8-K
Workiva Inc (WK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
February 25, 2025
Date of Report (date of earliest event reported)
___________________________________
WORKIVA INC.
(Exact name of registrant as specified in its charter)
___________________________________
| Delaware<br><br>(State or other jurisdiction of incorporation or organization) | 001-36773<br><br>(Commission File Number) | 47-2509828<br><br>(I.R.S. Employer Identification Number) |
|---|---|---|
| 2900 University Blvd<br><br>Ames, IA 50010<br><br>(888) 275-3125 | ||
| (Address of principal executive offices and zip code) | ||
| (888) 275-3125 | ||
| (Registrant's telephone number, including area code) | ||
| ___________________________________ |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
|---|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
| Securities registered pursuant to Section 12(b) of the Act: | ||
| --- | --- | --- |
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Class A common stock, par value $.001 | WK | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Section 2 - Financial Information
Item 2.02 - Results of Operations and Financial Condition
On February 25, 2025, Workiva Inc. (the "Company") issued a press release announcing its results for the quarter ended December 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information in this current report on Form 8-K and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 - Financial Statements and Exhibits
(d): The following exhibits are being filed herewith:
| Exhibit<br><br>Number | Description |
|---|---|
| 99.1 | Press Release entitled "Workiva Inc. Announces Fourth Quarter and Full Year 2024 Financial Results" dated February 25, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 25th day of February, 2025.
| WORKIVA INC. | |
|---|---|
| By: | /s/ Jill Klindt |
| Name: | Jill Klindt |
| Title: | Executive Vice President, Chief Financial Officer, and Treasurer |
Document
Workiva Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
•Increased Q4 2024 subscription & support revenue by 22% over Q4 2023
•Total revenue of $200 million in Q4 2024, representing 20% year-over-year growth
•Customers with annual contract value over $500,000 grew 32% year-over-year
NEW YORK - February 25, 2025 – 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, 2024.
"Our Q4 results contributed to a year of accelerating growth as we executed on our strategy across financial, operational, and innovation initiatives," said Julie Iskow, President & Chief Executive Officer. "Our platform continues to resonate resulting in broad-based global demand for our solutions. Through the power of our assured integrated reporting platform and our expanding partner ecosystem, we’re consistently increasing the value we deliver to our customers. We enter 2025 confident about our market opportunity and ability to execute on our large and untapped total addressable market."
"Q4 was a great quarter, capping off a year marked by improved productivity and execution," said Jill Klindt, Chief Financial Officer. "Subscription revenue grew by 22% in Q4, driving our total revenue beat to $4 million over the high end of our guidance range. Account expansion activity across our platform accelerated our net retention rate to 112% compared to 110% in Q4 of last year."
Fourth Quarter 2024 Financial Results
•Revenue: Total revenue for the fourth quarter of 2024 reached $200 million, an increase of 20% from $167 million in the fourth quarter of 2023. Subscription and support revenue contributed $181 million, up 22% versus the fourth quarter of 2023. Professional services revenue was $19 million, up 6% from $18 million in the fourth quarter of 2023.
•Gross Margin: GAAP gross margin was 77.2% versus 77.3% in the fourth quarter of 2023. Non-GAAP gross margin was 79.2% compared to 78.4% in the fourth quarter of 2023.
•Results from Operations: GAAP loss from operations for the fourth quarter of 2024 was $13 million compared with a loss of $9 million in the prior year's fourth quarter. Non-GAAP income from operations was $15 million compared with non-GAAP income from operations of $13 million in the fourth quarter of 2023.
•GAAP Net Loss: GAAP net loss for the fourth quarter of 2024 was $9 million compared with a net loss of $4 million for the prior year's fourth quarter. GAAP net loss per basic and diluted share was $0.16 compared with a net loss per basic and diluted share of $0.08 in the fourth quarter of 2023.
•Non-GAAP Net Income: Non-GAAP net income for the fourth quarter of 2024 was $19 million compared with non-GAAP net income of $18 million in the prior year's fourth quarter. Non-GAAP net income per basic share and diluted share in the fourth quarter of 2024 was $0.35 and $0.33, respectively, compared with non-GAAP net income per basic share and diluted share of $0.33 and $0.32, respectively, in the fourth quarter of 2023.
•Liquidity: As of December 31, 2024, Workiva had cash, cash equivalents, and marketable securities totaling $816 million, compared with $814 million as of December 31, 2023. 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 $14 million of finance lease obligations outstanding as of December 31, 2024.
Key Metrics and Recent Business Highlights
•Customers: Workiva had 6,305 customers as of December 31, 2024, a net increase of 271 customers from December 31, 2023.
•Retention Rate: As of December 31, 2024, Workiva's gross retention rate was 97%, and the net retention rate was 112%. Net retention includes changes in both solutions and pricing for existing customers.
•Large Contracts: As of December 31, 2024, Workiva had 2,055 customers with an annual contract value (“ACV”) of more than $100,000, up 26% from 1,631 customers at December 31, 2023. Workiva had 416 customers with an ACV of more than $300,000, up 34% from 311 customers in the fourth quarter of 2023. Workiva had 181 customers with an ACV of more than $500,000, up 32% from 137 customers in the fourth quarter of 2023.
Full Year 2024 Financial Results
•Revenue: Total revenue for the full year 2024 reached $739 million, an increase of 17% from $630 million in 2023. Subscription and support revenue contributed $668 million, up 20% compared to 2023. Professional services revenue was $71 million, relatively flat compared to the prior year.
•Gross Margin: GAAP gross margin was 76.7% versus 75.6% in the prior year. Non-GAAP gross margin was 78.5% compared to 76.7% in the prior year.
•Results from Operations: GAAP loss from operations for 2024 was $77 million compared with a loss of $95 million in the prior year. Non-GAAP income from operations was $32 million, compared with non-GAAP income from operations of $10 million in 2023.
•GAAP Net Loss: GAAP net loss for 2024 was $55 million compared with a net loss of $128 million in the prior year. GAAP net loss per basic and diluted share was $0.99 compared with a net loss per basic and diluted share of $2.36 in 2023.
•Non-GAAP Net Income/Loss: Non-GAAP net income for 2024 was $54 million compared with a non-GAAP net loss of $23 million in the prior year. Non-GAAP net income per basic share and diluted share was $0.97 and $0.94, respectively, compared with a non-GAAP net loss per basic and diluted share of $0.42 in 2023.
•Cash Flow: Net cash provided by operating activities was $88 million in 2024, compared to cash provided by operating activities of $71 million in 2023. Free cash flow was $86 million in 2024 compared to free cash flow of $69 million in 2023. Free cash flow margin was 11.7% in 2024 compared to 10.9% in 2023.
Financial Outlook
As of February 25, 2025, Workiva is providing guidance as follows:
First Quarter 2025 Guidance:
•Total revenue is expected to be in the range of $203 million to $205 million.
•GAAP operating margin is expected to be approximately (14.3)%.
•Non-GAAP operating margin is expected to be approximately break-even.
•GAAP net loss per basic share is expected to be approximately $(0.45) using 56.4 million shares.
•Non-GAAP net income per diluted share is expected to be approximately $0.07 using 57.9 million shares.
Full Year 2025 Guidance:
•Total revenue is expected to be in the range of $864 million to $868 million.
•GAAP operating margin is expected to be approximately (9.1)% to (8.6)%.
•Non-GAAP operating margin is expected to be approximately 5.0% to 5.5%.
•GAAP net loss per basic share is expected to be approximately $(1.07) to $(1.00) using 56.9 million shares.
•Non-GAAP net income per diluted share is expected to be approximately $1.02 to $1.09 using 60.1 million shares.
•Free cash flow margin is expected to be approximately 12.0%.
Quarterly Conference Call
Workiva will host a webcast today at 5:00 p.m. Eastern Time to review the Company’s financial results for the fourth quarter and full fiscal year 2024, in addition to discussing the Company’s outlook for the first quarter and full year 2025. The call can be accessed by dialing 1-833-630-1956 (U.S. domestic) or 1-412-317-1837 (international). Additionally, a live webcast and replay will be available at https://investor.workiva.com/news-events/events.
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, sustainability management, and governance, risk, and compliance (GRC) 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), non-GAAP net income (loss) per share, free cash flow and free cash flow margin 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. 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 gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. 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 they are reflective of ongoing operations.
Free cash flow, a non-GAAP measure, represents cash flow from operating activities less purchase of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenue. We consider free cash
flow and free cash flow margin to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business.
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.
Forward-Looking Statements
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," "target," "goal," "project," "continue to," "confident," or the negative of those terms or other comparable terminology.
Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| ### | ||||||||
|---|---|---|---|---|---|---|---|---|
| Investor Contact: | Media Contact: | |||||||
| Katie White | Mandi McReynolds | |||||||
| Workiva Inc. | Workiva Inc. | |||||||
| investor@workiva.com | press@workiva.com | |||||||
| WORKIVA INC.<br><br>CONSOLIDATED STATEMENTS OF OPERATIONS<br>(in thousands, except share and per share amounts) | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three months ended December 31, | Year ended December 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| (unaudited) | ||||||||
| Revenue | ||||||||
| Subscription and support | $ | 180,897 | $ | 148,788 | $ | 667,646 | $ | 558,645 |
| Professional services | 18,992 | 17,865 | 71,034 | 71,394 | ||||
| Total revenue | 199,889 | 166,653 | 738,680 | 630,039 | ||||
| Cost of revenue | ||||||||
| Subscription and support (1) | 32,204 | 25,113 | 118,697 | 99,193 | ||||
| Professional services (1) | 13,485 | 12,732 | 53,358 | 55,029 | ||||
| Total cost of revenue | 45,689 | 37,845 | 172,055 | 154,222 | ||||
| Gross profit | 154,200 | 128,808 | 566,625 | 475,817 | ||||
| Operating expenses | ||||||||
| Research and development (1) | 50,607 | 42,555 | 192,935 | 172,790 | ||||
| Sales and marketing (1) | 90,157 | 71,867 | 347,243 | 287,035 | ||||
| General and administrative (1) | 26,756 | 23,859 | 102,981 | 110,519 | ||||
| Total operating expenses | 167,520 | 138,281 | 643,159 | 570,344 | ||||
| Loss from operations | (13,320) | (9,473) | (76,534) | (94,527) | ||||
| Interest income | 9,306 | 10,336 | 39,395 | 25,882 | ||||
| Interest expense | (3,197) | (3,202) | (12,865) | (53,639) | ||||
| Other income and (expense), net | 872 | (364) | 563 | (1,814) | ||||
| Loss before provision for income taxes | (6,339) | (2,703) | (49,441) | (124,098) | ||||
| Provision for income taxes | 2,476 | 1,493 | 5,601 | 3,427 | ||||
| Net loss | $ | (8,815) | $ | (4,196) | $ | (55,042) | $ | (127,525) |
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (0.16) | $ | (0.08) | $ | (0.99) | $ | (2.36) |
| Weighted-average common shares outstanding - basic and diluted | 55,739,950 | 54,432,003 | 55,355,381 | 54,099,757 |
(1) Includes stock-based compensation expense as follows:
| Three months ended December 31, | Year ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (unaudited) | ||||||||||||
| Cost of revenue | ||||||||||||
| Subscription and support | $ | 2,271 | $ | 1,298 | $ | 7,979 | $ | 5,030 | ||||
| Professional services | 873 | 617 | 3,221 | 2,540 | ||||||||
| Operating expenses | ||||||||||||
| Research and development | 5,562 | 4,764 | 21,036 | 18,441 | ||||||||
| Sales and marketing | 8,869 | 7,005 | 35,339 | 27,774 | ||||||||
| General and administrative | 8,696 | 7,052 | 34,575 | 44,980 | ||||||||
| WORKIVA INC.<br><br>CONSOLIDATED BALANCE SHEETS<br>(in thousands) | ||||||||||||
| --- | --- | --- | --- | --- | ||||||||
| As of December 31, | ||||||||||||
| 2024 | 2023 | |||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 301,835 | $ | 256,100 | ||||||||
| Marketable securities | 514,585 | 557,622 | ||||||||||
| Accounts receivable, net | 148,433 | 125,193 | ||||||||||
| Deferred costs | 50,914 | 39,023 | ||||||||||
| Other receivables | 10,276 | 7,367 | ||||||||||
| Prepaid expenses and other | 22,199 | 23,631 | ||||||||||
| Total current assets | 1,048,242 | 1,008,936 | ||||||||||
| Property and equipment, net | 21,825 | 24,282 | ||||||||||
| Operating lease right-of-use assets | 11,786 | 12,642 | ||||||||||
| Deferred costs, non-current | 54,858 | 33,346 | ||||||||||
| Goodwill | 196,844 | 112,097 | ||||||||||
| Intangible assets, net | 27,389 | 22,892 | ||||||||||
| Other assets | 7,525 | 4,665 | ||||||||||
| Total assets | $ | 1,368,469 | $ | 1,218,860 | ||||||||
| Liabilities and Stockholders’ Deficit | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable | $ | 7,747 | $ | 5,204 | ||||||||
| Accrued expenses and other current liabilities | 126,508 | 97,921 | ||||||||||
| Deferred revenue | 457,608 | 380,843 | ||||||||||
| Finance lease obligations | 562 | 532 | ||||||||||
| Total current liabilities | 592,425 | 484,500 | ||||||||||
| Convertible senior notes, non-current | 764,891 | 762,455 | ||||||||||
| Deferred revenue, non-current | 29,681 | 36,177 | ||||||||||
| Other long-term liabilities | 227 | 178 | ||||||||||
| Operating lease liabilities, non-current | 9,441 | 10,890 | ||||||||||
| Finance lease obligations, non-current | 13,488 | 14,050 | ||||||||||
| Total liabilities | 1,410,153 | 1,308,250 | ||||||||||
| Stockholders’ deficit | ||||||||||||
| Common stock | 56 | 54 | ||||||||||
| Additional paid-in-capital | 672,363 | 562,942 | ||||||||||
| Accumulated deficit | (707,683) | (652,641) | ||||||||||
| Accumulated other comprehensive (loss) income | (6,420) | 255 | ||||||||||
| Total stockholders’ deficit | (41,684) | (89,390) | ||||||||||
| Total liabilities and stockholders’ deficit | $ | 1,368,469 | $ | 1,218,860 | ||||||||
| WORKIVA INC.<br><br>CONSOLIDATED STATEMENTS OF CASH FLOWS<br>(in thousands) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Three months ended December 31, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (unaudited) | ||||||||||||
| Cash flows from operating activities | ||||||||||||
| Net loss | $ | (8,815) | $ | (4,196) | $ | (55,042) | $ | (127,525) | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||||
| Depreciation and amortization | 2,911 | 2,787 | 11,003 | 11,140 | ||||||||
| Stock-based compensation expense | 26,271 | 20,736 | 102,150 | 98,765 | ||||||||
| Provision for doubtful accounts | 85 | 353 | 39 | 410 | ||||||||
| Accretion of premiums and discounts on marketable securities, net | (2,286) | (3,186) | (11,829) | (7,716) | ||||||||
| Amortization of debt discount and issuance costs | 610 | 608 | 2,436 | 1,730 | ||||||||
| Induced conversion expense | — | — | — | 45,144 | ||||||||
| Realized loss on sale of available-for-sale securities, net | — | — | — | 708 | ||||||||
| Deferred income tax | (337) | 3 | (629) | (14) | ||||||||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | (12,845) | (25,561) | (24,352) | (18,318) | ||||||||
| Deferred costs | (19,337) | (5,971) | (34,477) | 277 | ||||||||
| Operating lease right-of-use asset | 1,328 | 1,177 | 5,136 | 4,984 | ||||||||
| Other receivables | (1,680) | (334) | 1,116 | (2,176) | ||||||||
| Prepaid expenses and other | (1,311) | (1,038) | 1,453 | (5,023) | ||||||||
| Other assets | (1,094) | 751 | (2,285) | 2,230 | ||||||||
| Accounts payable | (5,231) | 265 | 2,399 | (1,002) | ||||||||
| Deferred revenue | 51,681 | 37,887 | 73,840 | 60,112 | ||||||||
| Operating lease liability | (907) | (1,004) | (3,738) | (4,133) | ||||||||
| Accrued expenses and other liabilities | 14,927 | 1,065 | 20,486 | 11,282 | ||||||||
| Net cash provided by operating activities | 43,970 | 24,342 | 87,706 | 70,875 | ||||||||
| Cash flows from investing activities | ||||||||||||
| Purchase of property and equipment | (809) | (392) | (1,363) | (2,124) | ||||||||
| Purchase of marketable securities | (92,160) | (251,296) | (402,235) | (573,304) | ||||||||
| Maturities of marketable securities | 106,290 | 76,547 | 452,023 | 153,358 | ||||||||
| Sale of marketable securities | — | — | 4,609 | 65,052 | ||||||||
| Acquisitions, net of cash acquired | — | — | (98,092) | — | ||||||||
| Purchase of intangible assets | (74) | (68) | (191) | (235) | ||||||||
| Net cash provided by (used in) investing activities | 13,247 | (175,209) | (45,249) | (357,253) | ||||||||
| WORKIVA INC.<br><br>CONSOLIDATED STATEMENTS OF CASH FLOWS<br>(in thousands) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Three months ended December 31, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (unaudited) | ||||||||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from option exercises | 1,044 | 1,148 | 4,909 | 4,472 | ||||||||
| Taxes paid related to net share settlements of stock-based compensation awards | (34) | (35) | (11,458) | (9,459) | ||||||||
| Proceeds from shares issued in connection with employee stock purchase plan | — | — | 13,822 | 12,513 | ||||||||
| 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 | (137) | (129) | (532) | (505) | ||||||||
| Net cash provided by financing activities | 873 | 984 | 6,741 | 301,265 | ||||||||
| Effect of foreign exchange rates on cash | (4,494) | 1,719 | (3,569) | 1,637 | ||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 53,596 | (148,164) | 45,629 | 16,524 | ||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 248,754 | 404,885 | 256,721 | 240,197 | ||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 302,350 | $ | 256,721 | $ | 302,350 | $ | 256,721 | ||||
| Three months ended December 31, | Year ended December 31, | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (unaudited) | ||||||||||||
| Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||||||||||||
| Cash and cash equivalents at end of period | $ | 301,835 | $ | 256,100 | $ | 301,835 | $ | 256,100 | ||||
| Restricted cash included within prepaid expenses and other at end of period | 515 | 621 | 515 | 621 | ||||||||
| Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows | $ | 302,350 | $ | 256,721 | $ | 302,350 | $ | 256,721 | ||||
| TABLE I<br>WORKIVA INC.<br>RECONCILIATION OF NON-GAAP INFORMATION<br>(in thousands, except share and per share) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Three months ended December 31, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Gross profit, subscription and support | $ | 148,693 | $ | 123,675 | $ | 548,949 | $ | 459,452 | ||||
| Add back: Stock-based compensation | 2,271 | 1,298 | 7,979 | 5,030 | ||||||||
| Add back: Amortization of acquisition-related intangibles | 916 | — | 1,923 | — | ||||||||
| Gross profit, subscription and support, non-GAAP | $ | 151,880 | $ | 124,973 | $ | 558,851 | $ | 464,482 | ||||
| Gross profit, professional services | $ | 5,507 | $ | 5,133 | $ | 17,676 | $ | 16,365 | ||||
| Add back: Stock-based compensation | 873 | 617 | 3,221 | 2,540 | ||||||||
| Gross profit, professional services, non-GAAP | $ | 6,380 | $ | 5,750 | $ | 20,897 | $ | 18,905 | ||||
| Gross profit | $ | 154,200 | $ | 128,808 | $ | 566,625 | $ | 475,817 | ||||
| Add back: Stock-based compensation | 3,144 | 1,915 | 11,200 | 7,570 | ||||||||
| Add back: Amortization of acquisition-related intangibles | 916 | — | 1,923 | — | ||||||||
| Gross profit, non-GAAP | $ | 158,260 | $ | 130,723 | $ | 579,748 | $ | 483,387 | ||||
| Cost of revenue, subscription and support | $ | 32,204 | $ | 25,113 | $ | 118,697 | $ | 99,193 | ||||
| Less: Stock-based compensation | 2,271 | 1,298 | 7,979 | 5,030 | ||||||||
| Less: Amortization of acquisition-related intangibles | 916 | — | 1,923 | — | ||||||||
| Cost of revenue, subscription and support, non-GAAP | $ | 29,017 | $ | 23,815 | $ | 108,795 | $ | 94,163 | ||||
| Cost of revenue, professional services | $ | 13,485 | $ | 12,732 | $ | 53,358 | $ | 55,029 | ||||
| Less: Stock-based compensation | 873 | 617 | 3,221 | 2,540 | ||||||||
| Cost of revenue, professional services, non-GAAP | $ | 12,612 | $ | 12,115 | $ | 50,137 | $ | 52,489 | ||||
| Research and development | $ | 50,607 | $ | 42,555 | $ | 192,935 | $ | 172,790 | ||||
| Less: Stock-based compensation | 5,562 | 4,764 | 21,036 | 18,441 | ||||||||
| Less: Amortization of acquisition-related intangibles | 495 | 886 | 2,762 | 3,554 | ||||||||
| Research and development, non-GAAP | $ | 44,550 | $ | 36,905 | $ | 169,137 | $ | 150,795 | ||||
| Sales and marketing | $ | 90,157 | $ | 71,867 | $ | 347,243 | $ | 287,035 | ||||
| Less: Stock-based compensation | 8,869 | 7,005 | 35,339 | 27,774 | ||||||||
| Less: Amortization of acquisition-related intangibles | 453 | 587 | 1,745 | 2,392 | ||||||||
| Sales and marketing, non-GAAP | $ | 80,835 | $ | 64,275 | $ | 310,159 | $ | 256,869 | ||||
| General and administrative | $ | 26,756 | $ | 23,859 | $ | 102,981 | $ | 110,519 | ||||
| Less: Stock-based compensation | 8,696 | 7,052 | 34,575 | 44,980 | ||||||||
| General and administrative, non-GAAP | $ | 18,060 | $ | 16,807 | $ | 68,406 | $ | 65,539 | ||||
| TABLE I<br>WORKIVA INC.<br>RECONCILIATION OF NON-GAAP INFORMATION<br>(in thousands, except share and per share) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three months ended December 31, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Loss from operations | $ | (13,320) | $ | (9,473) | $ | (76,534) | $ | (94,527) | ||||
| Add back: Stock-based compensation | 26,271 | 20,736 | 102,150 | 98,765 | ||||||||
| Add back: Amortization of acquisition-related intangibles | 1,864 | 1,473 | 6,429 | 5,946 | ||||||||
| Income from operations, non-GAAP | $ | 14,815 | $ | 12,736 | $ | 32,045 | $ | 10,184 | ||||
| GAAP operating margin | (6.6) | % | (5.6) | % | (10.3) | % | (14.9) | % | ||||
| Non-GAAP operating margin | 7.4 | % | 7.6 | % | 4.3 | % | 1.6 | % | ||||
| Net loss | $ | (8,815) | $ | (4,196) | $ | (55,042) | $ | (127,525) | ||||
| Add back: Stock-based compensation | 26,271 | 20,736 | 102,150 | 98,765 | ||||||||
| Add back: Amortization of acquisition-related intangibles | 1,864 | 1,473 | 6,429 | 5,946 | ||||||||
| Net income (loss), non-GAAP | $ | 19,320 | $ | 18,013 | $ | 53,537 | $ | (22,814) | ||||
| Net loss per basic and diluted share: | $ | (0.16) | $ | (0.08) | $ | (0.99) | $ | (2.36) | ||||
| Add back: Stock-based compensation | 0.48 | 0.38 | 1.84 | 1.83 | ||||||||
| Add back: Amortization of acquisition-related intangibles | 0.03 | 0.03 | 0.12 | 0.11 | ||||||||
| Net income (loss) per basic share, non-GAAP | $ | 0.35 | $ | 0.33 | $ | 0.97 | $ | (0.42) | ||||
| Net income (loss) per diluted share, non-GAAP | $ | 0.33 | $ | 0.32 | $ | 0.94 | $ | (0.42) | ||||
| Weighted-average common shares outstanding - basic, non-GAAP | 55,739,950 | 54,432,003 | 55,355,381 | 54,099,757 | ||||||||
| Effect of potentially dilutive securities | 2,565,293 | 2,675,903 | 1,331,818 | — | ||||||||
| Weighted-average common shares outstanding - diluted, non-GAAP | 58,305,243 | 57,107,906 | 56,687,199 | 54,099,757 | ||||||||
| Net cash provided by operating activities | $ | 43,970 | 24,342 | 87,706 | 70,875 | |||||||
| Purchase of property and equipment | (809) | (392) | (1,363) | (2,124) | ||||||||
| Free cash flow | $ | 43,161 | $ | 23,950 | $ | 86,343 | $ | 68,751 | ||||
| Free cash flow margin | 21.6 | % | 14.4 | % | 11.7 | % | 10.9 | % | ||||
| TABLE II<br><br>WORKIVA INC.<br><br>RECONCILIATION OF NON-GAAP GUIDANCE | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Three months ending March 31, 2025 | Year ending December 31, 2025 | |||||||||||
| GAAP operating margin | (14.3) | % | (9.1) | % | (8.6) | % | ||||||
| Add back: Stock-based compensation | 13.5 | % | 13.3 | % | 13.3 | % | ||||||
| Add back: Amortization of acquisition-related intangibles | 0.8 | % | 0.8 | % | 0.8 | % | ||||||
| Non-GAAP operating margin | — | % | 5.0 | % | 5.5 | % | ||||||
| Net loss per basic share, GAAP range | $ | (0.45) | $ | (1.07) | - | $ | (1.00) | |||||
| Add back: Stock-based compensation | 0.49 | 2.03 | 2.03 | |||||||||
| Add back: Amortization of acquisition-related intangibles | 0.03 | 0.12 | 0.12 | |||||||||
| Effect of potentially dilutive securities | — | (0.06) | (0.06) | |||||||||
| Net income per diluted share, non-GAAP range | $ | 0.07 | $ | 1.02 | - | $ | 1.09 | |||||
| Weighted-average common shares used in calculating GAAP earnings per share, basic | 56,400,000 | 56,900,000 | 56,900,000 | |||||||||
| Weighted-average common shares used in calculating non-GAAP earnings per share, diluted | 57,900,000 | 60,100,000 | 60,100,000 |
8