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Mar 31, 2020
Workiva Q1 2020 Earnings Report
Workiva's financial performance exceeded expectations, driven by strong subscription and support revenue growth.
Key Takeaways
Workiva announced its Q1 2020 financial results, reporting a 22.6% increase in total revenue to $85.8 million compared to Q1 2019. Subscription and support revenue grew by 21.8% to $68.4 million. The company's leadership expressed confidence in its financial position, citing nearly $500 million in unrestricted cash and short-term investments, despite economic uncertainties due to COVID-19.
Total revenue reached $85.8 million, up 22.6% from Q1 2019.
Subscription and support revenue was $68.4 million, a 21.8% increase year-over-year.
Workiva had 3,507 customers as of March 31, 2020, a net increase of 141 customers from March 31, 2019.
Revenue retention rate including add-on revenue was 110.9%.
Workiva
Workiva
Workiva Revenue by Segment
Revenue by Segment
Subscription and Support Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Workiva is providing guidance for the second quarter but suspending specific guidance for full year 2020. For full year 2020, revenue is expected to grow at a slower pace and operating margin to improve.
Positive Outlook
- Total revenue is expected to be in the range of $80.3 million to $80.8 million for Q2 2020.
- GAAP loss from operations is expected to be in the range of $22.1 million to $22.6 million for Q2 2020.
- Non-GAAP loss from operations is expected to be in the range of $6.8 million to $7.3 million for Q2 2020.
- GAAP net loss per basic and diluted share is expected to be in the range of $0.50 to $0.51 for Q2 2020.
- Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.14 to $0.15 for Q2 2020.
Challenges Ahead
- The depth and duration of the economic disruption from COVID-19 is unknown.
- Limited visibility on when new deals will close.
- Suspending specific guidance for full year 2020.
- Now expect full year 2020 revenue to grow at a slower pace
- GAAP net loss per basic and diluted share is expected to be in the range of $0.50 to $0.51.
Revenue & Expenses
Visualization of income flow from segment revenue to net income