- Increased Q1 2022 Subscription & Support Revenue by 26.1%
over Q1 2021
- Generated Total Q1 2022 Revenue of $129.7 Million, up 24.4%
over Q1 2021
- Achieved 31.9% YOY Growth of Customers with Annual Contract
Value Over $150K
Workiva Inc. (NYSE:WK), the company powering transparent
reporting for a better world, today announced financial results for
its first quarter ended March 31, 2022.
"The Workiva team generated strong revenue for the first quarter
which resulted in growth of 26.1% in subscription & support
revenue and 24.4% in total revenue," said Marty Vanderploeg, Chief
Executive Officer.
"In the first quarter, we saw solid demand across our solution
portfolio," said Jill Klindt, Chief Financial Officer. "We added 93
net new logos, saw a 27% YOY increase in the number of customers
with contract values over $100k, and achieved our highest revenue
retention rate of 97.7%."
"Workiva's mission is to power transparent reporting for a
better world, and we believe that we have the team, the technology,
and the opportunity to continue to capture share in our large and
relatively unaddressed TAM," added Vanderploeg.
First Quarter 2022 Financial
Highlights
- Revenue: Total revenue for the first quarter of 2022
reached $129.7 million, an increase of 24.4% from $104.2 million in
the first quarter of 2021. Subscription and support revenue
contributed $107.1 million, up 26.1% versus the first quarter of
2021. Professional services revenue was $22.6 million, an increase
of 16.9% compared to the same quarter in the prior year.
- Gross Profit: GAAP gross profit for the first quarter of
2022 was $98.8 million compared with $80.5 million in the same
quarter of 2021. GAAP gross margin was 76.2% versus 77.3% in the
first quarter of 2021. Non-GAAP gross profit for the first quarter
of 2022 was $100.0 million, an increase of 22.9% compared with the
prior year's first quarter, and non-GAAP gross margin was 77.1%
compared to 78.1% in the first quarter of 2021.
- Results from Operations: GAAP loss from operations for
the first quarter of 2022 was $17.2 million compared with a loss of
$4.1 million in the prior year's first quarter. Non-GAAP loss from
operations was $1.2 million, compared with non-GAAP income from
operations of $7.5 million in the first quarter of 2021.
- GAAP Net Loss: GAAP net loss for the first quarter of
2022 was $18.5 million compared with a net loss of $7.3 million for
the prior year's first quarter. GAAP net loss per basic and diluted
share was $0.35 compared with a net loss per basic and diluted
share of $0.15 in the first quarter of 2021.
- Non-GAAP Net Income/Loss: Non-GAAP net loss for the
first quarter of 2022 was $2.5 million compared with net income of
$6.6 million in the prior year's first quarter. Non-GAAP net loss
per basic and diluted share was $0.05, compared with net income per
basic and diluted share of $0.13 and $0.12, respectively, in the
first quarter of 2021.
- Liquidity: As of March 31, 2022, Workiva had cash, cash
equivalents, and marketable securities totaling $523.5 million,
compared with $530.4 million as of December 31, 2021. Workiva had
$345.0 million aggregate principal amount of 1.125% convertible
senior notes due in 2026 and $16.2 million of finance lease
obligations outstanding as of March 31, 2022.
Key Metrics and Recent Business
Highlights
- Customers: Workiva had 4,408 customers as of March 31,
2022, a net increase of 608 customers from March 31, 2021.
- Revenue Retention Rate: As of March 31, 2022, Workiva's
revenue retention rate (excluding add-on revenue) was 97.7%, and
the revenue retention rate including add-on revenue was 109.2%.
Add-on revenue includes changes in both solutions and pricing for
existing customers.
- Large Contracts: As of March 31, 2022, Workiva had 1,124
customers with an annual contract value (“ACV”) of more than
$100,000, up 27% from 884 customers at March 31, 2021. Workiva had
603 customers with an ACV of more than $150,000, up 32% from 457
customers in the first quarter of 2021. Workiva had 186 customers
with an ACV of more than $300,000, up 42% from 131 customers in the
first quarter of 2021.
- On April 1, 2022, we acquired all of the issued and outstanding
equity interests in Denmark-based ParsePort ApS (“ParsePort”), a
leading solution provider for the European Single Electronic Format
(“ESEF”) financial reporting mandate, which complements Workiva's
cloud platform.
Financial Outlook
As of May 3, 2022, Workiva is providing guidance as follows:
Second Quarter 2022 Guidance:
- Total revenue is expected to be in the range of $125.5 million
to $126.5 million.
- GAAP loss from operations is expected to be in the range of
$32.5 million to $31.5 million.
- Non-GAAP loss from operations is expected to be in the range of
$13.0 million to $12.0 million.
- GAAP net loss per basic share is expected to be in the range of
$0.64 to $0.62.
- Non-GAAP net loss per basic share is expected to be in the
range of $0.27 to $0.25.
- Net loss per basic share is based on 52.7 million
weighted-average shares outstanding.
Full Year 2022 Guidance:
- Total revenue is expected to be in the range of $534.0 million
to $536.0 million.
- GAAP loss from operations is expected to be in the range of
$107.0 million to $105.0 million.
- Non-GAAP loss from operations is expected to be in the range of
$32.0 million to $30.0 million.
- GAAP net loss per basic share is expected to be in the range of
$2.12 to $2.08.
- Non-GAAP net loss per basic share is expected to be in the
range of $0.71 to $0.67.
- Net loss per basic share is based on 53.0 million
weighted-average shares outstanding.
The financial impact of Workiva's April 1, 2022 acquisition of
ParsePort is not included in the Company's updated guidance. We
expect that ParsePort will be accretive to our 2022 results.
Quarterly Conference
Call
Workiva will host a conference call today at 5:00 p.m. ET to
review the Company’s financial results for the first quarter 2022,
in addition to discussing the Company’s outlook for the second
quarter and full year 2022. To access this call, dial 888-330-2469
(U.S. domestic) or 240-789-2740 (international). The conference ID
is 8736384. A live webcast of the conference call will be
accessible in the "Investor Relations" section of Workiva’s website
at www.workiva.com. A replay of this conference call can also be
accessed through May 10, 2022, at 800-770-2030 (U.S. domestic) or
647-362-9199 (international). The replay pass code is 8736384. An
archived webcast of this conference call will also be available an
hour after the completion of the call in the "Investor Relations"
section of the Company’s website at www.workiva.com.
About Workiva
Workiva Inc. (NYSE:WK) is on a mission to power transparent
reporting for a better world. We build and deliver the world’s
leading regulatory, financial, and ESG reporting solutions to meet
stakeholder demands for action, transparency, and disclosure of
financial and non-financial data. Our cloud-based platform
simplifies the most complex reporting and disclosure challenges by
streamlining processes, connecting data and teams, and ensuring
consistency. Learn more at workiva.com.
Read the Workiva blog: www.workiva.com/blog Follow Workiva on
LinkedIn: www.linkedin.com/company/workiva Like Workiva on
Facebook: www.facebook.com/workiva Follow Workiva on Twitter:
www.twitter.com/workiva
Non-GAAP Financial
Measures
The non-GAAP adjustments referenced herein relate to the
exclusion of stock-based compensation and amortization of
acquisition-related intangible assets. A reconciliation of GAAP to
non-GAAP historical financial measures has been provided in Table I
at the end of this press release. A reconciliation of GAAP to
non-GAAP guidance has been provided in Table II at the end of this
press release.
Workiva believes that the use of non-GAAP gross profit and gross
margin, non-GAAP income (loss) from operations, non-GAAP net income
(loss) and non-GAAP net income (loss) per share is helpful to its
investors. These measures, which are referred to as non-GAAP
financial measures, are not prepared in accordance with generally
accepted accounting principles in the United States, or GAAP.
Non-GAAP gross profit is calculated by excluding stock-based
compensation expense attributable to cost of revenues from gross
profit. Non-GAAP gross margin is the ratio calculated by dividing
non-GAAP gross profit by revenues. Non-GAAP income (loss) from
operations is calculated by excluding stock-based compensation
expense and amortization expense for acquisition-related intangible
assets from loss from operations. Non-GAAP net income (loss) is
calculated by excluding stock-based compensation expense, net of
tax, and amortization expense for acquisition-related intangible
assets. Non-GAAP net income (loss) per share is calculated by
dividing non-GAAP net income (loss) by the weighted- average shares
outstanding as presented in the calculation of GAAP net loss per
share. Because of varying available valuation methodologies,
subjective assumptions and the variety of equity instruments that
can impact a company’s non-cash expenses, Workiva believes that
providing non-GAAP financial measures that exclude stock-based
compensation expense allows for more meaningful comparisons between
its operating results from period to period. For business
combinations, we generally allocate a portion of the purchase price
to intangible assets. The amount of the allocation is based on
estimates and assumptions made by management and is subject to
amortization. The amount of purchase price allocated to intangible
assets and the term of its related amortization can vary
significantly and are unique to each acquisition and thus we do not
believe it is reflective of ongoing operations. Workiva’s
management uses these non-GAAP financial measures as tools for
financial and operational decision making and for evaluating
Workiva’s own operating results over different periods of time.
Non-GAAP financial measures may not provide information that is
directly comparable to that provided by other companies in
Workiva’s industry, as other companies in the industry may
calculate non-GAAP financial results differently. In addition,
there are limitations in using non-GAAP financial measures because
the non-GAAP financial measures are not prepared in accordance with
GAAP, may be different from non-GAAP financial measures used by
other companies and exclude expenses that may have a material
impact on Workiva’s reported financial results. Further,
stock-based compensation expense has been and will continue to be
for the foreseeable future a significant recurring expense in
Workiva’s business and an important part of the compensation
provided to its employees. The presentation of non-GAAP financial
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with GAAP. Investors should review the reconciliation
of non-GAAP financial measures to the comparable GAAP financial
measures included below, and not rely on any single financial
measure to evaluate Workiva’s business.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to the safe
harbor created thereby. These statements relate to future events or
the Company’s future financial performance and involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the Company or its industry to be materially different from those
expressed or implied by any forward-looking statements. In
particular, statements about the Company’s expectations, beliefs,
plans, objectives, assumptions, future events or future performance
contained in this press release are forward-looking statements. In
some cases, forward-looking statements can be identified by
terminology such as "may," "will," "could," "would," "should,"
"expect," "plan," "anticipate," "intend," "believe," "estimate,"
"predict," "potential," "outlook," "guidance" or the negative of
those terms or other comparable terminology.
Please see the Company’s documents filed or to be filed with the
Securities and Exchange Commission, including the Company’s annual
reports filed on Form 10-K and quarterly reports on Form 10-Q, and
any amendments thereto for a discussion of certain important risk
factors that relate to forward-looking statements contained in this
report. The Company has based these forward-looking statements on
its current expectations, assumptions, estimates and projections.
While the Company believes these expectations, assumptions,
estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which are beyond the Company’s control.
These and other important factors may cause actual results,
performance or achievements to differ materially from those
expressed or implied by these forward-looking statements. Any
forward-looking statements are made only as of the date hereof, and
unless otherwise required by applicable securities laws, the
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
WORKIVA INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except share
and per share amounts)
Three months ended March
31,
2022
2021
(unaudited)
Revenue
Subscription and support
$
107,120
$
84,936
Professional services
22,554
19,286
Total revenue
129,674
104,222
Cost of revenue
Subscription and support (1)
18,533
13,202
Professional services (1)
12,340
10,474
Total cost of revenue
30,873
23,676
Gross profit
98,801
80,546
Operating expenses
Research and development (1)
35,884
26,634
Sales and marketing (1)
56,100
41,035
General and administrative (1)
23,994
17,021
Total operating expenses
115,978
84,690
Loss from operations
(17,177
)
(4,144
)
Interest income
280
360
Interest expense
(1,518
)
(3,485
)
Other expense, net
(165
)
(384
)
Loss before benefit for income taxes
(18,580
)
(7,653
)
Benefit for income taxes
(87
)
(329
)
Net loss
$
(18,493
)
$
(7,324
)
Net loss per common share:
Basic and diluted
$
(0.35
)
$
(0.15
)
Weighted-average common shares outstanding
- basic and diluted
52,596,228
50,244,120
(1) Includes stock-based compensation
expense as follows:
Three months ended March
31,
2022
2021
(unaudited)
Cost of revenue
Subscription and support
$
790
$
496
Professional services
452
367
Operating expenses
Research and development
2,725
2,431
Sales and marketing
4,085
3,549
General and administrative
7,257
4,780
WORKIVA INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands)
March 31, 2022
December 31, 2021
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
303,076
$
300,386
Marketable securities
220,457
230,060
Accounts receivable, net
70,133
76,848
Deferred costs
31,816
31,152
Other receivables
3,359
3,538
Prepaid expenses and other
16,217
15,108
Total current assets
645,058
657,092
Property and equipment, net
28,091
28,821
Operating lease right-of-use assets
16,460
17,760
Deferred costs, non-current
30,879
33,091
Goodwill
34,556
34,556
Intangible assets, net
9,677
10,434
Other assets
5,162
5,005
Total assets
$
769,883
$
786,759
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
8,379
$
4,114
Accrued expenses and other current
liabilities
71,589
84,126
Deferred revenue
259,387
258,023
Convertible senior notes, current
—
298,661
Finance lease obligations
1,257
1,575
Total current liabilities
340,612
646,499
Convertible senior notes, non-current
339,283
—
Deferred revenue, non-current
33,204
34,181
Other long-term liabilities
1,602
1,605
Operating lease liabilities,
non-current
15,026
16,408
Finance lease obligations, non-current
14,963
15,087
Total liabilities
744,690
713,780
Stockholders’ equity
Common stock
52
51
Additional paid-in-capital
479,867
525,646
Accumulated deficit
(452,662
)
(452,430
)
Accumulated other comprehensive (loss)
income
(2,064
)
(288
)
Total stockholders’ equity
25,193
72,979
Total liabilities and stockholders’
equity
$
769,883
$
786,759
WORKIVA INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Three months ended March
31,
2022
2021
(unaudited)
Cash flows from operating
activities
Net loss
$
(18,493
)
$
(7,324
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization
1,959
1,054
Stock-based compensation expense
15,309
11,623
Recovery of doubtful accounts
(29
)
(118
)
Amortization of premiums and discounts on
marketable securities, net
660
625
Amortization of issuance costs and debt
discount
324
2,266
Deferred income tax
(211
)
(346
)
Changes in assets and liabilities:
Accounts receivable
6,581
15,265
Deferred costs
1,444
(1,059
)
Operating lease right-of-use asset
1,301
944
Other receivables
180
(161
)
Prepaid expenses
(1,132
)
(3,747
)
Other assets
23
(573
)
Accounts payable
4,364
1,908
Deferred revenue
606
179
Operating lease liability
(1,342
)
(1,076
)
Accrued expenses and other liabilities
(12,481
)
(7,957
)
Net cash (used in) provided by operating
activities
(937
)
11,503
Cash flows from investing
activities
Purchase of property and equipment
(532
)
(849
)
Purchase of marketable securities
(34,148
)
(43,655
)
Sale of marketable securities
14,981
—
Maturities of marketable securities
26,250
40,586
Purchase of intangible assets
(40
)
(71
)
Net cash provided by (used in) investing
activities
6,511
(3,989
)
Cash flows from financing
activities
Proceeds from option exercises
825
4,138
Taxes paid related to net share
settlements of stock-based compensation awards
(8,570
)
(7,146
)
Proceeds from shares issued in connection
with employee stock purchase plan
5,218
4,237
Principal payments on finance lease
obligations
(442
)
(417
)
Net cash (used in) provided by financing
activities
(2,969
)
812
Effect of foreign exchange rates on
cash
85
16
Net increase in cash and cash
equivalents
2,690
8,342
Cash and cash equivalents at beginning of
period
300,386
322,831
Cash and cash equivalents at end of
period
$
303,076
$
331,173
TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP
INFORMATION
(in thousands, except share
and per share)
Three months ended March
31,
2022
2021
Gross profit, subscription and support
$
88,587
$
71,734
Add back: Stock-based compensation
790
496
Gross profit, subscription and support,
non-GAAP
$
89,377
$
72,230
As a percentage of subscription and
support revenue, non-GAAP
83.4
%
85.0
%
Gross profit, professional services
$
10,214
$
8,812
Add back: Stock-based compensation
452
367
Gross profit, professional services,
non-GAAP
$
10,666
$
9,179
As a percentage of professional services
revenue, non-GAAP
47.3
%
47.6
%
Gross profit
$
98,801
$
80,546
Add back: Stock-based compensation
1,242
863
Gross profit, non-GAAP
$
100,043
$
81,409
As percentage of revenue, non-GAAP
77.1
%
78.1
%
Cost of revenue, subscription and
support
$
18,533
$
13,202
Less: Stock-based compensation
790
496
Cost of revenue, subscription and support,
non-GAAP
$
17,743
$
12,706
As percentage of revenue, non-GAAP
13.7
%
12.2
%
Cost of revenue, professional services
$
12,340
$
10,474
Less: Stock-based compensation
452
367
Cost of revenue, professional services,
non-GAAP
$
11,888
$
10,107
As percentage of revenue, non-GAAP
9.2
%
9.7
%
Research and development
$
35,884
$
26,634
Less: Stock-based compensation
2,725
2,431
Less: Amortization of acquisition-related
intangibles
495
—
Research and development, non-GAAP
$
32,664
$
24,203
As percentage of revenue, non-GAAP
25.2
%
23.2
%
Sales and marketing
$
56,100
$
41,035
Less: Stock-based compensation
4,085
3,549
Less: Amortization of acquisition-related
intangibles
200
—
Sales and marketing, non-GAAP
$
51,815
$
37,486
As percentage of revenue, non-GAAP
40.0
%
36.0
%
General and administrative
$
23,994
$
17,021
Less: Stock-based compensation
7,257
4,780
General and administrative, non-GAAP
$
16,737
$
12,241
As percentage of revenue, non-GAAP
12.9
%
11.7
%
Loss from operations
$
(17,177
)
$
(4,144
)
Add back: Stock-based compensation
15,309
11,623
Add back: Amortization of
acquisition-related intangibles
695
—
(Loss) income from operations,
non-GAAP
$
(1,173
)
$
7,479
As percentage of revenue, non-GAAP
(0.9
) %
7.2
%
Net loss
$
(18,493
)
$
(7,324
)
Add back: Stock-based compensation
15,309
11,623
Add back: Amortization of
acquisition-related intangibles
695
—
Add back: Non-cash interest expense
related to convertible senior notes
—
2,266
Net (loss) income, non-GAAP
$
(2,489
)
$
6,565
As percentage of revenue, non-GAAP
(1.9
) %
6.3
%
Net loss per basic and diluted share:
$
(0.35
)
$
(0.15
)
Add back: Stock-based compensation
0.29
0.23
Add back: Amortization of
acquisition-related intangibles
0.01
—
Add back: Non-cash interest expense
related to convertible senior notes
—
0.05
Net (loss) income per basic share,
non-GAAP
$
(0.05
)
$
0.13
Net (loss) income per diluted share,
non-GAAP
$
(0.05
)
$
0.12
Weighted-average common shares outstanding
- basic, non-GAAP
52,596,228
50,244,120
Weighted-average common shares outstanding
- diluted, non-GAAP
52,596,228
55,090,270
TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP
GUIDANCE
(in thousands, except share
and per share data)
Three months ending June 30,
2022
Year ending December 31,
2022
Loss from operations, GAAP range
$
(32,500
)
-
$
(31,500
)
$
(107,000
)
-
$
(105,000
)
Add back: Stock-based compensation
18,805
18,805
72,200
72,200
Add back: Amortization of
acquisition-related intangibles
695
695
2,800
2,800
Net loss from operations, non-GAAP
range
$
(13,000
)
-
$
(12,000
)
$
(32,000
)
-
$
(30,000
)
Net loss per share, GAAP range
$
(0.64
)
-
$
(0.62
)
$
(2.12
)
-
$
(2.08
)
Add back: Stock-based compensation
0.36
0.36
1.36
1.36
Add back: Amortization of
acquisition-related intangibles
0.01
0.01
0.05
0.05
Net loss per share, non-GAAP range
$
(0.27
)
-
$
(0.25
)
$
(0.71
)
-
$
(0.67
)
Weighted-average common shares outstanding
- basic
52,700,000
52,700,000
53,000,000
53,000,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220503005387/en/
Investor Contact: Mike Rost Workiva Inc.
investor@workiva.com (515) 663-4493
Media Contact: Darcie Brossart Workiva Inc.
press@workiva.com (515) 663-4471
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