Workiva Q2 2022 Earnings Report
Key Takeaways
Workiva announced strong Q2 2022 financial results, with total revenue reaching $131.5 million, a 24.6% increase year-over-year. The company exceeded market expectations for subscription and support revenue and added 123 net new logos for the Workiva platform. Workiva is focused on balancing growth with operating leverage to return to quarterly operating profit on a Non-GAAP basis in the latter half of 2023.
Total revenue for Q2 2022 reached $131.5 million, up 24.6% year-over-year.
Subscription and support revenue increased by 24.3% compared to Q2 2021.
The company added 123 net new logos for the Workiva platform.
Revenue retention rate was 97.9% (excluding add-on revenue) and 108.0% (including add-on revenue).
Workiva
Workiva
Workiva Revenue by Segment
Forward Guidance
Workiva provided updated guidance for the third quarter and full year 2022.
Positive Outlook
- Total revenue is expected to be in the range of $132.0 million to $133.0 million for Q3 2022.
- Total revenue is expected to be in the range of $534.0 million to $536.0 million for full year 2022.
- Maintaining investment in platform.
- Maintaining investment in purpose-built solutions.
- Maintaining investment in talent.
Challenges Ahead
- GAAP loss from operations is expected to be in the range of $33.5 million to $32.5 million for Q3 2022.
- Non-GAAP loss from operations is expected to be in the range of $13.0 million to $12.0 million for Q3 2022.
- GAAP net loss per basic share is expected to be in the range of $0.66 to $0.64 for Q3 2022.
- Non-GAAP net loss per basic share is expected to be in the range of $0.27 to $0.25 for Q3 2022.
- Slowing the hiring plans for parts of our core business for the remainder of 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income