Workiva Inc. Announces Fourth Quarter and Full Year 2023 Financial Results

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Insights

Revenue Growth Analysis: Workiva Inc. has reported a robust 18% growth in subscription revenues for Q4 2023, with an overall 16% increase in total revenues compared to the same quarter in 2022. This growth is indicative of the company's expanding customer base and market adoption of its assured integrated reporting platform. The reported 20% year-over-year growth in subscription revenues for the full year signals a strong demand for Workiva's services, reflecting positively on the company's business model and revenue predictability. Furthermore, the increase in customers with an Annual Contract Value over $300K by 32% is a significant indicator of the company's ability to scale and attract high-value clients.

Profitability and Cash Flow: Despite reporting a GAAP loss from operations, Workiva has improved its non-GAAP income from operations, moving from a loss in 2022 to a profit in 2023. This suggests that the company is moving towards operational profitability when excluding non-recurring or non-cash expenses. The substantial increase in operating cash flow to $71 million, the strongest in the company's history, provides evidence of the company's effective cash management and operational efficiency.

Market Position and Outlook: Workiva's consistent growth in subscription revenue and the expansion of its customer base with high-value contracts underscore the company's competitive position in the cloud-based reporting and compliance market. The company's strategic focus on integrating financial reporting, GRC (governance, risk management and compliance) and ESG (environmental, social and governance) solutions is timely, as these areas are becoming increasingly critical for businesses. The guidance for 2024, projecting continued revenue growth, suggests confidence in the company's market strategy and its ability to capitalize on the growing demand for integrated reporting platforms.

Financial Structure and Liquidity: Workiva's liquidity position appears strong with over $800 million in cash, cash equivalents and marketable securities. The issuance of the $702 million aggregate principal amount of 1.250% convertible senior notes due in 2028 and the subsequent repurchase of a portion of its 2026 notes demonstrate proactive debt management. However, the loss on induced conversion recorded as interest expense is a significant financial event that investors should consider. The company's approach to managing its convertible notes will be an important factor in assessing its long-term financial health and its ability to sustain investment in growth opportunities.

02/20/2024 - 04:15 PM

Subscription revenues of $149 million in Q4 2023, representing 18% year-over-year growth
Total revenues of $167 million in Q4 2023, representing 16% year-over-year growth
Subscription revenues of $559 million for full year 2023, representing 20% year-over-year growth
Achieved 32% YOY Growth of Customers with Annual Contract Value Over $300K

NEW YORK--(BUSINESS WIRE)-- Workiva Inc. (NYSE:WK), the world’s leading cloud platform for assured integrated reporting, today announced financial results for its fourth quarter and full year ended December 31, 2023.

"Workiva closed out the year with another solid quarter," said Workiva CEO Julie Iskow. "Our solid fourth-quarter and full year results demonstrate the durability of our business and the ongoing market adoption for our assured integrated reporting platform. Leading organizations are investing in our strategic platform that brings together financial reporting, GRC, and ESG. We shine where data consistency, integrity and accuracy are critical and narrative is required."

"For Q4, we exceeded our revenue guidance by $2 million dollars," said Workiva CFO Jill Klindt. "Our platform approach continues to drive performance. In the quarter, we generated 64% of our subscription revenue from customers with multiple solutions. We finished the year strong with 2023 subscription revenue growth of 20%, and we generated $71 million dollars in operating cash flow, the strongest cash-flow performance in Workiva's history."

Fourth Quarter 2023 Financial Results

Revenue: Total revenue for the fourth quarter of 2023 reached $167 million, an increase of 16% from $144 million in the fourth quarter of 2022. Subscription and support revenue contributed $149 million, up 18% versus the fourth quarter of 2022. Professional services revenue was $18 million, relatively flat compared to the same quarter in the prior year.
Gross Profit: GAAP gross profit for the fourth quarter of 2023 was $129 million compared with $109 million in the same quarter of 2022. GAAP gross margin was 77.3% versus 76.1% in the fourth quarter of 2022. Non-GAAP gross profit for the fourth quarter of 2023 was $131 million, an increase of 18% compared with the prior year's fourth quarter, and non-GAAP gross margin was 78.4% compared to 77.1% in the fourth quarter of 2022.
Results from Operations: GAAP loss from operations for the fourth quarter of 2023 was $9 million compared with a loss of $13 million in the prior year's fourth quarter. Non-GAAP income from operations was $13 million compared with non-GAAP income from operations of $5 million in the fourth quarter of 2022.
GAAP Net Loss: GAAP net loss for the fourth quarter of 2023 was $4 million compared with a net loss of $14 million for the prior year's fourth quarter. GAAP net loss per basic and diluted share was $0.08 compared with a net loss per basic and diluted share of $0.26 in the fourth quarter of 2022.
Non-GAAP Net Income: Non-GAAP net income for the fourth quarter of 2023 was $18 million compared with net income of $4 million in the prior year's fourth quarter. Non-GAAP net income per basic share was $0.33 and net income per diluted share was $0.30 compared with net income per basic share and diluted share of $0.08 in the fourth quarter of 2022.
Liquidity: As of December 31, 2023, Workiva had cash, cash equivalents, and marketable securities totaling $814 million, compared with $431 million as of December 31, 2022. In August 2023, we issued $702.0 million aggregate principal amount of 1.250% convertible senior notes due in 2028. We used $396.9 million of the net proceeds from the 2028 Notes offering to repurchase $273.8 million principal amount, together with accrued and unpaid interest thereon, of our 2026 Notes. Workiva had $71 million aggregate principal amount of 1.125% convertible senior notes due in 2026, $702 million aggregate principal amount of 1.250% convertible senior notes due in 2028 and $15 million of finance lease obligations outstanding as of December 31, 2023.

Key Metrics and Recent Business Highlights

Customers: Workiva had 6,034 customers as of December 31, 2023, a net increase of 370 customers from December 31, 2022.
Revenue Retention Rate: As of December 31, 2023, Workiva's revenue retention rate (excluding add-on revenue) was 98%, and the revenue retention rate including add-on revenue was 110%. Add-on revenue includes changes in both solutions and pricing for existing customers.
Large Contracts: As of December 31, 2023, Workiva had 1,631 customers with an annual contract value (“ACV”) of more than $100,000, up 21% from 1,345 customers at December 31, 2022. Workiva had 915 customers with an ACV of more than $150,000, up 27% from 718 customers in the fourth quarter of 2022. Workiva had 311 customers with an ACV of more than $300,000, up 32% from 236 customers in the fourth quarter of 2022.

Full Year 2023 Financial Results

Revenue: Total revenue for the full year 2023 reached $630 million, an increase of 17% from $538 million in 2022. Subscription and support revenue contributed $559 million, up 20% compared to 2022. Professional services revenue was $71 million, a decrease of 2% compared to the prior year.
Gross Profit: GAAP gross profit for 2023 was $476 million compared with $408 million in 2022. GAAP gross margin was 75.6% versus 75.9% in the prior year. Non-GAAP gross profit for 2023 was $483 million, an increase of 17% compared to 2022, and non-GAAP gross margin was 76.7% compared to 76.9%.
Results from Operations: GAAP loss from operations for 2023 was $95 million compared with a loss of $89 million in the prior year. Non-GAAP income from operations was $10 million, compared with a non-GAAP loss from operations of $13 million in 2022.
GAAP Net Loss: GAAP net loss for 2023 was $128 million compared with a net loss of $91 million in the prior year. GAAP net loss per basic and diluted share was $2.36 compared with a net loss per basic and diluted share of $1.72 in 2022.
Non-GAAP Net Loss: Non-GAAP net loss for 2023 was $23 million compared with a net loss of $15 million in the prior year. Non-GAAP net loss per basic and diluted share was $0.42, compared with a net loss per basic and diluted share of $0.29 in 2022. In connection with the partial repurchase of our convertible notes due in 2026 described above, we recorded a loss on induced conversion of $45.1 million which was recorded as interest expense.
Cash Flow: Net cash provided by operating activities was $71 million in 2023, compared to cash provided by operating activities of $11 million in 2022.

Financial Outlook

As of February 20, 2024, Workiva is providing guidance as follows:

First Quarter 2024 Guidance:

Total revenue is expected to be in the range of $173 million to $175 million.
GAAP loss from operations is expected to be in the range of $20.5 million to $18.5 million.
Non-GAAP income from operations is expected to be in the range of $4 million to $6 million.
GAAP net loss per basic share is expected to be in the range of $0.29 to $0.25.
Non-GAAP net income per basic share is expected to be in the range of $0.15 to $0.19.
Net income (loss) per basic share is based on 55.0 million weighted-average shares outstanding.

Full Year 2024 Guidance:

Total revenue is expected to be in the range of $718 million to $722 million.
GAAP loss from operations is expected to be in the range of $85 million to $81 million.
Non-GAAP income from operations is expected to be in the range of $17 million to $21 million.
GAAP net loss per basic share is expected to be in the range of $1.28 to $1.21.
Non-GAAP net income per basic share is expected to be in the range of $0.56 to $0.63.
Net income (loss) per basic share is based on 55.3 million weighted-average shares outstanding.

Quarterly Conference Call

Workiva will host a conference call today at 5:00 p.m. ET to review the Company’s financial results for the fourth quarter and full year 2023, in addition to discussing the Company’s outlook for the first quarter and full year 2024. 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 "Investors" section of Workiva’s website at www.workiva.com. A replay of this conference call can also be accessed through February 27, 2024, at 800-770-2030 (U.S. domestic) or 647-362-9199 (international). The replay pass code is 8736384. An archived webcast of this conference call will also be available an hour after the completion of the call in the "Investor Relations" section of the Company’s website at www.workiva.com.

About Workiva

Workiva Inc. (NYSE:WK) is on a mission to power transparent reporting for a better world. We build and deliver the world’s leading cloud platform for assured integrated reporting to meet stakeholder demands for action, transparency, and disclosure of financial and non-financial data. Workiva offers the only unified SaaS platform that brings customers’ financial reporting, Environmental, Social, and Governance (ESG), and Governance, Risk, and Compliance (GRC) together in a controlled, secure, audit-ready platform. Our platform simplifies the most complex reporting and disclosure challenges by streamlining processes, connecting data and teams, and ensuring consistency. Learn more at workiva.com.

Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and amortization of acquisition-related intangible assets. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.

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

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

Safe Harbor Statement

Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.

Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

WORKIVA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)

	Three months ended December 31,						Year ended December 31,
	2023			2022			2023			2022
	(unaudited)
Revenue
Subscription and support	$	148,788		$	125,871		$	558,645		$	464,935
Professional services		17,865			17,932			71,394			72,940
Total revenue		166,653			143,803			630,039			537,875
Cost of revenue
Subscription and support ⁽¹⁾		25,113			21,028			99,193			77,711
Professional services ⁽¹⁾		12,732			13,328			55,029			52,174
Total cost of revenue		37,845			34,356			154,222			129,885
Gross profit		128,808			109,447			475,817			407,990
Operating expenses
Research and development ⁽¹⁾		42,555			38,072			172,790			151,716
Sales and marketing ⁽¹⁾		71,867			60,381			287,035			245,260
General and administrative ⁽¹⁾		23,859			24,271			110,519			99,778
Total operating expenses		138,281			122,724			570,344			496,754
Loss from operations		(9,473	)		(13,277	)		(94,527	)		(88,764	)
Interest income		10,336			2,555			25,882			4,880
Interest expense		(3,202	)		(1,502	)		(53,639	)		(6,042	)
Other (expense) and income, net		(364	)		(541	)		(1,814	)		926
Loss before provision for income taxes		(2,703	)		(12,765	)		(124,098	)		(89,000	)
Provision for income taxes		1,493			1,137			3,427			1,947
Net loss	$	(4,196	)	$	(13,902	)	$	(127,525	)	$	(90,947	)
Net loss per common share:
Basic and diluted	$	(0.08	)	$	(0.26	)	$	(2.36	)	$	(1.72	)
Weighted-average common shares outstanding - basic and diluted		54,432,003			53,279,147			54,099,757			52,954,079

(1) Includes stock-based compensation expense as follows:
	Three months ended December 31,						Year ended December 31,
	2023			2022			2023			2022
	(unaudited)
Cost of revenue
Subscription and support	$	1,298		$	880		$	5,030		$	3,437
Professional services		617			550			2,540			2,128
Operating expenses
Research and development		4,764			3,282			18,441			12,554
Sales and marketing		7,005			4,935			27,774			19,323
General and administrative		7,052			6,960			44,980			33,218

WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)

	As of December 31,
	2023			2022
Assets
Current assets
Cash and cash equivalents	$	256,100		$	240,197
Marketable securities		557,622			190,595
Accounts receivable, net		125,193			106,316
Deferred costs		39,023			38,350
Other receivables		7,367			6,674
Prepaid expenses and other		23,631			17,957
Total current assets		1,008,936			600,089
Property and equipment, net		24,282			27,096
Operating lease right-of-use assets		12,642			13,932
Deferred costs, non-current		33,346			33,682
Goodwill		112,097			109,740
Intangible assets, net		22,892			28,234
Other assets		4,665			6,847
Total assets	$	1,218,860		$	819,620
Liabilities and Stockholders’ (Deficit) Equity
Current liabilities
Accounts payable	$	5,204		$	6,174
Accrued expenses and other current liabilities		97,921			83,999
Deferred revenue		380,843			316,263
Finance lease obligations		532			504
Total current liabilities		484,500			406,940
Convertible senior notes, non-current		762,455			340,257
Deferred revenue, non-current		36,177			38,237
Other long-term liabilities		178			1,518
Operating lease liabilities, non-current		10,890			12,102
Finance lease obligations, non-current		14,050			14,583
Total liabilities		1,308,250			813,637
Stockholders’ (deficit) equity
Common stock		54			53
Additional paid-in-capital		562,942			537,732
Accumulated deficit		(652,641	)		(525,116	)
Accumulated other comprehensive loss		255			(6,686	)
Total stockholders’ (deficit) equity		(89,390	)		5,983
Total liabilities and stockholders’ (deficit) equity	$	1,218,860		$	819,620

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Three months ended December 31,						Year ended December 31,
	2023			2022			2023			2022
	(unaudited)
Cash flows from operating activities
Net loss	$	(4,196	)	$	(13,902	)	$	(127,525	)	$	(90,947	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		2,787			2,847			11,140			10,212
Stock-based compensation expense		20,736			16,607			98,765			70,660
Provision for doubtful accounts		353			74			410			156
Realized loss on sale of available-for-sale securities, net		—			—			708			—
(Accretion) amortization of premiums and discounts on marketable securities, net		(3,186	)		(163	)		(7,716	)		1,079
Amortization of issuance costs and debt discount		608			325			1,730			1,298
Induced conversion expense		—			—			45,144			—
Deferred income tax		3			629			(14	)		538
Changes in assets and liabilities:
Accounts receivable		(25,561	)		(22,703	)		(18,318	)		(28,893	)
Deferred costs		(5,971	)		(5,834	)		277			(8,496	)
Operating lease right-of-use asset		1,177			1,276			4,984			5,153
Other receivables		(334	)		(1,693	)		(2,176	)		(1,655	)
Prepaid expenses		(1,038	)		(3,783	)		(5,023	)		(2,913	)
Other assets		751			(1,336	)		2,230			(2,441	)
Accounts payable		265			(3,557	)		(1,002	)		2,438
Deferred revenue		37,887			33,084			60,112			61,657
Operating lease liability		(1,004	)		(1,298	)		(4,133	)		(5,055	)
Accrued expenses and other liabilities		1,065			(1,841	)		11,282			(1,457	)
Net cash provided by (used in) operating activities		24,342			(1,268	)		70,875			11,334
Cash flows from investing activities
Purchase of property and equipment		(392	)		(1,232	)		(2,124	)		(3,458	)
Purchase of marketable securities		(251,296	)		(31,190	)		(573,304	)		(130,754	)
Sale of marketable securities		—			—			65,052			14,981
Maturities of marketable securities		76,547			43,708			153,358			150,565
Acquisitions, net of cash acquired		—			—			—			(99,186	)
Purchase of intangible assets		(68	)		(52	)		(235	)		(160	)
Net cash (used in) provided by investing activities		(175,209	)		11,234			(357,253	)		(68,012	)

Cash flows from financing activities
Proceeds from option exercises		1,148			678			4,472			3,273
Taxes paid related to net share settlements of stock-based compensation awards		(35	)		(1,889	)		(9,459	)		(12,541	)
Proceeds from shares issued in connection with employee stock purchase plan		—			—			12,513			9,256
Proceeds from the issuance of convertible senior notes, net of issuance costs		—			—			691,113			—
Payments for repurchase of convertible senior notes		—			—			(396,869	)		—
Principal payments on finance lease obligations		(129	)		(233	)		(505	)		(1,575	)
Net cash provided by (used in) financing activities		984			(1,444	)		301,265			(1,587	)
Effect of foreign exchange rates on cash		1,719			2,178			1,637			(1,924	)
Net (decrease) increase in cash and cash equivalents		(148,164	)		10,700			16,524			(60,189	)
Cash and cash equivalents at beginning of period		404,885			229,497			240,197			300,386
Cash and cash equivalents at end of period	$	256,721		$	240,197		$	256,721		$	240,197


	Three months ended December 31,						Year ended December 31,
	2023			2022			2023			2022
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents at end of period	$	256,100		$	240,197		$	256,100		$	240,197
Restricted cash included within prepaid expenses and other at end of period		621			—			621			—
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows	$	256,721		$	240,197		$	256,721		$	240,197

TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)

	Three months ended December 31,						Year ended December 31,
	2023			2022			2023			2022
Gross profit, subscription and support	$	123,675		$	104,843		$	459,452		$	387,224
Add back: Stock-based compensation		1,298			880			5,030			3,437
Gross profit, subscription and support, non-GAAP	$	124,973		$	105,723		$	464,482		$	390,661

Gross profit, professional services	$	5,133		$	4,604		$	16,365		$	20,766
Add back: Stock-based compensation		617			550			2,540			2,128
Gross profit, professional services, non-GAAP	$	5,750		$	5,154		$	18,905		$	22,894

Gross profit	$	128,808		$	109,447		$	475,817		$	407,990
Add back: Stock-based compensation		1,915			1,430			7,570			5,565
Gross profit, non-GAAP	$	130,723		$	110,877		$	483,387		$	413,555

Cost of revenue, subscription and support	$	25,113		$	21,028		$	99,193		$	77,711
Less: Stock-based compensation		1,298			880			5,030			3,437
Cost of revenue, subscription and support, non-GAAP	$	23,815		$	20,148		$	94,163		$	74,274

Cost of revenue, professional services	$	12,732		$	13,328		$	55,029		$	52,174
Less: Stock-based compensation		617			550			2,540			2,128
Cost of revenue, professional services, non-GAAP	$	12,115		$	12,778		$	52,489		$	50,046

Research and development	$	42,555		$	38,072		$	172,790		$	151,716
Less: Stock-based compensation		4,764			3,282			18,441			12,554
Less: Amortization of acquisition-related intangibles		886			867			3,554			3,107
Research and development, non-GAAP	$	36,905		$	33,923		$	150,795		$	136,055

Sales and marketing	$	71,867		$	60,381		$	287,035		$	245,260
Less: Stock-based compensation		7,005			4,935			27,774			19,323
Less: Amortization of acquisition-related intangibles		587			581			2,392			1,954
Sales and marketing, non-GAAP	$	64,275		$	54,865		$	256,869		$	223,983

General and administrative	$	23,859		$	24,271		$	110,519		$	99,778
Less: Stock-based compensation		7,052			6,960			44,980			33,218
General and administrative, non-GAAP	$	16,807		$	17,311		$	65,539		$	66,560

Loss from operations	$	(9,473	)	$	(13,277	)	$	(94,527	)	$	(88,764	)
Add back: Stock-based compensation		20,736			16,607			98,765			70,660
Add back: Amortization of acquisition-related intangibles		1,473			1,448			5,946			5,061
Income (loss) from operations, non-GAAP	$	12,736		$	4,778		$	10,184		$	(13,043	)

Net loss	$	(4,196	)	$	(13,902	)	$	(127,525	)	$	(90,947	)
Add back: Stock-based compensation		20,736			16,607			98,765			70,660
Add back: Amortization of acquisition-related intangibles		1,473			1,448			5,946			5,061
Net income (loss), non-GAAP	$	18,013		$	4,153		$	(22,814	)	$	(15,226	)

Net loss per basic and diluted share:	$	(0.08	)	$	(0.26	)	$	(2.36	)	$	(1.72	)
Add back: Stock-based compensation		0.38			0.31			1.83			1.33
Add back: Amortization of acquisition-related intangibles		0.03			0.03			0.11			0.10
Net income (loss) per basic share, non-GAAP	$	0.33		$	0.08		$	(0.42	)	$	(0.29	)
Net income (loss) per diluted share, non-GAAP	$	0.30		$	0.08		$	(0.42	)	$	(0.29	)

Weighted-average common shares outstanding - basic, non-GAAP		54,432,003			53,279,147			54,099,757			52,954,079
Weighted-average common shares outstanding - diluted, non-GAAP		60,523,201			54,938,441			54,099,757			52,954,079

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

	Three months ending March 31, 2024							Year ending December 31, 2024

Loss from operations, GAAP range	$	(20,500	)	-	$	(18,500	)	$	(85,000	)	-	$	(81,000	)
Add back: Stock-based compensation		23,200				23,200			97,000				97,000
Add back: Amortization of acquisition-related intangibles		1,300				1,300			5,000				5,000
Income from operations, non-GAAP range	$	4,000		-	$	6,000		$	17,000		-	$	21,000

Net loss per share, GAAP range	$	(0.29	)	-	$	(0.25	)	$	(1.28	)	-	$	(1.21	)
Add back: Stock-based compensation		0.42				0.42			1.75				1.75
Add back: Amortization of acquisition-related intangibles		0.02				0.02			0.09				0.09
Net income per share, non-GAAP range	$	0.15		-	$	0.19		$	0.56		-	$	0.63

Weighted-average common shares outstanding - basic		55,000,000				55,000,000			55,300,000				55,300,000

View source version on businesswire.com: https://www.businesswire.com/news/home/20240220852191/en/

Investor Contact:

Mike Rost

Workiva Inc.

investor@workiva.com

Media Contact:

Rotha Brauntz

Workiva Inc.

press@workiva.com

Source: Workiva Inc.

FAQ

What were Workiva's subscription revenues in Q4 2023?

Workiva reported subscription revenues of $149 million in Q4 2023, representing 18% year-over-year growth.

How many customers did Workiva have as of December 31, 2023?

Workiva had 6,034 customers as of December 31, 2023, with a net increase of 370 customers from 2022.

What was Workiva's revenue retention rate as of December 31, 2023?

Workiva's revenue retention rate (excluding add-on revenue) was 98% as of December 31, 2023, and 110% including add-on revenue.

How much cash, cash equivalents, and marketable securities did Workiva have as of December 31, 2023?

Workiva had cash, cash equivalents, and marketable securities totaling $814 million as of December 31, 2023, compared with $431 million in 2022.

Workiva Inc. Announces Fourth Quarter and Full Year 2023 Financial Results

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What were Workiva's subscription revenues in Q4 2023?

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