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Sep 30, 2021

Workiva Q3 2021 Earnings Report

Workiva demonstrated a robust financial performance, exceeding revenue and operating results guidance for the third quarter.

Key Takeaways

Workiva reported a strong third quarter with a 27.9% increase in total revenue, driven by a 30.4% rise in subscription and support revenue. The company raised its full-year revenue guidance to $439 million to $440 million and non-GAAP operating income to $15 million to $16 million.

Total revenue for Q3 2021 reached $112.7 million, up 27.9% from Q3 2020.

Subscription and support revenue increased by 30.4% year-over-year, contributing $98.9 million.

Workiva had 4,146 customers as of September 30, 2021, a net increase of 563 customers from September 30, 2020.

The company increased customers with an annual contract value over $150,000 by 41.3% year-over-year.

Total Revenue
$113M
Previous year: $88.1M
+27.9%
EPS
$0.15
Previous year: $0.04
+275.0%
Customers
4.15K
Previous year: 3.58K
+15.7%
Revenue Retention Rate
111.1%
Previous year: 110%
+1.0%
Customers ACV > 100k
1.04K
Previous year: 785
+32.9%
Gross Profit
$86.3M
Previous year: $66.2M
+30.4%
Cash and Equivalents
$291M
Previous year: $426M
-31.7%
Free Cash Flow
$15.5M
Previous year: $7.5M
+107.4%
Total Assets
$750M
Previous year: $688M
+9.1%

Workiva

Workiva

Workiva Revenue by Segment

Forward Guidance

Workiva provided guidance for Q4 2021 and full year 2021.

Positive Outlook

  • Total revenue is expected to be in the range of $116.5 million to $117.5 million for Q4 2021.
  • GAAP loss from operations is expected to be in the range of $15.6 million to $14.6 million for Q4 2021.
  • Non-GAAP loss from operations is expected to be in the range of $2.8 million to $1.8 million for Q4 2021.
  • Total revenue is expected to be in the range of $439.0 million to $440.0 million for full year 2021.
  • Non-GAAP income from operations is expected to be in the range of $15.0 million to $16.0 million for full year 2021.

Challenges Ahead

  • GAAP net loss per basic and diluted share is expected to be in the range of $0.37 to $0.35 for Q4 2021.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.07 to $0.05 for Q4 2021.
  • GAAP loss from operations is expected to be in the range of $33.5 million to $32.5 million for full year 2021.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.83 to $0.81 for full year 2021.
  • Net loss per basic share is based on 51.7 million weighted-average shares outstanding.

Revenue & Expenses

Visualization of income flow from segment revenue to net income