims1,894 1,841 
Accrued interest485 1,455 
ESPP employee contributions3,964 5,661 
Customer deposits23,872 25,520 
Operating lease liabilities5,465 5,720 
Accrued other liabilities9,652 9,107 
$79,342 $83,999 

9

3. Cash Equivalents and Marketable Securities
At March 31, 2023, cash equivalents and marketable securities consisted of the following (in thousands):
Amortized Cost
Unrealized Gains
Unrealized Losses
Aggregate Fair Value
Money market funds$99,453 $— $— $99,453 
Commercial paper67,828   67,828 
U.S. treasury debt securities45,195 123 (263)45,055 
U.S. government agency debt securities18,263 19  18,282 
Corporate debt securities113,109 201 (1,114)112,196 
Foreign government debt securities994  (17)977 
$344,842 $343 $(1,394)$343,791 
Included in cash and cash equivalents$99,453 $— $— $99,453 
Included in marketable securities$245,389 $343 $(1,394)$244,338 
At December 31, 2022, cash equivalents and marketable securities consisted of the following (in thousands):
Amortized Cost
Unrealized Gains
Unrealized Losses
Aggregate Fair Value
Money market funds$182,878 $— $— $182,878 
U.S. treasury debt securities72,151 1 (899)71,253 
Corporate debt securities120,081 62 (1,771)118,372 
Foreign government debt securities993  (23)970 
$376,103 $63 $(2,693)$373,473 
Included in cash and cash equivalents$182,878 $— $— $182,878 
Included in marketable securities$193,225 $63 $(2,693)$190,595 

The contractual maturities of the investments classified as marketable securities are as follows (in thousands):
As of March 31, 2023
Due within one year$167,887 
Due in one to two years76,451 
$244,338 
The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of March 31, 2023, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
10

As of March 31, 2023
Less than 12 months
12 months or greater
Fair Value
Unrealized Loss
Fair Value
Unrealized Loss
U.S. treasury debt securities$24,398 $(153)$5,839 $(110)
Corporate debt securities39,998 (464)30,549 (650)
Foreign government debt securities977 (17)  
Total$65,373 $(634)$36,388 $(760)
We do not believe the unrealized losses represent credit losses based on our evaluation of available evidence as of March 31, 2023, which includes an assessment of whether it is more likely than not we will be required to sell the investment before recovery of the investment's amortized cost basis.
4. Fair Value Measurements
We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.
Level 3 - Inputs are unobservable inputs based on our assumptions.
11

Financial Assets
Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets.
When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of March 31, 2023, all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2.
Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2, and we have no financial assets measured using Level 3 inputs on a recurring basis. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
Fair Value Measurements as of March 31, 2023Fair Value Measurements as of December 31, 2022
Description
Total
Level 1
Level 2
Total
Level 1
Level 2
Money market funds$99,453 $99,453 $ $182,878 $182,878 $ 
Commercial paper67,828  67,828    
U.S. treasury debt securities45,055  45,055 71,253  71,253 
U.S. government agency debt securities18,282  18,282    
Corporate debt securities112,196  112,196 118,372  118,372 
Foreign government debt securities977  977 970  970 
$343,791 $99,453 $244,338 $373,473 $182,878 $190,595 
Included in cash and cash equivalents$99,453 $182,878 
Included in marketable securities$244,338 $190,595 
Convertible Senior Notes
As of March 31, 2023, the fair value of our convertible senior notes was $484.5 million. The fair value was determined based on the quoted price of the convertible senior notes in an over-the-counter market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy. See Note 5 to the condensed consolidated financial statements for more information.
5. Convertible Senior Notes
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount (the “Notes”). The Notes were issued pursuant to an indenture and are senior, unsecured obligations of the Company. The Notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs.
12

The initial conversion rate is 12.4756 shares of our common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $80.16 per share, subject to adjustment upon the occurrence of specified events.
Holders of the Notes may convert all or a portion of their Notes prior to the close of business on May 15, 2026, in multiples of $1,000 principal amount, only under the following circumstances:
during any calendar quarter commencing after the calendar quarter ending on September 30, 2019 (and only during such calendar quarter), if the last reported sale price of our Class A common stock, par value $0.001 per share (which we refer to in this offering memorandum as our “Class A common stock”), for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
during the five consecutive business day period immediately following any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined below) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day;
if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or
upon the occurrence of certain specified corporate events as set forth in the indenture.
On or after May 16, 2026, holders of the Notes may convert their Notes at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes.
Upon conversion, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election, in the manner and subject to the terms and conditions provided in the indenture. It is our current intent to settle conversions through a combination settlement of cash and shares of our Class A common stock.
The Company may redeem for cash all or any portion of the Notes, at its option, on or after August 21, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date.
During the first quarter of 2023 none of the conversion conditions were met and therefore the Notes are not convertible at the option of the holders. As a result, the Notes were classified as non-current liabilities on the condensed consolidated balance sheet as of March 31, 2023.
Interest expense representing the amortization of issuance costs as well as contractual interest expense is amortized to interest expense at an effective interest rate of 1.5% over the term of the notes. As of March 31, 2023 the if-converted value of the Notes was less than the principal amount by $95.8 million.
As of March 31, 2023, the remaining life of the Notes is approximately 3.4 years.
13

The net carrying amount of the Notes was as follows (in thousands):
As of
March 31, 2023December 31, 2022
Principal$345,000 $345,000 
Unamortized issuance costs(4,418)(4,743)
Net carrying amount$340,582 $340,257 

Interest expense related to the Notes was as follows (in thousands):
Three months ended March 31,
20232022
Contractual interest expense$970 $970 
Amortization of issuance costs325 324 
Total interest expense$1,295 $1,294 

6. Commitments and Contingencies
Litigation
From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We evaluate the development of legal matters on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
7. Stock-Based Compensation
We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock units, performance restricted stock units, options to purchase Class A common stock and Employee Stock Purchase Plan ("ESPP") purchase rights. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (“the 2009 Plan”). The 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (“the 2014 Plan” and, together with the 2009 Plan, “the Plans”).
Stock-Based Compensation Expense
Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
14

Three months ended March 31,
20232022
Cost of revenue
Subscription and support
$1,072 $790 
Professional services
633 452 
Operating expenses
Research and development
4,697 2,725 
Sales and marketing
6,958 4,085 
General and administrative
24,682 7,257 
Total
$38,042 $15,309 
During the first quarter of 2023, we recognized an additional $18.1 million in stock-based compensation pursuant to certain transition agreements with former executives who retired during the period.
Stock Options
The following table summarizes the option activity under the Plans for the three months ended March 31, 2023:




Options

Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Outstanding at December 31, 20221,509,172 $14.57 3.2
Granted  
Forfeited  
Expired  
Exercised(102,401)14.23 
Outstanding at March 31, 20231,406,771 $14.59 3.0
Exercisable at March 31, 20231,406,771 $14.59 3.0
Restricted Stock Units and Performance Restricted Stock Units
The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plans for the three months ended March 31, 2023:




Number of Shares
Weighted-
Average
Grant Date Fair Value
Unvested at December 31, 20221,921,927 $93.80 
Granted860,651 92.24 
Forfeited(26,980)100.61 
Vested(1)
(435,117)91.72 
Unvested at March 31, 20232,320,481 $93.27 
15

(1) During the three months ended March 31, 2023, in accordance with our Nonqualified Deferred Compensation Plan, recipients elected not to defer settlement of their vested restricted stock units and 14,068 shares were released from deferral.
Employee Stock Purchase Plan
During the three months ended March 31, 2023, 107,125 shares of common stock were purchased under the ESPP at a weighted-average price of $51.77 per share, resulting in cash proceeds of $5.5 million.
Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. At March 31, 2023, there was approximately $1.6 million of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.3 years.
8. Revenue Recognition
Disaggregation of Revenue
Revenues by industry are derived from leading software providers. The following table presents our revenues disaggregated by industry (in thousands):
Three months ended March 31,
20232022
Industrials$21,936 $18,570 
Diversified financials21,423 17,127 
Information technology16,621 14,637 
Banks15,502 12,985 
Consumer discretionary14,354 12,218 
Healthcare12,968 11,625 
Insurance8,964 7,777 
Real estate6,686 6,076 
Energy6,562 5,746 
Materials5,871 5,674 
Utilities5,537 5,960 
Consumer staples4,445 4,060 
Public administration4,341 3,402 
Other4,979 3,817 
Total revenues
$150,189 $129,674 
The following table presents our revenues disaggregated by type of good or service (in thousands):
Three months ended March 31,
20232022
Subscription and support$129,664 $107,120 
XBRL professional services16,733 17,693 
Other services3,792 4,861 
Total revenues
$150,189 $129,674 
16

Deferred Revenue
We recognized $118.4 million and $98.0 million of revenue during the three months ended March 31, 2023 and 2022, respectively, that was included in the deferred revenue balances at the beginning of the respective periods.
Transaction Price Allocated to the Remaining Performance Obligations
As of March 31, 2023, we expect revenue of approximately $777.5 million to be recognized from remaining performance obligations for subscription contracts. We expect to recognize approximately $435.3 million of these remaining performance obligations over the next 12 months with the balance substantially recognized in the 24 months thereafter.
9. Net Loss Per Share
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including convertible senior notes, outstanding stock options, stock related to unvested restricted stock units, and common stock issuable pursuant to the ESPP to the extent dilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive.
The net loss per share is allocated based on the participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis.
A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):
Three months ended
March 31, 2023March 31, 2022
Class A
Class B
Class A
Class B
Numerator
Net loss$(42,819)$(3,331)$(17,079)$(1,414)
Denominator
Weighted-average common shares outstanding - basic and diluted49,815,159 3,875,083 48,575,645 4,020,583 
Basic and diluted net loss per share$(0.86)$(0.86)$(0.35)$(0.35)
The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:
17

As of
March 31, 2023March 31, 2022
Shares subject to outstanding common stock options1,406,771 1,692,943 
Shares subject to unvested restricted stock units and performance restricted stock units2,320,481 1,966,276 
Shares issuable pursuant to the ESPP99,352 64,043 
In addition, as of March 31, 2023 and 2022 approximately 4.3 million shares of our Class A common stock underlying our Convertible Senior Notes were excluded from the weighted-average shares used to calculate the diluted net loss per common share as they are considered anti-dilutive. We use the if-converted method for calculating any potential dilutive effect of the Notes on diluted net income per share, if applicable.

10. Intangible Assets and Goodwill
The following table presents the components of net intangible assets (in thousands):
As of March 31, 2023As of December 31, 2022
Weighted Average Useful Life (Years)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Acquired technology4.5$15,835 $(4,759)$11,076 $15,705 $(3,849)$11,856 
Acquired customer-related10.015,213 (1,574)13,639 14,969 (1,169)13,800 
Acquired trade names2.92,162 (1,082)1,080 2,151 (861)1,290 
Patents10.02,995 (1,679)1,316 2,916 (1,628)1,288 
Total7.2$36,205 $(9,094)$27,111 $35,741 $(7,507)$28,234 
Amortization expense related to intangible assets was $1.5 million and $0.8 million for the three months ended March 31, 2023 and 2022, respectively.
As of March 31, 2023, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands):
Remainder of 2023$4,640 
20245,432 
20254,701 
20263,391 
20272,086 
Thereafter6,861 
Total expected amortization expense$27,111 
18

The changes in the carrying amount of goodwill were as follows (in thousands):
December 31, 2022$109,740 
Foreign currency translation adjustments1,257 
March 31, 2023$110,997 

19

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of our operations should be read in conjunction with the condensed consolidated financial statements and related notes included elsewhere in this report and in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 21, 2023. In addition to historical consolidated financial information, this discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to these differences include, but are not limited to, those identified below, and those discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, in “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q and in any subsequent filing we make with the SEC.
Overview
Workiva’s mission is to power transparent reporting for a better world. We believe that consumers, employees, shareholders, and other stakeholders today expect more from business – more action, transparency, and disclosure of financial and non-financial information. We build solutions to meet that demand and streamline processes, connect data and teams, and ensure consistency – all within the Workiva platform, the world’s leading cloud platform for assured integrated reporting. Additionally, we offer the only unified software-as-a-service (“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.
The Workiva platform empowers customers by connecting and transforming data from hundreds of enterprise resource planning (“ERP”), human capital management (“HCM”), and customer relationship management (“CRM”) systems, as well as other third-party cloud and on-premise applications. Customers use our platform to create, review and publish data-linked documents and reports with greater control, consistency, accuracy, and productivity. Our platform is flexible and scalable, so customers can easily adapt it to define, automate, and change their business processes in real time.
Workiva provides more than 4,800 organizations across the globe with SaaS platform solutions to help solve some of the most complex reporting and disclosure challenges. While our customers use our platform for more than 100 different use cases, we organize our sales and marketing resources into four purpose-built solution groups focusing primarily on the office of the Chief Financial Officer (“CFO”): financial reporting, ESG, GRC, and industry verticals. Workiva also serves approximately 900 customers with non-platform, eXtensible Business Reporting Language ("XBRL")-tagging services, primarily through ParsePort, an XBRL conversion software company Workiva acquired in 2022.
We operate our business on a Software-as-a-Service (“SaaS”) model. Customers enter into annual and multi-year subscription contracts to gain access to our platform. Our subscription fee includes the use of our software and technical support. Our subscription pricing is based primarily on a solution-based licensing model. Under this model, operating metrics related to a customer’s expected use of each solution determine the price. We charge customers additional fees primarily for document setup and XBRL tagging services.
We generate sales primarily through our direct sales force and, to a lesser extent, our customer success and professional services teams. In addition, we augment our direct sales channel with partnerships. Our advisory and service partners offer a wider range of domain and functional expertise that broadens the capabilities of our platform, bringing scale and support to customers and prospects. Our technology partners enable more data and process integrations to help customers connect critical transactional systems directly to our platform.
20

We continue to invest in the development of our solutions, infrastructure and sales and marketing to drive long-term growth. Our full-time employee headcount expanded to 2,465 at March 31, 2023 from 2,230 at March 31, 2022, an increase of 10.5%.
We have achieved significant revenue growth in recent periods. Our revenue grew to $150.2 million during the three months ended March 31, 2023 from $129.7 million during the three months ended March 31, 2022. We incurred a net loss of $46.2 million during the three months ended March 31, 2023 compared to $18.5 million during the three months ended March 31, 2022.
In addition, the expanding international scope of our business and the heightened volatility of global markets, expose us to the risk of fluctuations in foreign currency markets. Foreign currency fluctuations have negatively impacted year over year revenue growth. Recently the United States Dollar has strengthened against certain foreign currencies in the markets in which we operate, particularly against the Euro and British Pound Sterling. If these conditions continue throughout fiscal 2023, they could have a material adverse impact on our near-term results and our ability to accurately predict our future results and earnings.
We continue to invest for future growth and are focused on several key drivers, including focusing on multi-solution adoption by new and existing customers, further developing our partner program, accelerating international expansion and developing our fit-for-purpose solutions. These growth drivers often require a more sophisticated go-to-market approach and, as a result, we may incur additional costs upfront to obtain new customers and expand our relationships with existing customers, including additional sales and marketing expenses.
Impact of COVID-19
We do not believe that the COVID-19 pandemic has adversely affected our business. We have been able to maintain business continuity and have experienced no pandemic-related employee furloughs or layoffs. We have remote-work options available for most employees, while permitting in-person collaboration at our various offices. We continue to monitor and update our practices in response to changes in the COVID-19 workplace safety and health standards established by the Occupational Safety and Health Administration (“OSHA”) and guidance provided by the Centers for Disease Control and Prevention (“CDC”). We will continue to evaluate the nature and extent of the impact of the COVID-19 pandemic on our business, including the possibility of future disruption to Workiva's operations from potential new variants.
Effects of Volatility in the IPO/SPAC Markets
In the United States, volatility in the public markets led to a decrease in the number of initial public offerings (“IPOs”) and special-purpose acquisition companies (“SPACs”) in 2022. New sales of our SEC and capital markets solutions were adversely affected by this decline in the IPO and SPAC markets. Reduced valuation multiples caused by higher interest rates, inflation, and geopolitical instability could continue to negatively impact the number of IPOs and SPACs in fiscal year 2023. Accordingly, this volatility could continue to apply pressure to new sales of our SEC and capital markets solutions. Whether and to what extent the IPO and SPAC markets will moderate cannot be accurately predicted.
21

Key Factors Affecting Our Performance
Generate Growth From Existing Customers. The Workiva platform can exhibit a powerful network effect within an enterprise, meaning that the usefulness of our platform attracts additional users. Since solution-based licensing offers our customers an unlimited number of seats for each solution purchased, we expect customers to add more seats over time. As more employees in an enterprise use our platform, additional opportunities for collaboration and automation drive demand among their colleagues for additional solutions.
Pursue New Customers. We sell to organizations that manage large, complex processes with distributed teams of contributors and disparate sets of business data. We market our platform to professionals and executives in the areas of financial and non-financial reporting, including regulatory, multi-entity and performance reporting. In addition, we market to teams responsible for environmental, social and governance reporting, and governance, risk and compliance programs. We intend to continue to build our sales and marketing organization and leverage our brand equity to attract new customers.
Offer More Solutions. We intend to introduce new solutions to continue to meet growing demand for our platform. Our close and trusted relationships with our customers are a source for new use cases, features and solutions. We have a disciplined process for tracking, developing and releasing new solutions that are designed to have immediate, broad applicability; a strong value proposition; and a high return on investment for both Workiva and our customers. Our advance planning team assesses customer needs, conducts industry-based research and defines new markets. This vetting process involves our sales, product marketing, customer success, professional services, research and development, finance and senior management teams.
Expand Across Enterprises. Our success in delivering multiple solutions has created demand from customers for a broader-based, enterprise-wide Workiva platform. In response, we have been improving our technology and realigning sales and marketing to capitalize on our growing enterprise-wide opportunities. We believe this expansion will add seats and revenue and continue to support our high revenue retention rates. However, we expect that enterprise-wide deals will be larger and more complex, which tend to lengthen the sales cycle.
Add Partners. We continue to expand and deepen our relationships with global and regional partners, including consulting firms, system integrators, large and mid-sized independent software vendors, and implementation partners. Our advisory and service partners offer a wider range of domain and functional expertise that broadens our platform’s capabilities and promotes Workiva as part of the digital transformation projects they drive for their customers. Our technology partners enable powerful data and process integrations to help customers connect critical transactional systems directly to our platform, with powerful linking, auditability and control features. We believe that our partner ecosystem extends our global reach, accelerates the usage and adoption of our platform, and enables more efficient delivery of professional services.
Investment in growth. We plan to continue to invest in the development of our platform, fit-for-purpose solutions and application marketplace to enhance our current offerings and build new features. In addition, we expect to continue to invest in our sales, marketing, professional services and customer success organizations to drive additional revenue and support the needs of our growing customer base and to take advantage of opportunities that we have identified in Europe, the Middle East and Africa ("EMEA") and Asia-Pacific ("APAC") regions.
22

Seasonality. Our revenue from professional services has some degree of seasonality. Many of our customers employ our professional services just before they file their Form 10-K, often in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. With the exception of September 2020 and September 2021 when we transitioned to a virtual event, sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September. In addition, the timing of the payments of cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow.
Key Performance Indicators
Three months ended March 31,
20232022
(dollars in thousands)
Financial metrics
Total revenue
$150,189 $129,674 
Percentage increase in total revenue15.8 %24.4 %
Subscription and support revenue$129,664 $107,120 
Percentage increase in subscription and support revenue21.0 %26.1 %
Subscription and support as a percent of total revenue86.3 %82.6 %
As of March 31,
20232022
Operating metrics
Number of customers5,7544,408
Subscription and support revenue retention rate97.9%97.7%
Subscription and support revenue retention rate including add-ons109.2%109.2%
Number of customers with annual contract value $100k+1,3631,124
Number of customers with annual contract value $150k+746603
Number of customers with annual contract value $300k+247186
Total customers. We believe total number of customers is a key indicator of our financial success and future revenue potential. We define a customer as an entity with an active subscription contract as of the measurement date. Our customer is typically a parent company or, in a few cases, a significant subsidiary that works with us directly. Companies with publicly-listed securities account for a substantial majority of our customers. As of March 31, 2023, our total customer count includes 919 ParsePort ESEF customers.
Subscription and support revenue retention rate. We calculate our subscription and support revenue retention rate based on all customers that were active at the end of the same calendar quarter of the prior year (“base customers”). We begin by annualizing the subscription and support revenue recorded in the same calendar quarter of the prior year for those base customers who are still active at the end of the current quarter. We divide the result by the annualized subscription and support revenue in the same quarter of the prior year for all base customers.
Our subscription and support revenue retention rate was 97.9% as of March 31, 2023, up slightly from 97.7% as of March 31, 2022. We believe that our success in maintaining a high rate of revenue retention is attributable primarily to our robust technology platform and strong customer service. Customers whose securities were deregistered due to merger or acquisition or financial distress accounted
23

for just over half of our revenue attrition in the latest quarter. Our subscription and support revenue retention rate as of March 31, 2023 does not include ParsePort due to lack of comparable data in the prior year.
Subscription and support revenue retention rate including add-ons. Add-on revenue includes the change in both solutions and pricing for existing customers. We calculate our subscription and support revenue retention rate including add-ons by annualizing the subscription and support revenue recorded in the current quarter for our base customers that were active at the end of the current quarter. We divide the result by the annualized subscription and support revenue in the same quarter of the prior year for all base customers.
Our subscription and support revenue retention rate including add-ons was 109.2% as of the quarter ended March 31, 2023, flat from 109.2% as of March 31, 2022. Our subscription and support revenue retention rate including add-ons as of March 31, 2023 does not include ParsePort due to lack of comparable data in the prior year.
Annual contract value. Our annual contract value (“ACV”) for each customer is calculated by annualizing the subscription and support revenue recognized during each quarter. We believe the increase in the number of larger contracts shows our progress in expanding our customers’ adoption of our platform. Our ACV metrics as of March 31, 2023 include information related to ParsePort.
Three months ended March 31,
20232022
Subscription and support revenue from customers with annual contract value of $100k+ as a percent of total subscription and support revenue63.9%61.3%
Subscription and support revenue from customers with annual contract value of $150k+ as a percent of total subscription and support revenue49.5%46.6%
Subscription and support revenue from customers with annual contract value of $300k+ as a percent of total subscription and support revenue30.0%26.9%
Components of Results of Operations
Revenue
We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services. We serve a wide range of customers in many industries, and our revenue is not concentrated with any single customer or small group of customers. For the three months ended March 31, 2023 and 2022, no single customer represented more than 1% of our revenue, and our largest 10 customers accounted for less than 5% of our revenue in the aggregate.
We generate sales directly through our sales force and partners. We also identify some sales opportunities with existing customers through our customer success and professional services teams.
Our customer contracts typically range in length from twelve to 36 months. We typically invoice our customers for subscription fees annually in advance. For contracts with a two or three year term, customers sometimes elect to pay the entire multi-year subscription term in advance. Our arrangements do not contain general rights of return.
Subscription and Support Revenue. We recognize subscription and support revenue on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Amounts that are invoiced are initially recorded as deferred revenue.
24

Professional Services Revenue. We believe our professional services facilitate the sale of our subscription service to certain customers. To date, most of our professional services have consisted of document set up, XBRL tagging, and consulting to help our customers with business processes and best practices for using our platform. Our professional services are not required for customers to utilize our solution. We recognize revenue for document set ups when the service is complete and control has transferred to the customer. Revenues from XBRL tagging and consulting services are recognized as the services are performed.        
Cost of Revenue
Cost of revenue consists primarily of personnel and related costs directly associated with our professional services, customer success teams and training personnel, including salaries, benefits, bonuses, and stock-based compensation; the costs of contracted third-party vendors; the costs of server usage by our customers; information technology costs; and facility costs. Costs of server usage are comprised primarily of fees paid to Amazon Web Services.
Sales and Marketing Expenses
Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, our annual user conference, online marketing, product marketing, information technology costs, and facility costs. We pay sales commissions for initial contracts and expansions of existing customer contracts. When the relevant amortization period is one year or less, we expense sales commissions as incurred. All other sales commissions are considered incremental costs of obtaining a contract with a customer and are deferred and amortized on a straight-line basis over a period of benefit that we have determined to be three years.
Research and Development Expenses
Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, and stock-based compensation; costs of server usage by our developers; information technology costs; and facility costs.
General and Administrative Expenses
General and administrative expenses consist primarily of personnel and related costs for our executive, finance and accounting, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs.
25

Results of Operations
The following table sets forth selected consolidated statement of operations data for each of the periods indicated:
Three months ended March 31,
20232022
(in thousands)
Revenue
Subscription and support$129,664 $107,120 
Professional services20,525 22,554 
Total revenue150,189 129,674 
Cost of revenue
Subscription and support(1)
24,133 18,533 
Professional services(1)
14,385 12,340 
Total cost of revenue38,518 30,873 
Gross profit111,671 98,801 
Operating expenses
Research and development(1)
45,791 35,884 
Sales and marketing(1)
70,710 56,100 
General and administrative(1)
42,011 23,994 
Total operating expenses158,512 115,978 
Loss from operations(46,841)(17,177)
Interest income3,717 280 
Interest expense(1,501)(1,518)
Other expense, net(940)(165)
Loss before provision for income taxes(45,565)(18,580)
Provision (benefit) for income taxes585 (87)
Net loss$(46,150)$(18,493)
(1)     Stock-based compensation expense included in these line items was as follows:
Three months ended March 31,
20232022
(in thousands)
Cost of revenue
Subscription and support
$1,072 $790 
Professional services
633 452 
Operating expenses
Research and development
4,697 2,725 
Sales and marketing
6,958 4,085 
General and administrative
24,682 7,257 
Total stock-based compensation expense
$38,042 $15,309 
26

The following table sets forth our consolidated statement of operations data as a percentage of revenue for each of the periods indicated:
Three months ended March 31,
20232022
Revenue
Subscription and support86.3 %82.6 %
Professional services13.7 17.4 
Total revenue100.0 100.0 
Cost of revenue
Subscription and support16.1 14.3 
Professional services9.6 9.5 
Total cost of revenue25.7 23.8 
Gross profit74.3 76.2 
Operating expenses
Research and development30.5 27.7 
Sales and marketing47.1 43.3 
General and administrative28.0 18.5 
Total operating expenses105.6 89.5 
Loss from operations(31.3)(13.3)
Interest income2.5 0.2 
Interest expense(1.0)(1.2)
Other expense, net(0.6)(0.1)
Loss before provision for income taxes(30.4)(14.4)
Provision (benefit) for income taxes0.4 (0.1)
Net loss(30.8)%(14.3)%
Comparison of Three Months Ended March 31, 2023 and 2022
Revenue
Three months ended March 31,
20232022
% Change
(dollars in thousands)
Revenue
Subscription and support
$129,664 $107,120 21.0%
Professional services
20,525 22,554 (9.0)%
Total revenue
$150,189 $129,674 15.8%
27

Total revenue increased $20.5 million for the three months ended March 31, 2023 compared to the same quarter a year ago due primarily to a $22.5 million increase in subscription and support revenue. Growth in subscription and support revenue in the first quarter was attributable mainly to strong demand and continued solution expansion across our customer base. Professional services revenue decreased $2.0 million for the three months ended March 31, 2023 compared to the same quarter a year ago. The decrease was driven primarily by the timing of performance of XBRL services between quarters and the continued transition of consulting and other services to our partners. We expect the revenue growth rate from subscription and support to continue to outpace revenue growth from professional services on an annual basis.
Cost of Revenue
Three months ended March 31,
20232022% Change
(dollars in thousands)
Cost of revenue
Subscription and support
$24,133 $18,533 30.2%
Professional services
14,385 12,340 16.6%
Total cost of revenue
$38,518 $30,873 24.8%
Cost of revenue increased $7.6 million during the three months ended March 31, 2023 compared to the same quarter a year ago due primarily to $4.9 million in higher cash-based compensation and benefits costs due in part to increased headcount, $0.5 million of additional stock-based compensation, a $0.4 million increase in travel expense, and a $1.2 million increase in the cost of cloud infrastructure services. The increases in headcount and cloud infrastructure services resulted primarily from our continued investment in and support of our platform and solutions. The increase in travel expense was due to a modest continued return to travel.
Operating Expenses
Three months ended March 31,
20232022% Change
(dollars in thousands)
Operating expenses
Research and development
$45,791 $35,884 27.6%
Sales and marketing
70,710 56,100 26.0%
General and administrative
42,011 23,994 75.1%
Total operating expenses
$158,512 $115,978 36.7%
28

Research and Development
Research and development expenses increased $9.9 million during the three months ended March 31, 2023 compared to the same quarter a year ago due primarily to $5.3 million in higher cash-based compensation and benefits, $2.0 million of additional stock-based compensation, a $2.0 million increase in travel and conference expense, and a $0.4 million increase related to the amortization of acquisition-related intangible assets. The increase in compensation was primarily driven by an increase in employee headcount compared to the same quarter a year ago as we continue to invest in our platform and solutions. In the first quarter of 2023, we recognized an additional $0.7 million in stock-based compensation pursuant to certain severance obligations. The increase in travel expense was primarily due to our annual research and development conference which was held in the first quarter of 2023. In the prior year the conference was held during the second quarter. The increase in the amortization of acquisition-related intangible assets relates to our acquisition of ParsePort which occurred in the second quarter of 2022 and therefore was not included in the prior year comparable figures.
Sales and Marketing
Sales and marketing expenses increased $14.6 million during the three months ended March 31, 2023 compared to the three months ended March 31, 2022 due primarily to $6.3 million in higher cash-based compensation and benefits, $2.9 million of additional stock-based compensation, a $3.0 million increase in travel and conference expense, a $0.4 million increase in the cost of marketing programs, a $1.1 million increase in professional services, and a $0.4 million increase related to the amortization of acquisition-related intangible assets. In the first quarter of 2023, we recognized an additional $1.6 million in cash-based and stock-based compensation pursuant to certain severance obligations. The remaining increase in compensation was primarily due to an increase in employee headcount and sales commissions as we continue to invest in our go-to-market activities. The increase in travel expense was primarily due to our annual sales and marketing conference which was held in person in the first quarter of 2023. The conference was held virtually in the prior year. The increase in the amortization of acquisition-related intangible assets relates to our acquisition of ParsePort which occurred in the second quarter of 2022 and therefore was not included in the prior year comparable figures.
General and Administrative
General and administrative expenses increased $18.0 million during the three months ended March 31, 2023 compared to the three months ended March 31, 2022 due primarily to $1.9 million in higher cash-based compensation and benefits and $17.5 million of additional stock-based compensation partially offset by a $0.7 million decrease related to recruiting and professional service fees and a $1.1 million decrease in goods and service tax expense. During the first quarter of 2023, we recognized an additional $1.4 million and $18.1 million in cash-based compensation and stock-based compensation, respectively, pursuant to certain transition agreements with former executives. The decrease in sales tax expense was related to a goods and services tax refund which is not expected to recur.
29

Non-Operating Income (Expenses)
Three months ended March 31,
20232022% Change
(dollars in thousands)
Interest income$3,717 $280 1227.5%
Interest expense
(1,501)(1,518)(1.1)%
Other expense, net(940)(165)*
(*) Percentage is not meaningful.
Interest Income, Interest Expense and Other Expense, Net
During the three months ended March 31, 2023, interest income increased $3.4 million compared to the same period a year ago due primarily to higher interest rates on investments. Interest expense remained relatively flat compared to the same period a year ago. Other expense, net increased $0.8 million compared to the same period a year ago due primarily to losses on the sale of available-for-sale securities and losses on foreign currency transactions.
Results of Operations for Fiscal 2022 Compared to 2021
For a comparison of our results of operations for the fiscal years ended December 31, 2022 and 2021, see "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our annual report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 21, 2023.
Liquidity and Capital Resources
Overview of Sources and Uses of Cash
As of March 31, 2023, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling $439.8 million, which were held for working capital purposes. We have financed our operations primarily through the proceeds of offerings of equity, convertible debt, and cash from operating activities. We have generated significant operating losses and negative cash flows from operating activities as reflected in our accumulated deficit and consolidated statements of cash flows. While we expect to continue to incur operating losses and may incur negative cash flows from operations in the future, we believe that current cash and cash equivalents and cash flows from operating activities will be sufficient to fund our operations for at least the next twelve months.
Convertible Debt
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 (the “Notes”). The Notes are senior, unsecured obligations and bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs.
30

Cash Flows
Three months ended March 31,
20232022
(in thousands)
Cash flow provided by (used in) operating activities$5,563 $(937)
Cash flow (used in) provided by investing activities(50,474)6,511 
Cash flow used in financing activities(349)(2,969)
Net (decrease) increase in cash and cash equivalents, net of impact of exchange rates$(44,712)$2,690 
Operating Activities
For the three months ended March 31, 2023, cash provided by operating activities was $5.6 million. The primary factors affecting our operating cash flows during the period were our net loss of $46.2 million, adjusted for non-cash charges of $2.8 million for depreciation and amortization of our property and equipment and intangible assets, $38.0 million of stock-based compensation expense, $1.0 million for the accretion of premiums and discounts on marketable securities, and a $10.9 million net change in operating assets and liabilities. The primary drivers of the changes in operating assets and liabilities were a $5.7 million increase in prepaid expenses offset by a $10.0 million decrease in deferred revenue, and a $4.9 million decrease in accrued expenses and other liabilities, $29.4 million decrease in accounts receivable and a $1.8 million decrease in deferred costs. The decrease in deferred revenue was due in part to a reduction of multi-year prepaid customer contracts and timing of contract renegotiations. Deferred costs decreased primarily due to the amortization of direct and incremental costs of obtaining a customer contract. The increase in prepaid expenses as well as the decreases in accounts receivable and accrued expenses and other liabilities were attributable primarily to the timing of our billings, cash collections, and cash payments.
For the three months ended March 31, 2022, cash used in operating activities was $0.9 million. The primary factors affecting our operating cash flows during the period were our net loss of $18.5 million, adjusted for non-cash charges of $2.0 million for depreciation and amortization of our property and equipment and intangible assets, $15.3 million of stock-based compensation expense and a $0.5 million net change in operating assets and liabilities. The primary drivers of the changes in operating assets and liabilities were a $12.5 million decrease in accrued expenses and other liabilities and a $1.1 million increase in prepaid expenses partially offset by a $4.4 million increase in accounts payable, a $0.6 million increase in deferred revenue, a $6.6 million decrease in accounts receivable, and a $1.4 million decrease in deferred costs. Deferred costs decreased due primarily to the amortization of direct and incremental costs of obtaining a customer contract. Customer growth accounted for most of the increase in deferred revenue. The increases in prepaid expenses and accounts payable as well as the decreases in accrued expenses and other liabilities and accounts receivable were attributable primarily to the timing of our billings, cash collections, and cash payments.
Investing Activities
Cash used in investing activities of $50.5 million for the three months ended March 31, 2023 was due primarily to $125.8 million in purchases of marketable securities partially offset by $43.7 million from the sale of marketable securities and $31.9 million from maturities of marketable securities.
31

Cash provided by investing activities of $6.5 million for the three months ended March 31, 2022 was due primarily to $26.3 million from maturities of marketable securities and $15.0 million from the sale of marketable securities partially offset by $34.1 million in purchases of marketable securities and $0.5 million in purchases of fixed assets. Our capital expenditures were associated primarily with computer equipment in support of expanding our infrastructure and work force.
Financing Activities
Cash used in financing activities of $0.3 million for the three months ended March 31, 2023 was due primarily to $7.2 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $1.5 million in proceeds from option exercises and $5.5 million in proceeds from shares issued in connection with our employee stock purchase plan.
Cash used in financing activities of $3.0 million for the three months ended March 31, 2022 was due primarily to $8.6 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $0.8 million in proceeds from option exercises and $5.2 million in proceeds from shares issued in connection with our employee stock purchase plan.
Contractual Obligations and Commitments
There were no material changes in our contractual obligations and commitments from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 21, 2023.
Critical Accounting Policies and Estimates
Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, income taxes and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.
During the three months ended March 31, 2023, there were no significant changes to our critical accounting policies and estimates as described in the financial statements contained in the Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 21, 2023.
Item 3.    Quantitative and Qualitative Disclosures about Market Risk    
For quantitative and qualitative disclosures about market risk, see “Item 7A., Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the year ended December 31, 2022. Our exposures to market risk have not changed materially since December 31, 2022.
Item 4.    Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q.
32

Based on such evaluation, our principal executive officer and principal financial officer have concluded that as of such date, our disclosure controls and procedures are designed to, and are effective to, provide assurance at a reasonable level that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Limitations on the Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
33

Part II. Other Information
Item 1.    Legal Proceedings
From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that in the opinion of our management, if determined adversely to us, would have a material adverse effect on our business, financial condition, operating results or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2022 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. There have been no material changes during fiscal 2023 to the risk factors that were included in the Form 10-K, other than what is set forth immediately below.
Recent events affecting the financial services industry could have an adverse impact on the Company's business operations, financial condition and results of operations.
The closures of Silicon Valley Bank and Signature Bank in March of 2023 have created bank-specific and broader financial institution liquidity risks and concerns. While the Company did not have any material deposits at either bank, some of our customers may have deposits with them, which could have an adverse impact on the ability of our customers to pay amounts they owe to us.
More generally, these events have resulted in market disruption and volatility and could lead to greater instability in the credit and financial markets and a deterioration in confidence in economic conditions. The future effect of these events on the financial services industry and broader economy are unknown and difficult to predict but could include failures of other financial institutions to which we or our customers face direct or more significant exposure, as well as other risks not yet identified. Any of these effects could have material adverse impacts on our liquidity, our current and/or projected business operations and financial condition and our results of operations.
Item 2.    Unregistered Sales of Securities and Use of Proceeds
Sales of Unregistered Securities
Not applicable.
34

Issuer Purchases of Equity Securities
The following table provides information about purchases of shares of our Class A Common Stock during the three months ended March 31, 2023 related to shares withheld upon vesting of restricted stock units for tax withholding obligations:
Date
Total Number of Shares Purchased (1)
Average Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced ProgramMaximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under Program
January 2023— $— — — 
February 202372,374 91.95 — — 
March 20236,436 89.00 — — 
Total78,810 $91.71 — — 
(1) Total number of shares delivered to us by employees to satisfy the mandatory tax withholding requirement upon vesting of stock-based compensation awards.
35

Item 6.    Exhibits
The following exhibits are being filed herewith or incorporated by reference herein:
Exhibit
Number
Description
10.1
Form of Restricted Stock Unit Agreement (Executive Employees) incorporated by reference from Exhibit 99.1 to the Company's Current Report on Form 8-K filed on January 31, 2023.
10.2
Form of Performance Restricted Stock Unit Agreement (Executive Employees) incorporated by reference from Exhibit 99.2 to the Company's Current Report on Form 8-K filed on January 31, 2023.
10.3
Transition Agreement, dated February 21, 2023, between the Company and Martin J. Vanderploeg incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on February 21, 2023.
10.4
Employment Agreement, dated February 21, 2023, between the Company and Julie Iskow incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K filed on February 21, 2023.
31.1
31.2
32.1     
32.2     
101
The following financial information from Workiva Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Loss, (iv) the Consolidated Statements of Changes in Stockholders Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

36

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 2nd day of May, 2023.
WORKIVA INC.
By:
/s/ Julie Iskow
Name:
Julie Iskow
Title:
President and Chief Executive Officer
By:
/s/ Jill Klindt
Name:
Jill Klindt
Title:
Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer

S-1
Document

CERTIFICATION UNDER SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Julie Iskow, certify that:
1.     I have reviewed this Quarterly Report on Form 10-Q of Workiva Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 2, 2023
/s/ Julie Iskow
Julie Iskow
President and Chief Executive Officer
(Principal Executive Officer)


Document

CERTIFICATION UNDER SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Jill Klindt, certify that:
1.     I have reviewed this Quarterly Report on Form 10-Q of Workiva Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


May 2, 2023
/s/ Jill Klindt
Jill Klindt
Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer
(Principal Financial Officer)


Document

CERTIFICATION UNDER SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

I, Julie Iskow, President and Chief Executive Officer of Workiva Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

May 2, 2023
/s/ Julie Iskow
Julie Iskow
President and Chief Executive Officer
(Principal Executive Officer)


Document

CERTIFICATION UNDER SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

I, Jill Klindt, Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer of Workiva Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

May 2, 2023
/s/ Jill Klindt
Jill Klindt
Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer
(Principal Financial Officer)